Business entities shall prepare ledgers for raw materials, materials (fuel), finished products, machinery and equipment for own use, and goods in transit, and present the ledgers to Customs for stamping. After stamping, business entities shall record the incoming and outgoing quantities of products, warehouse inventory, status of machinery and equipment for own use, and other conditions in details according to the regulations prescribed by Customs, in order to provide the records for inspection by Customs, the BIP or the branches at any time.
Business entities that computerize the aforesaid ledgers shall input the relevant incoming and outgoing data into the computer for filing according to the specific time limit, and print out substitute monthly reports for the ledgers by the 20th day of the following month for reference.
The substitute reports for ledgers, as mentioned above, may be produced via electronic media after Customs gives its approval, and shall be sent to Customs for reference within the time limit prescribed above.
The non-bonded raw materials imported by business entities, if they can be mutually replaced with other bonded raw materials, shall also be entered in the original ledgers for management, and shall be listed separately in the annual balance sheet to be combined for computation purposes.

Business entities’ bonded commodities moving into and out of the factory (warehouses) shall be entered in the accounts within three days. However, bonded commodities imported from foreign countries may be entered in the accounts within seven days after customs clearance.

Business entities’ ledgers for bonded commodities and reports shall be compiled according to the format prescribed by Customs, unless business entities acquire approval in advance from Customs. Business entities shall preserve the ledgers and reports for 5 years after annual inventory taking; related certificates shall be preserved for 3 years.
After the end of inventory taking, business entities may apply for approval from Customs to preserve the aforesaid ledgers, reports, and relevant certificates in microfilms, tapes, floppy disks, CDs, or other electronic media in sequence for the prescribed period; the originals may be destroyed. However, if photocopies of the certificates and relevant documents are required when Customs is conducting legal investigations, business entities shall be responsible for providing the required documents.
Customs, the BIP or the branches may send personnel to consult other ledgers, reports and certificates with official documents due to supervisory or auditing demands in addition to the bonded ledgers and reports, and business entities must not turn down the request.

Business entities’ bonded commodities shall be stored in order at fixed warehouses or locations; business entities shall assign numbers to the bonded commodities and prepare cards, in order to continually record the quantities of storage, withdrawal, and inventory, in case of inspections which may take place any time. If Customs allows the data to be computerized rather than to be recorded in the record cards, business entities shall continually input the incoming and outgoing data of bonded commodities into the computer for filing.
Business entities are in charge of guarding the aforesaid warehouses and locations where the bonded commodities are stored. If any bonded commodities are released without permission, the provisions in Article 36 of this Statute would apply.
When a business entity’ bonded commodities need to be temporarily stored in duty-levying areas due to any special reason, the business entity shall explain why, where and how long the commodities will be temporarily stored, as well as submit a floor plan where the commodities will be temporarily stored and a copy of the building use permit; in the case of rental, the business entity shall also submit a building lease, and then apply to the BIP or the branches for approval. Also, the business entity has to provide a certain amount of guarantees to Customs according to the related regulations of the Customs Act. Any import and export activities concerning the bonded commodities shall be recorded in record cards for reference, and the bonded commodities shall be retrieved within one year.
When the bonded goods of a business entity are temporarily stored in other business entities, the business entity shall explain why, where and how long the commodities will be stored, as well as submit relevant certificates and documents to the BIP or the branches to apply for approval. The BIP or the branches will send a carbon copy of its approval to Customs, but the business entity is not required to provide a certain amount of guarantees to Customs.
Business entities shall report to Customs when suspending their operation for 10 successive days or more.

After the approval given by Customs and prior to the implementation of ledgers management, business entities shall set a date for inventory taking, and contact Customs for joint inventory taking. However, the joint inventory taking with Customs may be exempted after verification by Customs when the inventory is taken by a commissioned certified accountant with his or her signature as the certification.
The raw materials, work in process, semi-finished products, finished products, goods in transit, and machinery and equipment for own use that require inventory taking according to the provision in the previous paragraph shall be categorized as bonded commodities for control and management. Nevertheless, business entities may apply for changing the category of the above items to non-bonded commodities at Customs with relevant documents or certificates.
Business entities shall take inventory annually, and compile inventory lists for bonded raw materials, work in process, semi-finished products, finished products, goods in transit, and machinery and equipment for own use prior to the annual inventory taking, as a reference for inspection. Customs, the BIP or the branches may take inventory at any time, as they deem necessary.
The aforesaid inventory shall be taken jointly with the personnel dispatched by Customs, unless business entities have applied in advance for approval from Customs to commission a certified account to take inventory and sign his or her name for certification.
When the bonded goods are approved to be temporarily stored in duty-levying areas, or cannot be retrieved on the inventory date due to contracted processing, the business entities shall fill in an application form, stating the address where the goods are temporarily stored, or the name of the processor and the place where processing is done, and submit a list of commodities to apply to Customs for the out-of-Park (factory) inventory at least 14 days prior to the inventory date.
The date of annual inventory taking shall not be less than 10 months at minimum, and no more than 14 months at maximum from the previous annual inventory taking, except when business entities have obtained approval from Customs to advance or postpone the date of inventory taking for specific reasons.
If any mistake is found after the inventory taking, business entities shall apply for reexamination at Customs within 14 days following the day of inventory taking, and before the commodities are used; no application will be accepted past the time limit.
In the event that the imported bonded commodities which are cleared through Customs prior to the date of inventory taking cannot be transported into factories for inventory taking for some reason, business entities shall, within 7 days following the day of withdrawal, present the original import declaration form and a supplementary inventory list to Customs to apply for supplementary inventory. Such commodities shall be included in the inventory list for the current year through application after supplementary inventory.

Business entities with a complete management system by computerizing control and management of bonded commodities and production of ledgers and reports and capable of getting inventory lists ready prior to the date of inventory taking, may apply for taking inventory without shutdown or holiday inventory taking, at Customs a month before the inventory taking date, if the production line cannot be interrupted due to the demand for production capacity.
Business entities that have gained approval from Customs for stock taking without shutdown may be exempted from creating inventory cards for the bonded commodities on the production line, but they shall provide relevant reports about the bonded commodities on the production line for Customs inspectors to check promptly.
When the personnel sent by Customs cannot perform an inspection without shutdown or discover major abuses, the personnel may order the enterprises to shut down for stock taking or set another date to shut down the factories for inventory taking.

Business entities shall submit the inventory statistical reports and balance statements of bonded raw materials, machinery, equipment, and goods in transit, as well as analysis lists of inventory of materials converted from work in process, semi-finished products, and finished products and of materials converted from finished products exported and for domestic sales to Customs for review according to the inventory, within three months after the stock taking.
The review from Customs may be exempted if the above reports and lists are approved by Customs in advance, signed and certified by the certified accountant who took the inventory, and delivered to Customs within three months following the inventory taking date.
For special reasons, the time limit for delivery of the documents for review or to Customs, as stipulated in the preceding two paragraphs, may be prolonged by one month if Customs has given its approval in advance; the time limit can only be prolonged once.
If there is no inventory surplus or loss on machinery, business entities may not be required to compile machinery inventory statistical reports and balance statements.
The inventory lists signed and certified by the certified accountant commissioned to take inventory stated in the 1st and 2nd paragraphs, analysis lists of inventory of materials converted from work in process, semi-finished products, and finished products, as well as the analysis lists of materials converted from finished goods exported and for domestic sales, may be saved in the form of electronic media, as approved by Customs, and then sent to Customs for review.

When the inventory of bonded commodities taken pursuant to the provisions of the previous article does not correspond to the quantities in the book balance, business entities shall follow the following regulations:
1.When the actual inventory counts are less than the quantities in the book balance, repayment of duties and taxes can be exempted if the difference does not exceed the inventory allowance rate; if the difference exceeds the inventory allowance rate, business entities shall amend the declaration forms and repay overdue import duties, commodity tax, and business tax within 10 days from the day following the reception of overdue tax bill issued by Customs.
2.When the actual inventory counts are more than the quantities in the book balance, business entities shall incorporate the difference into the book balance. If the difference exceeds the inventory allowance rate, business entities shall explain the reasons to Customs. If the quantity of product materials listed in the bill of materials is higher, business entities shall amend the bill of materials for the use of annual account settlement the following year.
Raw materials in the same category or which can be mutually replaced and used alternately by business entities, if some are bonded while others are non-bonded, shall be included all together for annual inventory taking; accounts of bonded and non-bonded raw materials shall be written off based on the quantities of actual use. If the quantities of actual use can not be ascertained, the amount of bonded raw materials shall be written off as priority; repayment of duties and taxes can be exempted for inventory loss in non-bonded materials.
The allowance rate of raw material inventory difference for business entities is based on the allowance rate table of inventory difference of raw materials classified by industry and category in bonded factories under Customs management.

The duty-free machinery and equipment imported for own use may be deleted from the ledgers by business entities and are not subject to ledger management after being imported for more than five years; business entities may present the release order of outgoing commodities of the Parks without customs declaration when releasing commodities.

Business entities which have abolished or withdrawn investment shall follow the following regulations and apply to Customs for closing inventory before the companies are dissolved or move out of the Parks:
1.Business entities shall contact Customs to schedule inventory taking, or Customs shall set the inventory-taking date, in order to take inventory.
2.Depending on actual situations, Customs shall seal and store the bonded commodities inside the business entities or at the location designated by the BIP or the branches.
3.If repayment of duties and taxes is required for bonded commodities in the inventory, business entities shall fill in the declaration form; regulations prescribed in the 1st Subparagraph, Paragraph 1 of Article 16 shall apply when the inventory counts are less than the quantities stated in the book balance.
4.Bonded commodities in the inventory of business entities are prohibited from being transported to duty-levying areas unless overdue duties and taxes have been paid. When business entities announce bankruptcy, the inventory shall be handled in accordance with the Bankruptcy Act and the relevant regulations. Before Customs issues tax bills, business entities may provide a certain amount of deposits or guarantees to withdraw the bonded commodities for use due to production or export demands, as approved by Customs, and they shall apply for case closure at Customs with export documents, within a year from the day after the withdrawal. Those who fail to close the case within the time limit are subject to the related regulations of the Customs Act.
If business entities which have abolished or withdrawn investment or terminated business fail to take closing inventory mentioned in previous paragraphs, Customs may directly impose the duties and taxes payable based on the book balance.