July 2024
Ministry of Finance of Taiwan Amends Regulations Governing the Establishment and Management of Duty-free Shops to Allow Customers to Check Out on Online Duty-free Store Platforms
July 2024
David Hung and Oli Wong
On May 30, 2024, the Ministry of Finance of Taiwan issued Tai-Chi-Guan-Zi No. 1131014773 Order, amending certain provisions of the Regulations Governing the Establishment and Management of Duty-Free Shops (the “Amended Regulations”). This amendment includes changes to the online sales and checkout services of city duty-free outlets. The specifics are outlined below:
1. Relaxation of regulations on online sales and checkout services at city duty-free outlets
In the past, travelers who pre-ordered duty-free goods online still needed to visit the city duty-free outlet to present their passports, travel documents, boarding cards (or ship boarding cards), or alien resident certificates for verification. After verifying the traveler’s identity at the duty-free shop, the sale could proceed to checkout, and the traveler would pick up the goods upon departure.
With the widespread use of the internet and the shift in consumer behavior from traditional physical stores to online shopping, the Amended Regulations now allow travelers planning to go abroad to pre-order goods on the duty-free shop’s website, upload relevant information such as their passport and boarding pass, and complete the purchase directly online. This eliminates the need to visit the city duty-free outlet for in-person checkout, providing convenience for travelers and optimizing the shopping process. (Article 21-1, Paragraphs 1 and 3 of the Amended Regulations)
2. The timing of verifying Travelers’ identities and penalties for violations
After completing the checkout process on the online platform, travelers need to collect their goods at the airport or port duty-free shops. At this point, operators must require travelers to present their passports, travel documents, boarding cards (or ship boarding cards), or alien resident certificates. Operators may deliver the goods only after verifying the traveler’s identity. (Article 21-1, Paragraph 2 of the Amended Regulations)
Operators who fail to verify the traveler’s identity as per the above regulations may receive a warning or a fine ranging from over NT$6,000 to NT$30,000. Failure to correct the violation within the specified period may lead to repeated penalties. In severe cases, the operator may face suspension of duty-free shop operations for up to six months. (Article 30 of the Amended Regulations, Article 91 of the Customs Act)
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
David Hung and Oli Wong
On May 30, 2024, the Ministry of Finance of Taiwan issued Tai-Chi-Guan-Zi No. 1131014773 Order, amending certain provisions of the Regulations Governing the Establishment and Management of Duty-Free Shops (the “Amended Regulations”). This amendment includes changes to the online sales and checkout services of city duty-free outlets. The specifics are outlined below:
1. Relaxation of regulations on online sales and checkout services at city duty-free outlets
In the past, travelers who pre-ordered duty-free goods online still needed to visit the city duty-free outlet to present their passports, travel documents, boarding cards (or ship boarding cards), or alien resident certificates for verification. After verifying the traveler’s identity at the duty-free shop, the sale could proceed to checkout, and the traveler would pick up the goods upon departure.
With the widespread use of the internet and the shift in consumer behavior from traditional physical stores to online shopping, the Amended Regulations now allow travelers planning to go abroad to pre-order goods on the duty-free shop’s website, upload relevant information such as their passport and boarding pass, and complete the purchase directly online. This eliminates the need to visit the city duty-free outlet for in-person checkout, providing convenience for travelers and optimizing the shopping process. (Article 21-1, Paragraphs 1 and 3 of the Amended Regulations)
2. The timing of verifying Travelers’ identities and penalties for violations
After completing the checkout process on the online platform, travelers need to collect their goods at the airport or port duty-free shops. At this point, operators must require travelers to present their passports, travel documents, boarding cards (or ship boarding cards), or alien resident certificates. Operators may deliver the goods only after verifying the traveler’s identity. (Article 21-1, Paragraph 2 of the Amended Regulations)
Operators who fail to verify the traveler’s identity as per the above regulations may receive a warning or a fine ranging from over NT$6,000 to NT$30,000. Failure to correct the violation within the specified period may lead to repeated penalties. In severe cases, the operator may face suspension of duty-free shop operations for up to six months. (Article 30 of the Amended Regulations, Article 91 of the Customs Act)
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
