Regulations Governing Customs Clearance for Goods in Free Trade Zones Article 18

The free-trade-zone enterprise shall attend to the following bookkeeping matters related to the storage and collection of goods pursuant to Paragraph 2 of Article 18 of the Act:1. Upon storage of goods in or collection of goods from a depot, an account of the goods shall be recorded in two separate accounting books maintained respectively for the goods to satisfy sales requirements and for the machinery and equipment for its own use.2. The entries to be recorded in such accounting books shall include the material number, the description of goods, the type/model number and specifications of the goods, the depot’s receipt/warrant number for incoming/outgoing goods, export/import zone or intra-area transaction certificate number, the date and time of storage into/collection from the depot, the quantity of the goods received/released by the depot, and the balance of the goods in stock.3. Machinery or equipment for personal use may be written off from the property account after five (5) years from the date of its entry into the free trade zone. Such goods shall still be registered in the relevant accounting books and records if not released from the free trade zone yet.4. The account record of any consumable material for machinery and equipment for personal use shall be written off against the quantity used thereof, with prior approval from Customs.5. If the bill of the materials used cannot be prepared for parts and components used for operational goods in storage for repair purposes due to special circumstances, an explanatory document should be attached to an application to be filed with Customs before the repair and the account record shall be written off against the quantity used thereof, if approved. The list of actual quantity used shall be provided to Customs for further inspection before the fifth day of the following month. If the application is not filed in accordance with this provision, the account record shall not be written off against the quantity used.6. In case of any natural reduction of quantity of any stored goods due to the nature of the goods, the account record may be written off if the shortfall is confirmed by Customs.7. The duration of the storage of goods transported into a depot shall be free from any limitation provided, however, that for goods with a storage duration over two (2) years, a list thereof shall be printed out and made available for inspection by Customs.8. A free-trade-zone enterprise shall be equipped with the necessary computer equipment capable of printing out relevant account records and statements, which shall be made accessible to Customs for remote verification and retrieval of relevant data and information.9. A free-trade-zone enterprise having been approved by the Customs authority to transport goods to a tax area on a monthly consolidated declaration basis or to be commissioned by a contractor in a tax area to perform processing, repair, inspection or testing without adding non-taxed raw material shall establish and maintain "The Records of the Revolving Use of the Deposit Furnished by Free-Trade-Zone Enterprises for the Transport of Goods to a Tax Area on a Monthly Consolidated Declaration Basis" and record thereon the data and information pertaining to the payment of the deposit, the shipping date, the name of the enterprise, and the description, specifications, model number, material number, quantity, and price of the goods, as well as the estimated amount of tax payable in order to withdraw the goods from the free trade zone in batches within the ceiling of the deposit. Upon completion of the monthly consolidated declaration and approval by Customs for the release of the goods, the ceiling of the deposit shall be reinstated in accordance with the originally estimated amount of duty/tax payable in respect of each item of the goods released from the free trade zone.