Regulations Governing Customs Bonded Factories Article 54

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 the bonded raw materials importation may be adopted for a period of not more than six months :1. No factory release certificate has been prepared and issued in accordance with Paragraph 2 of Article 17 at the time when releasing goods from the Factory.2. Bonded items for export released from the Factory were not transported to the port exportation according to Article 34 or there was a shortage in the quantity of such items upon arrival at the port of exportation.3. Imported bonded items were not transported in accordance with Paragraph 1 of Article 28 to the Bonded Factory after having been taken out from the warehouses at the place of importation.4. There was a shortage in the quantity of any bonded item being stored in warehouse without proper reason, and the shortage exceeds three (3) percent of the total booked quantity in stock.5. The cumulative amount of duties and taxes either payable or recordable on credit involved in the cases of supplementary payment or recording of duties and taxes to be reported on a monthly basis in accordance with Article 41 has exceeded the total amount of security provided (by the Bonded Factory).6. In case the Customs approved bonded goods subject to the time limit for shipping back fail to be shipped back to the bonded factory within the said time limit.