Release time: 2016-09-27 17:45 Source: General Administration of Customs
Anyone wishing to import, export or return goods must declare them to customs.
I. Introduction to convenient customs clearance measures
The Korean Customs began to implement a new customs declaration system on July 1, 1996. As long as the imported goods are legally declared, the customs can immediately confirm whether the import meets the legal requirements, accept the declaration, and release the goods. Customs clearance procedures are no longer an obstacle to the logistics of goods.
The import customs clearance system based on electronic data interchange (EDI) was put into use on July 1, 1996. From July 1999, importers no longer need to go to the customs site, but can declare customs by clicking the mouse in the office.
In addition, in order to further simplify customs clearance procedures and reduce the cost burden of declarants, the Korean Customs began to use an Internet-based customs clearance system in 2005.
Through the "Dock Cargo Release System", imported goods can be cleared and released immediately after arriving at the port. The cargo release function of the "Import Customs Declaration System" allows manufacturers and foreign investment companies with high integrity to have their raw materials and goods released by simply submitting simple cargo information, and submitting import customs declarations 10 days after release.
In order to speed up customs clearance, the customs allows import declarations to be made in advance before the ship carrying the goods leaves the foreign port of exit. After the goods arrive at the port of entry, the imported goods can be unloaded from the ship immediately and transported from the terminal to the destination (such as a production factory).
In order to reduce the financial burden on enterprises, the system of paying taxes and fees before release has been changed to paying them after release. Customs duties can be paid within 15 days after the customs accepts the declaration.
The Korean Customs is not only a taxation department, but also responsible for reviewing whether the goods meet all other relevant legal provisions other than the Customs Act before they are released. It also checks whether all import requirements have been met by connecting with other government departments that issue import administrative licenses and certificates. Importers do not have to travel back and forth between the offices of the customs and other government departments to handle customs declaration procedures.
2. Import/Export Declarant
Cargo owners, customs brokers, customs brokers and enterprises with customs declaration qualifications can handle import and export customs declaration procedures.
3. Goods prohibited from import/export
The Korean Customs Act prohibits the import and export of the following goods:
- books, publications, leaflets, pamphlets, films, records, sculptures or other items of similar nature that are contrary to the spirit of the Constitution or endanger public safety or customs;
- Goods that may reveal confidential government information or be used for intelligence activities; and
- Counterfeit or forged coins, banknotes, banknotes, bonds and/or other valuable instruments.
IV. Import customs clearance
1. Port entry declaration
When a foreign trade vessel/aircraft arrives at an open port, the captain/pilot should immediately submit a port entry report to the customs, together with the manifest, list of supplies on board/on board, passenger list, crew list, and list of personal effects of the crew/crew.
"Foreign trade vessel/aircraft" means any vessel/aircraft traveling between Korea and other countries for the purpose of foreign trade.
2. Import declaration
1. Import declaration time
Import declaration can be submitted before the transport enters the country (called "pre-port import declaration"). After the imported goods arrive, they will be stored in the bonded area. Import declaration can also be submitted before or after the goods enter the bonded area, but it must be declared within 5 days before the ship arrives at the seaport or within 1 day before the aircraft arrives at the airport.
The import declaration form must be submitted in written form to the customs where the goods are located through "electronic data exchange". The declaration form should state the name, description, quantity, price and other information of the goods. The following documents should be attached when declaring:
- Import license (required for goods subject to license management)
- bill
- Price Statement
- Bill of Lading
- Documents proving compliance with the requirements of Article 226 of the Customs Act
- Packing List
- Certificate of Origin
- Application for duty exemption, export tax rebate, preferential tariff, etc. (provide when necessary)
2. Document review
After the import declaration form is submitted, the customs will review the information filled in the declaration form to confirm whether the attached documents are complete and comply with regulations. If the review is correct, the customs will immediately accept the declaration, and the importer can collect the goods with the customs acceptance certificate.
3. Inspection
When the customs officers cannot determine the purpose, identification, function, etc. of the goods based on the information in the declaration form and the accompanying documents, or when they need to check whether there are hidden goods, contraband or whether the goods are "same goods", they will inspect the goods. The C/S system (Cargo Selectivity System) of the Korean Customs can analyze the risks of goods, and the system will automatically prompt for inspection of high-risk goods. Customs will decide whether to accept the declaration after inspection.
4. Acceptance of declarations
If the customs confirms that the goods can be imported and cleared, the goods must pay tariffs, domestic taxes or provide tax guarantees before accepting the declaration. If a guarantee is provided, the tariffs must be paid within 15 days after the customs accepts the declaration. Goods whose declarations have been accepted by the customs can be released from the bonded area and enter the country for free circulation.
5. Post-audit
South Korea's import and export declaration system is based on the "presumption of law-abidingness", that is, it believes that most imports and exports are legal, and most traders' declarations are truthful and accurate. South Korea Customs hopes to promote the rapid customs clearance of goods from honest and law-abiding companies that declare truthfully, while effectively curbing the import and export of illegal goods. For companies and goods that meet the conditions, the goods will be released first according to the information declared by the importer, and then the declared import price, origin mark, etc. will be verified through the "post-clearance inspection system". At present, most of the post-audits conducted by South Korea Customs are for the purpose of price review.
If the customs duties are not fully collected due to the taxpayer's fault, the customs will collect the underpaid duties and charge an additional fee of 20% of the underpaid duties.
(III) Import customs clearance flow chart
Before the transport vehicle departs/before the transport vehicle arrives/before the goods enter the bonded area/after the goods enter the bonded area
↓
Import declaration
↓
Approved for import
↓
Cargo release
↓
Pay customs duties
(IV) Customs clearance of goods valued by customs
The following goods are subject to customs valuation:
- Goods brought into the country by passengers or crew members
- Postal items (excluding commercial goods that require a license under the Foreign Trade Law)
- Deteriorated or damaged goods
- Goods sold by the US Forces Korea Property Disposal Office
- Personal checked baggage items
Generally speaking, customs duties are levied according to the "declare first, tax later" system. However, for the above-mentioned goods, the customs directly notifies the taxpayer to pay the tax. Other customs clearance procedures are basically the same as for "declare first, tax later" goods.
5. Export customs clearance
South Korea's trade policy focuses on facilitating exports and promoting foreign trade development. To this end, South Korea Customs strives to simplify export procedures and ensure smooth export customs clearance. 95%'s export goods are paperless customs clearance. At the same time, through risk analysis, document review and cargo inspection are carried out to prevent illegal trade and enhance South Korea's image of integrity in the world.
1. Customs declaration time
Korean Customs allows exporters to make export declarations at any time before the goods are shipped.
(II) Customs declaration method
Export goods must be declared to the customs by EDI. Each customs has jurisdiction over different areas, and which customs to declare to depends on where the export goods are stored. Some small export companies designated by the Director of the Customs Service of the Ministry of Finance of Korea can make export declarations through the "Export Declaration Electronic Facility" of the Export Declaration Support Center (such as the Korea International Trade Commission).
Through EDI, export goods can achieve paperless customs clearance (except for goods that are selected for inspection in the "Select Inspection System" and goods that require documents). The proportion of goods that do not require paper documents or inspection is 95%. The proportion of goods that require paper documents but do not require inspection is 4.6%. The proportion of goods that require inspection is 0.4%. In addition, in order to further simplify customs clearance procedures and reduce the cost burden of declarants, the Korean Customs has put the Internet-based customs clearance system into operation since June 2005.
(III) Inspection
Generally speaking, export goods do not need to be inspected. Only high-risk goods (such as suspected infringement and counterfeit goods) identified by the "Selective Inspection System" and goods that need to be inspected after document review will be inspected. Based on the nature of the goods, the integrity of the company and risk analysis information, the Korean Customs will flexibly determine the inspection ratio and inspection period.
4. Departure of export goods
Export goods must be shipped within 30 days after the customs accepts the export declaration. If the goods cannot be shipped or the shipment is delayed due to unforeseen reasons (such as changes in shipping schedule), the customs will allow the shipment to be postponed upon application by the exporter. The postponement period can be up to 1 year, starting from the date the export declaration is accepted by the customs.
5. Simplify export customs clearance procedures
For goods that are eligible for simplified export customs clearance procedures, the export declaration only requires the submission of manifest, invoice and simplified customs clearance list (or mailing list), or the electronic transmission of the information contained in the above documents to the customs computer system. The following goods are eligible for simplified export customs clearance procedures:
- Checked luggage items for non-commercial use with an FOB value of less than 2 million KRW
- Newspapers, films, tapes and other items used as mass media for broadcasting news
- Directories, file archives, etc.
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