1.These regulations shall apply where a declaration of import/export cargoes is found to be inconsistent with the real cargo and in violation of import/export laws, unless otherwise stipulated by other laws and regulations.

2.In the case that a declaration of import/export cargoes is found to be inconsistent with the real cargo and involves evasion from trade control or offenses in tax evasion, or over-rebated tax, the provision shall be applied as following:
(1)In cases of tax evasion or over-rebated tax and does not involve evasion from trade control, a penalty shall be imposed pursuant to Paragraph 1 or 4, Article 37 of the Customs Anti-smuggling Act.
(2) In cases that involve evasion from trade control, a penalty shall be imposed pursuant to Paragraphs 1 and 3, Article 37 of the Customs Anti-smuggling Act
(3)Where the duties evaded involve evasion of domestic business tax, Customs shall, in addition to impose penalties, expropriate the duties evaded; those accused of violation of the criminal law shall be handed over to the relevant authorities for investigation.
(4)Of the foresaid disposed goods, those conforming to redemption of the goods confiscated or apply for cancellation of seizure, shall be released after providing Customs with equivalent bonds in accordance with the relevant provisions.

3. In the case that a declaration of import/export cargoes is found to be inconsistent with the real cargo and does not involve tax evasion, over-rebated tax, nor involve evasion from trade control, the provision shall be applied as following:
(1)Where import/export permits were not required for examination, the goods involved shall be released in accordance with relevant provisions; the same applies if permits were required, and rectified within the period prescribed by Customs.
(2)Where exportation meets the requirements of Paragraph 2, Article 37 of the Customs Anti-smuggling Act, the penalty shall be imposed pursuant to said Article.
Where a false declaration of imported goods involves the violation of any other laws and is regarded as a serious impact on domestic politics, economy, society, environmental protection, or international reputation, Customs may confiscate the cargoes according to Paragraph 1, Article 37 of the Customs Anti-smuggling Act.

4.Where a declaration of importation/exportation is made, but the required import/export permits for the real cargo have failed to be submitted, or the submitted documents were found to be inconsistent with the real cargo, a notification shall be issued to rectify the situation within a certain time period. If the situation is not rectified within the time period, the imports/exports shall be returned within a prescribed period pursuant to Article 96 of the Customs Act, or be withdrawn pursuant to "Regulations Governing Export of Commodities" and "Regulations for Export Cargo Clearance"

5.Import/export cargoes shall submit import/export permits to be released or returned/withdrawn within a prescribed period in accordance with these regulations, and the deadline for re-submission or return of cargo is limited to two months; where necessary, the term may be prolonged for more one month, except under special circumstance.

6.Any violators of the regulations stipulated by the competent authority of import and export trading are required to notify the competent authority, and shall be processed according to the Operational Directions for Customs Authorities in Implementing Measures for Import and Export Trading Affairs.