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Taiwan’s Customs Administration is responsible for customs policy, regulations, and the enforcement of border controls in Taiwan. It also manages the collection of customs duty, as well as other taxes and fees on behalf of other government authorities.
Goods imported into Taiwan are subject to customs duty at a rate that is determined by their tariff code. In addition, most goods are subject to Value Added Tax (5%) and/or other taxes that include Commodity Tax, Alcohol & Tobacco Tax, Tobacco Health Tax, Luxury Tax and Trade Promotion Service Fees. Since Commodity Tax and customs duties are calculate using different categorisation systems, imported goods may need to be evaluated to ensure that the customs declaration is in compliance with all regulations.
A number of goods require an import license for entry into Taiwan. Categories of licensed goods include alcohol, automobiles, specified Chinese origin goods, medicine and firearm weapons. The importer must complete an import declaration within 15 days following the arrival date of the goods.
Strategic High-Tech Goods are subject to export controls and should obtain export licenses prior to exportation.
Taiwan has been a member of the World Trade Organization (WTO) since 2002 and is a member of the Asia-Pacific Economic Cooperation (APEC).
Our professional services focus on both savings and strategic opportunities as well as risk management. In Taiwan we typically assist companies in the following areas:
A client had imported a new and innovative type of cookware into Taiwan and had classified it as “frying pot”. However Customs deemed that imports of the cookware should have been classified electric ovens which would be subject to a 15% Commodity Tax. The importer was subject to a fine of three times the underpaid tax amount.
How we helped
Our experience is that the authorities do not take into account whether the reason companies fail to pay Commodity tax is unintentional, and all circumstances are subject to the same level of penalty. WMS successfully demonstrated to the authorities that the Cookware was not an oven and the client had no intention of tax avoidance. The heavy penalty for historical non-compliance was lifted.
Benefit for client
Although the cookware is still subject to Commodity Tax, as authorities have insisted on their classifying as electric ovens, our mediation with authorities avoided the client paying a substantial fine.
Partner, Beijing China, PwC Asia Pacific Customs and Trade
Tel: +86 (10) 6533 3730