Regulations Governing Customs Bonded Factories Article 51-1

In the event that any bonded factory is found to have any of the following instances, Customs, in accordance with Article 89 of the Customs Act, shall warn or impose a fine of not less than NT$6,000 and not more than NT$30,000 and may be ordered to improve before a certain period of time; the fine shall be charged per violation in case of failure to improve before the given deadline. If there is no improvement after three penalties, a suspension of monthly declaration privileges may be adopted for a period of not more than six months, and a suspension of the bonded raw materials importation may also be adopted for a period of not more than one month:1. Bonded factories sell or transport bonded goods to enterprises in Science Parks, Technology Industrial Parks, Agricultural Technology Parks, Free-Trade-Zones or other bonded factories, but fail to produce declarations and submit them to Customs along with relevant documents for clearance on a monthly basis, within the period stipulated in Subparagraph 2 of Paragraph 1 of Article 31 and Paragraph 3 of Article 33.2. Bonded factories store bonded items in logistics centers or private bonded warehouses, but fail to produce declarations and submit them to Customs along with relevant documents for clearance on a monthly basis, within the period stipulated in Paragraph 2 of Article 33-1.