Regulations Governing Customs Clearance for Goods in Free Trade Zones Article 21

The free-trade-zone enterprise shall attend to the following matters related to the annual inventory process pursuant to Article 20 of the Act:1. A notification shall be submitted to Customs and recognized by Customs no less than two (2) weeks before the scheduled inventory date.2. In performing annual inventory, all goods shipped outside the free trade zone for the purpose of processing, repair, inspection, testing and exhibition with the approval of Customs shall be fully shipped back, included in the inventory and canceled. If any goods cannot be shipped back due to any reason, an application shall be filed with Customs for approval to conduct annual inventory outside the free trade zone on the same date.3. The minimum length of time from the date of inventory check in the preceding year to the annual inventory check date of the current year shall be not less than ten (10) months, while the maximum length of time shall not exceed fourteen (14) months; however, the aforesaid intervals may be shortened or extended in the case of extraordinary situations, with prior approval of Customs.4. In the case of any goods approved to be placed under the monthly consolidated declaration of a free-trade-zone enterprise, a consolidated customs declaration form shall be presented to Customs for the customs clearance procedures before the scheduled inventory check date.5. Upon conclusion of the annual inventory check, the free-trade-zone enterprise shall prepare two copies of inventory lists and final settlement statements, respectively, of the goods for sales requirements inside and outside the free trade zone and of the machinery and equipment for its personal use inside the free trade zone. The inventory lists shall be submitted to Customs for future inspection within one month from the day following the date of the conclusion of the inventory check. Where circumstances require, an application for a one-month extension may be filed with Customs prior to the expiration of said deadline.6. Raw materials under the same material number that are already stored in a tax-free or taxed manner shall be included in the inventory upon annual closing and the account for tax-free and taxed goods shall be written off against the actual quantity used. If the actual quantity used cannot be verified, the quantity of raw tax-free materials shall be written off with priority. In case of an inventory shortage of taxed raw materials, a supplemental payment of import duty to Customs shall be processed.7. Where an inventory shortage is found during the inventory inspection process conducted by Customs in accordance with Subparagraph 5, a supplementary payment of import duty to Customs shall be processed and statements shall be prepared within 10 days from the day following the date on which the supplemental tax notice was issued by Customs. Where an inventory surplus is found during the inventory inspection conducted by Customs, an explanation shall be made, and at the same time the records on the accounting books shall be updated.