"Recoverable Duty" occures when the imports concerned are subject to post-release duty appraisal and their duties pending for final decision, under situations such as shortage of duty collection, excess of duty refund, or on account of a transfer of ownership or a change in the use of the imported goods. In such cases, Customs shall inform the duty-payer, or at the request of the duty-payer, to pay/collect the insufficient amount. 

        To expedite the clearance of imported goods, Customs may release the goods following cargo examination and payment of duty, according to required declaration matters filed by the duty-payer, then scrutinizing declaration after release. In situations where recoverable duty occured, Customs shall, upon discovery, notify the duty-payer to pay or claim the under-collected amount. The duty-payer may also take the initiative to apply for the payment. Customs shall notify the duty-payer of any duty receivable within six months following the date of release. Recovery of duty should be done once and for all and should be within the prescribed period stipulated by law.
 

        In cases where the goods imported are under duty reduction or exemption with a subsequent deviation from duty reduction or exemption conditions on account of a transfer of ownership or a change in their use, the original duty-payer or the present holder of such goods shall pay duty to Customs at the port of importation within 30 days following the date of the transfer of ownership or the change in the use of the goods imported; the import duty levied shall be based on the value and tariff rate applicable at the time when such a transfer or change occurred.

        However, imported goods over the useful life of “Table of Useful Life of a Fixed Asset” issued by Executive Yuan, shall be exempt from recovery duty on account of a transfer of ownership or a change in their use. The exemption period for goods not listed in the above-mentioned table is 10 years. Failed to pay the recoverable duty within the prescribed period , a fine equal to the amount of the duty shall be levied in addition to the Customs duty payable.

        In submitting applications for import, a bonded factory is not allowed to have raw materials, non-self-use machines and equipment which are ineligible for bonding as co-proclaimed listed as bonded materials. If such a discrepancy occurs, an application for import of foreign goods shall be completed, within 30 days beginning from the second day after customs clearance has been granted, applying to the supervising Customs for payment of import duties and taxes.

        In cases where a penalty or fine for duty evation was imposed under the Customs Anti-smuggling Act, such imposition shall be stated in the "disposition notice" instead of a "duty note." Provided that the cargoes in question were confiscated, the duties should not be claimed; if paid, Customs shall return them to the importers.