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Title	Rules Governing the Implementation of the Customs Law
Announced Date	2002-06-18
Content	Chapter Ⅰ- General Provisions Article 1 The Rules are prescribed in accordance with Article 95 of the Customs Law (hereinafter referred to as "the Law"). Article 2 Upon amendment of the Law or the Customs Import Tariff, the application of the provisions of the Law or the tariffs shall be governed by the following: 1. For imported goods, the amendment thereto shall apply from the arrival date of the means of transportation. However, the provisions of the Law or the Customs Import Tariff shall apply from the date of application for release of such goods from a bonded warehouse for import, provided that the goods were originally stored in the bonded warehouse under Article 52 of the Law; or from the date of application for import thereof if the goods are imported for domestic sale as approved in accordance with Paragraph 2, Article 53 of the Law; or from the date of application for release of such goods from a distribution center for import if the goods were stored in the distribution center under Article 54 of the Law. 2. For exported goods, the amendment thereto shall apply from the date of their release from Customs. Article 3 The term "appropriate guarantee" or " appropriate deposit" set forth in the Law shall denote, in addition to cash, the following guarantees equivalent to the leviable duty determined by Customs: 1. Bonds issued by the government; 2. Time deposit certificates issued by a bank; 3. Time deposit certificates issued by a credit cooperative; 4. A one year or more common trust certificate issued by a trust and investment company; or 5. A guarantee provided by a financial institution. The security furnished in any of the forms specified in Item 1 to 4 in the preceding paragraph shall be pledged to Customs. Article 4 The terms "consignee", "the bearer of the bill of lading", and "the holder of the imported goods" referred to in Article 5 of the Law shall be defined as following: 1. The term "consignee" shall denote the consignee as indicated on the bill of lading or the import manifest. 2. The term "the bearer of the bill of lading" shall denote the person who is in possession of the bill of lading as a result of his acceptance of the assignment of the goods indicated on the bill of lading from a consignee, or who is entrusted by a consignee or assignee of the goods to file an import declaration with Customs in his own name. 3. The term "the holder of imported goods" shall denote the person who is in possession of the imported goods on which import duties are leviable but not paid, such as the holder or assignee of imported goods referred to in Article 49 of the Law. Article 5 The expression "finally determined" set forth in Article 7 of the Law shall refer to any of the following situations: 1. In a case in which a determination of import duty or an administrative decision has been made by Customs, the duty-payer or the person subject to the administrative decision fails to apply for a review in accordance with the Law. 2. In a case in which a review decision of has been made, the duty-payer or the person subject to the administrative decision fails to file an administrative appeal in accordance with the relevant law. 3. In a case in which a decision on administrative appeal has been made, the duty-payer or the person subject to the administrative decision fails to initiate administrative proceedings in accordance with the relevant law. 4. In a case in which a judgment on administrative proceedings has been declared final and irrevocable. Chapter Ⅱ-Procedures Governing Customs Clearance Section 1-Import Declaration and Examination Article 6 The term " the arrival date of the means of transportation " referred to in Paragraph 1 of Article 12 and Paragraph 1 of Article 56 of the Law and Article 2 of the Rules shall refer to: 1. For sea cargo, the date on which the vessel arrives at the port of entry and files the import manifest with Customs; 2. For air cargo, the date on which the plane arrives at the airport and files the import manifest with Customs; 3. For mailed goods, the date on which the post office mails a parcel claim notice or affixes a postage stamp to the parcel delivery order; or 4. For transshipment goods, the date on which the means of transportation carrying the imported goods first arrives at the port of discharge and files the import manifest with Customs. Article 7 The term "other requisite documents" referred to in Paragraph 1, Article 13 of the Law shall denote the following documents: 1. The import permit and the certificate of origin, which must both be submitted for examination in accordance with other laws and regulations. 2. The catalog, instruction manual, leaflet or drawings required for Customs examination and valuation; and the application form in case Customs duty is levied on the amount of rental fees or charge for use. 3. Relevant certificates required by other government agencies for effecting the examination and release of imported goods. 4. Other certificates required by Customs. Imported goods which are in bulk or in large quantity or uniform packing may be exempted from submitting a packing list pursuant to Paragraph 1, Article 13 of the Law. The duty-payer approved by Customs to submit documents required before release pursuant to Paragraph 3, Article 13 of the Law shall submit such documents within one month following the date of receipt of the Customs notice. Customs may extend this period for a further month on request. However, this stipulation shall not apply in special cases approved by the Ministry of Finance. Article 8 The term "in an appropriate amount" referred to Paragraph 2, Article 14 of the Law shall mean either the amount equivalent to the Customs duty payable on the imported goods as calculated under the applicable tariff number to be used by Customs or the value tentatively assessed by Customs. The term "in an appropriate amount" referred to Paragraph 3, Article 14 of the Law shall be denoted in accordance with the following provisions: 1. Where the duty-payer fails to submit the relevant certificates for deduction or exemption of import duty in time but will submit in follow up, it shall mean the full amount of import duty payable. 2. Where the imported goods fall under the scope of import- permissible items, the duty-payer fails to apply for issuance of an import permit in time and it is necessary for him/her to apply for clearance and prompt delivery, it shall mean the amount equivalent to the Customs value thereof assessed by Customs. 3. Where Customs considers it necessary to examine and release imported goods in advance against the payment of a deposit, it shall mean the amount determined by Customs as per the case. Article 9 Where the deposit paid by a duty-payer under the provisions of Paragraph 3, Article 14 of the Law is confiscated owing to his/her failure to complete Customs formalities within a prescribed period, the duty-payer may be exempted from completing such procedures for the purpose of concluding the case. Article 10 Customs designating the time and place for unloading of imported goods and issuing a general discharge permit under Article 20 of the Law, the time of unloading shall be confined within the office hours of Customs. In case the imported goods to be unloaded out of the office hours, a special permit may be issued upon request. Section 2-Customs Value Article 11 The term "the price actually paid or payable for imported goods sold from an exporting country to the Republic of China" in Paragraph 2 of Article 25 of the Law shall not include the following expenses, Customs duties, and taxes, provided that they are distinguished from the price actually paid or payable for the imported goods: 1. Expenses for construction, erection, assembly, maintenance or technical assistance undertaken after importation of imported goods such as industrial plants, machinery and equipment. 2. The cost of transport after importation. 3. The deferred interest on a transaction with deferred payment terms. 4. Customs duties and taxes on imported goods. Except for expenses specified in Paragraph 3 of Article 25 of the Law, expenses paid by the buyer for his own benefit shall not be considered as a payment to the seller, even though they might be regarded as being of benefit to the seller. Article 12 The term "commissions" referred to in Item 1, Paragraph 3, Article 25 of the Law shall not include fees paid by the buyer to his agent for purchase of the imported goods abroad. The term "royalties and license fees" referred to in Item 3, Paragraph 3, Article 25 of the Law shall denote the payment to acquire the patent, the exclusive rights of trademark, copyright, and other intellectual property rights protected by legislation related to the imported goods, excluding charges for the right to reproduce imported goods in the R.O.C. Article 13 In cases where Customs still has reasonable doubts about the truth and accuracy of the account books and vouchers provided by the duty-payer under Paragraph 5, Article 25 of the Law, Customs shall inform the duty-payer of the reasons for its doubts, and shall provide a reasonable opportunity for the duty-payer to respond. The duty-payer, in addition, may request Customs to provide a written explanation of its doubts. After determining the Customs value, Customs shall forward to the duty-payer the final decision and reasons in writing along with the duty memo. Article 14 If the buyer and seller are deemed to be related under Article 26 of the Law, Customs, if having doubts about the transaction value, shall investigate the circumstances of the transaction; if necessary, Customs may require the duty-payer to provide more detailed information. In the event, Customs, pursuant to information discovered by themselves or provided by the duty-payer, consider that the relationship of the seller and the buyer affects the transaction value, it shall explain the reasons to the duty-payer and provide the duty-payer with a reasonable opportunity to respond. The duty-payer may request Customs to explain its reasons in written form. In case the transaction value referred to in the preceding paragraph is close to one of the following values, it shall be deemed that the relationship has no effect on the transaction value: 1. The transaction value of identical or similar goods determined by Customs where the buyer and the seller are unrelated. 2. The deductive value of identical or similar goods determined by Customs. 3. The computed value of identical or similar goods determined by Customs. The identical or similar goods referred to in Item 1 and 3 of the preceding paragraph shall be limited to imported goods which are exported from the exporting country on the date of exportation or within 30 days before or after the date of exportation of the goods being valued. The identical or similar goods referred to in Item 2 shall be limited to goods which are imported on the date of importation or within 30 days before or after the date of importation of the goods being valued. Article 15 Where there are two or more transaction values available with respect to identical goods as referred to in Paragraph 1, Article 27 of the Law, the applicable transaction value shall be determined in accordance with the following order of precedence: 1. The transaction value of identical goods produced by the same manufacturer shall be given precedence in application over the transaction value of identical goods produced by other manufacturers. 2. The transaction value of identical goods at the same commercial level and in substantially the same quantity as the goods being valued shall be given precedence in application. 3. Where there are two or more transaction values of identical goods available, the lowest value shall be given precedence in application. The provisions of the preceding paragraph shall apply mutatis mutandis to the transaction value of the similar goods as referred to in Article 28 of the Law. Article 16 The expression "exported about the same time" referred to in Paragraph 1, Article 27 and Paragraph 1, Article 28 of the Law shall mean within 30 days before or after the date of exportation. The expression "imported about the same time" referred to in Paragraph 2, Article 29 of the Law shall mean within 30 days before or after the date of importation. Article 17 The term "deductive value" referred to in Paragraph 3, Article 29 of the Law shall not include circumstances as specified in Item 2, Paragraph 3, Article 25 of the Law between the buyer of the greatest aggregate quantity of the first commercial level of the imported goods and the foreign producer or seller of the imported goods. The profit, general expenses and commissions usually paid or agreed to be paid referred to in Item 1, Paragraph 3, Article 29 of the Law shall be verified on the basis of the generally accepted accounting principles of the Republic of China. Article 18 The term "costs and expenses" referred to in Item 1, Paragraph 2, Article 30 of the Law shall be verified based on the book entries provided by the manufacturer of the imported goods in connection with the production of the imported goods according to generally accepted accounting principles in the country of production. Customs may request the importers to provide the manufacturer’s accounting books, vouchers and other records relating to the production of imported goods when determining the Customs value, pursuant to Article 30 of the Law. Customs, before proceeding pursuant to the rule in the preceding paragraph, shall acquire the consent of the manufacturer, who possesses no residence or domicile within the R.O.C. territory. Customs may, upon consent of the manufacturer and without the opposition of the investigated country, undertake investigation. Article 19 The term "reasonable means" referred to in Paragraph 1, Article 31 of the Law shall denote the valuation methods consistent with the valuation principles specified in Article 25 through 30 of the Law. While determining the Customs value pursuant to the reasonable means prescribed in Article 31 of the Law, the following valuation methods or values shall not be adopted: 1. The domestic sale price of the goods manufactured in the R.O.C. 2. A system which provides for the acceptance for Customs purposes of the higher of two alternative values. 3. The price of the goods on the domestic market of exporting countries. 4. The cost of production other than computed values which have been determined for identical or similar goods in accordance with the provisions of Article 30 of the law. 5. The price of the goods for export to a country other than R.O.C. 6. The minimum Customs values determined by Customs. 7. Arbitrary or fictitious values. Article 20 With regard to the imported goods subject to Customs duty as specified in Item 1, Article 32 of the Law, the Customs value for assessment of import duty shall be based on the costs of repair or assembly (excluding freight and insurance). However, if the goods are shipped abroad for repair at no cost to the buyer and this can be evidenced by the free repair warranty contained in the original sales contract or invoice(s) or the correspondence between the buyer and the seller, such goods shall be exempted from import duty when they are re-imported. In the absence of documents evidencing the repair or assembly costs or free repair arrangement in respect of imported goods on which import duty is leviable or exemptible under the provisions of the preceding paragraph, Customs may take an amount equal to one tenth of the Customs value of the re-imported goods after repair or assembly for assessment of Customs duty. In the absence of the Customs value of the same kind of goods imported at the time of exportation of the re-imported goods subject to Customs duty under Item 2, Article 32 of the Law, the Customs value of the re-imported goods shall be assessed by reference to the Customs value of the same kind of goods imported on a date close to the date of exportation of the re-imported goods. In the absence of the Customs value of the same kind of goods imported as referred to in the preceding sentence of this paragraph, the difference between the Customs value of the goods re-imported after having been processed abroad and the FOB value of the goods originally exported shall be taken as the basis in determining the Customs value of the re-imported goods. At the time of exportation and re-importation, the name, quantity and specifications of the goods subject to or exemptible from Customs duty under this Article shall be indicated in detail on the export declaration and the import declaration, and a statement shall be made thereon that the goods are being shipped abroad for repair, assembly or processing. In addition, any damages or defects which require repair or assembly, and the name, specifications, and quantity of the goods after processing shall be indicated on the exportation declaration. Article 21 An applicant filing to Customs for assessment of Customs duty on imported goods based on rental or royalty in accordance with Paragraph 1, Article 33 of the Law shall declare the Customs value of the goods and the rental or royalty payable respectively, and thereto, the lease agreement and the following documents attached to the application: 1. A duplicate of the patent certificate or evidential document issued by the patent authority of the government of exporting country, in case the patent right is not transferable. 2. A manual or relevant documents containing detailed description of functional characteristics of the imported goods, in case the ownership of the goods is not transferable on account of trade secret. 3. A letter of special approval granted by the Ministry of Finance for other reasons. Article 22 For imported goods on which the import duty is to be assessed on the rental or royalty payable therefor under Paragraph 1, Article 33 of the Law, while the accumulated rental or royalty for such goods will be higher than the Customs value of the same kind of goods recently imported, the duty-payer may request, at the time of importation of such goods, that the Customs value be determined based on the Customs value of the same kind of goods. Article 23 A deposit provided by the duty-payer or a guarantee provided by a credit institute pursuant to Paragraph 3, Article 33 of the Law shall be refunded or released from its guaranty when the imported goods have been cleared for export or destroyed under the approval of the Ministry of Finance upon expiration of the time of lease or use of such goods. In the case of partial damage or destruction of the imported goods as referred to in the preceding paragraph, the indemnity paid therefor by the duty-payer shall be included in the amount of the rental or royalty for the purpose of assessment of import duty; whereas in the case of full damage or destruction of the imported goods, the import duty shall be levied in full amount based on the Customs value of such goods as assessed at the time of importation. Article 24 In case the imported goods to be levied based on the rental or royalty under Paragraph 1, Article 33 of the Law are not re-exported after expiry of the prescribed period or are sold within the period of lease, import duty shall be levied thereupon based on the depreciated value of such goods when the prescribed period expires or when the goods are sold. Such import duty shall be offset from the deposit of the duty-payer or be paid by the guaranteeing credit institute on behalf of the duty-payer. Article 25 The scope of the term "a complete set of machinery" referred to in Article 35 of the Law shall be limited to the various mechanical devices and parts as required for assembling the said machinery into an operational condition for production purposes, the equipment to be used directly with the said machinery in the course of operation, and the essential devices and parts or equipment to be used as spares or stand-by items during normal operation. Any excessive quantity of mechanical devices, parts, or equipment to be imported along with the complete set of machinery and equipment shall be subject to import duty to be assessed according to the appropriate tariff classification covering such additional items. The quantity of essential spare or stand-by mechanical devices, parts, or equipment as referred to in the preceding paragraph shall be verified against the certificate to be issued by the competent authority. Article 26 Where a complete set of machinery and equipment is to be imported in an unassembled and disassembled state or packed separately and applied for assessment of import duty according to the appropriate tariff classification to the said complete set of machinery and equipment, an application, together with the following documents, for assessment of import duty shall be filed with Customs at the port of entry prior to Customs release of such machinery and equipment: 1. The catalog and design blueprint of the machinery and equipment; 2. Name of products to be produced by such machinery and equipment and relevant descriptive documents regarding the production capacity thereof; 3. The detailed contract executed for purchase of such machinery and equipment from the foreign supplier; 4. A list of the machinery and equipment to be imported, indicating in detail the name, specifications, unit, quantity, unit price, total price and function of each item involved. Application for amendment of the machinery and equipment list referred to in the preceding paragraph to add additional machinery and equipment thereto may be accepted by Customs only if such an application is filed prior to Customs release of the first shipment of the said complete set of machinery and equipment. The application for assessment of import duty according to the appropriate tariff classification applicable to the said complete set of machinery and equipment referred to in Paragraph 1, shall be filed with the documents referred to in Paragraph 1 to Customs at the port of entry prior to the release of the first shipment thereof if such machinery and equipment are to be imported in partial shipment. An application may be subsequently filed if no application is filed at the time of importation provided that a complete set of machinery and equipment has been stated in the documents of Customs declaration of the first shipment. Article 27 The expression "made up of several different components, imported in a disassembled state or packed separately " under Article 36 of the Law shall denote goods which are completed commodities prior to the application for importation and are shipped for importation by tearing into parts. Where duties shall be levied in accordance with the appropriate tariff classification to the goods as one complete unit pursuant to Article 36 of the Law, Customs verification thereof shall be made according to one of the following requirements: 1. Where the name and quantity of the components of such commodity have been contained in the same bill of lading. 2. Where the quantity of the component is consistent with the quantity required for composing the said one complete unit. 3. Where the category and name of the components are the same as those of the component of the said goods as one complete unit, but the quantity thereof is insufficient to be assembled into the completed commodity, the value of each set of such component parts is in excess of 50% of the value of the said goods as one complete unit. Chapter Ⅲ Privileged Duty Treatment Section 1-Duty Exemption Article 28 The imported articles exemptible from Customs duty under Item 1, Paragraph 1, Article 44 of the Law shall be verified by Customs against the evidential documents to be issued by the relevant units of the Office of the President or based upon the order of the Ministry of Finance. Article 29 The term "research institution" referred to in Item 6, Paragraph 1, Article 44 of the Law shall include the research institutions established by the government or private sector. The term "imported articles necessary for educational, research or experimental purposes" referred to in Item 6, Paragraph 1, Article 44 of the Law shall include medical instruments to be imported by public or private medical colleges or schools for use by their educational hospitals in performing clinical experiments. Article 30 The term "monopoly goods" referred to in Item 7, Paragraph 1, Article 44 of the Law shall be limited to those goods imported for monopolized sales, excluding raw material for producing monopoly goods. For importation of the monopoly goods referred to in the preceding paragraph, the monopoly agency shall forward a list of the name, quantity, specifications and value of such goods to the Customs at the port of entry for duty exemption processing. Article 31 The term "advertising matter" referred to in Item 10, Paragraph 1, Article 44 of the Law shall denote promotional materials printed or engraved with the advertiser''s logo or trademark or advertisement. The term "samples" referred to herein shall denote goods printed or engraved with the words "SAMPLE" or "NOT FOR SALE", or with declaration documents stating that the goods are "SAMPLE" or "NOT FOR SALE", provided only for reference in transaction or manufacturing. The term "of no commercial value" shall denote goods with no transaction value and goods having been defaced or destroyed to an extent not suitable for normal use. For advertising matter and samples with commercial value, the maximum amount of duty exemption shall be determined in accordance with the provisions of the "Regulations Governing Customs Clearance of Imported Advertising Matter and Samples " promulgated by the Ministry of Finance. Article 32 With regard to marine products caught at sea and shipped back exempt from Customs duty pursuant to the second part of Item 11 of Paragraph 1 of Article 44 of the Law, the permissible quantity thereof shall be determined by the Ministry of Finance after consultation with the competent authority for marine affairs. At the time of importation of the marine products referred to in the preceding paragraph, the importer shall submit documentary evidence forwarded by the competent authority for marine affairs to be verified by embassies, consulates, representative offices, agencies or other organizations authorized by the Ministry of Foreign Affairs of the Republic of China and stationed at the locality. The importers can submit documentary evidence issued by the competent authority for marine affairs in case no embassy, consulate, representative office, agency or other organization authorized by the Ministry of Foreign Affairs of the Republic of China is stationed at the locality. Article 33 The term "wrecked vessels, aircraft and their respective equipment salvaged from the sea" referred to in Item 12, Paragraph 1, Article 44 of the Law shall be limited to those specified in the following: 1. Irreparable vessels having run aground, been stranded or rendered irreparable by other sea disasters, or aircraft having crashed within the territorial waters of the Republic of China and that have been salvaged from the sea with the approval of the authority for the transportation affairs. 2. Dismantled materials from irreparable vessels that have run aground, been stranded or rendered irreparable by other sea disasters or from aircraft that have crashed beyond the territorial waters of the Republic of China, and such vessels or aircraft towed to a port in the Republic of China for dismantling provided that, in either of the above cases, such vessels or aircraft were originally registered in the Republic of China and had been engaged in shipping operations as well as had entry records. Articles, tools, utensils, etc. which were used aboard the salvaged vessels or aircraft but were not fixtures of such vessels or aircraft referred to in the preceding paragraph shall still be subject to the levy of Customs duty according to the Customs Import Tariff. Article 34 The term "vessel permitted to be dismantled" referred to in Item 13, Paragraph 1, Article 44 of the Law shall be limited to vessels whose dismantlement has been approved by the Ministry of Transportation and Communications and whose shipping operation records can be evidenced by relevant documents. The two-year operating period of a vessel shall be counted from the date of obtaining the national registry of the Republic of China to the date of filing an application for dismantling with the Ministry of Transportation and Communications. Article 35 For materials used solely on ships referred to in Item 14, Paragraph 1, Article 44 of the Law, the captain of the vessel shall, at the time of arrival of the vessel, fill out a list of such materials in accordance with the prescribed form and present the list to the Customs inspector for verification. Such materials, except a quantity required for the needs of vessel during its stay, shall be kept in sealed storage. In the event the materials in the sealed store have to be withdrawn for use for any reason, prior approval of such withdrawal shall be obtained from Customs. Article 36 The term "pharmaceutical products or medical apparatus for prevention of epidemics" referred to in Item 17, Paragraph 1, Article 44 of the Law shall be limited to those used for prevention of epidemics and certified by the authority in charge of pharmaceutical products or medical apparatus. Article 37 The term “equipment and articles imported" referred to in Item 18, Paragraph 1, Article 44 of the Law shall be examined by Customs based on the approval document of the Ministry of Finance. Article 38 The words "in the same shipment" referred to in Paragraph 2, Article 44 of the Law shall mean goods shipped by the same carrier on the same voyage (or flight) to the same consignee. Article 39 Imported goods exemptible from Customs duty under Item 1, Article 45 of the Law shall be handled in accordance with the following regulations: 1. The imported goods shall be discharged, by the transportation means, directly into an import warehouse registered with Customs and located within the wharf area or the airport. 2. The operator or the manager (employed by the operator) of the import warehouse shall forthwith prepare a list, in duplicate, of lost, deteriorated or damaged goods and submit the list, duly countersigned by the cargo administrator of the means of transport which carried the goods into the port, to Customs officer stationed at the warehouse for his preliminary inspection. The said Customs officer shall in turn annotate the findings of alleged loss, deterioration or damage stated on the list and affix his signature/seal thereon, and shall, thereafter, keep one copy of the list in his own file and forward the other copy thereof to the field Customs office to attach the list to the import manifest of the said means of transport for further reference. 3. The duty-payer shall state in the application for import the status of loss, deterioration or damage of the imported goods for Customs verification. Article 40 Under any of the following circumstances, the imported goods shall not be eligible for the exemption of Customs duty as provided for in Article 45 of the Law, or for the refund thereof: 1. Where the imported goods having been released from Customs after application for Customs clearance and payment of Customs duty by the duty-payer became of no commercial value due to loss or damage thereof during the period of storage in the warehouse and before the taking of delivery. 2. Where the imported goods, at the time of examination, were found pilfered, damaged or lost due to defective packing or careless handling during opening or unpacking, or there has been delay in the filing of declaration in the case of goods of a perishable nature, thereby having no commercial value. 3. Where the imported goods having been released without examination and taken delivery of were found damaged or lost, thereby having no commercial value. Article 41 Application for duty exemption in respect of imported goods as compensation or replacement under Article 46 of the Law shall be filed with Customs within one month following the date of Customs release of the originally imported goods as indicated on the import declaration. Application for duty exemption of compensatory or replacement goods to be imported in accordance with Paragraph 2, Article 46 of the Law shall be filed within three months following the date of installation and testing of the machinery and equipment, along with a document issued by the relevant authority certifying the date of testing of the machinery and equipment in question. In the absence of such certification, the provisions of the preceding paragraph shall apply. Article 42 The application to be filed with Customs in accordance with the preceding Article shall contain the following particulars: 1. The name, quality, quantity, value and date of importation of the originally imported goods, the name of the vessel carrying the imported goods, and the import declaration number. 2. The nature of damage or defects in specifications or quality of the goods found not to be in compliance with the original contract after Customs release thereof, and the date of testing in the case of machinery and equipment. 3. The name, quality, quantity and value of goods to be imported for compensation or replacement. The original purchase contract and relevant correspondence between the buyer and the seller shall be enclosed with the application; where such supporting documents cannot be submitted for any reason at the time of filing of the application, they may be submitted at the time of importation of goods for compensation or replacement. Article 43 Where an application for export of goods being returned to a foreign supplier for replacement is filed in accordance with Article 46 of the Law, Customs shall examine the goods against the application filed by the duty-payer in accordance with the preceding Article before releasing the goods. In case the foreign supplier has foregone return of defective goods which need not be replaced, the goods shall be moved to Customs for examination. In case such movement is difficult due to bulk, large quantity or any other special reasons, Customs may, on application, send an examiner to examine the goods at the place of storage. If the whole or a part of such goods are found to be useful, they shall be valued and import duty levied thereon. Article 44 Goods exemptible from Customs duty under Paragraph 1, Article 47 of the Law shall be limited to non-consumables. At the time of importation thereof, the name, brand, specifications and quantity of such goods shall be indicated in detail on the import declaration in attachment with an application for duty exemption and related documents announcing therein that the imported goods will be re-exported within six months or before the date of re-exportation approved by the Ministry of Finance; and in addition thereto, a deposit or a letter of guarantee issued by a credit institute shall be furnished, in security of the payment of the Customs duty leviable thereon, for Customs examination and release of such goods. If the goods are re-exported within the aforesaid time limit, the cash deposit shall be refunded or the credit institute shall be released from the guaranty; whereas, if the goods are not re-exported after expiry of the time limit, the import duty leviable thereon shall be offset by the deposit or be paid up by the guaranteeing credit institute on behalf of the duty-payer. In case the goods referred to in the preceding paragraph are carried in by persons coming into this country at the invitation of government agencies or organizations approved by the Ministry of Finance, or are imported under a project, either initiated or co-sponsored by a government agency, or under a special project approved by the Ministry of Finance, the government agency or government-operated enterprise may provide a letter of guarantee instead of a deposit or a guarantee letter by a credit institute. Article 45 The terms in Paragraph 1, Article 47 of the Law shall be defined as following: 1. The term "samples" shall refer to samples with a total value exceeding the maximum value prescribed under Item 10, Paragraph 1, Article 44 of the Law. 2. The term "articles for scientific research" and "articles for experiments" shall refer to articles imported for use in scientific research and experimentation by individuals, factories, or research institutions having research and experiment equipment, to be verified by Customs with the relevant documents submitted by the importers. 3. The term "articles for exhibition" shall refer to articles imported for display in public at an exhibition for which the relevant documents have been submitted for verification by Customs. 4. The term "costumes and paraphernalia of entertainment troupes" shall refer to equipment and apparatus in a reasonable quantity as required for performance or contest by entertainment and musical troupes or athletic groups or individuals entering this country. 5. The term "cinematographic equipment and supplies for making movies and/or television films" shall refer to cinematographic equipment and supplies brought in by individuals or groups from abroad for use in taking or producing motion pictures or television films. 6. The term "instruments and tools needed for installation and repair of machines" shall refer to instruments and tools which are essential for suppliers to install and repair specific machines in accordance with the supply contracts. 7. The term "containers used for importing cargoes" shall refer to containers or similar articles which are not to be sold together with imported goods contained therein, and are reusable by the suppliers for the same purposes according to general trading practices. Article 46 With regard to the exempted goods which are re-imported within one year following the date of their exportation or before the date approved by the Ministry of Finance under Article 48 of the Law, the name, brand, specifications, and quantity of such goods and a statement that the goods will be re-imported within a prescribed period of time shall be indicated in the export declaration at the time of applying for exportation of such goods. When applying for importation of such goods, the name, brand, specifications, and quantity of the goods, as well as the original port and date of exportation, the means of transportation and the number of the original export declaration shall all be indicated on the import declaration for Customs verification at the time of re-importation. Article 47 Goods on which import duty shall be levied according to their value and applicable tariffs at the time when the ownership of such goods is being transferred or the use of such goods is being changed as set forth in Paragraph 1, Article 49 of the Law shall be new goods, or used or obsolete items of such goods which are still usable after having been put to use since their importation. If the whole or a part of the imported apparatus or materials required for manufacture in accordance with the conditions or usage of duty exemption or reduction are not in use because they have been replaced by other apparatus or materials, the unused portion thereof shall be subject to Customs duty under Paragraph 1, Article 49 of the Law, unless otherwise provided for in the Law. Article 48 For goods subject to import duty under Paragraph 1, Article 49 of the Law, the original duty-payer, the present holder, the transferor or transferee of the imported goods shall, within 30 days following the date of change in usage or transfer of ownership, submit an application for payment of import duty to the Customs at the original port of entry or a designated Customs with the following documents attached: 1. The invoice for such goods issued by the foreign supplier; 2. The duty memo of import duty payment, if the goods were imported under duty reduction; 3. The relevant documents for the granting of duty exemption or duty reduction. In the absence or in the partial absence of the related required documents as stipulated in the preceding paragraph, the import duty payable on the goods in question shall be assessed by Customs in accordance with the Law. Article 49 The term "imported goods on which duties are paid in installments" as set forth in Paragraph 2 of Article 49 of this Law shall denote goods of which duties are permitted to be paid by installments in accordance with the laws and regulations. The provision "the transferee may continue to pay the duties by installments or record them on account" as set forth in Paragraph 3 of Article 49 of the Law shall apply only to cases where the transferee has satisfied the requirement of payment of import duty by installment or recording the import duty on account; otherwise, the transferee shall make a lump sum payment of the outstanding import duties. The period of installment payment shall denote the period of the outstanding installment(s) originally approved by Customs. Installment(s) due of payable import duty shall be first paid in lump sum by the transferee. Section 2- Bonding Article 50 A Customs bonded factory shall pay import duty on the following imported goods before entering them into the bonded factory for use, unless otherwise provided for in the governing laws and regulations: 1. Machinery and equipment, parts, consumables or other articles not falling under the scope of raw materials. 2. Raw material not bondable as per a public announcement jointly made by the Ministry of Finance and the Ministry of Economic Affairs. The term "raw materials" as used in the preceding paragraph shall denote the constituents of exported goods, or materials which are not the constituents of exported goods, but are essential for direct use in order to assure the quality of exported goods, and which will be consumed or can no longer be used continuously or repeatedly once they have been put to use in the manufacturing process. Section 3- Customs Duty Refunds Article 51 The term "a duty refund or an offsetting of the accounts for export products manufactured from imported raw materials" as used in Paragraph 3, Article 57 of the Law shall include import duties levied and paid on the raw materials imported by a manufacturer under a commissioned processing contract or a cooperative project, or for his own account. Article 52 The term "the date on which raw materials were released for importation" as used in Paragraph 3, Article 57 of the Law shall refer to the date of Customs release as indicated on the import declaration. The date of application for import duty refund, provided that the date of the post-mark shall be applied in the case of application by registered mail through the post office, shall be the date on which Customs receives the application. Article 53 The term "special circumstances" referred to in Paragraph 4, Article 57 of the Law shall be limited to events wherein the plant buildings or the production equipment and facilities of a factory are damaged due to flood, fire or other disasters in the nature of force majeur, and can be used to resume production operations only after they have been repaired. In applying for extension of the time limit given in accordance with the provision in the preceding paragraph, evidential documents issued by relevant authorities confirming the cause shall be submitted along with the application. Article 54 The term "imported goods banned from use by the Government" as used in Paragraph 1, Article 58 of the Law shall not include goods which are no longer usable under the applicable laws after expiry of the pre-established period of validity of such goods. Article 55 The term "a disproportionate duty collection either in an insufficient or excessive amount" as used in Article 59 of the Law shall refer to a case where after payment of import duty, a disproportionate collection is discovered, either by Customs or by the duty-payer, with the cause thereof being attributable to obvious errors in the application of tariff classification or the tariff rates, errors in calculation of the amount of import duty payable , clerical error in the duty memo, or errors in currency, unit of pricing, exchange rates, freights or premiums. The term " a disproportionate refund…either in an insufficient or excessive amount " as used in the same Article shall refer to a case where, after the issuance of duty refund notice, a disproportionate refund is discovered, either by Customs or the applicant for the duty refund, with the cause thereof being attributable to obvious errors in calculation of refundable duty or clerical error in the duty-refund notice. Regarding the compensated amount of duty plus the interest accruable thereon in accordance with Paragraph 3, Article 59 of the Law, Customs shall notify the duty-payer of the fact, and refund the over-collected or under-refunded sum either against a receipt submitted by the duty-payer or at the request of the duty-payer. The term "obvious errors in application of tariff classification" referred to in the preceding paragraph shall be determined in accordance with the following principles: 1. Where the description for classification in the Heading, Sub-heading, and division in Customs Import Tariff has been clearly prescribed but is wrongfully applied; 2. In violation of relevant notes of section, Chapter, and Sub-heading clearly prescribed in the Customs Import Tariff; 3. Where the same importer wrongfully declares again after the same or similar goods have been determined by Customs or have been rendered final and irrevocable on administrative remedy procedures. The term "obvious errors in application of tariff classification” referred to in Paragraph 1 shall not include changes of view on the classification. Chapter Ⅳ- Special Customs Duty Article 56 Any of the following references may be used to justify the fitness of imposing retaliatory duty under Article 65 of the Law: 1. Factual evidence provided by a transportation institution or association; or 2. An investigation report or study report made by an appropriate economic or commercial mission of the Republic of China stationed abroad. Chapter Ⅴ- Penalties Article 57 With regard to imported goods subject to disposal by Customs by way of sale under Paragraph 2, Article 68 and Paragraph 2, Article 69 of the Law, if the duty-payer applies, prior to the sale of such goods by Customs, to complete the Customs declaration formalities or to make payment of import duty, with late fees or delinquent fees duly paid up in accordance with the actual days of delinquency in filing the Customs declaration or in making payment of import duty, Customs may permit the duty-payer to complete the required formalities and to take delivery of such goods within thirty days from the date following the day on which the application is received by Customs. The imported goods in question shall be disposed of by Customs under the aforesaid provisions, if the duty-payer fails to complete the necessary procedures as stated above within the given time limit. The "other necessary expenses" in the sales proceeds under Paragraph 2, Article 68 of the Law shall be withheld in accordance with the following order of priority: 1. Expenses required to dispose of the imported goods; 2. Warehousing charges, and loading and unloading charges; 3. Late fees and delinquent fees. The amount of late fees and the amount of delinquent fees to be withheld under the terms of the preceding paragraph shall be calculated for periods of thirty and sixty days respectively. Article 58 For the residuary from selling imported goods under Paragraph 2, Article 68 and Paragraph 2, Article 69 of the Law, Customs shall notify the duty-payer to withdraw the residuary and notify the owner of the transport business with copies, or shall refund to the duty-payer upon request. In claiming refund of or receiving the residuary from the sale of imported goods, the claimant shall present the bill of lading endorsed by the owner of the transport business. Where the imported goods are under the control of government, the relevant evidential documents shall also be submitted to Customs for inspection. The five-year period for claiming refunds of receiving the residuary derived from the sale of the imported goods in question shall commence from the day following the date on which a late fee has been imposed for thirty days in the case of imported goods for which clearance has not been applied, or from the day following the date of expiry of the sixty-day period for payment of import duty in the case of delinquent payment of duty, as the case may be. Article 59 Where imported goods being stored in a bonded warehouse have not been declared to Customs for import or return abroad within the prescribed time limit of storage, such goods shall be disposed of in accordance with Article 68 of the Law from the day following the expiration date of the said time limit. Article 60 Contraband confiscated in accordance with Article 75 of the Law shall be destroyed periodically by Customs in conjunction with representatives from other government authorities concerned, unless otherwise provided for by other laws and regulations. Article 61 The term "prohibited form importation" referred to in Paragraph 1, Article 77 of the Law shall denote goods which fail to complete the procedure of Customs clearance in accordance with the Law and are not confiscated due to involvement in any illegality. Customs shall demand the duty-payer return the goods abroad within two months, and may approve a month of extension thereto when it deems necessary except in the case of extraordinary circumstances reported to the Ministry of Finance for approval. Article 62 Goods which may be disposed of by Customs under Paragraph 1, Article 77 shall be sold either by auction or by tender. In respect of goods to be disposed of under the terms of the preceding paragraph, the person applying for import thereof may pay up the import duty and dues leviable thereon under the Law, bear the warehousing charges, loading and unloading charges, etc., and apply to Customs for redemption at the price of Customs value assessed by Customs. The proceeds obtained from such redemption shall be surrendered, in full, to the government treasury. The "necessary fees" deductible from the sales proceeds under Paragraph 1, Article 77 of the Law shall be withheld in accordance with the following order of priority: 1. Expenses required to effect dispose of the imported goods. 2. Warehousing charges, and loading and unloading charges. Chapter Ⅵ- Supplementary Provisions Article 63 These rules shall be effective from the date of promulgation.