Threshold Lowered for Establishment of Logistics Centers

       On Nov. 1, the Ministry of Finance announced a revision of the Regulations Governing Customs Clearance for Goods in Logistics Centers, reducing the required paid-in capital for the establishment of logistics centers to NT$200 million (from the original NT$300 million) and allowing branches of foreign companies with actual inward remittances of at least NT$200 million in operating capital to set up logistics centers.

　　One important provision of the revised regulations is the newly added Article 17-1, which permits goods to enter storage in logistics centers, under certain conditions, without knocking down the containers. In other words, virtual warehouses can be established at open-air sites in logistics centers. If the whole container of goods carry the same name, are packaged identically, and are unable to be stored in warehouses because they are too heavy or too big, or because of other special circumstances, they will be allowed to enter storage without the containers being knocked down. This will lower the manpower cost of unloading containers, reduce waiting time in the shipping process, and help companies to cut delivery time and strengthen their competitiveness.

　　Other liberalization measures include permission for the shipping of logistics center goods to customs-liable or customs-bonded areas for rearrangement or simple processing (the original regulation allowed only testing and inspection) so long as the goods involved are not on the controlled or restricted import list and their original form is recognizable upon shipment back into the logistics center. Goods that in the past have not been allowed into logistics centers, such as raw diamonds and goods that have the potential to cause pollution during the period of storage, may now be taken into logistics centers if documents of approval from the competent authority are obtained. For more details on the revision, please visit this website: http://gazette.nat.gov.tw/EG_FileManager/eguploadpub/eg011207/ch04/type1/gov30/num1/Eg.htm.

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