Where Is Grace Chang?

Welcome to the Zoom In Trade world.

We are excited to bring you our first English version of Zoom In Trade.

Articles in this magazine are about the current issues of customs and trade.

Each magazine has five sections: The Cover story, FTA News, Voices from the Fields, Updated Customs trading regulations, and a Customs case study.

Additionally, we recently launched a new branch office in Hanoi, Vietnam! This issue will feature a special section, Inside Vietnam.

We at Shinhan invest significant time and energy in each issue to provide timely insights, perspectives, and updates. We hope you find this helpful and we always welcome any questions, comments, or feedback that you may have.

Thank you and best regards,

Grace.

Cover Story

WTO upholds South Korea ban on

Fukusima Seafood

Reversed Result

On September 2013, Korea banned Japanese seafood import from areas affected by the 2011 nuclear disaster in Fukushima due to consumer safety concerns. Japan launched a complaint with the World Trade Organization (WTO) over the ban in Sept 2015 that Korea was unfairly discriminating against Japanese products, claiming that safety measures imposed in Korea are inconsistent. In the initial ruling in April 2018, the panel sided with Japan. However, Korea appealed the decision immediately, which led to an overturning of the decision by the WTO this April.

FTA News

Customs Trends for China ∙∙∙ VAT Cut, Exemption

List for Retaliation Tariff, and Change of Issuing

Process for Country of Origin Form

China Cuts VAT from 16% to 13%

As of April 1^st, 2019, China is reducing VAT again to support growth in the slowing economy. In the case of general cargo imports, the VAT was lowered 3% from 16% to 13%. Immediately benefiting from the cut, the selling price for products such as automobiles, and smartphones are also being lowered.

Voices From The Fields

Improvements Needed for Current Error Counting System in Import Declaration

Current Error Counting System in Import Declaration

KCS(Korea Customs Service)’s current error counting system for import and export declaration may discourage accurate reporting as the system automatically charges extra error points for all related cell information. For example, when in change of HS Code, error points are charged for doubles and triples as cells correlated to HS Code product name will also be changed automatically. Regardless of the change not impacting total dutiable price information, such few minor changes can easily lead to inspection under the current system as error points for the customs broker, andimporter are counted together.

Updated Customs Trading Regulation
Notice on the Revision of Operation on the Classification Ruling System

Reason for the Revision

- Establishing "HST 6 Digit Reply System" for exports and reducing wait time for ruling processing from 30 days to 15 days.

- Changing of when to disclose Customs final decision on ruling to prevent unnecessary confusion of import /export companies with publication of unclassified item classification.

- Changing wait time for appealed ruling review process period and protecting taxpayers' rights.(Reflecting the Tariff Act ('19 .1.1) and revising the enforcement ordinance ('19 .2 .2.)

- Changing wait time for appealed ruling review process period and protecting taxpayers' rights.(Reflecting the Tariff Act ('19 .1.1) and revising the enforcement ordinance ('19 .2 .2.)

Customs Case Study

Tax Price Calculation Status of

Commission Paid to Purchase Agent

Background

- Applicant is a sales subsidiary in Korea related to the OO of OO and imports and sells the item through OO under “Purchasing Agency Contract.”

- After reviewing the case, it was concluded that the applicant’s purchasing commission, which is 8.25% of the transaction price of the import item, should be dutiable.

- Applicant disagreed and filed an appeal to the Tax Tribunal.

Inside VIETNAM

CPTPP and EV FTA in Vietnam

Two Agreements of Vietnam

On January 14, 2019 the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) officially entered into force for Vietnam, which is a free trade agreement between Canada and 10 other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

SHINHAN News

SHINHAN to be the First Customs Service Firm in Vietnam!

On May 2, SHINHAN Customs Service Inc., headquartered in Gangnam-Gu, Seoul, Korea, celebrated the opening of a new office in Hanoi to launch its customs consulting service business in Vietnam.

[SHINHAN Zoom In Trade MAY]

Please click to see more. 

Please find details on our website in here.

http://customsservice.co.kr

http://blog.naver.com/shinhan22

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