Regulations Governing the Bonding Operations in Science Parks Article 12

The following provisions shall govern in the event of discrepancy between the quantity of the physical inventory check and the booked balance-in-stock for the same inventory check year of any bonded goods after the annual inventory check made by a park enterprise in accordance with the preceding Article:1. Where the quantity of physical inventory check of an item is less than its quantity shown in the booked balance-in-stock, and such discrepancy does not exceed the inventory check discrepancy tolerance rate, payment of supplementary duty for such discrepancy shall be exempted; whereas, if the discrepancy exceeds the inventory check discrepancy tolerance rate, the park enterprise shall, within ten days after receipt of a notice for payment of supplementary duty issued by the Customs, submit the tax return for the supplementary payment of the import duties , commodity taxes and business taxes as required.2. Where the quantity of physical inventory check of an item exceeds its booked balance-in-stock, such discrepancy shall be included the quantity of booked balance-in-stock. In addition, justification shall be given for such discrepancy. If such discrepancy is caused by the product's excessive use of raw materials, the "Bill of Materials" shall be amended accordingly for use in the following annual closing process.Whereas a park enterprise possesses supplies or raw materials that are of the same type or are interchangeable, and whereas some of these are bonded the rest are not, both shall be included in the company’s annual inventory check.The inventory check discrepancy tolerance rates applicable to raw materials of park enterprises shall be determined in accordance with the Table of Inventory check Discrepancy Tolerance Rates Classified by Categories of Raw Materials and Trades of Bonded Factories.