Regulations Governing Customs Bonded Factories Article 37

For bonded products to be sold for further processing and export by a bonded factory to an export processing factory eligible for recording of payable import duties and taxes on credit, the following procedures shall govern in the process of clearance by Customs:1. The buyer and the seller shall jointly prepare an application for export/import of products processed and sold for further processing and export by a bonded factory to an export processing factory eligible for recording of payable import duties and tax and file the same together with invoices, packing lists and other relevant documents with the supervising Customs in accordance with Paragraph 2, Article 40 hereof for recording of import duties and taxes on credit and Customs release formalities before delivering the products from the bonded factory. The bonded factory is allowed to deliver the products from the factory in advance after providing securities and to submit a monthly report on such sales accompanied by relevant evidential documents not later than the fifteenth (15th) day of the following month.2. Goods or products to be released in accordance with the preceding paragraph may be delivered from the factory bylots. However, the deliveries thereof shall be completed within one month beginning from the second day after the grant of Customs release.Recording of import duties and taxes on credit against the said export processing factory as specified in the preceding paragraph shall be made in accordance with the "Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export Products ", with the date of Customs release to be regarded as the date of export and import.