Regulations Governing the Establishment and Management of Offshore Island Duty-Free Shops Article 31

Where bonded goods stored in an offshore island duty-free shop suffer loss or damage during the storage period, the matter shall be handled in accordance with Article 50 of the Customs Act and Article 39 of the Enforcement Rules of the Customs Act. In the event that such loss or damage is reported to the competent Customs Office within one week from the day following the cessation of the disaster and is verified to be true, the bonded goods may be written off upon verification.Where bonded goods stored in an offshore island duty-free shop are stolen or burglarized, resulting in a loss of quantity, and an official police report is obtained, the loss shall be reported to the competent Customs Office for verification. Where verified, the lost goods shall be subject to additional duties and taxes and may be written off within three months from the day following the theft, calculated based on the price and tariff or tax rate at the time the bonded goods were imported into the self-provided bonded warehouse. However, where the stolen goods are still under investigation, the competent Customs Office, upon application by the duty-payer, may permit the submission of a guarantee bond equal to the amount of duties and taxes payable. If all or part of the stolen goods are recovered within six months from the day following the theft, the guarantee bond shall be returned to the duty-payer.