Regulations Governing Customs Clearance for Goods in Free Trade Zones Article 16-1

When goods transported from a free trade zone to a tax area are found to have been damaged or not conforming to specifications and quality as stated in the original contract, thereby necessitating compensation or replacement by the original free trade zone enterprise, the compensation or replacement goods shall be exempt from duty on the condition that the situation is reported to Customs within one month commencing from the date following the release of the original goods transported to the tax area.The provisions of Article 41 and Paragraph 1 of Article 42 of the Enforcement Rules of the Customs Act shall apply mutatis mutandis to the documents required for the aforementioned report and its operating procedures.