Taiwan Customs has implemented a real-name authentication mechanism since May 2020. Unlike other countries where third party logistics providers are able to import goods on behalf of customers, Taiwan Customs requires customers to be the formal importer of record (IOR). This means customers will need to declare their imports through an app called EZ WAY.
Under this mechanism, if a buyer fails to complete the authentication through the EZ WAY application or attach paper customs documents for real-name authentication, the importer will receive a “yellow flag” warning for the first violation.
On the second violation, the importer will receive a “red flag” warning and Customs will not accept the import package request. Unless the certification or appointment letter is provided, the package will not be imported.
However, the implementation of the above real-name system for overseas parcels appears to have led to instances of fraud. On 28 October 2021, the Ministry of Finance stated that by the end of 2021, a pre-clearance mechanism will be implemented for high-risk goods and for blacklisted customs brokers.
For online purchases from overseas suppliers that involve highrisk packages or are handled by blacklisted companies, consumers must complete the process themselves. As a result, the package can only be cleared after the real-name authentication has been completed and an advance customs confirmation has
been obtained. If the customs clearance confirmation is not provided, the package will be blocked.
The Customs Service Department stated the roll-out will be divided into three stages.
- The first stage is to adopt the customs clearance mechanism for high-risk goods and blacklisted customs brokers at the end of this year (2021).
- The second stage is to provide consumers with various choices next year (i.e., consumers can choose to use the pre-clearance mechanism which protects their personal information).
- The third stage – from June 2022 – is for full implementation of the pre-clearance mechanism where all consumers will be required to complete the clearance confirmation.
Exemption of excise tax of OLED display glass
The Ministry of Finance issued a new order on 15 October 2021 regarding an exemption of excise tax for imported or domestically produced OLED (Organic Light-Emitting Diodes) display glass.
Manufacturers must apply to a local Customs or Taxation Bureau for exemption of excise tax. The excise tax exemption is expected to reduce the operating cost of the OLED display industry.
For more information please find the Trade Intelligence Asia Pacific published by PwC here.
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