FTZs adopt a level of autonomic management and loose administrative controls in order to create niches. There are the following preferential measures and systems provided in FTZs:


Inside the Border but Outside of Customs

Goods shall be exempted from relevant duties and taxes and free from the import restrictions set forth in other acts, regulations or orders.

Offering tax preferential:

  • Goods to be transported overseas into a free trade zone by a free-trade-zone enterprise for its operations (including those used to provide warehousing, logistics, assembly and reassembly services to other enterprises) shall be exempted from customs duty, commodity tax, business tax, tobacco and wine tax, public health and welfare dues on tobacco products, trade promotion service fees, and harbor service dues.
  • Business tax rate is reduced to zero for transactions of commodities, equipments and services between FTZs and domestic taxed areas or bonded areas.
  • For profit-seeking enterprises who engaged in only preparatory or auxiliary activities in R.O.C, and handling with procurement, import, storage or transport in FTZ area, the sales income shall be 100% exempt from Profit-seeking Enterprise Income Tax.
    (According to the newest legal terms in 2018)
  • Shipping domestic goods into FTZs shall be deemed exports, and the enterprise concerned may request a duty refund.

Allowing in-depth processing:

The in-depth processing  including assembling, processing, manufacturing, etc. is allowed in FTZ.

Free circulation of goods:

Inspection is spared for customs clearance when foreign goods are shipped to or from FTZs. The same principle also applies to any transfer from one FTZ to another. Monthly consolidated declaration is adopted on the flow of goods between an FTZ and a domestic taxed area or a bonded area to enhance the efficiency.

Autonomous management:

Customs review enterprise's account through the system.

One-stop service:

One stop consulting and administrative service.

 Other advantages...

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Exemption of deposit No limit for storage period Monthly consolidated declaration No capital restriction

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Convenience of commissioned processing Restricted cargo from China allowed to be shipped into FTZs Manufacturers allowed to be located in FTZs Exemption of business