Comprehensive Customs Administration Support Including 'Customs Investigation Deferral' for Companies Affected by Heavy Rain Damage

The Korea Customs Service announced on the 17th that it will provide comprehensive customs administration support, including deferring customs inspections for export-import companies affected by the heavy rains.

The support includes tax administration assistance such as extending or allowing installment payments for customs duty deadlines on imported goods, principle deferral of customs inspections, suspension or postponement of Free Trade Agreement (FTA) origin verification, and special customs clearance.

The core of the tax administration support is to allow an extension of up to one year for the payment deadline of customs duties and other taxes imposed on imported goods, or to permit installment payments. At this time, taxpayers may also be exempted from the obligation to provide collateral.

Additionally, companies handling ‘raw materials for export’ that apply for a refund of customs duties previously paid will receive immediate refunds, and for imported goods damaged or deteriorated due to flooding of factories or warehouses, measures such as reduction or customs duty refunds (limited to goods stored in designated bonded areas) will be taken.

When companies with outstanding tax arrears submit a plan for installment payment of the arrears, temporary customs clearance will be allowed, and compulsory collection measures such as property seizure will be deferred as part of the tax administration support.

The Korea Customs Service will, in principle, defer customs inspections for companies affected by the heavy rains until the end of the year. Even companies that have already received prior notice of customs inspections or are currently undergoing inspections will be actively accommodating requests from taxpayers to postpone or suspend the inspections.

For import companies affected by the heavy rains before the commencement of origin verification, origin verification will be suspended until the end of the year, and for companies currently undergoing verification, requests for postponement will be actively accepted, according to the Korea Customs Service.

Special customs clearance support is provided to help expedite customs clearance of urgently procured raw materials and parts following heavy rain damage (such as factory closures).

Furthermore, if timely shipment of export goods is difficult due to damage to manufacturing facilities, the loading period for export-declared goods on aircraft or ships will be extended, and the imposition of ‘additional tax for delayed import declaration’ will be exempted for imported goods of affected companies stored in bonded areas.

A Korea Customs Service official stated, “We will receive damage reports at 34 customs offices nationwide and focus the agency’s capabilities on urgent support for companies affected by the heavy rains.”