Kaohsiung Customs stated that goods sent abroad for repair or assembly, when re-imported, should be taxed based on the cost of repair or assembly according to Article 37, Paragraph 1, Subparagraph 1 of the Customs Act. However, if the goods are sent abroad for free repair and this can be evidenced by the free repair warranty contained in the original sales contract or invoice or the correspondence between the buyer and the seller, such goods are exempt from customs duties upon re-importation.

The Customs further explained that at the time of exportation and re-importation, the name, quantity and specifications of goods sent abroad for repair and assembly shall be indicated in detail on the export and import declaration and a statement shall be made thereon that the goods are being shipped abroad for repair or assembly. In addition, the damage or defects requiring repair or assembly shall be noted on the export declaration. The mode of statistics must be declared as 7M (domestic goods exported for repair, assembling to be re-imported) or 9M (goods returned abroad for repairing or assembling). Moreover, re-importation must occur within one year from the next day after the export release. If necessary, the application for a six-month extension may be filed with the Customs prior to the expiration of the aforesaid one-year period, to explain the reason in writing; for such overdue re-imported goods, the customs duty shall be levied on the basis of customs value of re-imported goods.

Kaohsiung Customs reminds exporters that if there are any questions regarding the clearance of goods sent abroad for repair or assembly, they may consult the Customs or the appointed customs brokers before exporting goods to ensure correct declaration and protect their own rights.

Contact: Clearance Division II, Kaohsiung Customs
Contact: Lo, Yen-Hsiu
Tel:07-8237600 #7582