The Korea Customs Service is making an all-out effort to support price stability by reducing customs clearance costs and preventing distortions in import prices.
On September 1, the Korea Customs Service announced that it has established and will implement a comprehensive set of measures with this goal. The main components of the plan include: ▲Reducing costs at the customs clearance stage ▲Expedited customs clearance for price stability items ▲Blocking illegal distribution activities ▲Expanding the analysis and public disclosure of import customs clearance data.
The reduction of costs at the customs clearance stage aims to decrease customs duties and logistics expenses, thereby reducing the costs passed on to consumers. The period during which companies can choose the most favorable taxation method for goods produced in bonded factories (bonded areas where foreign and domestic goods can be used as raw materials for manufacturing and processing while taxes are deferred) will be extended from before the use of raw materials to before the import declaration of finished products, thus easing the burden on businesses.
In addition, when multiple Free Trade Agreement (FTA) tariff rates can apply to the same imported goods, the Korea Customs Service will analyze and disclose the tariff rates for each agreement, enabling companies to apply the lowest rate. Furthermore, even if liquefied natural gas (LNG) shipped from FTA partner countries is mixed with non-originating LNG during transport, the FTA tariff rate will be applied based on the quantities stated in the shipping documents and certificates of origin, in order to help stabilize energy prices.
There will also be a stronger focus on expedited customs clearance for price stability items and preventing long-term stockpiling within bonded areas. For items subject to quota tariffs and those stored in expedited bonded areas (bonded areas designated by the Korea Customs Service for the swift distribution of imported goods), import declarations must be made within 30 days from the date the goods enter the bonded area. Failure to comply will result in a surcharge of up to 2% of the customs value, thereby supporting the rapid market distribution of price stability items.
To this end, the Korea Customs Service will strengthen cargo patrols to ensure that goods for which import declarations have been completed are quickly removed from bonded areas. If the mandatory removal deadline is exceeded, sanctions such as removal orders, fines, and notifications to relevant agencies will be further reinforced.
In particular, during periods of surging demand for specific goods, such as Chuseok and kimchi-making season, joint inspection teams comprising cargo patrol and investigation departments will be formed to conduct intensive crackdowns.
Crackdowns will also be strengthened to block illegal and fraudulent distribution activities that undermine price stability, such as origin misrepresentation, price manipulation, and the smuggling of key resources.
Around Chuseok and kimchi-making season, joint crackdowns on origin labeling violations will be conducted with related agencies such as the National Agricultural Products Quality Management Service. There will also be continuous monitoring of acts such as the supply of low-priced foreign goods disguised as domestic products and the delivery of domestically produced items that do not meet origin criteria to public institutions.
The Korea Customs Service emphasized that it will conduct in-depth analyses of risk factors such as the overseas partners and import patterns of recently identified violators, strengthen customs inspections, and launch targeted crackdowns on companies suspected of violations.
Lee Myunggu, Commissioner of the Korea Customs Service, stated, "The Korea Customs Service will mobilize all available resources to respond fully to price stabilization until the people's livelihoods recover."
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