On 31 March 2026, a bill to amend the Customs Tariff Act, the Customs Act, and the Temporary Customs Tariff Measures Act, etc. was passed. The amendments include the establishment of a new system to prevent circumvention of anti-dumping duties and abolishment of the Special Provision for Determining Taxable Price (0.6 times rule) for individual imports, which we covered in a previous post.
Summary of the amendments
The key changes made by the amendments are as follows:
1. Establishment of a new system to prevent circumvention of anti-dumping duties
A new system has been established to enable imposition of an additional duty equivalent to the anti-dumping duty on goods attempting to circumvent anti-dumping duties by changing the country of export or product classification (“circumventing goods”).
2. Response to the rapid increase in low-value imported consignments
(1) New provisions will be established to enable the Director-General of Customs to issue business improvement orders, etc. to ensure proper business operations by the admitted operators of bonded areas (bonded operators) who store and/or process, etc. foreign goods in such areas.
(2) The Special Provision for Determining Taxable Price (based on the Customs Tariff Act and the Consumption Tax Act) for individual imports, which allowed the taxable value of goods for personal use to be calculated as 60 percent of the overseas retail price, will be abolished.
3. Extension of the applicability period for provisional tariff rates, etc.
(1) The applicability period for provisional tariff rates (applicable to 404 items) and the Special Emergency Tariff System for rice, wheat and dairy products, etc. has been extended by one year until the end of FY2026. For sweetened preparations (i.e., processed ingredients made by blending sugar and other ingredients such as cocoa, milk powder or grain flour; 5 items), the provisional tariff rates have been reduced in light of the expansion of adjustment charges to support the domestic sugar industry.
(2) The temporary duty-free treatment for petroleum products used in manufacturing (e.g., naphtha, kerosene, and diesel oil; 8 items) has been made permanent as the basic tariff rate.
(3) The duty exemption treatment for aircraft parts and other items that are difficult to produce domestically and the duty reduction treatment for re-importation of textiles and leather products for processing have been extended by three years, until the end of March 2029.
4. Review of Customs Act violation investigation procedures
In light of amendments to the Code of Criminal Procedure, digitalized procedures will be implemented for investigation of violations of the Customs Act.
Most of the above amendments became effective on 1 April 2026. The amendment in relation to business improvement orders for admitted operators of bonded areas will enter into effect on 1 June 2026. The amendment concerning digitalized procedures for Customs Act investigations will enter into effect on 1 October 2027. The amendment abolishing the Special Provision for Determining Taxable Price for individual imports will be the last to enter into effect on 1 April 2028.
Background
The amendments address a growing need to respond to recent domestic and international economic conditions and other developments, including the need to prevent circumvention of the anti-dumping duties and revise the de minimis rules to create a level playing field for domestic businesses.
