Customs Act Article 59

I. Export processing factories may be registered, with the approval of Customs and under its supervision, as bonded factories. Raw materials imported and stored by bonded factories for manufacturing or processing into exported products shall be exempt from customs duties.II.Finished products processed or manufactured by bonded factories, and raw materials exempted from customs duties in accordance with the provisions of the preceding paragraph, shall not be moved out of bonded factories, unless approved by Customs and unless duties have been paid on products or raw materials in the form when they were moved out of bonded factories.III.Self-use machinery and equipment imported by a bonded factory shall be exempt from customs duty. Nonetheless, in case where the aforementioned machinery and equipment are exported to the tax area within five years following the date of importation, the duty-payer of such goods shall pay Customs duty in accordance with relevant laws and regulations governing the importation of goods.IV.Bonded factories shall apply to the relevant Customs office for registration. Regulations governing the qualification, conditions, capital requirements, application procedure, installation and equipment, registration and any registration changes, certificate application and renewals, processing, management, clearance, recoverable duty procedures for domestic sales of bonded goods and any other required matters shall be prescribed by the MOF.