"Plan to Extend Tariff Exemption Period for Semiconductor Manufacturing Raw Materials to Over 10 Years Under Discussion"

S.O.S. Talk Roundtable Held by SME Ombudsman
Request Made to Change Export Performance Certificate Format

A proposed amendment to extend the designated period for tariff exemptions on raw materials imported for semiconductor manufacturing equipment from the current three years to at least ten years is set to be discussed in the National Assembly.

On October 17, Choi Seungjae, the Small and Medium Business Ombudsman, announced that he had held the "S.O.S. Talk (Small and Medium Enterprise Roundtable)" together with the Gyeonggi Eastern Branch of the Korea SMEs and Startups Agency at the Seongnam Center M Knowledge Industry Center in Seongnam, Gyeonggi Province.

Company A, which manufactures parts for semiconductor manufacturing equipment in Icheon, Gyeonggi Province, appealed, "Please extend the designated period for tariff exemptions on raw materials imported for semiconductor manufacturing equipment from the current three years to at least five years. When the tariff exemption period expires, the sudden burden of tariffs has sometimes caused delays or even suspension of research and development."

Currently, the designated period for tariff exemption on raw materials used by small and medium-sized enterprises at factories designated by the customs office for manufacturing semiconductor equipment is set at three years. However, considering that the semiconductor equipment industry requires long-term research and development and large-scale investment, this period is relatively short.

In response, the Ministry of Economy and Finance, the relevant authority, stated, "A proposed amendment to the Customs Act to extend the designated period to ten years has already been submitted to the National Assembly and will be discussed in the future."

Additionally, Company B, which manufactures meal kits and exports K-food overseas, requested improvements to the issuance format of export performance certificates.

When participating in government support programs, companies use the "by country" format of export performance certificates issued by the Korea International Trade Association. However, the current format does not provide export performance by country in a single document when exporting to multiple countries, so companies must print out a separate certificate for each country, which is inconvenient.

The Korea International Trade Association responded positively, stating, "We are currently developing a system to provide export and import performance certificates in various formats, such as by item and by country, so that export performance by country can be included in a single document in the future."

Other participants also raised a variety of on-site regulatory and practical issues, including: ▲ easing employment visa requirements for foreign student graduates to attract talent domestically; ▲ improving the reissuance regulations for certificates for technology innovation and management innovation-type small and medium-sized enterprises; and ▲ revising the standards for prohibited and restricted substances in air fresheners.

Ombudsman Choi Seungjae stated, "Regardless of the severity of the issues, we will continue to expand regionally focused communication channels to improve unreasonable on-site regulations and resolve difficulties. We will spare no effort in providing follow-up support so that the tasks discussed at this roundtable can lead to regulatory improvements that are truly felt on the ground."