Yoon Tae-sik, Commissioner of Korea Customs Service, Holds Meeting with Duty-Free Industry CEOs
Requests Realistic Adjustment of 2-Bottle and $400 Duty-Free Limits
Recovery Not Reached Pre-COVID Levels... Support and Attention Needed
CEOs of the domestic duty-free industry requested the realization of realistic duty-free limits on alcoholic beverages during a meeting with Customs Commissioner Yoon Tae-sik held on the 4th at The Zone Eulji Tower in Jung-gu, Seoul.
Representatives of the duty-free industry attending the meeting welcomed the Customs Service's support measures for the domestic duty-free sector but appealed for continuous support and attention as the duty-free industry has not yet recovered to pre-COVID-19 levels. In particular, they voiced the need for improvements in duty-free limits on alcoholic beverages, relief from patent fee burdens, and customized support for small and medium-sized enterprises.
Yoon Tae-sik, Commissioner of the Korea Customs Service (seventh from the left), and representatives of the duty-free industry are posing for a commemorative photo after attending a meeting held on the 4th at The Zone Euljiro Tower in Jung-gu, Seoul. [Photo by Korea Customs Service].
The duty-free limit for alcoholic beverages is 2 bottles or $400. The industry proposes either removing the quantity limit to allow purchases within the $400 limit or raising the monetary limit to the duty-free product limit of $800. This is based on the judgment that although alcohol consumption has increased recently due to the popularity of whiskey, sales expansion is limited by the duty-free limit burden. Especially at arrival duty-free shops operated by small and medium-sized businesses, the 2 bottles and $400 is a purchase limit, not a duty-free limit, which poses greater restrictions. Additionally, the industry conveyed hopes for the implementation of an online alcohol sales system.
A duty-free industry official said, "During the COVID-19 period, the Customs Service’s allowance of domestic sales of inventory duty-free goods, implementation of online overseas sales of domestic products, and reduction of patent fees greatly helped the industry," adding, "I understand that opinions were also conveyed that the activation would be further helped once arrival hall delivery points currently underway are implemented."
At this meeting, duty-free industry representatives also agreed to establish new management strategies in line with the rapidly changing duty-free market environment and to continue industry-level self-regulation efforts to eradicate excessive customer referral fees.
Commissioner Yoon responded, "Public-private cooperation is important," and said, "We will make efforts to sufficiently consult with related ministries and reflect the various opinions and suggestions raised today in policies."
At the meeting, Commissioner Yoon stated, "This is a critical time as the global duty-free industry recovery is gaining momentum after COVID-19, and the response of the domestic duty-free industry is more important than ever," adding, "The Customs Service will continue various support measures such as deregulation to strengthen the competitiveness of the domestic duty-free industry and lead the global duty-free market." He continued, "I hope the industry will continuously pursue diversification of products and markets, activation of overseas expansion, and eradication of excessive customer referral fees. The government will actively support these efforts."
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