Korea Customs Service Conducts 'Comprehensive Inspection' to Block Evasion of Anti-Dumping Duties

The government is launching a comprehensive inspection to block attempts to evade anti-dumping duties through illicit means. Anti-dumping duties are a type of tariff imposed by adding an amount equivalent to the difference between the normal price and the dumping price to the basic tariff when the import price of goods is lower than the normal price and causes damage to domestic industries.

On the 14th, the Korea Customs Service announced that it will organize and operate a "Special Anti-Dumping Review Task Force" from June 14 to July 22. The inspection team will consist of 38 personnel, including the Fair Trade Review Team at the headquarters and review teams from Seoul, Busan, and Incheon Customs.

Provided by Korea Customs Service

The inspection is conducted with the awareness that third countries, which have difficulty exporting goods to the United States due to the U.S. administration's tariff policies such as reciprocal tariffs, may engage in illegal activities aimed at evading anti-dumping duties by exporting goods to Korea at low prices.

During the comprehensive inspection period, the Korea Customs Service will focus on acts such as transshipment through countries where anti-dumping duties are not imposed, false declarations using the names of suppliers subject to lower anti-dumping duty rates, and declarations under item numbers and specifications that are not subject to anti-dumping duties.

Additionally, manipulating the import price of price-commitment items to be above the minimum export price is also included in the inspection targets. Price-commitment items refer to goods for which anti-dumping duties are not imposed if the overseas supplier exports at or above the agreed minimum export price, but anti-dumping duties are imposed and collected if the agreement is violated.

To block illegal activities aimed at evading anti-dumping duties, the Korea Customs Service plans to analyze export-import records, foreign exchange transaction details, and customs records of companies trading 25 anti-dumping duty items such as H-beams and plywood, select high-risk companies with a high possibility of illegal activities, and conduct customs investigations.

Companies found to have evaded anti-dumping duties during customs investigations will be required to pay the unpaid taxes, and legal actions such as prosecution will be taken against violations including customs fraud.

Son Seong-su, Director of the Review Bureau at the Korea Customs Service, said, "Anti-dumping duties are a key measure to protect domestic industries from unfair trade practices. Through this inspection, the Korea Customs Service will do its best to promptly block acts that undermine anti-dumping duties and protect domestic companies facing difficulties due to the U.S. administration's tariff policies."