萬國法律事務所

Taiwan’s Ministry of Finance recently approved a measure designed to make the island’s IC packaging and testing companies more competitive. In the future, because there is no customs tariff on finished IC products, bonded factories that engage in IC packaging and testing will be permitted to conduct those operations on a commission basis from entities located in tariff-liable areas without being required to pay customs duties on the processed goods when the same are returned to those entities.

Moreover, such bonded factories will be allowed to submit monthly reports on such processing, rather than submitting an application to Customs for each work batch and to pay tariffs on the non-bonded materials used in processing as was required previously. When domestic sales are involved such that customs duties are payable, the dutiable value will not include the value of the chips and the resulting products will be taxed on the value of their invoice prices.

The Ministry of Finance has announced that it will henceforth handle the above-identified matters per the Regulations Governing Bonded Factories in order to simplify administrative operations, expedite customs-clearance, and decrease the tariff burden on operators.