Overseas Direct Purchase Agents 'Registration System' to be Implemented from July

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The 'registration system' for overseas direct purchase proxy agents will be fully implemented starting July 1.

According to the Korea Customs Service on the 27th, the registration system requires proxy agents who have handled imported goods worth 1 billion KRW or more in the previous year to complete mandatory registration with customs before conducting overseas direct purchase proxy business.

Graph of Overseas Direct Purchase Goods Import Customs Clearance Status from 2017 to 2021. Provided by Korea Customs Service

Recently, as overseas direct purchases have become more active, the proxy agent market has also been growing. Consequently, proxy agents have emerged as important players in trade transactions.

However, until now, there has been a blind spot where it was not clearly revealed whether proxy purchases were made through these agents during the customs clearance process.

The introduction of the registration system aims to resolve this blind spot, build a trust relationship between customs and proxy agents, establish legality at customs clearance sites, and strengthen consumer protection.

Previously, the Korea Customs Service implemented the registration system from July 1 last year through legal amendments. However, considering the preparation period for proxy agents, a one-year grace period was given, and full operation begins this year.

Under the registration system, proxy agents whose imported goods value from proxy purchases in the previous year is 1 billion KRW or more must obtain a ‘proxy agent registration code’ from customs before purchasing goods through overseas direct purchase proxy (import) and enter this code on the customs declaration form to continue their proxy business.

If a proxy agent subject to the registration system continues proxy business without obtaining the registration code, a fine of up to 20 million KRW will be imposed.

Registration applications can be made by visiting the customs office with the highest import clearance performance in person or by submitting the application form and related documents via mail, email, or fax.

The proxy agent registration code can be received within 10 days from the application date, and the registration is valid for 3 years.

For more detailed information regarding the registration of overseas direct purchase proxy agents, refer to the guidance materials posted on the Korea Customs Service website (Overseas Direct Purchase Here) or inquire through the customs office where the registration application is submitted.

A Korea Customs Service official stated, “Proxy agents handling overseas direct purchase goods may face difficulties in import clearance if they do not register with customs in the future,” and urged, “Registered companies must complete the registration application within the designated period.”