A company which is organized, registered and incorporated as a company limited by shares in accordance with the Company Law, with a paid-in capital of more than NT$50,000,000 and has a properly registered factory, may submit an application to Customs for approval of registration as a bonded factory if it conforms to the following conditions:
1. The company is in a sound financial condition; i.e., it has accumulated no losses; or, it has suffered no losses three years on average before application (if the company exists for less than three years, the time is calculated on the basis of the actual length of its existence); or, if there are accumulated losses, the net capital is still maintained above NT$50 million; or after deducing the accumulated losses the capital is less than NT$50 million but the company has increased the capital or has provided other collateral.
2. The company has no tax arrears or unpaid fines or has submitted a commensurate value security or guarantee.
3. The factory compound renders easy control by Customs, and has guard houses manned with security personnel.
4. The machinery and equipment necessary for manufacture of finished products for export sales and the adequate and complete safety facilities installed in the factory have been inspected and verified by Customs as being in conformity with established standards.
5. It has separate warehouses approved by the Customs authorities through inspection as appropriate for storage of raw materials and finished products. However, for bulky and hazardous bondable goods, there shall be separate and proper storage places approved by Customs.
6. The plant buildings and facilities of the factory conform to the standards as specified in Article 5 hereof.
7. It has the ability to process its bonded-goods operations with computer.
The branch office of a foreign company which is established within the territory of the Republic of China under other laws, whose operating capital actually remitted in and registered is in an amount of more than NT$50,000,000 and which has a duly registered and qualified factory may apply to the Customs for approval of registration as a bonded Factory in accordance with the provisions of the preceding Paragraph.
The accumulated losses in Subparagraph 1 of Paragraph 1 shall be determined on the basis of CPA-certified financial statements of the previous year.
The Customs, to meet the need for automated customs clearance or for computerized management, may announce to demand the bonded factories to set up computer or related on-line equipment to process affairs related to bonded duties through electronic transmission. The regulations shall be prescribed by Customs.
Bonded Factories whose registration had been approved before December 30, 2001, if failing to meet the requirements stipulated in Subparagraph 7, Paragraph 1, shall complete the installation of the relevant equipment within six months from the day following the date of implementation of the amendment to these Regulations on June 10, 2013.

The plant buildings and facilities of a Bonded Factory shall be in conformity with the following standards:
1. The installation of the production machinery and equipment has already been completed and production may begin immediately or has already started.
2. The warehouses for raw materials and the warehouses for finished products must have strong structures with the necessary facilities to secure the safety of goods stored therein, such as facilities for the prevention of burglary, fire and flood; for proper ventilation and lightly, and are properly isolated from the office area.
3. Proper isolation facilities shall be erected to separate the factory area from outside surroundings.

For factories that have been approved for registration by the competent authority or newly established factories that have applied for registration with the competent authority, before applying to Customs for registration as a Bonded Factory, they may submit the factory registration number or the relevant documents of the factory registration application certificate and apply to Customs to dispatch personnel to provide on-site guidance in the establishment of bonded factories.

An applicant applying for registration as a Bonded Factory shall submit the following documents to the Customs authority in the district where the factory is located:
1. Application form: The application form should state the company name, the unified serial number, the factory registration number, company address, capital stock, name and ID Card number of the responsible person, telephone number and factory address. Those who have not completed the factory registration may submit the factory registration application certificate first instead of the factory registration number, and after the competent authority approves the factory registration, Customs shall make corrections before proceeding with the survey in accordance with Paragraph 1 of Article 7.
2. The original and a photocopy of the concession permit, if a concession is required to operate the applicant’s business.
3. One copy each of the Articles of Incorporation and a roster of the Board of Directors and Supervisions.
4. One copy of the product list.
5. One copy each of the lay-out plans of the factory, warehouses, storage for bulky and heavy raw materials, and production machinery and equipment.
6. Registration card of the seal of the bonded factory.
7. A brochure of products production procedures and a set of relevant information regarding the name and quantity of raw materials to be use in each individual step of the production process and the raw-material and other material control system established by the factory.
8. The CPA-certified financial statements for the previous three years (for a company established for less than three years, the period shall be the duration of its existence).
9. The bonded warehouse plant building use permit, building title deed, land title deed, together with their photocopies; the lease agreement and the photocopies relating to the plant building(s) leased by the Bonded Factory and a letter of undertaking issued by the owner(s) of such leased plant building(s) stating therein the consent of the owner(s) that upon deactivation of the said Bonded Factory, the bonded goods shall remain in storage in such plant building(s)/warehouse(s) for a period of at least six(6) months so as to provide the supervising Customs sufficient time to settle all matters relating to the bonded goods, provided that the plant building is rented.
For those applying for registration as a Bonded Factory before Customs approval and registration, if there is a need to import self-use machines or equipment beforehand, it may go through Customs clearance by applying for a temporary factory supervision number and paying the import tax deposit.
The deposit in the preceding paragraph may be applied for a refund to Customs after it is approved to be registered as a Bonded Factory; if it is not approved to be registered as a Bonded Factory, Customs may offset the deposit in the preceding paragraph against related import taxes and fees.
An applicant having two or more factories may apply for registration of one or more factories as Bonded Factories by separate application. However, while a mutual support relation of raw materials exists between those factories or the factories are involved in an integrated production procedure in the course of manufacturing finished products for export sales, the applicant may not apply for registration only a portion or some of the factories involved in such integrated production procedure as bonded factories.

Customs shall, within one week from the date following the day on which the documents of an application filed under the preceding Article have passed the examination, send Customs official(s) to inspect the factory, and shall, within one week, beginning from the second day after the factory has been qualified through the inspection, give a notice to the exporting factory for setting the date for taking over the control of the bonding operation, and issue a certificate of bonded factory registration.
In case of change in the company’s name, address, responsible person, business items, factory address, or paid-in capital decreased, the Bonded Factory shall submit photocopy of the relevant evidential documents to the supervising Customs for completing the formalities of change for new License within 30 days from the date following the day on which the change in registration was effected. However, if the business items or the location of a factory is changed, an advance report shall be filed with the supervising Customs for approval prior to effecting such changes. In the case of increasing in the amount of capital stock, the Bonded Factory shall make a report in writing to the supervising Customs of such change, without having to file a separate application for replacement of license until the time when application for issuance of replacement license is required for other alternation or other causes.
If the company's name or responsible person is change, the Bonded Factory applying for registration of changes pursuant to Paragraph 2 above, shall contact the supervising Customs for effecting the registration of change the specimen of seals within 15 days from he date following the day on which the new License was approved. However, the original seals may continue to be used until the registration of the changes is completed.
After a Bonded Factory has been approved by the Customs authority for registration it shall post a sign board at its main gate bearing the name "Bonded Factory of ____________Company under the Supervision and Control of __________ Customs of Customs Administration, Ministry of Finance", or "Bonded Factory of _________________Factory of _________________Company under the Supervision and Control of ________________Customs of Customs Administration, Ministry Finance".

A Bonded Factory may, in accordance with the "Regulations Governing the Establishment and Control of Bonded Warehouses", apply to Customs for establishment of private bonded warehouse(s) within the factory premises.
The private bonded warehouse as referred to in the preceding Paragraph shall be isolated from other portions in the same factory premises.

The customs shall issue a bonded factory registration license to authorized factories; thereafter, each registered bonded factory is required to submit the documents set forth in Article 6 Paragraph 1, Subparagraphs 1, 5 and 8 hereof to the Customs every other year to update factory registration information.