Guidelines on Determining the Transfer Date for Domestic Goods Certificates and Its Importance in Duty Drawback Released

1. Legal Basis and Definition of the Transfer Date

In customs drawback procedures, the 'Transfer Date' for domestic transactions serves as a critical benchmark for determining the refund amount and calculating the export fulfillment period. This is governed by Article 48 (Issuance of Certificate of Tax Payment for Basic Raw Materials) and Article 55 (Issuance of Certificate of Import Tax Division) of the 「Notice on the Refund of Customs Duties, etc., on Raw Materials for Export」 (hereinafter the 'Drawback Notice'). The specific verification criteria follow the dates recorded on documents specified in Article 49 of the same notice.

2. Specific Criteria for Determining the Transfer Date (Article 49)

The transfer date for domestic goods is determined according to the following priorities based on the transaction type and supporting evidence. As a principle, a customs broker confirms this date by ensuring the actual movement of goods aligns with the documentation.

• Tax Invoices under the VAT Act: This is the most common standard, where the 'Date of Issuance' (Preparation Date) on the tax invoice is regarded as the transfer date.
• Delivery Documents: The date is based on documents that verify the actual delivery of goods, such as a transaction statement or a delivery receipt.
• Cases Ineligible for Input Tax Deduction: If a tax invoice cannot be issued, the delivery date is reviewed based on accounting records or contract terms in accordance with corporate accounting standards.
• Customs Verification: In special circumstances, the actual timing of transfer may be separately verified as determined by the Head of the District Customs Office.

3. Why the Transfer Date is Crucial in Drawback Administration

The transfer date is not merely a record of when a transaction occurred; it carries legal and economic implications that make accurate calculation essential for the following reasons:

First, it serves as the base date for the Simplified Fixed Drawback Schedule.
For small and medium-sized enterprises (SMEs) utilizing the Simplified Fixed Drawback system, the transfer date determines which year’s drawback rate schedule applies when issuing a Certificate of Tax Payment for Basic Raw Materials. Since drawback rates are revised annually, a difference between December 31st and January 1st can result in a significant variance in the total refund amount.

Second, it is the starting point for the export fulfillment period and the drawback application deadline.
To receive a customs refund, export must be fulfilled within two years from the date of import (or the date of acquisition). For domestic transactions, the transfer date is used to calculate the retroactive period or determine future export fulfillment. Missing these deadlines can lead to the forfeiture of the right to a refund, even if the tax was validly paid.

Third, it ensures the continuity of tax pass-through in sequential transactions.
In multi-stage domestic transactions, each stage's transfer date must be clear to prove that the customs duties paid at the time of import were accurately passed down to the final exporter. This provides the legal foundation for the validity of the Certificate of Import Tax Division or the Certificate of Tax Payment for Basic Raw Materials.

4. Professional Practical Advice

From a practical standpoint, errors in the transfer date can be flagged during customs audits or inspections as 'excessive drawback,' leading to the imposition of additional taxes and penalties. Particularly for year-end/new-year transactions or large-scale project volumes, it is vital to ensure that the tax invoice date does not conflict with the actual delivery date. It is highly recommended to seek professional review to ensure compliance with the Drawback Notice before issuing certificates.