[Asia Economy (Daejeon) Reporter Jeong Il-woong] The government will expand support for small and medium-sized enterprises (SMEs) and mid-sized companies by, among other measures, covering the costs of export-import inspections. Additionally, measures will be put in place to minimize consumer damages when individuals purchase goods from overseas through purchasing agencies.
The Korea Customs Service announced these changes in the "2020 Changes in Customs Administration" on the 29th via its official website.
According to the updated customs administration, SMEs and mid-sized companies will no longer have to bear the costs of export-import inspections starting from July this year. This is due to the Customs Service shifting the inspection cost burden of export-import containers to the government.
However, the government's coverage of export-import inspection costs will be carried out within budget limits and only when there is no violation of laws related to container cargo.
Alongside this, customs duties on machinery and equipment imported for manufacturing and processing goods at bonded factories operated by SMEs and mid-sized companies will also be reduced.
Previously, machinery and equipment imported for manufacturing and processing at bonded factories operated by companies were not eligible for customs duty reductions. Going forward, if machinery and equipment that are difficult to produce domestically are imported, customs duties will be fully exempted to reduce companies' investment costs and thereby promote processing trade, according to the Customs Service's plan.
The Customs Service will also work to alleviate the tax burden on SMEs and mid-sized companies engaged in export-import by supporting the utilization of Free Trade Agreements (FTAs). A representative example is extending the deadline for importers to apply for retroactive preferential tariff treatment when the classification of imported goods changes after the import declaration has been accepted, requiring customs duties to be collected.
Until now, exporters and importers could only apply for preferential tariff treatment within one year from the acceptance date if they had not applied before the import declaration was accepted. However, going forward, if the customs officer applies a different classification than that declared by the importer and collects customs duties, the importer will be able to apply for retroactive preferential tariff treatment within three months from the date of receiving the tax payment notice.
Additionally, this year, the Customs Service plans to introduce the Taxpayer Protection Officer and Taxpayer Protection Committee systems to effectively protect taxpayers' rights from the stage before filing appeals or lawsuits. They will also introduce a duty-free goods delivery area inside the arrival hall, allowing travelers to avoid carrying duty-free items purchased at duty-free shops during departure, thereby enhancing user convenience.
Starting from April this year, joint tax liability will be imposed on agencies acting as purchasing agents for individuals in overseas direct purchases, which is expected to prevent damages to individuals caused by under-declaration of value by these agencies.
Until now, the responsibility for unpaid customs duties due to under-declaration by purchasing agents rested solely with the buyer. However, going forward, joint tax liability will be imposed on purchasing agents, and they can be prosecuted for customs evasion, thereby contributing to the protection of consumer rights.
For more detailed information on the "2020 Changes in Customs Administration," please visit the Korea Customs Service website.
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