CUSTOMS INFORMATION - TAIWAN

《Air Cargo Clearance Automation》

The Air Cargo Clearance Automation services was officially started on 9 November 1992. Air Cargo Clearance Automation refers to the use of the Trade Value Added Network (TRADE-VAN, T/V) to link up importers/exporters and related customs offices as a replacement of the conventional paperwork and manual work procedures to enhance the efficiency of cargo clearance. Under Air Cargo Clearance Automation, when custom declaration data is transferred to the Expert System of the customs office via the T/V, the following three types of cargo clearance models will be generated: (1) C1--inspection-exempt cargo clearance; C2--cargo clearance with document approval; and (3) C3--cargo clearance with inspection. Here is a schema of the T/V link.

1. Exporters may declare export cargos to the TPBC via the T/V 24-hours.

2. After matching the export declaration and the outpost export manifest,  the T/V
    willrespond the either the C1, C2 or C3 clearance models. Though C1 is supposed to
    be inspection-exempt, the computer system of theTPCB may choose any of C1
    applicants at random (A18) for .  inspectionOnce you are chosen, please submit
    written declaration and documents to the TPCB for  inspection within three days.
    Additionally, though C1 is  inspection-exempt, a clearance house should keep all
    documments for two years.

3. General Export Declaration Collection

    (1)Time:
        A. Business Hours: 8:30 to 17:30, Monday through Friday.
        B. Overtime Hours: 8:30 to 12:30, Saturday
        C. Exporters are need to pay an extra handling charge of declaration on
             overtimehours at NT$200/copy. In status A18 (chosen at random for inspection),
             different owners using the same declaration should pay an extra inspection fee
             at NT$1,000 for each declaration with an offshore price over US$5,000 or NT$500
             for each declaration with an offshore price under US$5,000. An owner making
             various export declarations of the same kind of products whose inspections shall
             beconducted at the same time and place shall only need to pay extra inspection
             fee for one declaration.  

    (2) Cargo Clearance
        A. Cargo clearance will be completed on the same day for declarations collected by
            18:30 from Monday through Friday. Cargo inspection service will be closed by
            16:30. Cargo clearance of declarations collected after 18:30 shall be postponed to
             the following workday.
        B. Cargo clearance of declarations collected by 12:00 on Saturday shall be
             completed on the same day. Cargo clearance of declarations collected after 12:00
             shall be postponed to the  following workday.

    (3) According the the storage place of cargos, declarations shall be address to the  
         following customs offices:
        A. CA（Taipei Customs Bureau）
     B. CH（Everterminal Private Warehouse）
     C. CL（Far Glory Air Cargo Terminal）
     D. CU（UPS Asia Hub）
     E. CF（Fedex Transhipment Center）
     F. CE（Express Handing Unit）
     G. CS（Hsinchu Science-based Industrial Park Station）
     H. CP（Taipei Postal Parcels Station）

4. Advice for Applicants

    (1) Exporters
        A. Break down cargos into several shipments and avoid exporting all cargos the day
             before a holiday.
        B. Ship cargos to warehouse as soon as possible.

    (2) Customs Clearance Houses
        A. Try to transfer export declarations at different times.
        B. Submit all documents to the corresponding customs offices as soon as possible
             when chosen for inspection.

    (3) Air Forwarders
        A. Try to separate flight schedule and avoid shipping all cargos on Saturday, Sunday
            or Monday.
        B. Try to join the T/V as soon as possible.

    (4) Warehouses
        A. Accelerate export cargo warehousing operation.
        B. Accelerate transmission of information regarding cargos shipping to warehouse.

《Import Cargo Declaration》

1. Applicant－the tax-payer (recipient or B/L holder) or a "clearance house" should fill
    out (or print by the computer) the Customs Declaration: Import Form and deliver or
    transfer the form to the customs office to declare import cargos.

2. Closing Date of Declaration

     (1) Declarations should be made to the customs office within 15 days from the entry
          of the ROC territory of the vehicles loading the cargos.

    (2) The TPCB provides 24-hour declaration collection, cargo inspection,
         classification/estimation, taxation and release services for air-fresh and express
         cargos.

    (3) Determination of closing date of declaration: Non T/V users--the day of TPCB's
         completion of documents receiving. T/V users: the date of data transfer registered
         in the T/V log.

3. Declaring with and without T/V

    (1) Declaring with T/V (using a PC) 
        A. Follow the instructions to fill out all items (start with the first column and do not
            leave column blank).
        B. A "licensed customs declaration staff", after examining all data, may use the "card
            key' issued by the customs office or other authentication means approved by the
            customs office to proceed with the electronic declaration.
        C. In general (when the number of pending declarations is under 30), a response
            will be received within 15 minutes. The response may include information of
            errors in the declaration or request for incomplete documents or procedures.
            When the declaration is completed and approved as C1 status, the response may
            include information such as tax payment notice or release notice.
        D. When the declaration is approved as C2 or C3, "written declaration" should be
             submitted to the customs office "within the business hours of customs office in
             the following day".
        E. Contents of the "written declaration" shall be identical to that of the "electronic
            declaration".
        F. When the patrol section discovers that the content of the cargo is different from
            that of the declaration, an applicant should make online correction of the
            declaration by the deadline as instructed in the notice. For declarations whose
            clearance model has been approved, all corrections should be made in 
            writing. All reporting cases shall be subject to.

    (2) Declaring without T/V  
        A. An applicant should print or type the declaration form with "registering paper" or
            submit the declaration in other media (e.g., diskette) approved by the customs
            office and deliver the declaration to the customs office. The custom office will
            input the data in its computer system and issue a receipt to the applicant.
        B. The custom office may charge a "file input fee" for declaration submitted in
            written form.
        C. Procedures after data input shall be the same as that of declaration using T/V.
            However, all customs office notices or declaration corrections shall be made
            manually.

4. Submittals of import cargo declaration An applicant should submit the following
    documents together with the Customs Declaration: Import form.

    (1) Air Waybill (AWB)
        A. There are two types of AWBs: Master Air Waybill (MAWB) and House Air
            Waybill (HAWB).
        B. An applicant, either using T/V or not, should submit a photocopy of only the
            AWB (unreturnable after the completion of cargo clearance).
        C. Applicants not using T/V should submit both an AWB and a Customs
            Declaration: Import form. A seal will be affixed on the documents and returned to
            the applicants for cargo collection after the completion of the cargo clearance.

    (2) Two copies of invoices commercial invoices (one copy for government agency or state
         business applicants).

    (3) One copy of the packing list (P/L); no need of P/L for bulk, mass or single-package
         cargos (whether or not inspection is required).

    (4) Import Permit (I/P): applicants should submit the IP for import of restricted articles
         as defined in items 111, 112, 121 and 122 of the Lists of Restricted Imports issued
         by the CETRA, MOEA.

    (5) A copy of power of attorney 
        A. To define the responsibility of clearance houses.
        B. To be singed by the tax-payer.
        C. An applicant may submit one power of attorney when the assignment has been
             granted to the same clearance house (a maximum of three) for the same year.
             (Fill out the approval document number in the Other Declaration Items; no
             photocopy of letter of approval is needed for applicants using T/V).
        D. Scope of annual (long-term) assignment: an applicant may assign the declaration
             work to certain clearance houses according to the following regulations: each
            applicant shall assign no more than three clearance houses each year to take
            care of the import declaration affairs at the same customs office.

    (6) Two copies of cargo price declaration 
        A. To be submitted when special relation is stated in the declaration.
        B. No cargo price declaration is needed for imports of following cargos: Traveler
            luggage; parcels; samples; gifts; duty-free articles; domestic products imported
            after recovery of shipment; cargos imported by government agencies and state
            businesses; and bonded cargos imported by bonded factories, EPZs and scientific
            parks.

    (7) Submission of Certificate of Origin (C/O)
        A. To be submitted as required by the CETRA.
        B. To be submitted when item 2--tariff rate prevails.
        C. Other (such as import of articles from China as reference for verification)

    (8) Catalogues, manuals or drawings--to be submitted according to customs inspection.

    (9) A copy of Import Car Declaration Details should be submitted for import of cars.

    (10) Other--subject to laws and regulations governing corresponding articles. Ex.
           Pesticide Permit and Pesticide Sales License for import of pesticides; and power of
           attorney from a license holder for non-licensed importers.

《Advice for Applicants》

《Transit Cargo Clearance》

1. Transit Cargo Clearance

    (1) "Transit cargo" refers to cargos that are transported from foreign countries and
         temporarily unloaded at warehouses waiting for transshipment to other countries.
       （Article 2-(1) Import/Export Cargo Management Regulations).

    (2) Transit cargos unloaded and placed inside the restricted area waiting for re-
         shipment by flights are referred to as plane-side direct transit cargos. Transit cargos
         unloaded and stored in the warehouse waiting for re-shipment by flights are
         referred to as warehouse transit cargos.

    (3) In an application for transit cargo declaration, an airline shall transfer the D/O
         (declares together with import cargo with papar-free operation) via the T/V. Plane-
         side direct transit shall be approved after the computer inspection by the customs
         office. It is a paper-free operation, the customs office shall not issue any written
         approval.

    (4) In an application for transit cargo declaration, an airline shall transfer the D/O via
         the T/V. The customs office shall approve either a plane-side direct transit or a
         warehouse transit after the computer inspection by the customs office. It is a
         paper-free operation, the customs office shall not issue any written approval.

    (5) When cargos are shipped to the Kaohsiung Airport with domestic flights, the airline
         shall produce an export D/O according to the transit cargo operation.

    (6) Transit cargo shall be automatic operation through computer matching, approval
         and cancellation.

2. Transshipment Cargo Clearance

    (2) An applicant shall declare transshipment cargos via the T/V (paper-free operation).
         Cancellation and clearance will be automatically produced after computer
         inspection.
        A. Cargos transhipped to businesses in the EPZ（clearance codes: DT, BK and BN）
        and Hsinchu Scientific Park (clearance code: CS) shall be proceeded with the
            bonded cargo import clearance procedures of the bonded factory. A business and
            contract clearance house shall submit a signed power of attorney or letter of
            commitment to apply for long-term declaration of transhipment cargos to the
            TPCB. The TPCB shall enter the following data in the customs office computer
            system after approval: business tax code, clearance code and clearance house
            code. In a application for transshipment, all cargos shall be listed as a C1 case
            (inspection free), except that 5% (situational) of the cargo shall be sampled for
            inspection (C3) after computer inspection. When the declaration fails in the
            computer inspection, the application shall be listed as a C2 case (document
            approval). Transshipment shall be approved after the D/O unit of the import
            division identifies the recipient is a business in the EPZ or Hsinchu Scientific
            Park.
        B. Kaohsiung shall be the destination of general import cargos transhipped to
            Kaohsiung Airport (clearance code BF). Therefore, it needs only the airline and
            the contract clearance house to submit a power of attorney and letter of
            commitment during an application for transshipment. The rest of the process is
            the same as defined above.
        C. Applications for transshipping articles to various international ports (clearance
            codes AA, AS, AH, DA, BA and BC) shall be made in writing to the customs office,
             as there are more than one recipients where computer inspection is prevented.
        D. Where cargo inspection is deemed necessary, C2 cases shall be changed to C3
             cases that are subject to inspection by all inspection units.

    (4) The transshipment release notiec is a 4-copy notice: the first and second copies
         shall be sealed and handed over to the customs office of the destination with the
         vehicle; the third copy will be kept by the resident customs station and as
         reference for serice charges; and the fourth copy shall be kept by the applicant to
         pay the warehouse rent and collect the cargo with the AWL. Since 17 September
         1997, the warehouse resident units of the inspection division and outpost
         clearance division of the TPCB have been assigned to print transshipment release
         notice; and 24-hour approval and bonded truck loading operation surveillance 
         have  been enabled.

    (5)Transshipment cargo clearance flowchart:

《Bonded Factory Cargo Clearance》

1. What is a bonded factory?
    Manufacturers of export products may apply for bonded factory registration to the
    customs authorities to enjoy import tariff exemption for import raw materials. Such
    raw materials shall be deposited in the bonded factory and the import tariff shall be
    cancelled with the export of goods manufactured with such raw materials.

2. Application and establishment of a bonded factory

    (2) Requirements An applicant shall be a limited company organized and registered
         under the Company Law with paid-in capital of no less than NT$50million and a
         legally- registered factory; as well as fulfilling the followings:
        A. Raw materials that used shall not be non-bonded raw materials.
        B. Companies of healthy financial structure and without accumulative deficits. Or,
             there is no record of average deficits during the last three years of application
             (duration of operations for companies whose life is under three years). Or,
             companies with a capital net over NT$50 million after deducting the
             accumulative deficits. Or, companies with a capital net under NT$50 million after
             deducting accumulative deficits but is engaging in capitalization or with
             mortgage.
        C. Companies that do not owe any tax and the total of unpaid taxes during the last
             three years is under NT$500,000.
        D. The factory site is suitable for customs management and equipped with a
             security guard office for resident customs officers.
        E. All products shall be intended for export only, except domestic sale of part of the
            products has been approved by the customs bureau.
        F. Equipped with full facilities and machinery for export processing and
            manufacturing approved by the customs office.
        G. Raw material and finished product branch warehouses that have been approved
             by the customs office. However, bulk or dangerous bonded goods shall be stored
             in independent storage places approved by the customs office.
        H. Facilities of a bonded factory shall satisfy the followings:
              a. Installation of production machinery and equipments has been completed and
                 they are ready for production or production has been in progress.
              b. Raw material and finished warehouses shall be strong constructions with
                 antitheft, fire-retardant, waterproof, lighting and safety features according to
                 the nature of products. Offices shall be properly separated from the
                 warehouses.
              c. The factory site shall be equipped with adequate separation facilities from
                 outside areas.
        I. Overseas companies approved according to other laws to establish branch offices
           in the ROC with exact registered operating capital over NT$50million with a
           legally registered factory may apply for registration of a bonded factory to the
           customs office. Previously approved bonded factories with exact paid-in capital or
           operating capital under NT$50million shall proceed with capitalization within 5
           years from 21 May 2000. The customs office may cancel the bonded factory
           registration of those who fail complete capitalization by the deadline according to
           Article 55-(1) of the Bonded Factory Management Regulations.

    (3) Submittals
        A. Photocopy of each of the following documents: company license, factory
            registration (or letter of approval of establishment by the competent authorities),
            business registration and franchise business license (non-franchise businesses
            exempted); and bonded factory registration datasheet.
        B. One copy of the memorandum of corporation and list of directors and supervisors.
             Photocopy o f the ID card of the statutory representative and the
             importer/exporter registration card issued by the International Trade Bureau.
        C. Photocopy of each of the following documents: approved business income tax
             report by the tax office and balance sheet or CPA-certified business income tax
             report and financial reports of the last three years (for companies with a life over
             a year but less than three years shall be subject to the exact duration of
            operations).
        D. Companies established under a year shall submit a financial report certified by a
             CPA.
        E. A product list and declaration of 'use of raw materials that are not non-bonded
            materials'.
        F. A copy of each of the following documents: process description; name and
            quantity of raw materials; and product unit and material list.
        G. A copy of raw material management plan.
        H. Layout of factory, warehouse, bulk raw material storage places and production
             machinery.
         I. 3 copies of bonded factory seal card.
        J. Photocopy of factory building uses documents (building license, property deed
            and land deed). For rented factory buildings, the lease and letter of commitments
            of the owner shall be submitted.

    (4) The customs bureau shall, after document approval, send staff to conduct an onsite
         inspection of an application. When everything satisfies the requirements, the
         customs bureaus shall notify the applicant to complete the supervision procedures
         and issue the bonded factory registration to the applicant.

3. Scope of Bonded Goods of a Bonded Factory
   All goods except goods coded P (non-bonded goods and P* (partially non-bonded
     goods) as defined in the Special Taxation Regulations of the ROC Customs and Tariff
    Regulations and Import/Export Goods Classification Table.

4. Bonded Factory Management

    (2) Bonded goods of a bonded factory shall be stored in order in warehouses or places
         as defined by the customs office. Storage of bonded goods should be proceeded with
         a number record registering the input, output and balance of bonded articles for
         reference.

    (3) When bonded articles are shipped out of the bonded factory, the bonded factory
         shall fill out a ex-factory release order as defined in related regulations. Resident
         security guards shall not let any bonded articles without release order be shipped
         out of the bonded factory.

    (4) A bonded factory shall conduct a bonded article inventory once a year (annual
         inventory) and shall produce according to the inventory list the following reports
         within two months from the completion of the annual inventory and submit to the
         customs office for inspection: inventory statistics; bonded raw materials accounting
         report; breakdown sheet indicating the proportion of semi-products, in-process
         products, finished products and raw materials; and breakdown sheet indicating the
         proportion of export products, domestic sale products and raw materials.

    (5) A bonded factory shall assign a special staff to take charge of the bonded affairs and
         report to the customs office.

    (6) Within one month after the customs office's takeover or production of new products
         and before the export of products, a bonded factory shall produce a bipartite Unit
         Product Raw Material Consumption List and submit it with the production SOPs to
         the customs office for inspection. The list shall indicate the following data:
         code, name, specification and quantity of product; part number, name,
         specification, specification or model, unit, valid consumption, exact consumption
         and spoilage of individual raw materials.

5. Bonded Goods Clearance

    (2) A bonded factory should follow the instructions below to apply for a cancellation
         and refund of tax for processing raw materials from domestic retailers:
        A. Both the buyer and seller shall fill out a declaration before the input of raw
             materials. Invoices, packing list and the like documents shall be submitted to the
             customs office. After the approval from the customs office, raw materials shall be
             released, shipped to the factory and registered in the book. 
        B. The said transaction may be accepted and registered in the factory's book with
             transaction vouchers. Reports of the transaction shall be made as specified by
             15th of the following month. The release date of the raw materials shall be
             regarded as the date of import/export. Articles shipped to a bonded factory
             without following the above instructions shalldeemed as non-bonded articles.

    (4) A bonded factory shall fill out declaration for export of bonded goods. The
         declaration shall indicate the reference number and number of pages of the Unit
         Product Raw Material List approved by the jurisdiction customs office. The customs
         office of the port of discharge may request a bonded factory to submit a photocopy
         of the raw material list that has been approved where necessary. A bonded factory
         shall apply for general export cargo clearance to the customs office of the port of
         discharge by indicating the reference number of application for approval, when the
         raw material list is unapproved.

6. Notes on Import Cargo Declaration of Bonded Factory（B6 and G7 forms）

    (1) Non T/V Users
           A. Check if all items in the form have been properly completed.
           B. Check if seal has been affixed on all corrections.

    (2) T/V Users
         Applicants of C2 and C3 cases shall submit the declaration and related documents
         to the customs office within the business hours of the following day. Contents of
         the submittals shall be identical to the computer data.

    (4) Collect the import cargo inspection order from the counter for declaration required
         inspection and register for inspection at the warehouse.

    (6) Cooperate with the customs officer executing classification and estimation work to
         provide original product catalogue or other product information as reference for
         classification and estimation.

    (8) Submission of documents for C1 cases shall be made within three days from the
         release.

    (10) No submission of power of attorney shall be needed for T/V users that have
           assigned annual (long-term) clearance houses. Simply fill out the reference
           number of the approval documents in the Other Declaration Item.

7. e-Mail Management of Bonded Factory Applications

    (1) There are 14 kinds of application services and codes as shown in 
    (2) E-Mail Form Download. 
    Contact Business Section, Bonding Division for details: (03)3834181 ext. 412

    (1) E-Mail Form Download

           B. B201 Application for Domestic Sale of Bonded Raw Materials

           C. B301 Application for Provision of Maintenance Services from Bonded Factory

           D. B302 Application for Reshuffle of Bonded Factory and Distribution Center

           E. B303 Application for Exhibition of Bonded Factory Products

           F. B304 Application for Outside Factory Processing of Bonded Factory

           G. B305 List of Product Units and Raw Materials and Raw Materials Change
                         Application

           H. B306 Application for Addition of New Items in Approved List of Product
                         Units and Raw Materials

           I. B307 Application for Annual Inventory of Bonded Factory

           J. B308 Bonded Factory Shutdown Application

           K. B309 Application for Extension of Approved Bonded Product Exhibition

           L. B310 Application for Extension of Bonded Factory Inventory Report
                         Submission by One Month

           M. B311 Application for Extension of Approved Outside Factory Processing
                         of Bonded Factory

           N. B312 Application for Extension of Approved OEM Orders of Bonded Factory

           O. B313 Application for External Testing of Samples of Bonded Factory

           P. B314 Application for Extension of Approved External Testing of Samples
                        of Bonded Factor

    (2) Applicant e-Mail Management Procedure Download Flowchart

8. Download Bonded Business Forms

    (2)  Bonded Factory Books and Vouchers Seal Application Form

    (3) Bonded Factory Outside Factory Processing Application Form

    (4) Bonded Factory Outside Factory Processing Registration Card

    (5) Bonded Product Outside Factory Exhibition Application Form

    (6) Bonded Product Outside Factory Exhibition Register

    (7) Hand-carry Export of Bonded Products (or return) Application Form

    (8) Import Raw Materials Shortage (Excess) Report

9. Please contact us for all other questions:

    (2) Bonded cargo management: (03) 3834161 ext. 421 and 429