Regulations Governing Customs Clearance for Goods in Free Trade Zones Article 20

The free-trade-zone enterprise shall attend to the following book-keeping matters related to the loss of goods due to theft or damage by disasters pursuant to Paragraph 2 of Article 18 of the Act:1. Where any of the duty-free goods in the possession of a free-trade-zone enterprise are lost by theft, the free-trade-zone enterprise shall report such matter to the free trade zone management authority and the police office and obtain a certificate; moreover, the free-trade-zone enterprise shall further make supplementary payment of import duty leviable thereon and cancel the relevant account records of the lost goods within three (3) months from the day following the date of such theft, except under any extraordinary situation, in which case, an application may be filed with Customs for the furnishing of a guarantee deposit by the enterprise in exchange for a provisional exemption from the supplementary payment of import duty leviable thereon provided, however, that the duration of such provisional tax exemption shall in no case be longer than six (6) months beginning from the day following the date of such theft. In the event that the lost goods can not be recovered upon expiry of the foregoing grace period, Customs shall offset the guarantee deposit against the taxes so as to close the pending case; the guarantee deposit prepaid for the portion of the lost goods which has been recovered, if any, shall be refunded.2. Where any of the duty-free goods in the possession of a free-trade-zone enterprise are damaged by flood, typhoon, fire or any other types of natural disasters during the period of storage thereof, and the damage has been declared within one week from the day following the date of termination of the fact of such disaster as justified by the free trade zone management authority, such damaged goods may be canceled from the account records thereof after verification; and the waste generated therefrom shall be subject to assessment or exemption of the taxes in accordance with Subparagraph 4 of the preceding article.When any of the duty-free goods in the possession of a free-trade-zone enterprise have no more commercial value, the said goods may be governed in accordance with Subparagraph 4 of the preceding article.