Employees of an airport or a harbor duty-free shop entering the restricted zones of the airport or harbor are obliged to comply with the pertaining regulations governing the safety of the international airport or harbor and its peace & order.

The duty-free shop should appoint an official representative to handle the bonded good matters of the duty-free shop; the appointment of said representative should be submitted to the competent Customs Office for approval and records purposes.

Duty-free shops conforming to “The Regulations Governing the Autonomous Management Operations of Joint-Locked Warehouses, Container Terminals, Bonded Warehouses, Logistics Centers and Customs Accredited Establishments” may apply to the competent Customs office for approval for Autonomous Management.

Duty-free shop’s bonded goods shall be stored in an exclusive bonded warehouse under the same legal entity of the duty-free shop. The establishment, management and incoming and outgoing delivery procedures of goods shall follow the “The Regulations Governing the Establishment and Management of Bonded Warehouses”.
If duty-free shop’s bonded goods require maintenance, return, resale, or re-export, the bonded goods shall be transferred to its self-provided bonded warehouse.

The invoices and reports designed and printed by the duty-free shop pursuant to the related provisions of “The Regulations Governing the Establishment and Management of Duty-Free Shops” and the various accounting journals should be processed through electronic processing procedures under the uninterrupted inventory method. Moreover, the files and records of the inventory accounting system, stock inventory system, and sales-related information should be maintained daily and in detail. Records shall be made available for the audit inspections by Customs and other competent authorities.

A “Warehouse Transfer Application Form” should be completed in the event of the transfer of goods among self-provided bonded warehouse, the duty-free shop, city duty-free outlet or shop, or purchase claim center. The said application form shall be transmitted to CPT Single Window System for recording and the goods may be transferred after the system has replied a message stating a successful documentation on the application, also, a packing list should be attached to said application form and submitted to the customs office in-charge for verification, sealing and escort shipment. In case where natural disasters, emergencies, force majeure or network disconnection hinders the transmission of the said application, firms shall inform their competent Customs Office and request for authorization of advance transferring of goods and re-submit the application once the transmission process is possible.
The warehouse transfer movement referred to in the preceding paragraph shall be transported by Bonded Cargo Transportation Means, pursuant to the provisions of "The Regulations Governing the Customs Management of Bonded Cargo Transportation Means". However, firms with its duty-free shop, purchase claim center and self-provided bonded warehouse located inside the restricted zone of the same airport or harbor are exempted.

The maximum storage period of bonded goods in duty-free shops is two years, starting from the initial time of goods stored into self-provided bonded warehouse.Bonded goods unsold thereafter should be returned or re-exported out of the country or declared for duty and tax payment. Where the latter option is chosen, the customs declaration should be processed within thirty days after expiration date has elapsed. The period of storage of such bonded goods in a duty-free shop as referred to in the preceding Paragraph may be extended for a period of one(1) year, upon approval by the competent Customs Office of the duty-free shop.
The number of extensions approved by the Customs in the preceding paragraph shall be limited to one time except for natural disasters, accidents or other force majeure reasons.

Prior to the selling of goods to the customers of duty-free shops, the duty-free shop clerk shall ask buyers to show their passport, travel document or boarding card, or an Alien Resident Certificate for the purpose of the verification of the identity of the traveler.
The duty-free shop is required to provide a sales invoice in duplicate form for each sale. The invoice should manifest the following information: the name, passport or travel document number, or Alien Resident Certificate number, and flight or voyage number of the buyer; the name, brand name, model number, specifications, product code number, quantity and unit price of the goods, the type of currency received, the amount of sale and the date of sale. Moreover, the sales clerk or personnel should cross out the remaining blank spaces in the invoice and affix his or her signature to the invoice. However, in the case where the goods are bought in a duty-free shop located in the district at an international airport or harbor, passengers may avoid filling out their passport or travel document number, or Alien Resident Certificate number, flight or voyage number and the signing of the sales invoice(s).
However, where the product name, brand name, model number, specifications, product code number quantity and unit price are indicated in a barcode label, the invoice need not show such information.
In the matter of the copies of the sales invoice referred in the Paragraph two, the original copy which is required to print by computer should be issued to the buyer or customer; the duplicate form which is required to print by computer or electronic storage should be retained and filed in the duty-free shop records for the purposes of reference by the competent Customs Office and competent Tax Office. Additionally, related data shall be packaged and, when the capacity of computer mainframe and networks is available, submitted to the CPT Single Window System. After the customers have picked up their goods, the duty-free shop may undertake the process of writing off such goods from its account journal after the CPT Single Window System has transmitted a confirmation message stating all data have been successfully submitted.
The sales invoices as referred to in the preceding paragraph, shall be approved for keeping in electronic format for supervision by the competent Customs Office and the competent Tax Office. In the case where it should be necessary, the competent Customs Office and the competent Tax Office shall check the duplicate form.
Pursuant to the provisions of this Article the duty-free shop may design its own sales invoice. Invoice design should be submitted to the competent Customs Office and competent Tax Office for approval before use.

In the case where goods purchased from a city duty-free outlet or city duty-free shop of an airport or harbor duty-free shop shall be carried out of the country by the customer, the standard commodity export declaration of such goods should be processed; moreover the export declaration form shall be attached to the airline or ship travel document or ticket of the passenger.

In the case of a gift(s), trial Product(s), gift box(es), paper bags and/or materials used for packing which may be utilized during the course of business by the duty-free shop, the procedures for clearance by customs, storage, receiving of products and gifts shall handled in accordance with the following:
1. The duty-free shop shall indicate in clear and obvious labeling on the Declaration Form concerning the entry of storage outside packing of the such item that the item is not for retail sale, and the details of the said items shall be entered into the account book, and the said items shall be stored in a specified area.
2.The Duty-free shop shall render a sales note when gift(s) are given to passengers and submit the data of the said gift(s) to CPT Single Window System. For other non-sales goods, “The Application Form for the Receiving of Products Not for Retail Sale” shall be completed and signed by the authorized person of the duty-free shop before such products can be made use of.
Write-offs from the stock accounts shall not be conducted unless the conditions set forth in the aforementioned procedures are met.

The competent Customs Office and competent tax office may send a customs officer and a tax officer to the duty-free shop to perform an audit of the business operating conditions, account journals, and stock inventory, at any time the respective offices may find necessary; and, in the case that circumstances require, the officers may demand a physical inventory of all goods.

The duty-free shop is required to conduct an annual physical inventory of all its bonded goods contained in the duty-free shop and stored in the self-provided bonded warehouse. Said annual physical inventory should be conducted under the presence of a customs officer; however, the duty-free shop may apply for a CPA supervised physical inventory procedure with the Customs. Thereafter, the duty-free shop may proceed with the physical inventory under the supervision of the CPA (certified public accountant) and the customs officer. The CPA should affix his or her signature to the official physical inventory report.
The interval period between each annual physical inventory should be between ten (10) to fourteen (14) months (inclusive) from the date of the previous year’s physical inventory. However, under special circumstances, the duty-free shop may apply for an advancement or postponement of such schedule with the competent Customs office. On the other hand, Customs is entitled to demand that the shop conduct a physical inventory at any time it shall find it necessary.
In the event of errors discovered after the conclusion of the physical inventory referred in the preceding paragraph, the duty-free shop should apply for a customs re-inspection before the transfer or sale of the goods in question. Thereafter, upon Customs verification, the duty-free shop may amend the inventory report. However, application for re-inspection and amendment filed two weeks after the inventory date shall no longer be entertained.
The duty-free shop is required to prepare the computer printout of the annual financial report based on the annual financial statements of the previous year, the annual physical inventory checklist of the current year, the account journal, the import and export declaration forms, the Warehouse Transfer Application Forms and other storage delivery, shipment or goods destruction/disposal reports. These documents should be prepared within two months after the physical inventory date. In addition to one hard copy of physical inventory list and financial report, another two copies of the list and report in electronic format shall also be submitted to the competent Customs office for evaluation. The one hard copy of physical inventory list and financial report may be stored in electronic format upon the approval of the competent Customs Office.
The duty-free shop may apply for Customs authorization for the institution of a non-stop or an out-of-hour annual physical inventory. Inventory procedure should be defined in the operating procedure of the annual inventory of the duty-free shop. In the case where an application for an off-office hour physical inventory is filed, Customs shall collect a special processing fee pursuant to the regulations governing Customs processing fees and charges regulations.

In the case where the duty-free shop finds a discrepancy between the actual stock inventory count and the book inventory count obtained from the annual inventory conducted pursuant to the provisions of the preceding article, the following procedure should be observed:
1. In the case where the quantity of goods in the actual inventory count is less than the book inventory count, the duty-free shop shall present the reasons for such discrepancy and undertake the process of the payment of the corresponding duties within ten (10) days from the date of notification of the Customs duty payable. The duty-payer shall present the customs declaration form and undertake the process of the payment of the import duties payable.
2. In the case where the quantity of goods in the actual inventory count is greater than in the book inventory count, the duty-free shop shall present the reasons for such discrepancy and file for the conduct of a procedure of a inspection and verification by Customs. Upon approval by Customs, the duty-free shop may amend the inventory report or be required to implement the measures dictated by the governing regulations.

The account journals and financial reports of the duty-free shop shall be prepared after the completion of the annual physical inventory. The journals and reports shall be kept on file for a period of five (5) years; related supporting documents or receipts shall be kept on file for a period of three (3) years.
In the matter of the related receipts as referred to in the preceding paragraph, upon the completion of the physical inventory procedure, the duty-free shop may, upon the approval of the competent Customs Office, store such receipts or papers on microfilm, magnetic tape or floppy diskette in order of production and keep them on file during the period prescribed for the filing of record. The original receipts or papers may be destroyed.
Furthermore, in the case where the competent Customs Office shall require photocopies of receipts and other related documents during the period of evaluation, the duty-free shop shall be required to fulfill such requirement without contest.

IN the case where the duty-free shop decides to terminate operations or cancel business registration, the following procedure should be observed in the treatment of bonded goods:
1. All bonded goods shall be presented to Customs for sealing, or the Customs and the duty-free shop may place such goods under joint lock in the warehouse store where the goods may be subject to check during the unscheduled inspection rounds of Customs officers. In the case where circumstances require, the goods shall be submitted to custody of the Customs.
2. The duty-free shop should arrange a schedule for the physical inventory with the competent Customs Office or the competent Customs Office may itself set a schedule for the physical inventory. Upon completion of such inventory procedure, in the case where a discrepancy between the actual physical inventory count and book inventory count is found, the provisions of Article 26 shall apply.
3. At a time following the physical inventory of the goods, the competent Customs Office shall levy the corresponding duties on the stock inventory. In the case where the procedure of physical inventory could not be concluded pursuant to the provisions in the preceding subparagraph, the Customs may calculate the corresponding duties pursuant to the count in the book inventory.

Where the bonded goods of a duty-free shop suffers loss or damage during the period of their storage in the bonded warehouse, and upon the verification of such loss or damage by the supervising Customs officers, the provisions of Article 50 of the Customs Act and Article 39 of the Enforcement Rules of the Customs Act shall apply.
Where the duty-free shop bonded goods in storage are found to be deficient due to illegal withdrawal, loss, theft or any other reason, and upon the verification of such deficiency by the supervising Customs officers, the firm operating such a business shall be responsible to make up any shortfall of the import duty payable.
In the event that the duty-free shop bonded goods mentioned in the preceding paragraph are stolen or burglarized, thereby resulting in quantity loss, upon the establishment of such fact in an official police report, the loss may be reported to the competent Customs Office for verification. The value of the lost or damaged goods should be write-off from book accounts within three(3) months after the theft or burglary and pursuant to the price of goods on the importation date of the goods (or date regarded as the importation date of the goods); payable due payment shall be calculated based on the duty rate of the same reference date. However, where the theft or burglary is still under investigation, the competent Customs Office, pursuant to application by the duty-payer, may authorize the submission of a equal amount guarantee bond; where all(or part) of the goods are recovered within three(3) months after the duty payment deadline has elapsed, the guarantee bond shall be returned to the duty-payer; otherwise the said guarantee bond shall serve as payment for payable duties.