In importing raw materials, self-use machines and equipments, a Bonded Factory shall prepare an application for importation of raw materials and apply for Customs clearance in accordance with the procedures applicable to ordinary goods. Customs may, as it deems necessary, send Customs official(s) to examine and inspect the imported raw materials at the premises of the Bonded Factory.
Before importing the self-use machines and equipment stated in the preceding paragraph, information such as the name of the machinery, model number, product specification, quantity (units) and other related documents (such as catalogue, use description, machine disposition plan, machine installation plan, procedures of manufacturing bonded goods, etc.) shall be provided to the Customs for inspection. And only with customs approval will the related duty exemption provisions be applicable.

In submitting applications for import, a Bonded Factory is not allowed to have raw materials, non-self-use machines and equipment which are ineligible for bonding as co-proclaimed listed as bonded materials. If such a discrepancy occurs, an application for import of foreign goods shall be completed, within 30 days beginning from the second day after customs clearance has been granted, applying to the supervising Customs for payment of import duties and taxes.

Where raw materials imported by a Bonded Factory or self-use machine and equipment are to be re-exported on account of return, replacement or other reasons, the bonded Factory shall prepare and submit an application for re-export of raw materials applying for Customs clearance in accordance with the procedures applicable to ordinary goods.

If the sample of finished goods imported by the bonded factory needs to be re-exported, it may be handled in accordance with Article 52 of the Customs Act, and if the bonded factory promises to re-export the goods within 6 months after its release by providing an affidavit, the guarantee equivalent to the amount of the tax can be exempted. If the aforementioned goods is not re-exported within the aforementioned period, an application for payment of duty shall be submitted within 10 days following the expiration of the period.
The bonded factory shall record the sample of finished goods as referred to in the preceding Paragraph in the books and ledgers for customs inspection and shall not cut or destroy the goods before re-export.

While offsetting or refund of import duties and taxes is required in respect of the raw materials for processing, self-use machines and equipment sold to a Bonded Factory by a domestic supplier, the following Customs clearing procedures shall govern:
1. Upon entry of raw materials into the Bonded Factory, the buyer and the seller shall jointly prepare and co-sign an application for export/import of raw materials and submit the same together with invoices, packing lists, etc., to the supervising Customs for approval. The raw materials shall then be permitted to enter the factory and entered in the account books. The supervising Customs shall, within twenty days from the date following the approval of the application, approve and issue the duplicate application for goods regarded as exports to the domestic supplier as evidence for application for refund and/or offsetting of duties and taxes.
2. For the raw materials for processing referred to in the preceding Paragraph, the Bonded Factory may first accept the delivery thereof and enter them into the account books against the sales certificates, and shall submit a consolidated report of such inflows on monthly basis in accordance with the provisions of the preceding paragraph not later than the fifteenth (15th) day of the following month. The date of Customs release as indicated on the application for export/import of such raw materials shall be considered as the date of export/import thereof.
Goods entered into a Bonded Factory without going through the procedure set forth in the preceding paragraph shall be treated as non-bonded items.
For the self-use machines and equipment referred to in Paragraph 1, the provisions of Paragraph 1, Article 28 hereof shall apply mutatis mutandis.

In the event that goods referred to in Paragraph One of the preceding Article are returned to the domestic supplier, both the buying and the selling parties shall, within three months beginning from the second day after the goods entered the factory, complete and co-sign an application for returning goods and file the same with the supervising Customs for approval. If the original supplier has already obtained the certificate which is regarded as the export permit, such certificate shall be returned for cancellation or correction, and the related government agencies shall also be notified for necessary actions; and it the refund and/or offsetting of duties and taxes has already been effected, the duties and taxes so refunded and offset shall be paid back, and the collection authorities concerned shall be notified accordingly. When such requirements are met, permission may be given to return the goods to the domestic supplier.
In the event that goods are returned three months after entering the factory, Customs clearance for such returned goods shall be completed in accordance with the procedures applicable to ordinary goods, and duties and taxes shall be levied according to the forms of the goods as they are at the time of entering the factory.

When selling or transporting bonded goods to an enterprise in the Science Park, an exporting enterprise in an Technology Industrial Park, an enterprise in the Agricultural Biotechnology Park and a free-trade-zone enterprise or another Bonded Factory the Bonded Factory which sells such goods and the buyer thereof shall jointly prepare an application for export/import of such bonded items, and shall file the same together with relevant documents, including invoices, packing lists and approval(s) given by the competent authority in the bonded area, with the supervising Customs or the local Customs branch office at buyer's end for customs clearance.
In case the goods sold under the preceding paragraph are rejected for return to the seller, the buyer and the seller shall jointly prepare a customs declaration form and file the same together with the approving document issued the competent authority in the bonded area with the supervising Customs or the local Customs branch office at buyer's end for customs clearance.
For the sales referred to in the preceding two paragraphs, excluding the self-use machines and equipment, the provisions of Subparagraph 2, Paragraph 1, Article 31 hereof shall apply mutatis mutandis.

When bonded items of bonded factory in bond stock and store the logistics centre, bonded warehouse or stored items returned to the supplier, it’s clears customs formality is gone through in accordance with item 1 and 2 regulation of preceding article.
The bonded items in the preceding paragraph enter to store the logistics centre or private bonded warehouse besides return, must apply to examine item by item and are dispatched from the factory and entered account according to the invoice, packing list and relevant evidential documents to submit a monthly report not later than the fifteenth (15th) day of the following month.

In exporting its bonded products, a Bonded Factory shall prepare an application for export of products and indicate therein the page number(s) and reference number(s) of the relevant "Schedule(s) of Raw Materials Used Per Unit of Product" as approved by the supervising Customs, (the Customs office at the port of export may, as it deems it necessary, require the Bonded Factory to provide a photocopy of such approved Schedule(s) of Raw Materials Used Per Unit of Product") or the reference number(s) of the relevant application(s) filed with or received by the supervising Customs, if such Schedule(s) is (are) pending approval, and file the same with the Customs office at the port of exportation for Customs clearance in accordance with the procedures applicable to export of ordinary goods.
When exporting the bonded products as set forth in the preceding Paragraph, one copy of the "factory release certificate" shall be forwarded along with the means of transportation carrying such products to the Customs office at the port of export. In case the export products are loaded on more than one vehicle or are shipped in more than one lot of shipment, the vehicle numbers and the quantity of products loaded on each vehicle, or the quantities of products in each lot of shipment shall be indicated in the said "factory release certificate" for audit by Customs.

Goods to be exported by a Bonded Factory shall be inspected by the Customs office at the port of export. If it is not appropriate to have the products inspected at the port of export on account of the special packing thereof, the Bonded Factory may request the supervising Customs to designate Customs official to inspect the products in the Factory and then escort the shipment to or supervise the sealing of such shipment before transporting the products to the port of export for Customs clearance. However, the Customs office at the port of export may recheck the products whenever it deems necessary.

In case any bonded product exported by a Bonded Factory is returned and re-imported by any reason whatsoever, the Bonded Factory shall apply for import clearance for said product by submitting an application for re-import of ordinary goods in accordance with the procedures applicable to the re-importation of ordinary goods. The said product, after entering the Factory, shall be stored in the warehouse for finished products and entered into the account book maintained for finished products.

For bonded products to be sold for further processing and export by a Bonded Factory to an export processing factory eligible for recording of payable import duties and taxes on credit, the following procedures shall govern in the process of clearance by Customs:
1. The buyer and the seller shall jointly prepare an application for export/import of products processed and sold for further processing and export by a Bonded Factory to an export processing factory eligible for recording of payable import duties and tax and file the same together with invoices, packing lists and other relevant documents with the supervising Customs in accordance with Paragraph Three, Article 40 hereof for recording of import duties and taxes on credit and Customs release formalities before delivering the products from the Bonded Factory. The Bonded Factory is allowed to deliver the products from the Factory in advance after providing securities and to submit a monthly report on such sales accompanied by relevant evidential documents not later than the fifteenth (15th) day of the following month.
2. Goods or products to be released in accordance with the preceding Paragraph may be delivered from the Factory bylots. However, the deliveries thereof shall be completed within one month beginning from the second day after the grant of Customs release.
Recording of import duties and taxes on credit against the said export processing factory as specified in the preceding Paragraph shall be made in accordance with the "Regulations Governing the Offsetting or Refund of Duties and Taxes on Raw Materials for Export Products ", with the date of Customs release to be regarded as the date of export and import.

In the event that any bonded product sold to an export processing factory under the preceding Article is returned, the case shall be handled in accordance with the following provisions:
1. The buyer and the seller shall jointly prepare an application for returns and an application for export/import of raw materials sold to Bonded Factory by domestic supplier(s) for processing into export products indicating therein the words "Return against Application for Export No.", and submit the same together with packing list and a photocopy of the original Application to the supervising Customs for approval within one year from the date following the date of Customs release of such export/import. After approval by the supervising Customs, the returned product may then be received and recorded on account book by the Bonded Factory. If the original selling Factory has been issued with a certificate of regarded export, the supervising Customs shall, at the same time, give a notice to the appropriate taxation authority of such return.
2. After completing the procedures set forth in the preceding Item the supervising Customs shall issue to the original buying factory a duplicate of the aforesaid application for offsetting or refunding of import duties and taxes.

When another firm or factory or trading company applies to Customs for export of the bonded products of a Bonded Factory, the provisions of Article 34 shall be applicable and moreover, it shall be explicitly stated on the export application that "This shipment of goods is supplied by xxx Bonded Factory. Except that the said Bonded Factory may file a request for settlement of account, the export firm or factory may not apply for refund of duties and taxes". After such products have been exported, the export application shall be delivered to the Bonded Factory for deletion from the account.

The bonded products of a Bonded Factory shall be for import in principle. If domestic sale of such bonded products is required, an application for approval shall be filed with the supervising Customs. For processed products of a Bonded Factory which are approved for domestic sales, the Bonded Factory alone or jointly with the buyer party, shall prepare an application for "import of foreign goods"; and shall not release such products from the Factory until the said application has been filed with and supplementary assessment of import duties and taxes has been made by the supervising Customs in accordance with the form and state of such products at the time of their release from the Factory.
The firms purchasing such domestically salable bonded products in the preceding paragraph may apply to the supervising Customs for selecting one of the following methods to assess import duties on such products, however that where domestically salable products are manufactured from materials more than 50% of which are shingle intermediate goods for assembly use, import duties on such products shall be assessed according to the tax rate applicable to the duty-paid value of such products.
1. Customs duties levy on the domestically salable bonded products shall be calculated and assessed in accordance with the relevant tariff rate against the amount equal to (70) percent of the duty-paying value of such products.
2. While the fact of use of non-bondable raw materials in the bonded products have been confirmed, the import duties levy thereon shall be calculated and assessed in accordance with the applicable tariff rates against the duty-paying value of such products less the value of such non-bondable raw materials.
The domestically salable bonded products of bonded factory are reprocessed for export, such products are eligible for offsetting or refund of duties and taxes in accordance with the ''Regulations Governing the Offsetting or Refund of Duty and Taxes On The Raw Materials Of Export Products". However, this shall not apply to the products or commodities which have been excluded from the list of duty refundable items.
For the raw materials imported by a Bonded Factory are diverted to domestic sales with the approval of the supervising Customs, the provision in Paragraphs 1 and 3 shall apply mutatis mutandis.

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While the domestic sales subject to supplementary payment of duties and dues as referred to in Article 40 are made, the Bonded Factory may apply to the supervising Customs for approval of monthly report thereof in accordance with the following provisions:
1. To provide monetary security in an appropriate amount, with said amount to be adjustable by Customs in accordance with actual requirement.
2. To establish a register for monthly reportable domestic sales, and record therein, in the sequence of output from the Factory and prior to delivering the goods from the Factory, the date of each lot of domestic sale, the description, specifications, and quantity of goods and the estimated amount of payable duties and taxes. The goods, its amount shall be within the monetary security provided, may then be taken out of the bonded warehouse in advance for delivery.
3. To prepare an application for import of foreign goods not later than the fifteenth (15th) day of each calendar month for the goods sold domestically in the preceding month, and apply for supplementary assessment and payment of duties and taxes in accordance with Paragraph 2 of Article 40.

Where the self-use machines and equipment which have not been deducted from stock account are sold to traders in the taxed areas, a declaration is required and customs duties shall be paid based on actual transaction value.

Where the products of a Bonded Factory are sold or presented as gift to domestic and foreign firms or customers visiting the Bonded Factory and if their value thereof does not exceed the threshold amount for duty-free certification, the following provisions shall be complied with:
1. When such products are to be sold or given as gift to a domestic firm or factory, the case shall be handled in accordance with Article 40 hereof.
2. When such products are to be mailed or shipped to firms and factories abroad, the case shall be handled in accordance with Article 35 hereof.
3. When such products are to be presented to visiting foreign customers or taken abroad by factory-designated staff or its appointed express courier, an Application for Carrying Products of Bonded Factory Out of (or Into) the Country shall be prepared and issued to the foreign customers, the factory-designated staff or the courier for taking the products out of the factory. Within ten days beginning from the second day after taking the products out of the factory, the case shall be cancelled against the export certificate issued by Customs at the port of exportation. In the case where a Bonded Factory applies in advance by electronic transmission to hand-carry products for export, and Customs at the export location completes the shipping arrival registration, the supervising Customs shall write off the case up after verification. Where the products hand-carried out from the country are hand-carried in for re-entry into the country, the original "Application for Carrying Products out of (or into) the country" shall be presented to Customs at the port of entry for Customs examination and clearance. The products shall be entered into the Factory for storage in the warehouse and re-entry into the stock account within one week beginning from the second day after Customs release of such products.
Where the value of bonded raw material hand-carried out and re-imported by the foreign customers, factory-designated staff or its appointed express courier of the Bonded Factory does not exceed the threshold amount for duty-free certification, it shall be handled in accordance with Subparagraph 3 of the preceding paragraph under this Article.
When the government purchases products from a Bonded Factory as gifts to be carried out of the country by government officials sent abroad for presenting to persons of friendly nations where government officials are going to visit, or to be presented to foreigner visiting this country such products may be taken out of the Bonded Factory against the certificates and receipts to be issued by the departmental agencies under various Yuan’s of the central government.
A register for taking out bonded products (at a total value not exceeding the threshold amount for duty-free certification) from the factory premises shall be set up and maintained by the Bonded Factory and shall be verified and stamped by the supervising Customs. The entries to be recorded therein, item by item, shall include the factory release date, the nomenclature, quantity, specifications of and the payable amount of duty and tax for such products.
In the event that the products referred to in Subparagraph 3, Paragraph 1 or in Paragraphs 2 and 3 above are neither deleted from export inventory in accordance with the established provisions nor shipped back to the Factory, the Bonded Factory shall, within ten (10) days beginning from the second day after expiration of the deadline date for closing the case, prepare an "application for import of foreign goods" and apply for supplementary assessment and payment of duties and taxes in accordance with Paragraph 2, Article 40 hereof.