萬國法律事務所

In its 14th meeting this year, the Executive Yuan’s Free Trade Zone Coordinating Committee has decided to permit free trade zone enterprises to commission multi-stage processing to two or more enterprises, either in bonded areas or in areas that are liable to customs tariffs.  This new easing of the regulations will help FTZ enterprises use Taiwan’s outstanding and comprehensive manufacturing capabilities flexibly to create higher profits. The regulations are expected to be implemented once the Ministry of Finance completes the necessary legal procedures,

Pursuant to Article 23 of the Act for Establishment and Management of Free Trade Zones (“FTZ”), after applying to and receiving permission from Customs, FTZ enterprises may ship tax-exempted goods, machinery, or equipments to tariff-liable areas for repair, testing, or inspection without providing a tariff guarantee for such contracted processing. Currently, in additional to manufacturers, FTZ enterprises in the logistics industry may apply to contract companies in tax-liable areas to carry out simple processing.  In addition, the Free Trade Zone Coordinating Committee may grant special approval for contract processing out.  Regulatory provisions for contracting between FTZ enterprises and for FTZ enterprises to take processing contracts from enterprises outside the zones are currently being planned.