Relaxation Allows Development of Regional Maintenance Centers
A
new relaxation of rules governing free trade zones will help FTZ companies
develop their operating models further and make use of FTZ synergies more fully.
The provision in Article 6-2 of the Regulations Governing Customs Clearance for
Goods in Free Ports has been revised to expand the scope of non-taxable goods
shipped to tax-liable or bonded areas for repair, inspection, or testing from
old products shipped for maintenance to include new parts needed for repair
work. This relaxation will help domestic and foreign companies with their
operations in
Under Article 6-2 of the Regulations, FTZ enterprises may apply to the
customs office in their area, submitting the required documents, to ship
non-taxable goods to tax-liable or bonded areas for the operations noted above.
The original rules limit the scope of such “non-taxable goods” to old
products shipped for maintenance. Under the new relaxation, which was worked out
by the FTZ Coordinating Committee in consultation with the Finance Ministry’s
Directorate General of Customs and was approved by the Finance Ministry, the
scope of application is extended to include non-taxable new parts needed for
repair. This is considered a major breakthrough in FTZ customs operations.
A producer of semiconductor manufacturing equipment has already moved
into the Taoyuan Air Cargo Park FTZ with the aim of setting up an Asia-Pacific
regional maintenance center and providing semiconductor equipment testing and
maintenance services there. The FTZ Coordinating Committee notes that the
current relaxation will greatly enhance the operating flexibility of FTZ
enterprise and strengthen the supply-chain linkage between FTZ logistics
enterprises and outside manufacturers, not only stimulating the development of
linked domestic industries but also facilitating the expansion of corporate
operating models and their establishment of global or regional maintenance bases
in
For further information, please visit
http://www.cepd.gov.tw/style1/style1_sec2.jsp?businessID=4249&linkID=194&parentLinkID=0&gosec2=y.
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