Regulations Governing Customs Bonded Factories｜第 44 條｜關務｜Regulation｜In Force
第 五 章｜財政部｜v1.0
Last Amended: 2022-09-16
Sub-standard bonded products, by-products, scraps, wastes, inactive stock of materials and scrapes of self-use machines and equipment at a Bonded Factory shall be disposed of in accordance with the following provisions: 1. Items with utilization value may be sold in the domestic market after the duty-paid value thereof have been determined on the basis of "specific duties system" or the selling prices (duty-paid value of sub-standard products shall be determined in accordance with Paragraph 2, Article 40) in accordance with the General Rules of Customs Import Tariff, and duties and taxes thereon have been assessed and collected; or such items may be destroyed under supervision of Customs and then taken out of the Bonded Factory after duties and taxes are paid to Customs for the residual value thereof. Where scraps and/or wastes are large quantity, bulky, difficult to be destroyed in the factory, and that the bonded factory adopts the used quantity declaration for its "Schedule of Raw Materials Used Per Unit of Product" and is not required to process the deduction from stock account, the bonded factory may estimate a three-month quantity in advance for use and file an application for clearance with Customs; the goods may be released with sufficient amount of security deposit. Upon approval of Customs, the bonded factory shall process the customs clearance and pay the tax in advance, and thereafter claim for goods release from the factory in batches; if the scraps and wastes are unable to be fully withdrawn from the factory, the bonded factory may apply with supervising Customs for extension; nonetheless, such extension shall not exceed one month and only one extension of application can be filed. 2. Items without utilization value shall be destroyed under the supervision of Customs officials or under the joint supervision of Customs and authorities concerned, in case such need becomes necessary. The scraps and wastes approved by Customs for customs clearance with duties and taxes thereof being paid beforehand as provided in the Subparagraph 1 of the preceding paragraph shall be provided with trading receipts of the actual trading amount within four months following the advance customs declaration for Customs to assess customs value; firms with justifiable cause may apply for extension before the completion of four months period, and the extension period shall not exceed one year following Customs release. For inactive stock of raw materials not re-exported for any reason or bonded products or sub-standard bonded products not exported for any reason, the Bonded Factory may, within two years from the following day of the date of importation or completion of reprocessing of bonded raw materials, deduct such items from the stock account in accordance with the provision of the Paragraph 1; in case of failure to process the stock account deduction within the deadline, the inactive stock of raw materials, the bonded products or the sub-standard bonded products may be sold in the domestic market after duties and taxes are being paid pursuant to Subparagraph 1 of Paragraph 1. Where the failure is caused due to special situation, an application for extension may be filed with the supervising Customs prior to the expiration of the original deadline, and the length of such extension should not exceed one year. Bonded by-products, scraps and wastes referred to in the preceding Article, for which attrition rates are not separately indicated in the "Schedule of raw materials used per unit" or have been indicated but pending approval, may be offset against the account of bonded raw materials after verification. For supervising destruction cases of the first paragraph, a scrap list should be prepared in advance, clearly marking the description, serial number, specification, quantity and unit of the bonded goods and attached relevant certification documents while submitting an application to the supervising Customs in written document or electronic transmission.Authorized Economic Operators (AEOs) assessed as superior-class bonded factories who have been approved for exemption from monitoring destruction by Customs shall, within 14 days from the day after the completion of the destruction, specify the date, location, method of destruction and the shipping destination to the scrapped list, with attached pictures of the destroyed goods and other relevant certification documents present to the supervising Customs for verification in written document or electronic transmission.