Regulations Governing the Establishment and Management of Duty-free Shops Article 29

Where the bonded goods of a duty-free shop suffers loss or damage during the period of their storage in the bonded warehouse, and upon the verification of such loss or damage by the supervising Customs officers, the provisions of Article 50 of the Customs Act and Article 39 of the Enforcement Rules of the Customs Act shall apply.Where the duty-free shop bonded goods in storage are found to be deficient due to illegal withdrawal, loss, theft or any other reason, and upon the verification of such deficiency by the supervising Customs officers, the firm operating such a business shall be responsible to make up any shortfall of the import duty payable.In the event that the duty-free shop bonded goods mentioned in the preceding paragraph are stolen or burglarized, thereby resulting in quantity loss, upon the establishment of such fact in an official police report, the loss may be reported to the competent Customs Office for verification. The value of the lost or damaged goods should be write-off from book accounts within three(3) months after the theft or burglary and pursuant to the price of goods on the importation date of the goods (or date regarded as the importation date of the goods); payable due payment shall be calculated based on the duty rate of the same reference date. However, where the theft or burglary is still under investigation, the competent Customs Office, pursuant to application by the duty-payer, may authorize the submission of a equal amount guarantee bond; where all(or part) of the goods are recovered within three(3) months after the duty payment deadline has elapsed, the guarantee bond shall be returned to the duty-payer; otherwise the said guarantee bond shall serve as payment for payable duties.