[Exclusive] Incheon Customs Suspected of Inadequate Investigation in Peru

[Customs Service Betrayal]
Customs Inspection Schedule Leaked to Local Brokers
Possible to Prepare for 'What Did Customs Ask?'
Customs Service Unaware of Schedule Leak
Peruvian Companies "Korean Customs Attitude Authoritative"
"Insufficient Opportunity to Explain Facts" Complained

Customs authorities were found to have conducted an inappropriate origin investigation of mung beans from Peru. The confidential local investigation plan was leaked by a local broker, but the Korea Customs Service was reportedly unaware of this fact. In Peru, the investigation process faced criticism for its high-handed attitude and inappropriate investigation methods.

According to a comprehensive report by Asia Economy on the 4th, the Korea Customs Service began an origin verification investigation targeting companies importing Peruvian mung beans in January 2022. Subsequently, Incheon Customs dispatched staff to Peru twice, in April and August 2022. The April visit was to collect local information before the official investigation, while the August visit was an official inquiry targeting Peruvian companies and farmers.

Incheon Customs seized warehouse appearance. [Image source=Yonhap News]

The problem lies in the investigation conducted in August to verify the origin locally. At that time, some Peruvian companies and farmers obtained the customs investigation schedule in advance through certain brokers. The document contained detailed information such as the names of customs officers, verification locations, and specific subjects. This means that companies or farmers who were investigated earlier could anticipate “what questions the customs officers asked and what kind of investigation was conducted.”

Despite the customs investigation, which required confidentiality, being compromised from the start, the Korea Customs Service did not notice this at all. They have not identified the route through which the information was leaked. The Korea Customs Service explained, “What is certain is that the Customs Service did not send it to a third party,” and added, “It seems the investigated companies leaked it.”

Peruvian Companies: "Korean Customs Authoritative... Difficult to Provide Normal Responses"

During the investigation, testimonies emerged that customs officers investigated Peruvian companies with a high-handed attitude. It was claimed that customs officers manipulated computers without consent and did not provide sufficient opportunity or time to explain the facts. One Peruvian company stated in a written testimony sent to Asia Economy, “Korean customs requested materials that infringed on our privacy, but we cooperated,” and added, “Nevertheless, the customs officers had an authoritative attitude and did not try to understand our difficulties.”

Lee Chung-dae, Chairman of the Korea Grain Distribution Association, also explained, “According to Peruvian companies, the customs investigation attitude was coercive, and they were not given enough opportunity to explain the facts,” and added, “Many employees who underwent the origin investigation locally testified that the customs investigation method was intimidating and it was difficult to provide normal responses.” He warned, “Such methods are disrespectful to FTA (Free Trade Agreement) partner countries and could cause diplomatic issues between the two countries.”

The accompaniment of Peruvian public officials during the investigation also sparked controversy. Typically, when overseas investigation teams visit, the local government sends its officials to protect its citizens. However, the Peruvian government’s tax authority, SUNAT, is a powerful government agency regarded with pride. According to local reports, some Peruvian farmers worried, asking, “Why did our public officials come along?” upon seeing the Peruvian officials accompanying the Korean customs team. This raises concerns that Peruvians, intimidated by public officials, might have found it difficult to properly show accounting books or farm conditions to the investigation team.

Regarding criticisms of the inappropriate local investigation methods, the Korea Customs Service responded, “Origin verification documents are requested according to relevant laws,” and added, “Since the investigation and taxation procedures are ongoing, it is difficult to comment on the details.”