By-products, waste products, and scrapes produced during the process of production shall be stored in a warehouse of locations approved by the Administration and Customs in order, category, and nature. Waste of semi-finished goods shall be separately stated for inspection.
The term “waste products” as set forth in the preceding paragraph shall refer to all machines, equipment, parts and accessories, or materials that are of no use for the Park Enterprises; or part of the assets that do not go through the manufacturing process; or the products and equipment are damaged due to acts of God and cannot be used by the Park Enterprises but still belong to part of the assets.
The term “scrapes” as set forth in Paragraph 1 shall refer to the dregs, waste, and that cannot be used by the Park Enterprises; or the accumulative dregs, waste, or supplementary materials of packages that do not go through the manufacturing process and not belong to part of the assets.

The discarding of by-products, waste products, and scraps prescribed in the preceding article shall be handled in accordance with the following provisions:
1.For parts of utilization values: the Park Enterprises shall apply for approval to the Administration as a special case and shall destroy the aforementioned substances under the supervision of Customs and tax collection administration. If the substance is one of the restrained items of exported/imported goods prescribed by the competent trading authority, the Park Enterprises shall withdraw the substance out of the Park after additionally applying for a permit from the Administration and paying the tariff, which is assessed according to Customs value by Customs pursuant to Customs Law. With regard to the aforementioned operation, the Park Enterprise shall, after being approved by the Administration, estimate the annual quantity of substances to destroy and pay for the tariff in advance based on the remaining value. After the substances are destroyed under the supervision of Customs and Administration, the Park Enterprises may withdraw them out of the Park within the amount of the tariff paid in advance.
2.For parts that have no utilization value: shall be destroyed under the supervision of the Administration or a professional institution commissioned by the Administration together with Customs.
With regard to the waste products and scrapes prescribed in the preceding paragraph, if not additionally listed their proportion of goods damaged in the lists of material usage or not approved, the bonded raw material account may be written off.
The Park Enterprise shall handle the wasted products and scrapes that are approved for process in accordance with the Waste Disposal Act.
In the event that the discarding and destruction cases set forth in Paragraph 1 involve the Park Enterprises that are recognized by Customs as AEO,supervision of the destruction may be exempted after approval is obtained from the Administration.

If the Park Enterprises suffer from a shortage on bonded goods due to theft, after acquiring evidencing documents from the police and reporting the same to Customs for examination, the Park Enterprises shall complete the tariff and debooking within three (3) months from the next day when the theft takes place. If under special circumstances, after Customs grants its approval, the Park Enterprises may, less than six (6) months, apply for a temporary exemption from supplementary payment of tax with surety provided. If failing to recover the bonded goods that are pilfered after the deadline, the case shall be closed by deducting the tax payment directly from the surety by Customs. With regard to the portion that is recovered, Customs shall return the surety.

In the event that the goods being bonded by the Park Enterprises are ornamental aquatic animals, the quantity decreases without any remains due to cannibalism, and the decrease is within a reasonable proportion, the Park Enterprises may apply to Customs for approval of deduction from the accounts.
The reasonable proportion of the decrease of ornamental aquatic animals as set forth in the preceding paragraph due to lack of remains as a result of cannibalism shall be announced by the competent authority. The same rule shall apply in case of changes.
In case of death of ornamental aquatic animals mentioned in Paragraph 1 due to their nature with their remains found, the Park Enterprises shall apply to the Administration for sending personnel to supervise the destroy of the remains, and may apply to Customs for verification of the deduction from the accounts.
When ornamental aquatic animals mentioned in Paragraph 1 are sent to the quarantine authorities for quarantine purposes, deductions from the accounts shall be verified based on the documents issued by relevant authorities.

Where the Park Enterprises borrow, lend, and return raw materials, materials, fuels, semi-finished goods, or finished goods, both parties shall jointly fill out the application regarding borrowing (lending) raw materials, materials, fuels, semi-finished goods, or finished good and apply to Customs for inspection and procedures of entering (leaving) the factory. After each Park Enterprise receives or returns the aforesaid items, the case shall be closed an entered in the book.
Cases prescribed in the preceding paragraph may be handled by self-inspection of inbound/outbound factory in accordance with Articles 5 and 6 hereof. Within five (5) days after the goods enter (leave) the factory, the application regarding borrowing (lending) raw materials, materials, fuels, semi-finished goods, or finished good shall be filed with Customs for record.
The raw materials, materials, fuels, semi-finished goods, and finished good lent by the Park Enterprise as prescribed in the preceding two paragraphs shall be returned within three (3) months from the day of lending. A supplementary customs clearance and transfer procedure shall be handled in accordance with Article 32 hereof, if failing to return after the deadline or close the case with Customs. With regard to serious violations, Customs may cease accepting cases of borrowing/lending from both Park Enterprises for six (6) months.