Regulations Governing the Bonding Operations in Science Parks Article 33

The by-products, waste materials, scraps and defective products generated from a production process in a park enterprise shall be stored, in sequential order by categories and nature thereof, in warehouses or other storage places recognized by the Park Bureau and the Customs. Discarded materials in the form of semi-finished products shall be recorded respectively in a list for inspection and auditing purposes.The by-products, as mentioned in the preceding Paragraph, refer to other products generated from a production process of the targeted products.The term "waste materials" referred to in Paragraph 1 shall mean the obsolete machines, equipment, and parts and components or materials which are owned by the park enterprise but have become unusable or not through production process but are still considered as a part of its assets; or the products or machinery and equipment damaged due to disasters which become unusable to the park enterprise but are still considered as a part of its assets.The term "scraps" referred to in Paragraph 1 of this Article shall mean the residuals and discarded materials leftover in the course of production which become unusable to the park enterprise.The defective products, as mentioned in Paragraph 1, refers to products with defects or blemishes that do not meet the customers' quality requirements, but have all or part of the intended functions of the target products and are still available for sale.