Operation Directions Governing the Advance Ruling on Customs Valuation of Imported Goods

1. These Operation Directions are prescribed to implement the advance ruling on customs valuation of imported goods and the related procedures.

2. The applicant for the advance ruling on customs valuation of imported goods shall file the completed "Application for an Advance Ruling on Customs Valuation of Imported Goods" (format as attached) and submit the required documents based on the items specified in the advance ruling application to the Keelung Customs Office of Customs Administration, Ministry of Finance (hereinafter referred to as “Keelung Customs”).

3. The required documents for the advance ruling on customs valuation are as follows:

(1) In accordance with Subparagraph 1, Paragraph 3, Article 29 of the Customs Act, the expenses shall be added into the calculation of customs value:

a. Commissions and brokerage fees:

(a) Agency agreement or supporting documents to establish its existence;

(b) Purchase order, telexes, letters of credit, correspondence letters, and other relevant documents;

(c) Sales contract;

(d) Invoices or other documents issued by foreign suppliers to agents;

(e) Payment documents for buyer or seller commission or handling fee;

(f) Description or commercial documents illustrating services provided by the intermediary;

(g) Other necessary documents.

b. Cost of containers and packing:

(a) Statement for materials and services for containers and packing incurred by the buyer;

(b) Sales contract;

(c) Commercial invoices and other import documents;

(d) Letter of credit or documentary evidence of payment;

(f) Other necessary documents.

(2) In accordance with Subparagraph 2, Paragraph 3, Article 29 of the Customs Act, the production and sales assist fees and other expenses shall be added into the calculation of customs value:

a. Assist fee offered directly or indirectly by the buyer, free of charge or at a reduced cost, for use in connection with the production and sale of goods;

b. Sales contract;

c. Commercial invoice;

d. Correspondence letters regarding production and sales assistance provided;

e. Letter of credit or documentary evidence of payment;

f. Other necessary documents.

(3) In accordance with Subparagraph 3, Paragraph 3, Article 29 of the Customs Act, the royalties or license fees and other expenses shall be added into the calculation of customs value:

a. Description of the relationships among all parties involved in the transaction;

b. Royalty and license agreement;

c. Sales contract;

d. Orders, commercial invoices and other import documents;

e. Letter of credit or documentary evidence of payment;

f. Other necessary documents.

(4) In accordance with Subparagraphs 5 and 6, Paragraph 3, Article 29 of the Customs Act, the transportation cost, loading/unloading charges, handling charges, and insurance of the imported goods to the port of importation:

a. Fee statement and documentary evidence of transportation costs, loading/unloading charges, handling charges, and insurance of the imported goods to the port of importation;

b. Sales contract;

c. Commercial invoice;

d. Letter of credit or documentary evidence of payment;

e. other necessary documents.

(5) In accordance with Paragraph 1, Article 11 of the Enforcement Rules of the Customs Act, the expenses for technical assistance undertaken after importation of goods that should be deducted from the calculation of customs value:

a. Contract for goods or services;

b. Itemized breakdown of expenses incurred in relation to work or technical assistance undertaken after Importation;

c. Expenses for technical assistance;

d. Service expenses;

e. Documentary evidence substantiating whether the expenses were deducted or not deducted from the actual price paid;

f. Correspondence letters regarding technical assistance undertaken after importation;

g. Other necessary documents.

(6) Other expenses that are actually paid or payable shall be provided with necessary relevant documents based on the content of the application.

4. The procedures for the advance ruling on customs valuation of imported goods are as follows:

(1) Upon receiving the application, the Keelung Customs shall immediately enter the data into the "Operation File for Advance Ruling on Customs Valuation of Imported Goods" for management, and then review the application form, attachments, and other relevant necessary documents;

(2) If the applicant submits incomplete documents, Customs shall notify the applicant to remedy such documents within the deadline; applications for which the applicant fails to remedy incomplete documents within the deadline shall not be accepted, and Customs will note "Not Accepted" in the corresponding section of the application form;

(3) If there are special circumstances requiring an expedited decision on the application for the advance ruling on customs valuation of imported goods, the applicant should clearly state the reasons in the application form;

(4) If Customs requires consulting opinions from international or domestic institutes or experts regarding the goods applied for the advance ruling on customs valuation, and cannot respond to the applicant within 45 days from the day following the day of receiving the application for the advance ruling on customs valuation or the remedy documents submitted by the applicant, Customs shall notify the applicant in writing of the reasons for its extension.

(5) The Keelung Customs shall reply to the applicant in writing the result of the advance ruling on customs valuation and forward notification to Customs Administration, Ministry of Finance (hereinafter as “Customs Administration”) and the other customs offices.

5. The applicant may apply for a review if he or she is dissatisfied with the result of the advance ruling on customs valuation; the Keelung Customs shall promptly convene a review committee meeting for deliberation and reply to the applicant regarding the result of the review within 20 days from the day following the date of receiving the said application for review.

Where the review committee determines that the request is unreasonable, the Keelung Customs shall notify the applicant of the result in writing. If the review committee finds that the request is reasonable, the Keelung Customs shall modify the result of advance ruling on customs valuation, and notify the applicant by notification of review and forward the notification to Customs Administration and the other customs offices.

6. The Keelung Customs may modify the result of advance ruling on customs valuation and notify the concerned applicant with explanation in writing form and forward the notification to Customs Administration and the other customs offices.

Upon receiving the application in which the applicant applies for an extension of the period of the validity of the ruling, the Keelung Customs shall notify the applicant of the result in writing and forward the notification to Customs Administration and the other customs offices. However, such an extension shall not exceed 90 days following the date of receiving the written decision.

7. When the applicant imports the same goods during the period of the advance ruling on customs valuation, Customs may examine and release the goods in accordance with Paragraph 2 of Article 18 of the Customs Act.

8. During the clearance of imported goods, if Customs finds that the photocopy of the reply letter attached by the importer is suspected to be false, Customs shall handle it in accordance with relevant regulations after investigation.