Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export Products Article 17

Where a factory or firm approved for a self-executed affidavit and account recording is found to be in any of the following circumstances, its privilege of self-executed affidavit and account recording shall be suspended:1. Failure to pay the imposed taxes or penalties which are overdue, or failure to provide commensurate security for the imposed taxes or penalties.2. Notable deterioration of the business conditions of the factory or firm.3. Provision of false or illegally altered documents to obtain the privilege of self-executed affidavit.Where an export factory or firm applying for recording its business tax on accounts changes its status and thus fails to satisfy the provisions of Paragraph 1, Article 13, the tax authority shall immediately send Customs a written notice notifying Customs to suspend the factory or firm's privilege of making a self-executed affidavit and recording the business tax on accounts. The outstanding business tax which is not due for payment should be collected immediately, and the offsetting operation should be suspended.A factory or firm whose privilege of making self-executed affidavit and recording business tax on accounts is suspended pursuant to Subparagraphs 1 and 2, Paragraph 1 should, within 14 days after the day following the delivery of the Customs notice, submit a security or guarantee bond commensurate with taxes which are not due for payment. In the case of failure to submit the security or guarantee bond, Customs should suspend the offsetting operation of the factory or firm, and collect all outstanding taxes and delinquent fees. For a factory or firm whose privilege of making self-executed affidavit and recording business tax on accounts is suspended pursuant to Subparagraph 3, Paragraph 1, Customs should suspend the offsetting operation and collect the taxes which are not due for payment.Where a factory or firm processing self-executed affidavit or account recording fails to renew its qualification for self-executed affidavit or account recording for the following year, in the absence of any of the circumstances provided in Paragraph 1 or Paragraph 2, the taxes which have been recorded on account and are not due for payment may continue to be offset.