Cover Story   ​

Additional Tax Should be Refunded

When Principal Tax is No Longer Liable to Pay

Introduction

There are cases that application of preferential tariff is denied and additional tax is due along with its customs duties. In this case, when appeal is accepted and customs duties are no longer liable to pay, additional tax may not be refunded all the time.

A company has been declaring importing aircraft parts from Lufthansa (LHT) as Duty Disproportion Goods to receive duty reduction. After KOR-EU FTA was concluded in 2011, 941 import cases were declared to receive FTA preferential tariff in 2013 and its partial import of 616 cases were declared with Duty Disproportion Goods as well.

FTA News

Updated FTA News as of June 2019

South Korea – UK Agree on Principles of Bilateral FTA

South Korea and the United Kingdom have agreed on principles of bilateral FTA in case of possible no-deal Brexit in October 31 this year.

Components the UK procures from Europe will be regarded as British products for three years. Likewise, transport via the European Union will be deemed as direct transport for three years. The ratification is speeding up the process to be completed before October 31, before in case of no-deal Brexit effects benefits of Korea-EU FTA.

Voices From the Fields

Overseas Direct Purchase (ODP),

What to Expect

The Trend of Overseas Direct Purchase

Overseas Direct Purchase, OPD, is purchasing goods directly from overseas on-line retailers.

It has become increasingly popular as purchases rose 30.8 percent from a year earlier on rising of customer demand for cheaper and various selection of products. The most frequent purchased types of product are clothing, food and beverages, and electronic devices.

Updated Customs Trading Regulation
Notice on the Revision of Guideline

for Import Clearance

Revision of Improved Guidelines and Articles Effective as of May 30, 2019

- Declaration of immediate export process for bonded surplus goods. (Article 123)

- Declaration of accurate LNG import quantity in import declaration. (Article 104 – 2)

- Expansion of target products processed by electronic customs clearance system

  by Artificial Intelligence, AI. (Article 63)

- Declaration of SOFA agreement articles with electronic signature on certificate.

(Article 15)

Customs Case Study

KORUS FTA Certificate of Origin signed

 by HQ employee in Canada

[Tax Tribunal Case 2017 Customs 0311 (2018.11.19)]

Background

To receive benefits of FTA, it is essential to correctly fill out the Certificate of Origin form in proper manner according to the corresponding FTA agreement.

An employee of the company HQ located in Canada signed the Certificate of Origin form to apply KORUS FTA for goods exporting from the United States to Korea. The product was eligible to receive benefits of KORUS FTA, except for the fact that its certificate of origin form was signed by employee in Canada. This violated articles and guidance of KORUS FTA and the goods did not receive preferential tariff.

SHINHAN News

KCS(Korea Customs Service) hosting, “YES FTA 2019”

with SHINHAN Customs Service

We are inviting export companies planning to utilize FTA to the following

 educational seminar free of charge provided by Korean Customs Service.

■ Location/Time : Flexible upon request of applicants

■ Registration

- Fee is free of charge, materials are included. Lunch is provided for 6 hours course.

- YES FTA Website (http://www.yesftaedu.or.kr)

- Registration via phone or e-mail is available

■ Other Questions?

- SHINHAN Customs Service : 82-2-3448-1181, fta@shcs.kr

- YES FTA Q&A Center : 82-1544-5702, yesftaedu@origin.or.kr

[SHINHAN Zoom In Trade JUL]

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If you have any questions?

esyoon@shcs.kr

Please find details on our website in here.

http://customsservice.co.kr

http://blog.naver.com/shinhan22