In the event that any bonded factory fails to submit a declaration form for supplementary tax and to complete Customs clearance by presenting relevant documents within the time periods prescribed in Paragraphs 1 and 4 of Article 21, Paragraph 2 of Article 24, Subparagraph 2 of Paragraph 1 of Article 26, Article 29, Paragraph 1 of Article 30-1, Paragraphs 1 and 4 of Article 40, Subparagraph 3 of Article 41, Article 41-1, Subparagraph 1 of Paragraph 1 and Paragraph 5 of Article 42, Paragraphs 1 to 3 of Article 44, Paragraph 2 of Article 45, Paragraph 6 of Article 46, Paragraph 3 of Article 47, Article 48 and Paragraph 4 of Article 50, Customs may calculate the amount of the tax and issue a duty memo for completing the payment. Moreover, Customs, in accordance with Article 89 of the Customs Act, shall warn or impose a fine of not less than NT$ 6,000 and not more than NT$30,000 and may be ordered to improve before a certain period of time; the fine shall be charged per violation in case of failure to improve before the given deadline. If there is no improvement after three penalties, a suspension of monthly declaration privileges may be adopted for a period of not more than six months, and a suspension of the bonded raw materials importation may also be adopted for a period of not more than one month.

In the event that any bonded factory is found to have any of the following instances, Customs, in accordance with Article 89 of the Customs Act, shall warn or impose a fine of not less than NT$6,000 and not more than NT$30,000 and may be ordered to improve before a certain period of time; the fine shall be charged per violation in case of failure to improve before the given deadline. If there is no improvement after three penalties, a suspension of monthly declaration privileges may be adopted for a period of not more than six months, and a suspension of the bonded raw materials importation may also be adopted for a period of not more than one month:
1. Bonded factories sell or transport bonded goods to enterprises in Science Parks, Technology Industrial Parks, Agricultural Technology Parks, Free-Trade-Zones or other bonded factories, but fail to produce declarations and submit them to Customs along with relevant documents for clearance on a monthly basis, within the period stipulated in Subparagraph 2 of Paragraph 1 of Article 31 and Paragraph 3 of Article 33.
2. Bonded factories store bonded items in logistics centers or private bonded warehouses, but fail to produce declarations and submit them to Customs along with relevant documents for clearance on a monthly basis, within the period stipulated in Paragraph 2 of Article 33-1.

In the event that any bonded factory is found to have any of the following instances, Customs, in accordance with Article 89 of the Customs Act, shall warn or impose a fine of not less than NT$ 6,000 and not more than NT$30,000 and may be ordered to improve before a certain period of time; the fine shall be charged per violation in case of failure to improve before the given deadline. If there is no improvement after three penalties, a suspension of the bonded raw materials importation may be adopted for a period of not more than one month:
1. Bonded factories fail to set up guard houses and to designate guards therein to all entrances and exits of the premises pursuant to the provisions of Subparagraph 3 of Paragraph 1 of Article 4; fail to assign serial numbers to the release certificates of bonded goods released from the factory in accordance with Paragraph 3 of Article 17 or the assigned serial number is missing or skipped.
2. The equipment of the plant building is found in violation of the provisions of Article 5; the bonded factories fail to designate responsible personnel to watch the raw materials and finished products warehouse pursuant to the provisions of Article 14, lock up the warehouses during the period of work stoppage, or shutdown for more than 10 days without declaring to Customs.
3. The bonded factories fail to process the license renewal or company seal re-registration according to the provisions of Paragraph 2 or Paragraph 3 of Article 7.
4. The bonded factories fail to file the schedule of raw materials used per unit of product with the supervising Customs for reference within the prescribed time period according to provisions of Paragraph 1,4, and 7 of Article 10, or releasing or exporting products without authorization, in violation of the provisions of Article 34 or Subparagraph 2 or 3 of Paragraph 1 and Paragraph 2 or 3 of Article 42.
5. The bonded factory fails to assign part numbers or prevent interchanges of materials as prescribed in the provisions of Paragraph 6 of Article 10.
6. The bonded factories fail to store or retrieve the bonded raw materials and finished products, and to place them in the order of separate categories and in an orderly fashion or failure to assign serial numbers and established a control card system in accordance with the provisions of Articles 14 to 16.
7. The bonded factories fail to complete the relevant documentation, record cards, or register book pursuant to the provisions for entry and withdrawal of bonded items at the factory (warehouse) or fail to make entries in the relevant account books within the time limit as specified in the provisions of Article 18.
8. The bonded factories fail to compile the reports and other materials within the time limits set forth in Paragraph 4 of Article 20; or the bonded factories fail to submit reports and other materials required by the supervising Customs for supervision or auditing purpose or to rectify the matters shown in the notice of supervising Customs within the prescribe deadline.
9. An insufficient number of personnel dealing with bonded affairs of the Bonded Factory, or disqualification of the personnel, which is a violation of Article 22.
10. The bonded factories engage in the processing business without obtaining the prior approval of supervising Customs, thus a violation of Article 23.
11. The bonded factories engage in the product inspection, testing, repair and maintenance or operating software installation without obtaining the prior approval of supervising Customs, thus a violation of Paragraph 1 of Article 24.
12. The bonded factories produce the non-bonded goods without obtaining the prior approval of supervising Customs, thus a violation of Paragraph 1 of Article 27-1.
13. The bonded factories fail to record the sample of finished goods samples in the book and ledgers or to cut or destroy the samples pursuant to the provisions of Paragraph 2 of Article 30-1.
14. The bonded factories fail to state the reasons for changing the purpose of use in the application form, and shipped the self-use machines and equipment out of the bonded factory, thus a violation of Paragraph 1 of Article 33 or Paragraph 1 of Article 33-1.
15. The bonded factories fail to obtain prior approval from competent Customs for domestic sale of bonded raw materials, thus a violation of the Article 40.
16. In the case that the supervising Customs has approved exempting personnel from supervising destruction, but the Bonded Factory failed to comply with the time limit specified in Paragraph 5 of Article 44 to present to the supervising Customs for verification the scrapped list with the date, location, method of destruction and the shipping destination, or did not attach pictures of the destroyed goods and other relevant certification documents.
17.The bonded factories fail to obtain prior approval from competent Customs for outsourcing the inspection, processing, testing, checking, repair, maintenance, and displaying of the bonded goods, thus a violation of provisions of Paragraph 1 to 3 of Article 46 ,Paragraph 1, 4, and 5 of Artcle47, Artcle 48 and Paragraph 1 of Article 50.

In the event that any bonded factory is found to have any of the following instances, Customs, in accordance with Article 89 of the Customs Act, shall warn or impose a fine of not less than NT$6,000 and not more than NT$30,000 and may be ordered to improve before a certain period of time; the fine shall be charged per violation in case of failure to improve before the given deadline.If there is no improvement after three penalties, a suspension of bonded impotation of raw materials, self-use machines and equipment may be adopted for a period of not more than six months; in serious cases, the registration of bonded factory may be repealed.
1. Failure to set up account books or failure to report and submit the same to the Customs authority for verification of stamp or for approval. The provisions of this Article shall also apply if false entries are made in violation of the provisions of Articles 11, 12 and Paragraph 1 and 3 of Article 24 to the extent of having affected the annual settlement of the quantities of the imported bonded goods or the amounts of the duties and taxes payable on these goods.
2. Account books, statements, reports and certificates are not maintained in accordance with the provisions of Paragraph 1 and 2 of Article 13 or pages thereof are destroyed, damaged or missing.
3. While the Bonded Factory has lost its qualification of applying for registration as a bonded factory as specified in Article 4 hereof.
4. While the business operations of the Bonded Factory have already been discontinued in fact.
5. While the Bonded Factory has become involvent and cannot pay its debt.
6. Failure to comply with Paragraph 5 of Article 4.

In the event that any bonded factory is found to have any of the following instances, Customs, in accordance with Article 89 of the Customs Act, shall warn or impose a fine of not less than NT$ 6,000 and not more than NT$30,000 and may be ordered to improve before a certain period of time; the fine shall be charged per violation in case of failure to improve before the given deadline. If there is no improvement after three penalties, a suspension of the bonded raw materials importation may be adopted for a period of not more than six months :
1. No factory release certificate has been prepared and issued in accordance with Paragraph 2 of Article 17 at the time when releasing goods from the Factory.
2. Bonded items for export released from the Factory were not transported to the port exportation according to Article 34 or there was a shortage in the quantity of such items upon arrival at the port of exportation.
3. Imported bonded items were not transported in accordance with Paragraph 1 of Article 28 to the Bonded Factory after having been taken out from the warehouses at the place of importation.
4. There was a shortage in the quantity of any bonded item being stored in warehouse without proper reason, and the shortage exceeds three (3) percent of the total booked quantity in stock.
5. The cumulative amount of duties and taxes either payable or recordable on credit involved in the cases of supplementary payment or recording of duties and taxes to be reported on a monthly basis in accordance with Article 41 has exceeded the total amount of security provided (by the Bonded Factory).
6. In case the Customs approved bonded goods subject to the time limit for shipping back fail to be shipped back to the bonded factory within the said time limit.

Any manufacturer doing processing work for a Bonded Factory fails to comply with the provisions of Article 49 shall be suspended from performing the processing contracts.

In case a Bonded Factory is found to have moved, smuggled or falsely reported bonded items as imported or exported, or in or out of the factory, or to have sold bonded goods, raw materials ,or self-use machinery/equipment on the domestic market without the permit, it shall be considered as in violation of the provisions of the Customs Preventive Statute.

(Delete)

A Bonded Factory which falsely imports goods ineligible for bonding as co-proclaimed under the name of bonded raw materials or self-use machines and equipment voluntarily applying for payment of import duties and dues beyond the time limit as specified in the provisions of Article 29 hereof shall, in addition to being liable to payment of such import duties and dues, be subject to imposition of a delinquency surcharge in an amount to be calculated at the daily rate equal to 0.05% of the amount of the outstanding import duties and dues for the period from the date following the day on which the imported raw materials or self-use machines and equipment are released by Customs till the date of full payment of import duties and dues. However, if the false importation activity is discovered by the Customs authority, the Bonded Factory shall, in addition to being liable to payment of import duties and dues and delinquency surcharge, be dealt with in accordance with the provision under Item 4, Paragraph One, Article 37 of the Customs Preventive Law.