When discovering cases of violation, the inspection personnel should immediately make a record by filling out a Violation Case Report, which states in detail the name and address of the tobacco or alcohol holder, name and address of its responsible person, name, specification, quantity, alcohol content, date of manufacture, origin of tobacco and alcohol products, and facts of violation, and ask the holder or on-site staff to view and sign the report. The competent tax authority will handle the case in accordance with the Act.

If taxable imported tobacco or alcohol products are found to be involved in the evasion of customs duty, tobacco or alcohol tax, or health and welfare surcharge, a related report prepared according to the foregoing article as well as the seized tobacco or alcohol products will be forwarded to the Customs. The Customs will handle the evasion of customs duty according to the Customs Law and Statute Governing Customs Smuggling Prevention; with regard to the evasion of tobacco or alcohol tax as well as health and welfare surcharge, the Customs will impose tobacco and alcohol tax, penalty, and health and welfare surcharge pursuant to relevant provisions of the Act.