Regulations Governing the Certification and Management of the Authorized Economic Operators Article 2

Definitions of terms used in these Regulations are as follows:1. “Authorized Economic Operator” (AEO) refers to economic operator in the supply chain certified by the Customs. There are two types of AEO, namely “General Authorized Economic Operator” (AEOG) and “Security and Safety Authorized Economic Operator” (AEOS).2. “economic operators in the supply chain” refer to economic operators performing the functions of duty-payers, exporters, manufacturers, customs brokers, freight forwarders, shipping agencies, warehouse operators, highway carriers, sea carriers, and air carriers involved in international movement of goods.3. A “record of serious violation of regulations” refers to the commitment of following irregularities within the period specified by these regulations, which results in a sanction decision notice from the Customs. Nonetheless, in the event that a violation is caused by another economic operator in the supply chain or in the event that an acquiring business did not discover, until a merger or acquisition was completed, that the merged business had committed a violation set forth in Item 2 or 3 of this subparagraph prior to the merger or acquisition, such violation shall not be counted in.(1)an recorded act of smuggling;(2)violation of regulations committed as a result of such an act, which causes the amount of tax evaded (customs duties and the taxes collected on behalf of other government agencies), overpaid tax refund, or the fixed-amount fine imposed for a single case or for an aggregate of multiple cases exceeds NTD 500 thousand; and(3)violation of regulations committed as a result of such an act whose value of confiscated goods for a single case or for an aggregate of multiple cases exceeds NTD 1 million.