The following imported articles are exempt from customs duty:
(1) articles imported for use by the President and the Vice President of the Republic of China;
(2) articles imported for official or personal use by diplomatic and consular officials of foreign embassies, legations, and consulates stationed in the Republic of China, and articles imported by other organizations and personnel that are entitled to diplomatic privileges, provided that the foreign governments concerned are extending reciprocal privileges to the Republic of China;
(3) mail pouches imported by diplomatic missions and articles for personal use brought in by government agency officials returning from overseas posts following the expiry of their terms of office;
(4) arms and ammunition, military equipment, vehicles, vessels, aircraft and accessories thereof, and supplies imported solely for military use by military authorities and armed forces;
(5) relief articles imported by or donated to government agencies or public welfare and charity societies engaged in the conduct of relief work;
(6) Articles necessary for educational, research, or experimental purposes imported by public and private schools or other educational or research institutions, compatible with the respective nature of their establishment; athletic equipment and apparatus required by sports organizations for training and participation in international athletic contests; provided that the articles in both categories are finished products;
(7) decoration medals, insignia and other similar articles for use as tokens of commendation conferred by foreign governments or organizations;
(8) official and private documents and similar articles;
(9) advertising matters and samples of no commercial value or with a value no more than the prescribed ceiling;
(10) marine products caught at sea by fishing boats of the Republic of China; or marine products, whose quantities are within the limit prescribed by the Ministry of Finance, caught at sea and shipped back by fishing boats of the Republic of China belonging to a government-approved overseas company invested in by citizens of the Republic of China.
(11) wrecked vessels, aircraft and their respective equipment salvaged from the sea;
(12) vessels registered with the Republic of China, engaged in trade for two years, and permitted to be dismantled on account of overage cause or for any other reasons; however, non fixtures on board these ships such as articles and tools for ships' use, foreign goods’ stocks, bunker coal and oil, shall not be exempt from duty;
(13) fuel and materials used solely on ships, aircraft and other means of transport engaged in international trade; however, in the case of international carriers registered with a foreign government, the granting duty-free privileges is subject to reciprocal treatment by that foreign government to carriers of the Republic of China;
(14) personal effects, carried by passengers for their own use;
(15) petty parcels imported by post with a value no more than the prescribed ceiling;
(16) pharmaceutical products or medical apparatus imported by or donated to government agencies in order to prevent epidemics;
(17) equipment and articles imported by or donated to government agencies for emergency aid, as well as imported equipments, apparatus, disaster rescue animals and goods carried by foreign rescuers for the purpose of emergency or disaster rescue;
(18) articles for personal use brought in by sailors, holding citizenship of the Republic of China and a domestic household registration, returning from foreign countries or disembarking.
(19) The necessary athletic equipment or supplies imported by or donated to government agencies for holding international athletic contests
Except for the goods referred to in the preceding paragraph, the accumulated customs value of the imported goods in the same shipment, if with a value no more than the prescribed ceiling announced by the Ministry of the Finance, shall be exempt from customs duty. However, this prescription is not applicable to frequently-imported goods or such special goods as are prescribed and announced to the public by the Ministry of Finance.
Regulations governing the scope, items, quantities and ceiling of customs exemptions referred to in Subparagraphs 2 to 6, 9, 14, 15, and 18 of Paragraph 1 and the clearance procedures and other required matters concerning the goods listed therein, and the meaning of frequent importation in the proviso to the preceding paragraph, shall be prescribed by the Ministry of Finance.

Imported goods shall be exempt from customs duty under any of the following circumstances:
(1) Goods lost, damaged or which have deteriorated, hence having no commercial value, while in transit or at the time of unloading, provided that the fact has been reported to Customs at the time of importation.
(2) Goods lost or damaged by natural disaster, accidents or other force majeure, hence having no commercial value, following unloading but prior to release by Customs.
(3) Goods found to have been broken, leaking, damaged or rotten at the time of Customs’ examination, hence having no commercial value, provided such condition of the goods is not due to the negligence of the warehouse keeper or any other party related to the goods.
(4) Goods to be returned to the exporter at the request of the duty-payer and such request being approved by Customs prior to release.
(5) Natural loss caused by the nature of the goods prior to release, such loss being confirmed by Customs.

When duty-paid imports are found to have been damaged or not conforming to the specifications and quality as stated in the original contract, thereby necessitating compensation or replacement by the exporter, the compensation or replacement shall be exempt from duty on the condition that the situation is reported to Customs within one month following the date of importation of the original goods, and that all relevant documents submitted to Customs have been verified as accurate.
If the aforementioned goods are either machinery or equipment, the report and application submitted to Customs may be made within three months following the date of installation and test-run.
The compensation or replacement goods referred to in Paragraph One shall be imported within six months following the date of receiving the approval notice from Customs. If necessary, an extension, not exceeding six months, may be applied for with Customs before the expiration of such period.

Dutiable samples, articles for scientific research, experiments, and/or exhibition, costumes and paraphernalia of entertainment troupes, cinematographic equipment and supplies for making movies and/or television films, instruments and tools needed for installation and repair of machines, containers used for importing cargoes, finished products imported for repair and maintenance, and other articles approved by the Ministry of Finance shall be exempt from customs duty, provided that they are to be re-exported abroad within six months following the date of importation or within the time limit approved by the Ministry of Finance.
If the goods referred to in the preceding paragraph require an extension to the period of re-exportation under special circumstances, an application for an extension stating the reasons shall be submitted to Customs at the port of importation along with relevant documents. Provided that the re-exportation period is approved by the Ministry of Finance, then such an application shall be submitted to the Ministry of Finance.

Samples, articles for scientific research, engineering machinery, cinematographic equipment and supplies carried by professionals engaged in making motion pictures and/or television films, instruments and tools needed for installation and repair of machines, articles for exhibition, artwork, containers used for importing cargoes, costumes and paraphernalia of entertainment troupes, copies of motion pictures and video tapes mailed abroad by government agencies and other similar articles approved by the Ministry of Finance, which are re-imported within one year following the date of exportation or within the time limit approved by the Ministry of Finance, shall be exempt from customs duty.
If the goods referred to in the preceding paragraph require an extension to the period of re-importation under special circumstances, an application for an extension stating the reasons shall be submitted to Customs at the port of exportation along with relevant documents. Provided that the re-importation period is approved by the Ministry of Finance, then such an application shall be submitted to the Ministry of Finance.

The duty-payer may hold a carnet instead of import or export declaration form in order to clear Customs for temporary admission of goods. Where the goods are re-exported or re-imported within the period of validity, such goods may be exempted from customs duty. In the case that the goods are not re-exported within the time limit, the institution acting as guarantor as prescribed in the carnet shall pay the duty in place of the duty-payer; where the goods are re-imported after the aforesaid period, the customs duty shall be levied according to this Act.
Regulations governing the scope of goods applicable to temporary admission, the guarantee liabilities of the guarantor institution, the endorsement, issuance, and management as well as other required matters, shall be prescribed by the Ministry of Finance.

In cases where the goods imported are under duty reduction or exemption with a subsequent deviation from duty reduction or exemption conditions on account of a transfer of ownership or a change in their use, the original duty-payer or the present holder of such goods shall pay duty to Customs at the port of importation within thirty days following the date of the transfer of ownership or the change in the use of the goods imported; the import duty levied shall be based on the value and tariff rate applicable at the time when such a transfer or change occurred. However, the duty may be exempted under any of the following circumstances:
(1) where the transfer of ownership or change in use occurs after the expiry of the time limit prescribed by the Ministry of Finance;
(2) where the goods are re-exported in their original condition as approved by Customs;
(3) where the authority having originally issued the permit or certificate transfers the case to Customs, and the goods are re-exported in their original condition as confirmed by Customs; or
(4) where the transferee satisfies the conditions of the conditions for duty reduction or exemption.
Imported goods on which duties are paid in installments or recorded on accounts shall not be transferred until full payment of such duties is made unless they are under compulsory execution or otherwise approved by Customs as a special case.
Where the imported goods are under compulsory execution or approved as a special case as provided for in the preceding paragraph, Customs may permit the transferee to continue to pay the duties in installments or record them on accounts.
Regulations governing the duty payment referred to in Paragraph One, the time limit for exemption, application procedure, determination of customs value and other required matters shall be prescribed by the Ministry of Finance.

Raw materials imported for use in manufacturing articles intended for export may be exempt from duty if they are re-exported within one year following the date of release for entry, and are approved by the Ministry of Finance within one year following the day on which the raw materials were released for entry.
The application for exemption for the re-exported raw materials referred to in the preceding paragraph shall be submitted within six months following the date of exportation.

Exported finished products returned for any reason may be exempt from duty, if they are re-imported within 3 years following the release date for exportation; however, the import duty originally paid on the raw materials, refunded upon exportation of the goods, must be repaid in full.
The re-imported products as described under the preceding paragraph which are under a guarantee to be re-exported upon completion of repair or maintenance, within six months following the date of re-importation, shall be exempt from a repayment of duty on raw materials which was refunded upon exportation of the finished goods. However, if the re-exportation can not be accomplished on schedule on account of natural disaster, accidents or other force majeure, the time limit for re-exportation shall not exceed one year.

Imported goods may, prior to being picked up, be applied to Customs to store such goods in a bonded warehouse. Such goods re-exported or exported after reassembly within the time limit prescribed for storage in a bonded warehouse may be exempt from the payment of duty.
After being stored in a bonded warehouse, domestically manufactured bonded goods may be written off from the accounts in accordance with relevant provisions; for domestically manufactured goods for reconditioning which have been stored in a bonded warehouse, except for those goods of which the applicable items of duty refund have been cancelled, the duty may be refunded or offset after exportation according to the provisions of Article 63.
During the warehousing period referred to in the preceding two paragraphs, the owner of the stored goods or the bearer of the warehousing receipt thereof may apply to Customs for permission to arrange, sort, divide up, assemble or repack such goods within the bonded warehouse.
The firm operating the bonded warehouse shall apply to the relevant Customs office for registration and submit a deposit. Regulations governing the qualification, conditions, installation and equipment, amount and type of deposit, application procedure, registration and any registration changes, certificate application and renewals, storage and management of goods and any other required matters shall be prescribed by the Ministry of Finance.

Export processing factories may be registered, with the approval of Customs and under its supervision, as bonded factories. Raw materials imported and stored by bonded factories for manufacturing or processing into exported products shall be exempt from customs duties.
Finished products processed or manufactured by bonded factories, and raw materials exempted from customs duties in accordance with the provisions of the preceding paragraph, shall not be moved out of bonded factories, unless approved by Customs and unless duties have been paid on products or raw materials in the form when they were moved out of bonded factories.
Self-use machinery and equipment imported by a bonded factory shall be exempt from customs duty. Nonetheless, in case where the aforementioned machinery and equipment are exported to the tax area within five years following the date of importation, the duty-payer of such goods shall pay Customs duty in accordance with relevant laws and regulations governing the importation of goods.
Bonded factories shall apply to the relevant Customs office for registration. Regulations governing the qualification, conditions, capital requirements, application procedure, installation and equipment, registration and any registration changes, certificate application and renewals, processing, management, clearance, recoverable duty procedures for domestic sales of bonded goods and any other required matters shall be prescribed by the Ministry of Finance.

Firms operating in a bonded location in regard to the storage, transportation and distribution business of bonded goods may apply to Customs for registration of its location as a logistics center.
Goods stored in a logistics center, if required for the operation referred to in the preceding paragraph, may carry out reconditioning and simple processing.
Imported goods stored in a logistics center which are re-exported in their original form, or after reconditioning or processing, shall be exempted from duty. Domestic goods stored in a logistics center, except for items whose duty refund cancellation has been announced, may apply for offset or refund of duty following exportation in accordance with Article 63.
Firms operating a logistics center business shall apply to the relevant Customs office for registration and pay a deposit. Regulations governing qualifications, conditions, capital requirements, amount and type of deposit, application procedure, registration and any registration changes, certificate application and renewals, management and clearance of goods and any other required matters shall be prescribed by the Ministry of Finance.

Firms which sell goods to travelers entering or leaving the Republic of China may apply to Customs for registration as a duty-free shop.
In the case where bonded goods stored for sale by duty-free shops are sold to travelers within the time limit and are exported, by way of carrying them out, in their original form, such goods shall be exempted from duty.
Bonded goods of duty-free shops shall be stored in bonded warehouses which specifically provide the storage for duty-free shops.
Firms operating a duty-free shop business shall apply to the relevant Customs office for registration. Regulations governing the qualifications, conditions, capital requirements, application procedure, registration and any registration changes, certificate application and renewals, management, clearance, sales of goods, and any other required matters shall be prescribed by the Ministry of Finance.

In the case where imported goods are returned or exported by transshipment due to a mistake made during loading, excessive unloading or any other special reasons prior to declaration, an application shall be submitted to Customs for approval within fifteen days following the importation date of the transportation carrying such goods; such goods shall be returned in their original form or exported by transshipment within ninety days. In the case in which an application cannot be submitted on time due to rational reasons, the application for storage in a bonded factory shall, prior to expiration of the stipulated period, be submitted to Customs in accordance with Article 58.
In case where the goods which are not carried out in accordance with the preceding paragraph, they shall be sold or disposed of, in accordance with Paragraph Two of Article 73 mutatis mutandis.

Customs duty paid on raw materials used in the manufacture of articles intended for export is refundable following exportation of the finished products according to the standards for the raw materials in the quantity required for normal production, unless the item of duty refund has been cancelled by the Ministry of Finance by public notice or the amount of the refundable duty, or percentage of it in the FOB price of the finished products is lower than the limit prescribed by the Ministry of Finance.
Customs duty leviable on raw materials may be recorded in books with guarantees provided by the manufacturers and offset following the exportation of the finished products.
Manufacturer may apply for a duty refund or an offsetting of the accounts for export products, with relevant export documents, within one year and a half following the date on which the raw materials were released for importation. After the expiration of the prescribed time limit, the application for a duty refund or offset shall be rejected.
The time limit referred to in the preceding paragraph may be extended under special circumstances approved by the Ministry of Finance. Such an extension shall not exceed one year.
Regulations governing the refund and offsetting of customs duty paid on raw materials, the approval standards and calculations of such a refund or offset, application procedure, time limits, guarantees provided, records of the offset on accounts and any other required matters shall be prescribed by the Ministry of Finance.

Under any of the following circumstances, the customs duty shall be refunded:
(1) where the imported goods are banned by law from sale or use within one year following importation, and are re-exported or destroyed under Customs supervision within six months following the date of such a ban.
(2) where it is confirmed by Customs that the goods are damaged or broken prior to picking up due to natural disaster, accident or force majeure and thus have no value.
(3) where the tax-payer applies for re-exporting or storing the goods in a bonded warehouse prior to picking up them, and the application is approved by Customs.

In the case where there is shortage/excess of duty collection or refund, Customs, upon discovery, shall notify the duty-payer to pay or return the difference, or claim the over-collected/refundable amount. The duty-payer may also take initiative to apply for the payment or refunding.
The payment or refunding refer to in the preceding paragraph shall be made within one year. In the case of shortage/excess of duty collection, the time period shall be beginning following the date on which the duty was paid. In case of shortage/excess of refund, the time period shall be beginning following the date on which the duty refund notice was issued.
The shortage payable or refund receivable referred to in Paragraph One shall be collected or refunded together with the interest payable for the period beginning from the date following that on which the duty was paid, or following that on which the time limit for the duty payment expired, or following that on which the duty refund notice was issued by Customs, up to the date on which the shortage is paid or refund is received, calculated on a daily basis according to the annual interest rate of one-year fixed savings in Postal Savings which is effective on the date on which the duty is either due or paid.
The duty-payer shall pay the shortage duty or excess refund and the calculated interest in accordance with the preceding paragraph within fourteen days following the date of receiving the notice from Customs. In the case of delinquent payment made prior to the expiration of the time limit, a delinquent fee shall be levied at the rate of 0.05 percent of the total amount of customs duty unpaid per day, commencing on the date following that on which the prescribed duty payment period expired up to the date on which the outstanding amount of duty is liquidated in full.

In the case of refunded money, Customs shall deduct the outstanding amount from the refund in order to offset the delinquent payment, and immediately notify the duty-payer of the balance.