Increase in Threshold Amount for Simplified Export Declaration... Customs Service Says "Reducing Burden on Export Companies"

The threshold amount for simplified export declarations has been raised, and the ‘combined packaging’ of multiple exporters is now permitted, reducing the customs clearance burden for export companies.

The Korea Customs Service announced on the 1st that it will revise the ‘Notice on Export Customs Clearance Procedures’ to include these changes.

The revision is one of the 100 key initiatives announced on February 27 as part of the ‘Comprehensive Plan for Smart Innovation in Customs Administration,’ aimed at reducing the customs declaration burden and export logistics costs for e-commerce exporters.

The revised contents include expanding the scope of simplified export declarations, allowing combined packaging of simplified export declaration goods from multiple exporters, and establishing a foundation for generating export statistics for list clearance.

The Korea Customs Service will raise the simplified export declaration amount threshold from the previous ‘KRW 2 million or less’ to ‘KRW 4 million or less’ through the notice revision.

Simplified export declarations require fewer declaration items than general export declarations (general 57 items → simplified 27 items) but offer the same benefits such as export performance recognition and customs duty refunds. The simplified export declaration system for e-commerce goods was introduced in July 2014, and this revision is the first in 10 years.

With the increase in the simplified export declaration amount threshold, most e-commerce goods, including high-priced electrical and electronic devices, will be eligible for simplified export declarations, which the Korea Customs Service expects will reduce the customs clearance burden on the industry.

The combined packaging of multiple exporters is permitted to reduce logistics costs by allowing goods from multiple sellers (exporters) on e-commerce platforms to be packaged together when the orderer is the same, reflecting the increase in exports through e-commerce platforms.

Previously, it was prohibited for multiple exporters to combine goods into a single packaging unit for shipment because customs found it difficult to verify whether the declared export goods were actually shipped.

However, the industry requested the allowance of combined packaging to reduce logistics costs, and the Korea Customs Service accepted this, reflecting it in the notice revision. The Korea Customs Service plans to improve the customs system so that loading compliance can be managed through loading declarations when combined packaging is used.

The increase in the simplified export declaration amount threshold and the allowance of combined packaging are scheduled to take effect from the 1st of next month.

Additionally, the Korea Customs Service plans to establish a foundation for generating export statistics by requiring the mandatory entry of the 2-digit HS code when exporting e-commerce goods under list clearance to support future export policy formulation.

It will also provide list clearance data containing business registration numbers and item numbers to the National Tax Service to facilitate export performance recognition and the application of zero-rated VAT.

This will be implemented from August next year after a preparation period for system adjustments by related agencies and the industry.

Ko Seok-jin, Director of the Customs Clearance Bureau at the Korea Customs Service, said, “The Korea Customs Service will continue to actively identify and improve systems that hinder business activities and will spare no effort to support e-commerce export companies in strengthening their global competitiveness.”