Noh Seok-hwan, Commissioner of the Korea Customs Service (second from the left, front), promises support for companies affected by COVID-19 through customs administration during an emergency meeting with manufacturing companies and major industry associations on the 11th. Photo by Korea Customs Service
[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Korea Customs Service is supporting the expedited customs clearance of Chinese raw materials and parts to alleviate difficulties faced by companies due to the novel coronavirus infection (Wuhan pneumonia).
On the 11th, the Korea Customs Service held an emergency meeting with the Korea International Trade Association, domestic manufacturing companies, and major industry associations, promising support for companies affected by the novel coronavirus through customs administration.
During the meeting, the two organizations listened to the difficulties experienced by stakeholders from companies and industries on-site and explained support measures for each issue.
First, to resolve customs clearance difficulties, the Korea Customs Service sent a letter of cooperation for expedited customs clearance to Chinese customs authorities and decided to focus on resolving customs clearance delays in China and alternative import countries through a hotline between local customs and customs authorities.
Additionally, responding to requests from meeting participants to "help ensure that expedited customs clearance benefits can be received at domestic airport customs when importing raw materials and parts," the Korea Customs Service announced plans to operate a 'Raw Materials and Parts Emergency Customs Support Team' at customs offices such as Incheon Airport, Incheon Port, and Pyeongtaek, operating a 24-hour customs clearance system and preparing for a surge in import volumes of raw materials and parts due to the resumption of operations at Chinese factories.
Considering the concentration of import volumes causing delays in cargo handling and lack of storage space, the Korea Customs Service explained that they will alleviate logistics delays at airports and ports by allowing direct transportation to manufacturing plants without bringing goods into terminals after arrival.
In particular, responding to industry demands for tax support such as customs duties, the Korea Customs Service plans to ease tax administration by extending customs payment deadlines and allowing installment payments, same-day customs refunds, deferral of import VAT payments, as well as relaxing customs investigations, foreign exchange inspections, and origin verifications.
Furthermore, as an urgent procurement method for raw materials and parts, the Korea Customs Service is reviewing measures to reduce customs duty payments in anticipation of increased transportation costs due to the unavoidable choice of air transport. Also, on the condition of normal operation of over 3,700 local factories in China, they will allow expedited customs clearance of quarantine supplies such as masks and hand sanitizers to support the establishment of quarantine systems within factories proposed by Chinese local governments.
At the emergency meeting, Korea Customs Service Commissioner Noh Seok-hwan stated, "The Korea Customs Service will concentrate all capabilities on customs administration support to minimize the damage to our companies caused by the novel coronavirus," and urged, "Domestic export-import companies are encouraged to promptly request support from the Korea Customs Service whenever there are difficulties or suggestions regarding customs clearance logistics for raw materials and export goods."
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