Taichung Customs points out that only a scientific research institute or a completed registration factory shall be eligible for the engagement by a science park enterprise for processing of its raw materials or semi-finished products in the tax zone.
Taichung Customs further explains that the science park enterprise (hereinafter referred to as a park enterprise) engages the above-mentioned processing should follow the provisions in accordance the Article 37 of Regulations Governing the Bonding Operation in Science Parks.
- Where a park enterprise commissions a manufacturer or firm in a tax zone to process raw materials or semi-finished products, an application accompanied by a contract, an order executed by the parties in question, the certifying documents of factory registration for the contracted processing factory should be filed with the Park Bureau for approval. However, if a park enterprise engages in the contracted processing cases in its branch factory established within the tax zone, the said contract or order may be replaced by other relevant supporting documents. The application, as described in this Paragraph, may be processed with electronic communications, and the said materials or products shall be shipped out the park area for processing within a year after the approval is issued. If the said goods are not shipped back within said time limit, the supplementary customs duties and taxes shall be paid within 10 days after expiration of the said time limit.
- In a contracted processing case as set forth in the preceding Paragraph, no application for import duty refund may be filed with respect to the raw materials added by the processing factory.
- When a park enterprise commissions an enterprise located within the science park, or an enterprise in an export processing zone, an enterprise in a technology-based agricultural park, or a bonded factory to process its raw materials or semi-finished products, the bonded raw materials added by the processing plant may be applied as deductions from stock accounts.
- Where a park enterprise causes an exportation of the processed products in its own name directly from a processing factory or from a branch office of its own incorporated within another park, an export application for goods should be filed with the Customs to close the case.
Taichung Customs urges park enterprises to obey the above-mentioned regulations. For more details, please contact the Customs Central Science Park Section at 04-25602706.