No Duty for Processing by Bonded IC Testing and Packaging Plants

        On Sept. 20, the Ministry of Finance (MOF) approved a measure designed to make the island’s IC packaging and testing companies more competitive. In the future, bonded factorities that engage in IC packaging and testing will be able to carry out those operations on commission from firms in tariff-liable areas without being required to pay customs duties on the processed products when they are returned to those firms. In addition, they can submit monthly reports on such processing. This is a major improvement over the past procedure, which required testing and packaging operators engaging in such operations to submit an application to customs authorities for each batch of work and to pay customs tariffs on the non-bonded materials used in processing.

　　The MOF indicates that to simplify administrative operations, facilitate customs-clearance procedures, and reduce the tariff burden on operators, it will, in the future, handle such operations in accordance with the Regulations Governing Bonded Factories, the main points of which are as follows: 1. Since the customs tariff on finished IC products is zero, bonded factories receiving commissions for packaging and testing from companies in tax-liable areas will not have to pay customs duties on the use of materials from bonded areas. 2. There will be no need to submit an application for each case of processing; instead, monthly reports will be submitted. 3. For cases that involve domestic sale and therefore require the payment of customs duties, the dutiable value need not include the value of the chips. The resulting products will be taxed according to their invoice price. For more related information, please visit this website: http://www.mof.gov.tw/content/asp?CuItem=25363&baseDSD=5&CtUnit=11.

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