The customs value of imported goods subject to ad valorem duties shall be determined and calculated on the basis of the transaction value.
The term "transaction value" referred to in the preceding paragraph means the price actually paid or payable for the imported goods sold from the exporting country to the Republic of China.
The following expenses shall be added into the calculation of customs value, provided that such an amount is not already included in the price actually paid or payable for the imported goods:
(1)commissions, brokerage, the cost of containers and the cost of packing incurred by the buyer;
(2)the value, apportioned as appropriate, of the following goods and services supplied by the buyer to the seller free of charge or at reduced cost for use in connection with the production or sale for export of the imported goods:
(i) materials, components, parts and similar items incorporated in the imported goods;
(ii) tools, dies, moulds, and similar items used in the production of the imported goods;
(iii) materials consumed in the production of the imported goods; and
(iv) engineering, development, artwork, design, plans and similar items undertaken elsewhere than in this country and necessary for the production of the imported goods;
(3) the royalties and license fees related to the goods paid by the buyer as a condition of the sale of the goods;
(4) the proceeds for use or disposal of the goods by the buyer accrues to the seller;
(5) the transport cost of the imported goods to the port or place of importation, and loading, unloading and handling charges associated with the transport; and
(6) the cost of insurance.
Expenses added to the customs value in accordance with the preceding paragraph should be added on the basis of objective, quantifiable information. Where objective and quantifiable data do not exist, the customs value cannot be determined under the provision of this Article.
In the case that Customs is doubtful of the truth and accuracy of the transaction documents provided by the duty-payer, or that Customs still remains doubtful after the provision of such an explanation, it shall be deemed that the customs value cannot be determined under the provision of this Article.

The transaction value shall not be used as the basis for determining and calculating the customs value of imported goods under any of the following circumstances:
(1) where there are restrictions as to the use or disposition of the goods by the buyer other than restrictions which: (i) are imposed or required by law or public authorities in the Republic of China; (ii) limit the geographical area in which the goods may be resold; (iii) do not substantially affect the value of the goods;
(2) where the sale or the price is subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;
(3) where part of the proceeds of any subsequent use or disposal of the goods by the buyer will accrue to the seller, but where such an amount cannot be determined;
(4) where the buyer and seller are related and such relationship influences the transaction value.
For the purpose of Sub-Paragraph four of the preceding paragraph the buyer and seller shall be deemed to be related only if:
(1) one of them is a manager, board director or supervisor of the other's business;
(2) they are legally recognized partners in business;
(3) they are employer and employee;
(4) one of them directly or indirectly owns, controls or holds five percent or more of the outstanding voting stocks or shares of the other's business;
(5) one of them directly or indirectly controls the other;
(6) both of them are directly or indirectly controlled by a third person;
(7) together they directly or indirectly control a third person; or
(8) they are spouses or relatives within a third-degree family relationship.

If the customs value of the imported goods cannot be determined under the provisions of Article 29, the customs value shall be determined by Customs based upon the transaction value of identical goods sold for export to the Republic of China, exported at or about the same time as the goods being valued. In applying this Article, a reasonable adjustment shall be made to take into account differences in value attributable to commercial levels, quantity, transport costs, etc.
The term "identical goods" referred to in the preceding paragraph means goods which are the same in all respects, including country of production, physical characteristics, quality and reputation, as the goods being valued.

If the customs value of the imported goods cannot be determined under the provisions of Articles 29 and 31, the customs value shall be based on the transaction value of similar goods sold for export to the Republic of China, exported at or about the same time as the goods being valued. In applying this Article, a reasonable adjustment shall be made to take into account differences in value attributable to commercial levels, quantity, transport costs, etc.
The term "similar goods" referred to in the preceding paragraph means goods which, although not alike in all respects, are produced in the same country, perform the same functions, have like characteristics and like component materials, as the goods being valued, and are commercially interchangeable with the goods being valued.

If the customs value of the imported goods cannot be determined under the provisions of Articles 29, 31, and 32, the customs value shall be based on a deductive value.
Customs may, according to the request of the duty-payer, reverse the order of application of present, Article 33, and Article 34 for a customs valuation.
The term "deductive value" referred to in Paragraph One means the customs value shall be based on the unit price at which the imported goods or identical or similar imported goods, are sold in the Republic of China in the condition as imported, in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods at the first commercial level, subject to deductions for the following:
(1) either the commissions usually paid or agreed to be paid, or the additions usually made for profit and general expenses in connection with the sale of the imported goods or imported goods of the same class or kind in the Republic of China;
(2) the customs duties, and other national taxes payable in the Republic of China by reason of importation and sale of the goods;
(3) the transport and insurance costs and associated costs incurred within the Republic of China after the importation of the goods.
If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall be based on the unit price at which the imported goods or identical or similar goods are sold in the greatest aggregate quantity in the condition as imported, to persons who are not related to the persons from whom they buy such goods, at the time when sales of the imported goods or identical or similar goods are made in sufficient quantity to establish the unit price of the imported goods being valued, within ninety days following the date of the importation of the goods being valued, subject to deductions for the items enumerated in the preceding paragraph.
If the imported goods are not sold in the condition as imported, then, if the duty-payer so requests, the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the Republic of China who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions enumerated in Paragraph Three of this Article.

If the customs value of the imported goods cannot be determined under the provisions of Articles 29, 31, 32, and 33, the customs value shall be based on a computed value.
The term "computed value" referred to in the preceding paragraph means the sum of the following:
(1) the costs and expenses of producing the imported goods;
(2) an amount for profit and general expenses equal to that usually reflected in the sale of the imported goods or imported goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the Republic of China;
(3) the transport cost of the imported goods to the port or place of importation, loading, unloading and handling charges and insurance costs associated with the transport.

If the customs value of the imported goods cannot be determined under the provisions of Articles 29, 31, 32, 33, and 34, the customs value shall be determined using reasonable means on the basis of data available to Customs.

The tax-payer may request in written form that Customs supply an explanation of the method used to determine the customs value of the imported goods, and Customs shall reply to the duty-payer in written form.

Prior to importation, the duty-payer or the duty-payer’s agent may apply to Customs Administration, Ministry of Finance (hereinafter as Customs Administration), for an advance ruling on customs valuation related to the matters whether the expenses paid or payable for the imported goods under the Paragraph 3 of Article 29 of this Act or other expenses should be added into the calculation of customs value and Customs shall reply in writing.
Upon any change of an advance ruling on customs valuation referred to in the preceding paragraph, Customs Administration shall state the reason to the duty-payer or the duty-payer’s agent in written form. After receiving the decision related to the change in the ruling, the duty-payer or the duty-payer’s agent may apply for an extension of the period of the validity of the ruling, provided the duty-payer or the duty-payer’s agent is able to prove that a contract has been entered into, the transaction has been conducted according to the contract and the change in the ruling will cause loss. However, such an extension shall not exceed ninety days following the date of receiving the written decision.
The duty-payer or the duty-payer’s agent may apply to Customs Administration for a review prior to the importation of the goods, if he or she is dissatisfied with the advance ruling issued referred to in the Paragraph One.
Regulations governing the application procedure for the advance ruling, required documents, time limit for reply referred to in paragraph 1 and the review procedure of the preceding paragraph shall be prescribed by the Ministry of Finance.

Upon re-importation of the goods sent abroad for repair, assembly, or further processing, the customs value of such goods shall be determined in accordance with the following provisions:
(1) for such goods sent abroad for repair or assembly, the actual cost of repair or assembly shall be taken as the basis for the calculation of Customs value;
(2) for goods exported abroad for further processing, the difference between the customs value of such goods following further processing at the time of re-importation and that of the identical or similar goods imported at the time of exportation of such goods, prior to further processing, shall be taken as the basis for calculating customs value.
The goods sent abroad for repair, assembly or processing referred to in the preceding paragraph shall be re-imported within one year commencing from the day after such goods are released for exportation. Where necessary, application may be filed with Customs prior to the expiration of the aforesaid one-year period, to explain the reason in writing for extension; for such overdue re-imported goods, the customs duty shall be levied on the basis of customs value of re-imported goods.

In the case of imported goods on which only a rental or royalty is incurred, without a transfer of ownership, the customs value shall be determined on the basis of the rental or royalty amount plus the transportation fee and insurance fee.
In a case in which the rental or royalty declared by the duty-payer is under that of normal value, Customs may determine the amount based on such information as is obtained through investigation, but the determined annual rental or royalty amount is not lower than one tenth of the customs value of the goods.
The imported goods on which duty is collected by rental or royalty pursuant to Paragraph One shall, in addition to the duty collected on rental or royalty, be provided a deposit or a guarantee by a credit institute based on the difference between the duty collected by rental or royalty and the total liable duty on the customs value of the imported goods.
The paragraph one applies only to goods whose ownership is not transferable on account of patent rights, trade secrets, or for any other special reasons approved by the Ministry of Finance.
The rental or usage period of the imported goods as referred to in Paragraph One shall be approved by the Ministry of Finance.

The foreign currency prices for imported goods liable to ad valorem duty shall be conversed into New Taiwan Dollar, and the exchange rate used for the conversion shall be published regularly by Customs Administration, Ministry of Finance in reference to the spot rate of the foreign exchange market.

In case where a complete set of machinery, together with all essential equipment used directly with the machinery in the production process, has to be imported in an unassembled and disassembled state, packed separately due to excessive size or for any other reasons, such machinery and equipment shall be assessed according to their respective tariff classification to levy duty unless pertinent documents have, prior to importation, been submitted to Customs and approved by Customs in which case duty shall be assessed according to the tariff classification applicable to the complete machinery with equipment as one set.

With the exception of the machinery which is to be dealt with in accordance with the provisions of the preceding Article, any other goods, which are made up of several different components, imported in a disassembled state and packed separately, shall be liable to duty assessed according to the tariff classification applicable to the goods as one complete unit.

To verify the correct customs value of imported goods, Customs may take the following investigation measures, and the person investigated shall not evade, hinder or refuse such investigation:
(1) Examining any other documents concerning the price of the imported goods sold by the seller to the buyer;
(2) Making inquiries into the transaction value or deductive value of the imported goods or identical or similar goods, and examining past records of customs values assessed for previous shipments;
(3) Investigating account books and vouchers related to the imported goods or identical or similar goods of other sellers;
(4) Exploring any other evidence pertinent to valuation.