Act for the Establishment and Management of Free trade zones Article 26

Where tax-free goods are transported out of a free trade zone to a processing contractor located in a tax area in accordance with the provisions of the preceding Article, such goods shall be limited to those which are not prohibited. Except for one of any following circumstances, the imported raw materials used in the processing operation performed by the processing contractor located in the tax area as set forth in the preceding paragraph may apply for duty drawback in accordance with the Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export Products:1. The item of duty refund has been cancelled by the Ministry of Finance by public notice.2. The amount of the refundable duty for the raw materials, or percentage of it in the FOB price of the finished products is lower than the limit prescribed by the Ministry of Finance. Where any goods, machinery, or equipment of a free-trade-zone enterprise needs to be transported to a tax area for repair, test, inspection, and/or commissioned processing, due to commission of free-trade-zone enterprise or foreign enterprise, agency, group, or organization accepted by tax area enterprise are shipped back to free trade zone after completion of work, the business tax rate applicable for said labor income shall be zero.