National Tax Service and Liquor Industry Collaborate for Swift Support
[Asia Economy Reporter Kwangho Lee] The National Tax Service (NTS) prevented the 'hand sanitizer crisis' through prompt and proactive administration. As signs of supply-demand imbalance for hand sanitizers emerged due to the outbreak of the novel coronavirus infection (COVID-19), the NTS collaborated with the liquor industry to explosively increase the supply of ethanol, the key raw material for hand sanitizers. As a result, hand sanitizers, which had experienced temporary shortages and price increases, are now stabilizing.
According to the NTS and the liquor industry on the 29th, in the first quarter of this year, the supply of ethanol for hand sanitizers provided by Korea Alcohol Industries, Daehan Ethanol Sales, and major importers reached 147,810 drums (200ℓ), a 98-fold increase compared to the previous year. The 147,810 drums correspond to the amount needed to produce approximately 90 million bottles (500ml) of hand sanitizer.
In February, the NTS shortened the administrative procedures from 30 days to 4 days by simultaneously conducting the 'Manufacturing Method Approval (15 days)' and 'Ethanol Quality Inspection (15 days)' processes, which are normally sequential, in response to Korea Alcohol Industries' application for 'Ethanol Manufacturing Method Approval.'
Additionally, the NTS requested Daehan Ethanol Sales to prioritize supplying ethanol to hand sanitizer manufacturers over food and liquor manufacturers when ethanol is purchased.
Furthermore, the NTS urged the Liquor Industry Association to prevent artificial adjustments in the supply volume of ethanol or disinfectant products that could cause sudden price surges.
The NTS explained, "Although factors such as raw material price increases caused ethanol prices to rise at manufacturing and distribution companies, they did not raise their selling prices. This laid the foundation for an environment where hand sanitizer prices could be distributed at relatively stable levels."
Recently, based on self-monitoring results of disinfectant products, the NTS identified that the supply of disinfectant alcohol used for medical purposes in hospitals and clinics is somewhat insufficient compared to demand, and is working to expand supply through the ethanol industry and existing manufacturers.
Moreover, the NTS has independently established and operates the 'Disinfectant Product Distribution Disorder Prevention Center' within the agency and is regularly monitoring the production and distribution status of disinfectant products.
The NTS stated, "We will continue to make efforts to ensure the smooth supply and price stability of disinfectant products."
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