Regulations Governing the Bonding Operations in Science Parks Article 31

Bonded goods to be sold domestically or delivered to a tax zone may be released from the Park only after an application for import thereof has been filed to the Customs and the supplementary import duty and taxes thereon have been levied by and paid to the Customs.In the case the bonded goods, as prescribed in preceding Paragraph, are subject to import/export control as published, per a public notice, by the authority in charge of trade, an approval shall be obtained from the Park Bureau or relevant competent authority. In the event the bonded goods are to be sold to a manufacturer in a tax zone for further processing and export, such bounded goods shall be declared in a separate application to the Customs for the offset or refund of import duty and taxes after the reprocessed goods have been exported.In the event that the bonded goods under the preceding two (2) Paragraphs are found damaged or not conforming to the specifications or quality requirements specified in the original sales agreement and must be replaced with new ones or indemnified by the park enterprise, such goods to be released for the replacement or indemnification from the Park may be exempt from import duty.An application accompanied by relevant certificate(s) shall be filed, within one (1) month after the release of the original bonded goods involved, with and verified by the Customs. As for the machinery and equipment sold or delivered to a tax zone and subsequently returned to the Park for repair or assembly, the relevant provisions of the Customs Act shall govern.For bonded products under Paragraph 1, import duty shall be levied thereon in accordance with one of the following manners:1. For the products which can be manufactured or produced domestically, import duty thereon shall be levied based on the amount of the balance generated by deducting an amount, equal to 30% thereof, from the duty-paying value of such products at the time of their output from the manufacturing factory;2. For the products which cannot be produced or manufactured in the domestic tax zone, import duty thereon shall be levied based on the value of raw materials or parts used in such products.