Kaohsiung Customs (KHC) stated that there have been recent cases where Free Trade Zone (hereinafter referred to as FTZ) enterprises reported the storage of textile goods from abroad using F1 (Foreign Goods Stored in Free Trade Zone) declarations, but failed to verify the actual weaving method of goods (such as knitting, weaving, etc.). This resulted in incorrect reporting of product descriptions and specifications, thereby constituting false reporting and leading to administrative penalties.

KHC further explained that implementing autonomous management is the core of FTZ operations. At the stage of receiving and storing goods, the enterprises must, in accordance with Article 17 of the Act for the Establishment and Management of Free Trade Zones, thoroughly verify whether the actual arrived goods match the documents. In addition to strictly controlling the storage of restricted goods, they are also required to fulfill their obligation to verify reported items such as descriptions, specifications, quality, quantity, and weight. If any abnormality is found after receipt or report, enterprises should proactively report the discrepancy or apply for correction to Customs in order to demonstrate the responsibility of autonomous management and ensure accuracy of the reported content. 

KHC urged the enterprises to note that the spirit of FTZ is “low administrative control and a high degree of autonomous management”. If enterprises encounter any discrepancies between the declaration and actual goods entering or leaving the warehouse, they should proactively and immediately report them to Customs. If the discrepancies are seized by Customs before the enterprises applies for a correction, pursuant to Article 38 of the Act for the Establishment and Management of Free Trade Zones, the Customs may impose a fine, suspend the entry and storage operations, or revoke the operation permit, depending on the severity of the violation. The enterprises are strongly advised to thoroughly verify the type of goods received and accurately report the descriptions of goods prior to report to avoid violating relevant regulations. For any inquiries regarding reporting, please feel free to contact KHC. 

Division: Jianan Branch
Contact: Officer Chiang
Tel: 06-2954471