Regulations Governing the Bonding Operations in Science Parks Article 10

Every park enterprise shall self-conduct an inventory check once a year and jointly conduct the inventory check with a certified public accountant once every two years. However, park enterprises approved by the Customs as Authorized Economic Operators (AEO), or those that maintain complete and accurate account books of bonded goods and implements sound control systems for bonded goods may, prior to one month of the date for a joint inventory check with a certified public accountant or of the deadline date of annual inventory check, apply to the Customs for exemption from conducting the inventory check jointly with a certified public accountant.The time period between any annual inventory check and the one before may not be less than ten months or exceed fourteen months. Special circumstances, if reported to the Customs in advance, may result in approval for extra early or extra late inventory checks. The Customs and the Park Bureau may conduct an inventory check whenever it is deemed necessary.Where there is any discrepancy or omission found afterward in respect of an item not sampled in the course of the inventory check conducted in accordance with the preceding Paragraph, before such item is shipped to the tax zone, an application shall be filed, within one (1) month for the machinery and equipment, two (2) weeks for other products, after the inventory check, with the Customs for re-check. Application exceeding the said time frame shall be rejected.Within three months after the inventory check, a park enterprise shall, based on its inventory check listing, prepare a Bonded Goods Inventory Chart and a Final Statement Report, and submit these to the Customs for examination and approval. In the same submission there shall also be two Raw Material Analysis Tables: one for refinished products, semi-finished products and finished products, the other for domestic sale and export products. Should a special circumstance arise, the park enterprise may apply for approval from the Customs to obtain a one-time extension of one month.A park enterprise with research and development operations as its primary business activities and with only machinery and equipment regarded as bonded goods shall be exempted from conducting the joint inventory check with a certified public accountant.The certified public accountant to be retained for conducting the inventory check jointly with a park enterprise shall be limited to a certified public accountant approved and registered as a tax agent in accordance with the Regulations Governing Certified Public Accountants to Act as Agent in Handling Income Tax Affairs.Where a park enterprise qualified for performing the self-check-and-inspection of goods to be entered in and/or released from the Park and for making a consolidated monthly report of such operations is to retain certified public accountant to conduct and authenticate an annual inventory check, it may be exempted from conducting such annual inventory checks jointly with the Customs. An annual final accounting statement audited and certified by a certified public accountant may be exempted from the examination and approval of the Customs.