Our professional services focus on both savings and strategic opportunities as well as risk management. In Taiwan we typically assist companies in the following areas:
- Customs "Health Checks"
- Customs investigations and audits
- Bonded Zone facilitation strategies
- Supply chain security validation
- Duty refunds and exemptions
- Export Controls and Special License applications
- Dispute resolution with Customs and other relevant authorities
- Advisory on other taxes on imported goods
Successful mediation with Taiwan Customs on penalties charged for historical non-compliance
A client had imported a new and innovative type of cookware into Taiwan and had classified it as “frying pot”. However Customs deemed that imports of the cookware should have been classified electric ovens which would be subject to a 15% Commodity Tax. The importer was subject to a fine of three times the underpaid tax amount.
How we helped
Our experience is that the authorities do not take into account whether the reason companies fail to pay Commodity tax is unintentional, and all circumstances are subject to the same level of penalty. WMS successfully demonstrated to the authorities that the Cookware was not an oven and the client had no intention of tax avoidance. The heavy penalty for historical non-compliance was lifted.
Benefit for client
Although the cookware is still subject to Commodity Tax, as authorities have insisted on their classifying as electric ovens, our mediation with authorities avoided the client paying a substantial fine.