1. In accordance with Article 38 of the Customs Act, In the case of imported goods on which only a rental or royalty is incurred, without a transfer of ownership, the customs value shall be determined on the basis of the rental or royalty amount plus the transportation fee and insurance fee. In a case in which the rental or royalty declared by the duty-payer is under that of normal value, Customs may determine the amount based on such information as is obtained through investigation, but the determined annual rental or royalty amount is not lower than one tenth of the customs value of the goods.
2. The goods mentioned in the preceding paragraph are limited to goods whose ownership is not transferable on account of patent rights, trade secrets, or for any other special reasons approved by the Ministry of Finance. Also, the rental or usage period of the imported goods as referred to in the preceding paragraph shall be approved by the Ministry of Finance.
3. In accordance with Article 22 of the Enforcement Rules of the Customs Act, for imported goods on which the customs duty is to be assessed based on the rental or royalty payable therefor under Paragraph 1, Article 38 of the Customs Act, in a case that the accumulated rental or royalty for such goods is higher than the customs value of identical or similar goods recently imported, the duty-payer may request, at the time of importation of such goods, that the customs value be determined based on the customs value of the identical or similar goods.