On 22 September 2026, the Customs Administration unveiled a comprehensive reform of bonded goods storage regulations for duty-free shops, effective 1 January 2027. The new regime, promulgated under the Customs Act and the Duty-Free Shop Establishment and Management Regulations, replaces the previous open-ended storage allowance with strict time limits and introduces a mandatory smart customs clearance platform. Under the revised rules, duty-free shops must sell or re-export bonded goods within 18 months of warehousing entry, with a one-time extension of 6 months granted upon justified application. Goods exceeding the limit will be deemed abandoned and subject to auction or destruction, with the shop operator liable for all associated costs and a penalty of 10% of the goods’ dutiable value. The reform aims to prevent duty-free shops from functioning as de facto long-term bonded warehouses, ensure timely tax collection on unsold inventory, and enhance supply chain transparency.
Key Takeaways
- Strict Storage Limits and Grace Period: The 18-month limit applies to all goods entering bonded areas after the effective date. Existing inventory as of 31 December 2026 benefits from a transitional grace period of 12 months (until 31 December 2027) to clear or re-export. Perishable goods (cosmetics, food) face a shorter 12-month limit. Shops must file monthly inventory reports via the new “Bonded Goods Management System” (BGMS), which tracks real-time stock levels, sales, and expiration dates. Non-compliance with reporting incurs a fine of NT$100,000 per month.
- Smart Clearance Platform and Data Integration: The BGMS integrates with the National Single Window (NSW) and the MOF’s tax administration system, enabling automated customs declarations, tax calculations, and risk-based inspections. Duty-free operators must adopt certified POS systems that transmit sales data instantly. The platform also supports electronic certificates of origin, sanitary/phytosanitary certificates, and trademark authorization documents, reducing paper-based processing by an estimated 80%. Customs will conduct quarterly data audits; discrepancies exceeding 2% trigger on-site inspections.
- Financial Guarantees and Operator Qualifications: To obtain or renew a duty-free shop license, operators must now provide a financial guarantee (bank guarantee or insurance bond) equivalent to 5% of the previous year’s dutiable value of bonded goods, up from 2%. New applicants must demonstrate a minimum paid-in capital of NT$100 million and a track record of tax compliance. The MOF also introduced a “Trusted Trader” program: operators with three consecutive years of zero violations enjoy expedited clearance, reduced inspection rates, and deferred duty payment privileges.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement