Management Regulations Governing Bonded Business in Technology Industrial Parks Article 16

When the inventory of bonded commodities taken pursuant to the provisions of the previous article does not correspond to the quantities in the book balance, business entities shall follow the following regulations:1.When the actual inventory counts are less than the quantities in the book balance, repayment of duties and taxes can be exempted if the difference does not exceed the inventory allowance rate; if the difference exceeds the inventory allowance rate, business entities shall amend the declaration forms and repay overdue import duties, commodity tax, and business tax within 10 days from the day following the reception of overdue tax bill issued by Customs.2.When the actual inventory counts are more than the quantities in the book balance, business entities shall incorporate the difference into the book balance. If the difference exceeds the inventory allowance rate, business entities shall explain the reasons to Customs. If the quantity of product materials listed in the bill of materials is higher, business entities shall amend the bill of materials for the use of annual account settlement the following year.Raw materials in the same category or which can be mutually replaced and used alternately by business entities, if some are bonded while others are non-bonded, shall be included all together for annual inventory taking; accounts of bonded and non-bonded raw materials shall be written off based on the quantities of actual use. If the quantities of actual use can not be ascertained, the amount of bonded raw materials shall be written off as priority; repayment of duties and taxes can be exempted for inventory loss in non-bonded materials.The allowance rate of raw material inventory difference for business entities is based on the allowance rate table of inventory difference of raw materials classified by industry and category in bonded factories under Customs management.