Regulations Governing Customs Bonded Factories Article 40

The bonded products of a Bonded Factory shall be for import in principle. If domestic sale of such bonded products is required, an application for approval shall be filed with the supervising Customs. For processed products of a Bonded Factory which are approved for domestic sales, the Bonded Factory alone or jointly with the buyer party, shall prepare an application for "import of foreign goods"; and shall not release such products from the Factory until the said application has been filed with and supplementary assessment of import duties and taxes has been made by the supervising Customs in accordance with the form and state of such products at the time of their release from the Factory.The firms purchasing such domestically salable bonded products in the preceding paragraph may apply to the supervising Customs for selecting one of the following methods to assess import duties on such products, however that where domestically salable products are manufactured from materials more than 50% of which are shingle intermediate goods for assembly use, import duties on such products shall be assessed according to the tax rate applicable to the duty-paid value of such products.1. Customs duties levy on the domestically salable bonded products shall be calculated and assessed in accordance with the relevant tariff rate against the amount equal to (70) percent of the duty-paying value of such products.2. While the fact of use of non-bondable raw materials in the bonded products have been confirmed, the import duties levy thereon shall be calculated and assessed in accordance with the applicable tariff rates against the duty-paying value of such products less the value of such non-bondable raw materials.The domestically salable bonded products of bonded factory are reprocessed for export, such products are eligible for offsetting or refund of duties and taxes in accordance with the ''Regulations Governing the Offsetting or Refund of Duty and Taxes On The Raw Materials Of Export Products". However, this shall not apply to the products or commodities which have been excluded from the list of duty refundable items.For the raw materials imported by a Bonded Factory are diverted to domestic sales with the approval of the supervising Customs, the provision in Paragraphs 1 and 3 shall apply mutatis mutandis.