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Customs Valuation REGULATIONS GOVERNING THE CUSTOMS VALUATION:

I.	Imported Goods in General
II.	Self-use Articles in Baggage Carried by Passengers
III.	Machinery, Apparatus and Appliances Sent Abroad for Repair or Assembly, and Goods Exported Abroad for Further Processing
IV.	Goods Subject to Valuation on the Basis of Rental or Royalty
V.	Tax Payment for Customs Clearance of Imported Used Cars

Imported Goods in General

1.Transaction Value and Additions to the Price Actually Paid or Payable

The customs value of imported goods subject to ad Val Orem of duties shall be determined and calculated on the basis of the transaction value.

The term "transaction value" referred to in the preceding paragraph means the price actually paid or payable for the imported goods sold from the exporting country to the Republic of China.

The following expenses shall be added into the customs value calculation, provided that such an amount is not already included in the price actually paid or payable for the imported goods:

(1)

commissions, brokerage, the cost of containers and the cost of packing incurred by the buyer;

(2)

the value, apportioned as appropriate, of the following goods and services supplied by the buyer to the seller free of charge or at reduced cost for use in connection with the production or sale for export of the imported goods:

(i)

materials, components, parts and similar items incorporated in the imported goods;

(ii)

tools, dies, moulds, and similar items used in the production of the imported goods;

(iii)

materials consumed in the production of the imported goods; and

(iv)

engineering, development, artwork, design, plans and similar items undertaken outside of the Republic of China and necessary for the production of the imported goods;

(3)

royalties and license fees related to the goods being paid by the buyer as a condition of the sale of the goods;

(4)

the proceeds for use or disposal of the goods the buyer accrues to the seller;

(5)

transport cost of the imported goods to the port or place of importation, and loading, unloading and handling charges associated with the transport; or

(6)

the cost of insurance.

Expenses added to the customs value in accordance with the preceding paragraph should be added on the basis of objective, quantifiable information. Where objective and quantifiable data does not exist, the customs value cannot be determined under the provision of this Article.

When Customs is doubtful of the truth and accuracy of the transaction documents provided by the duty-payer, and remains doubtful when the duty-payer either fails to provide an explanation or after the provision of such an explanation, the customs value cannot be determined under the provision of this Article.

(Re: Customs Law, Article 25)

2.Charges and Costs Not Included in the Price Actually Paid or Payable

The term "the price actually paid or payable for imported goods sold from an exporting country to the Republic of China" in Paragraph 2 of Article 25 of the Law shall not include the following expenses, Customs duties, and taxes, provided that they are distinguished from the price actually paid or payable for the imported goods:

Expenses for construction, erection, assembly, maintenance or technical assistance undertaken after importation of imported goods such as industrial plants, machinery and equipment.

The cost of transport after importation.

The deferred interest on a transaction with deferred payment terms.

Customs duties and taxes on imported goods.

Except for expenses specified in Paragraph 3 of Article 25 of the Law, expenses paid by the buyer for his own benefit shall not be considered as a payment to the seller, even though they might be regarded as being of benefit to the seller.

(Re: Implementation Rules of the Customs Law, Article 11)

3.Commissions, Royalties and License Fees

The term "commissions" referred to in Item 1, Paragraph 3, Article 25 of the Law shall not include fees paid by the buyer to his agent for purchase of the imported goods abroad.

The term "royalties and license fees" referred to in Item 3, Paragraph 3, Article 25 of the Law shall denote the payment to acquire the patent, the exclusive rights of trademark, copyright, and other intellectual property rights protected by legislation related to the imported goods, excluding charges for the right to reproduce imported goods in the R.O.C.

(Re: Implementation Rules of the Customs Law, Article 12)

4.Limitations on the Use of Transaction Value

The transaction value shall not be used as the basis for determining and calculating the customs value of imported goods under any of the following circumstances:

(1)

where there are restrictions as to the use or disposition of the goods by the buyer other than restrictions which:

(i)

are imposed or required by law or public authorities in the Republic of China;

(ii)

limit the geographical area in which the goods may be resold;

(iii)

do not substantially affect the value of the goods;

(2)

where the sale or the price is subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;

(3)

where part of the proceeds of any subsequent use or disposal of the goods by the buyer will accrue to the seller, but where such an amount cannot be determined;

(4)

where the buyer and seller are related and the relationship influences the transaction value.

For the purpose of sub-paragraph four of the preceding paragraph the buyer and seller shall be deemed to be related only if:

(1)

one of them is a manager, board director or supervisor of the other's business;

(2)

they are legally recognized partners in business;

(3)

they are employer and employee;

(4)

one of them directly or indirectly owns, controls or holds five percent or more of the outstanding voting stocks or shares of the other's business;

(5)

one of them directly or indirectly controls the other;

(6)

both of them are directly or indirectly controlled by a third person;

(7)

together they directly or indirectly control a third person; or

(8)

they are spouses or relatives within a third-degree family relationship.

(Re: Customs Law, Article 26)

5. Test Value

If the buyer and seller are deemed to be related under Article 26 of the Law, Customs, if having doubts about the transaction value, shall investigate the circumstances of the transaction; if necessary, Customs may require the duty-payer to provide more detailed information.

In the event, Customs, pursuant to information discovered by themselves or provided by the duty-payer, consider that the relationship of the seller and the buyer affects the transaction value, it shall explain the reasons to the duty-payer and provide the duty-payer with a reasonable opportunity to respond. The duty-payer may request Customs to explain its reasons in written form.

In case the transaction value referred to in the preceding paragraph is close to one of the following values, it shall be deemed that the relationship has no effect on the transaction value:

The transaction value of identical or similar goods determined by Customs where the buyer and the seller are unrelated.

The deductive value of identical or similar goods determined by Customs.

The computed value of identical or similar goods determined by Customs.

The identical or similar goods referred to in Item 1 and 3 of the preceding paragraph shall be limited to imported goods which are exported from the exporting country on the date of exportation or within 30 days before or after the date of exportation of the goods being valued. The identical or similar goods referred to in Item 2 shall be limited to goods which are imported on the date of importation or within 30 days before or after the date of importation of the goods being valued.

(Re: Implementation Rules of the Customs Law, Article 14)

6.Transaction Value of Identical Merchandise

If the customs value of the imported goods cannot be determined under the provisions of Article 25, the customs value shall be based upon the transaction value of identical goods sold for export to the Republic of China, exported at or about the same time as the goods being valued. In applying this Article, a reasonable adjustment shall be made to take into account value differences attributable to commercial levels, quantity, transport costs, etc.

The term "identical goods" referred to in the preceding paragraph means goods which are the same in all respects, including country of production, physical characteristics, quality and reputation, as the goods being valued.

(Re: Customs Law, Article 27)

7. Transaction Value of Similar Merchandise

If the customs value of the imported goods cannot be determined under the provisions of Articles 25 and 27, the customs value shall be based on the transaction value of similar goods sold for export to the Republic of China, exported at or about the same time as the goods being valued. In applying this Article, a reasonable adjustment shall be made to take into account value differences attributable to commercial levels, quantity, transport costs, etc.

The term "similar goods" referred to in the preceding paragraph means goods which, although not alike in all respects, are produced in the same country, perform the same functions, have like characteristics and like component materials, as the goods being valued, and are commercially interchangeable with the goods being valued.

(Re: Customs Law, Article 28)

8. Order of Precedence in Regard to Two or More Transaction Values of Identical or Similar Merchandise

Where there are two or more transaction values available with respect to identical goods as referred to in Paragraph 1, Article 27 of the Law, the applicable transaction value shall be determined in accordance with the following order of precedence:

The transaction value of identical goods produced by the same manufacturer shall be given precedence in application over the transaction value of identical goods produced by other manufacturers.

The transaction value of identical goods at the same commercial level and in substantially the same quantity as the goods being valued shall be given precedence in application.

Where there are two or more transaction values of identical goods available, the lowest value shall be given precedence in application.

The provisions of the preceding paragraph shall apply mutatis mutandis to the transaction value of the similar goods as referred to in Article 28 of the Law.

(Re: Implementation Rules of the Customs Law, Article 15)

9. Exportation Date

The expression "exported about the same time" referred to in Paragraph 1, Article 27 and Paragraph 1, Article 28 of the Law shall mean within 30 days before or after the date of exportation.

The expression "imported about the same time" referred to in Paragraph 2, Article 29 of the Law shall mean within 30 days before or after the date of importation.

(Re: Implementation Rules of the Customs Law, Article 16)

10.Deductive Value

If the customs value of the imported goods cannot be determined under the provisions of Articles 25, 27 and 28, the customs value shall be based on a deductive value.

Customs may, according to the request of the duty-payer, reverse the order of application of this article（Article 29）and Article 30 for a customs valuation.

The term "deductive value" referred to in paragraph one means the customs value based on the unit price at which the imported goods or identical or similar imported goods, are sold in the Republic of China in the condition as imported, in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods at the first commercial level, are subject to deductions for the following:

(1)

either the commissions usually paid or agreed to be paid, or the additions usually made for profit and general expenses in connection with the sale of the imported goods or imported goods of the same class or kind in the Republic of China;

(2)

the customs duties, and other national taxes payable in the Republic of China by reason of importation and sale of the goods;

(3)

the transport and insurance costs and associated costs incurred within the Republic of China after the importation of the goods.

If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall be based on the unit price at which the imported goods or identical or similar goods are sold in the Republic of China in the condition as imported, within ninety days following the day of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods, in the appropriate quantity, at the first sale, subject to deductions for the items enumerated in the preceding paragraph.

If the imported goods are not sold in the condition as imported, then, if the duty-payer so requests, the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the Republic of China who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions provided for in paragraph three of this Article.

The term "deductive value" referred to in Paragraph 3, Article 29 of the Law shall not include circumstances as specified in Item 2, Paragraph 3, Article 25 of the Law between the buyer of the greatest aggregate quantity of the first commercial level of the imported goods and the foreign producer or seller of the imported goods.

The profit, general expenses and commissions usually paid or agreed to be paid referred to in Item 1, Paragraph 3, Article 29 of the Law shall be verified on the basis of the generally accepted accounting principles of the Republic of China.

(Re: Customs Law, Article 29 and the Implementation Rules thereof, Article 17)

11.Computed Value

If the customs value of the imported goods cannot be determined under the provisions of Articles 25, 27, 28 and 29, the customs value shall be based on a computed value.

The term "computed value" referred to in the preceding paragraph means the sum of the following:

(1)

the costs and expenses of producing the imported goods;

(2)

an amount for profit and general expenses equal to that usually reflected in the

sale of the imported goods or imported goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the Republic of China;

(3)

the transport cost of the imported goods to the port or place of importation, loading, unloading and handling charges and insurance costs associated with the transport.

The term "costs and expenses" referred to in Item 1, Paragraph 2, Article 30 of the Law shall be verified based on the book entries provided by the manufacturer of the imported goods in connection with the production of the imported goods according to generally accepted accounting principles in the country of production.

Customs may request the importers to provide the manufacturer’s accounting books, vouchers and other records relating to the production of imported goods when determining the Customs value, pursuant to Article 30 of the Law.

Customs, before proceeding pursuant to the rule in the preceding paragraph, shall acquire the consent of the manufacturer, who possesses no residence or domicile within the R.O.C. territory. Customs may, upon consent of the manufacturer and without the opposition of the investigated country, undertake investigation.

(Re: Customs Law, Article 30 and the Implementation Rules thereof, Article 18)

12.Fallback Value

If the customs value of the imported goods cannot be determined under the provisions of Articles 25, 27, 28, 29 and 30, the customs value shall be determined using reasonable means on the basis of data available to Customs.

When the customs value is determined in accordance with the preceding paragraph, Customs shall notify the duty-payer in writing of the method used to determine such a value, if requested to do so by the duty-payer.

The term "reasonable means" referred to in Paragraph 1, Article 31 of the Law shall denote the valuation methods consistent with the valuation principles specified in Article 25 through 30 of the Law.

While determining the Customs value pursuant to the reasonable means prescribed in Article 31 of the Law, the following valuation methods or values shall not be adopted:

The domestic sale price of the goods manufactured in the R.O.C.

A system which provides for the acceptance for Customs purposes of the higher of two alternative values.

The price of the goods on the domestic market of exporting countries.

The cost of production other than computed values which have been determined for identical or similar goods in accordance with the provisions of Article 30 of the law.

The price of the goods for export to a country other than R.O.C.

The minimum Customs values determined by Customs.

Arbitrary or fictitious values.

(Re: Customs Law, Article 31 and the Implementation Rules thereof, Article 19)

The customs value of dutiable articles in baggage shall be determined under the provisions of Article 25 to 31 of the Customs Law. Article 31 provides that the appraisement may be on the basis of the following:

Reference prices list available from the Directorate General of Customs.

Values obtained at a reasonable discount of the domestic market prices.

Reference prices presented by the duty-payer.

(Re: Regulations Governing the Declaration, Examination, Duty-payment and Release of Articles in Baggage Carried by Inward Passengers, Article 13)

Machinery, Apparatus and Appliances Sent Abroad for Repair or Assembly, and Goods Exported Abroad for Further Processing

Upon re-importation of machinery, apparatus and appliances sent abroad for repair or assembly, or of goods exported abroad for further processing, the customs value of such goods shall be determined in accordance with the following provisions:

(1) for machinery, apparatus and appliances sent abroad for repair or assembly, the

actual cost of repair or assembly shall be taken as the basis for calculating valuation;

(2) for goods exported abroad for further processing, the difference between the

customs value of such goods following further processing at the time of re-importation and that of imported goods of the same kind at the time of exportation of such goods, prior to further processing, shall be taken as the basis for valuation.

With regard to the imported goods subject to Customs duty as specified in Item 1, Article 32 of the Law, the Customs value for assessment of import duty shall be based on the costs of repair or assembly (excluding freight and insurance). However, if the goods are shipped abroad for repair at no cost to the buyer and this can be evidenced by the free repair warranty contained in the original sales contract or invoice(s) or the correspondence between the buyer and the seller, such goods shall be exempted from import duty when they are re-imported.

In the absence of documents evidencing the repair or assembly costs or free repair arrangement in respect of imported goods on which import duty is leviable or exemptible under the provisions of the preceding paragraph, Customs may take an amount equal to one tenth of the Customs value of the re-imported goods after repair or assembly for assessment of Customs duty.

In the absence of the Customs value of the same kind of goods imported at the time of exportation of the re-imported goods subject to Customs duty under Item 2, Article 32 of the Law, the Customs value of the re-imported goods shall be assessed by reference to the Customs value of the same kind of goods imported on a date close to the date of exportation of the re-imported goods. In the absence of the Customs value of the same kind of goods imported as referred to in the preceding sentence of this paragraph, the difference between the Customs value of the goods re-imported after having been processed abroad and the FOB value of the goods originally exported shall be taken as the basis in determining the Customs value of the re-imported goods.

At the time of exportation and re-importation, the name, quantity and specifications of the goods subject to or exemptible from Customs duty under this Article shall be indicated in detail on the export declaration and the import declaration, and a statement shall be made thereon that the goods are being shipped abroad for repair, assembly or processing. In addition, any damages or defects which require repair or assembly, and the name, specifications, and quantity of the goods after processing shall be indicated on the exportation declaration.

(Re: Customs Law, Article 32 and the Implementation Rules thereof, Article 20)

Goods Subject to Valuation on the Basis of Rental or Royalty

In the case of imported goods on which only a rental or royalty is incurred, without a transfer of ownership, the customs value shall be determined on the basis of the rental or royalty amount plus the transportation fee and insurance fee.

In a case in which the duty-payer under declares the rental or royalty referred to in the preceding paragraph, Customs may determine the amount based on the information obtained through investigation; provided, the annual rental or royalty amount is not lower than one tenth of the customs value of the goods.

The imported goods on which duty is collected by rental or royalty pursuant to paragraph one, in addition to the duty collected on rental or royalty, shall be provided a deposit or a guarantee by a credit institute based on the difference between the duty collected by rental or royalty and the total liable duty on the customs value of the imported goods.

The paragraph one applies only to goods whose ownership is not transferable on account of patent rights, trade secrets, or for any other specific reasons approved by the Ministry of Finance as a special case.

The rental or usage period of the imported goods as referred to in paragraph one shall be approved by the Ministry of Finance.

An applicant filing to Customs for assessment of Customs duty on imported goods based on rental or royalty in accordance with Paragraph 1, Article 33 of the Law shall declare the Customs value of the goods and the rental or royalty payable respectively, and thereto, the lease agreement and the following documents attached to the application:

1. A duplicate of the patent certificate or evidential document issued by the patent authority of the government of exporting country, in case the patent right is not transferable.

2. A manual or relevant documents containing detailed description of functional characteristics of the imported goods, in case the ownership of the goods is not transferable on account of trade secret.

3. A letter of special approval granted by the Ministry of Finance for other reasons.

For imported goods on which the import duty is to be assessed on the rental or royalty payable therefore under Paragraph 1, Article 33 of the Law, while the accumulated rental or royalty for such goods will be higher than the Customs value of the same kind of goods recently imported, the duty-payer may request, at the time of importation of such goods, that the Customs value be determined based on the Customs value of the same kind of goods.

A deposit provided by the duty-payer or a guarantee provided by a credit institute pursuant to Paragraph 3, Article 33 of the Law shall be refunded or released from its guaranty when the imported goods have been cleared for export or destroyed under the approval of the Ministry of Finance upon expiration of the time of lease or use of such goods.

In the case of partial damage or destruction of the imported goods as referred to in the preceding paragraph, the indemnity paid therefor by the duty-payer shall be included in the amount of the rental or royalty for the purpose of assessment of import duty; whereas in the case of full damage or destruction of the imported goods, the import duty shall be levied in full amount based on the Customs value of such goods as assessed at the time of importation.

(Re: Customs Law, Article 33 and the Implementation Rules thereof, Article 21,22,23 )

Notes on Tax Payment for Customs Clearance

of Imported Used Cars

(Amended in Jan. 2003)

I. Since January 1, 2002, new or used cars which are manufactured by the WTO members and imported under the tariff quota system of this country, have been subject to the following quota allocation and duty rates:

(1) Quotas for cars manufactured by the USA, Canada and the European Union shall be allocated by the Customs in accordance with the sequence of importation. Import cars within quota shall be declared under Chapter 98 of the Tariff with import duty rate of 27.5%, whereas those without quota shall be declared under Chapter 87 of the Tariff with import duty rate of 60%.

(2) Quotas for cars manufactured by other regions will be allocated by the Board of Foreign Trade of the Ministry of Economic Affairs (hereinafter referred to as BOFT). Import cars within quota shall be declared under Chapter 98 of the Tariff with import duty rate of 27.5%, whereas those without quota shall be declared under Chapter 87 of the Tariff with import duty rate of 60%.

II. Firms or organizations not registered with the BOFT, or natural persons who import cars, new or used, with the value over FOB USD20,000, shall apply for an Import Permit from the BOFT 【No. 1 Hukou Street, Tel: (886-2-)23510271 Website: http://www.moeaboft.gov.tw】in advance.

III. There is no difference between the new and the used cars with regard to the method of computing import duties and other levies. Their respective amounts (including import duty, commodity tax, business tax, trade promotion service fee) are computed as follows：

Customs value = FOB value + F (freight) + I (insurance)

(1)Import Duty = Customs value × 27.5% (for cars with quota)

Import Duty = Customs value × 60% (for cars without quota)

(2)Commodity Tax = (Customs value + Import Duty ) ×

Commodity Tax Rate

25% (for cars of 2000 c.c. and below)

35% (for cars of 2001 c.c. and above)

(3)Business Tax = (Customs value + Import Duty + Commodity Tax) × 5%

(4)Trade Promotion Service Fee = Customs value x 0.0415%

IV. For new cars being imported by inward passengers, no depreciation shall be allowed in determining Customs value. Used cars shall be depreciated on the basis of the FOB prices of the new cars of same or similar type and same model year. The depreciation rate for used cars of the same model year is 10﹪. For the subsequent five years, the depreciation rate is 20﹪for the first year, 35﹪for the second year, 50﹪for the third year, 60﹪for the fourth year, and 65﹪for the fifth year. From the sixth year, the depreciation rate will be determined rationally in accordance with the relevant data collected and investigated.

V. For used cars being imported by inward passengers, the invoice value or the price shown on the transaction documents shall not be regarded as the transaction value under the provision of Article 25 of the Customs Law since such cars have not been actually sold for export to Taiwan. The Customs value shall be determined on the basis of the Customs-assessed FOB value of the new cars of same or similar type and same model year, and likewise depreciated according to its model year. If the above-mentioned FOB value is not available, the following rules shall apply:

(1) The Customs value for used cars from North America shall be computed in reference to the data of two authoritative car-magazines published in the US: the FOB value of new cars listed in the latest issue of KELLY Blue Book (hereinafter referred to as B/B) (i.e. the Dealer Price column of the said magazine, column 3 for body and column 1 for option) with value depreciation by the years used, and the Average Trade-in prices of used cars listed in the used-car magazine, N.A.D.A. Customs will take the lower one as the assessed FOB value and include the freight and insurance together to make up the CIF value as the Customs value.

Illustration：

On Jan. 3, 2003, someone imported a used Year 1999 Buick Park Avenue 3,800 c.c. four-door sedan without any options ( If there are options, their prices shall be added to the price of the body for computation purposes.) from the U.S.A. Since the Customs-assessed FOB value of the new cars of same or similar type and same model year is not available, the import duty and other levies are computed as follows：

(a) FOB price in B/B depreciated= USD 28,842.65 (price of new body of same or similar type in Year 1999) x (1-60%) (a 1999 model year used car imported in 2003 may be depreciated by 60﹪) = USD 11,537.06

(b) FOB price of body in N.A.D.A (January 2003 issue) = USD 12,150

Choose the lower one of the above two prices as the assessed FOB value:

FOB = USD11, 537.06

I = USD 66 (insurance fees actually paid)

F = USD600 (all shipping expenses actually paid or payable for shipping the car to port of entry)

CIF = USD 12,203.06 (FOB + I + F)

Customs value = USD 12,203.06 × 34.905 (exchange rate applicable, see Remark 2) = TWD 425,948

Import Duty = Customs value × 27.5% (Cars within the quota)= TWD117,136

Commodity Tax = (Customs value + Import duty) × 35% (for cars of/above 2,001cc)= TWD190,079

Business Tax = (Customs value + Import duty + Commodity tax) × 5% = TWD36,658

Trade Promotion Service Fee = Customs value× 0.0415% = TWD177

Total amount payable in this case = Import duty + Commodity tax + Business tax + Trade promotion service fee = TWD 344,050

(2) If the FOB value or wholesale prices of the new cars of same or similar type and same model year are not available even when applying the methods mentioned in V (1), other price data in current car market shall be applied for assessing the price of the said new cars, or inquiries shall be made to the car-agents, car-dealers, or car trade associations to obtain either the price of the said new cars with due depreciation for the purpose of Customs assessment. Otherwise, Customs may refer to the prices of used cars for direct assessment.

(3) Where the reference to car-magazines is made for the valuation of new or used cars, such reference should always be based on their latest issues available at that time.

VI. The Customs value shall be determined in accordance with Articles 25 to 31 of Customs Law for used cars imported by firms and individuals (other than inward passengers). If the declared price is abnormal in comparison with the market price, Customs shall make a scrutiny on the case.

Remarks:

1. Since the leviable amount (including import duty, commodity tax, business tax and trade promotion service fee) for imported cars in this country is still high, it might not be advisable to import used cars, even for personal use. Please take this point into your consideration.

2. With respect to the assessment of Customs value of imported goods, the conversion of the foreign currencies is based on the exchange rate applicable on the customs declaration date (This means the exchange rates posted by the Bank of Taiwan on the middle day of the preceding one-third period of a calendar month before the customs declaration date; as for the unlisted foreign currencies, the conversion is based on their exchange rates against U.S. Dollars in New York as published in any newspaper).

3. For the imported used cars, further procedures must be followed as per the governing regulations of this country, such as Emission Standards of Air Pollutants for Transportation Vehicles, Regulation on Fuel Economy Standard and Inspection and Administration of Vehicles, Traffic Security, etc.

4. The latest laws and regulations of the respective competent authorities shall govern the relevant procedures.

N.B.:

The above Notes are for general reference only. In case of any discrepancy between the English version and the Chinese version, the latter shall prevail.