On 1 October 2026, Taipei Customs concluded its third-quarter promotional seminar for the “Export Goods Raw Material Tax Electronic Refund Operation” system, marking full operational deployment of the paperless duty drawback platform. The system, mandated under the Customs Anti-Avoidance Act and the Statute for Industrial Innovation, allows manufacturers to claim refunds of customs duties and commodity taxes paid on imported raw materials incorporated into exported products. Over 1,200 enterprises participated in the hybrid briefing, which covered technical specifications for XML data submission, digital certificate management, and audit trail requirements. The electronic platform reduces average processing time from 45 days to 7 working days and integrates with the Single Window customs clearance system.
Key Takeaways
- Mandatory Electronic Filing Effective 1 January 2027: All duty drawback claims for export goods must be submitted via the Customs Electronic Data Interchange (EDI) system using the standardized “Raw Material Consumption Declaration” format. Paper submissions will be rejected, and transitional manual processing will cease. Companies must obtain a Class 3 Digital Certificate from the Government Root Certification Authority.
- Real-Time Inventory Verification Mechanism: The platform links to the Industrial Development Bureau’s factory registration database and the National Taxation Bureau’s VAT invoice platform, enabling automated cross-checks of raw material input quantities against production records and export declarations. Discrepancies exceeding 3% trigger automatic audit flags.
- Post-Audit Retention and Penalty Framework: Exporters must retain electronic originals of import/export declarations, production logs, and bills of materials for seven years. False claims attract penalties of 1-3 times the refunded amount plus interest, and repeat offenders face suspension of drawback privileges for up to three years under Article 38 of the Customs Act.
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