In cases where ex-factory taxed tobacco or alcohol products are returned to the factory for re-sorting, re-packaging or re-processing, the manufacturer may submit the return delivery documents to the competent tax authority for approval. After obtaining approval from the tax authority, the manufacturer shall submit the original tobacco or alcohol tax and health and welfare surcharge payment receipt to the tax authority for refund. After the aforesaid returned goods are repacked or reprocessed, the manufacturer will file tax return and pay tobacco or alcohol tax and health and welfare surcharge for those goods along with tobacco or alcohol products released from the factory in the same month.
Returned taxed tobacco or alcohol products for which the return procedures as specified in the preceding paragraph are not followed shall be treated as new ex-factory goods and subject to tobacco or alcohol tax and health and welfare surcharge.

In cases where taxed tobacco or alcohol products, which are returned to the factory for reprocessing due to poor quality or damage, incur losses in the reprocessing, the manufacturer must obtain the approval of the competent tax authority before writing off the damaged goods.

If taxed tobacco or alcohol products become disqualified according to governmental standards due to deterioration in quality or damage, the manufacturer should provide the information on location of storage, and method and date of disposition, and request the competent tax authority where the goods are located to dispatch an officer to oversee the disposal or melting down of those goods. After the goods are thus disposed of, the manufacturer may apply to the local tax authority or customs house for refund of tobacco or alcohol tax and the health and welfare surcharge paid.

Taxed tobacco or alcohol products that have been opened after sale but returned in exchange for a replacement shall still be subject to tobacco or alcohol tax and the health and welfare surcharge.