Regulations Governing the Establishment and Management of Duty-free Shops Article 8

The duty exemption privileges for the duty-free shop purchases of departing or arriving passengers are as provided in the following:1. Exemption from Customs duty: Duty-free goods are not subject to customs duties under the provisions of Article 61, Paragraph 2 of the Customs Act.2. Exemption from Commodity tax: Duty-free goods are not subject to commodity tax as provided Article 3, Paragraph 1, Subparagraph 2 of the Statute on Commodity Tax.3. Exemption from Business tax: Duty-free goods are not subject to business taxes under the provisions of Article 7, Subparagraph 3 of the Value-Added and Non-Value-Added Tax Law.4. Exemption from Tobacco and liquor tax: Duty-free goods are not subject to tobacco and liquor taxes under the provisions of Article 5, Subparagraph 2 of the Tobacco and Liquor Tax Law.5. Tobacco health and welfare surcharge exemption: Pursuant to Article 22-1 of the Tobacco and Liquor Tax Law, under the provisions of Article 5, Subparagraph 2 of the same law, duty-free goods are not subject to the tobacco health and welfare surcharge.Duty-free shop goods sold to incoming passengers are regarded as foreign goods hand-carried into the country by passengers; hence, during customs clearance procedures, such purchases are subject to the provisions of ‘The Regulations Governing the Customs Declaration, Inspection and Release of Hand-Carried Luggage of Inward Passengers’. In the case where the quantity of such goods exceeds the duty exemption limit, passengers shall pay the pertaining customs duty, commodity tax, tobacco and liquor tax, tobacco health and welfare surcharge, and business tax.