The FTZ operating organization shall apply to the competent authority for recognizing the IME as the exchange stated in Paragraph 2 of Article 29 of the Act. IME-certified commodities and same-tariff-code commodities shall be submitted to the competent authority for approval as commodities recognized under Paragraph 2 of Article 29 of the Act.
The competent authority shall issue formal notification of recognition of IME status and approved trade commodities, and notify Ministry of Finance. The date of coming into force of the declaration should be designated as the date of an international commercial port’s approval as an IME delivery port.

Commodities newly certified by the recognized-IME shall be submitted by the FTZ operating organization to the competent authority for review and approval under paragraph 2 of Article 29. Non-metal commodities deemed by the FTZ operating organization valid under Paragraph 2 of Article 29 of the Act must, in addition, not conflict with national policy priorities and not negatively impact the competitiveness of domestic enterprises. The FTZ operating organization shall submit a tax expenditure assessment of said non-metal commodities with an application request to the competent authority. The competent authority shall then call an assembly of industry, government and academic experts to review such requests. If approved, the competent authority shall issue formal notification of the approved commodities and notify Ministry of Finance.

The FTZ operating organization in international commercial port as defined under Article 11 shall submit the following documents to the competent authority for approval of the FTZ operation under Paragraph 2 of Article 29 of the Act:
1)Application form.
2)Business plan, including:
A.Operational plans (including scope & physical location of warehouses, development schedule, etc.)
B.Business recruitment plans
The competent authority shall convene a committee composed of related agency representatives to review Paragraph 1 applications, with committee decisions notified to the Ministry of Finance.

The FTZ enterprise that engages in the storage of approved commodities under Article 11 or Article 12 shall submit the following documents to the FTZ management authority to request storage location approval in accordance with the terms of Paragraph 2 of Article 29 of the Act.
1)Application form.
2)FTZ enterprise operating license.
After receiving said application request, the FTZ management authority shall conduct a review in consultation with Customs and the FTZ operating organization, with review results forwarded to the local tax collection authority and the jurisdictional customs authorities.
If an FTZ enterprise intends to use storage locations different from those approved, it shall submit a new application in accordance with Paragraph 1.

If a profit-seeking enterprise from foreign countries, Mainland China, Hong Kong or Macau without a fixed operating location in the ROC that sells commodities to domestic and/ or overseas customers
and meets the following conditions, the respective income from the sale of commodities shall be exempt from income tax in accordance with Paragraph 2 of Article 29 of the Act :
1)Commodities sold have been approved under Article 11 and 12.
2)Said commodities are stored by FTZ enterprises in locations approved under Article 14.
Said profit-seeking enterprises must be legally registered organizations in their home country and operated based outside of the ROC.

The FTZ enterprise shall submit performance data of approved commodities in accordance with Article 11 and 12 for each year to FTZ management authority within two months after the expiration of the income tax declaration deadline. The performance data will comprise the following information:
1)The tonnage of commodities deposited during the year
2)The tonnage of commodities removed during the year
3)The identity of the depositors of the commodities
4)The identity of persons taking delivery out of warehouse of the commodities
The FTZ operating organization shall submit performance data of FTZ for each year as mandated under Paragraph 2 of Article 29 of the Act to the FTZ management authority within two months after the expiration of the income tax declaration deadline.
Prior to the end of October each year, the FTZ management authority shall prepare and submit an assessment report to the competent authority and the local tax collection authority on the previous one-year income tax reduction/exemption returns for reference based on the two preceding documents received as mandated in Paragraph 2 of Article 29 of the Act.