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ENFORCEMENT DECREE OF THE TRAFFIC, ENERGY AND ENVIRONMENT TAX ACT

Presidential Decree No. 14078, Dec. 31, 1993

Amended by Presidential Decree No. 14164, Feb. 15, 1994

Presidential Decree No. 14324, Jul. 15, 1994

Presidential Decree No. 14438, Dec. 23, 1994

Presidential Decree No. 14749, Aug. 12, 1995

Presidential Decree No. 14866, Dec. 30, 1995

Presidential Decree No. 15179, Dec. 13, 1996

Presidential Decree No. 15605, Jan. 8, 1998

Presidential Decree No. 15787, May 2, 1998

Presidential Decree No. 15890, Sep. 16, 1998

Presidential Decree No. 15970, Dec. 31, 1998

Presidential Decree No. 16286, May 6, 1999

Presidential Decree No. 16656, Dec. 31, 1999

Presidential Decree No. 16740, Mar. 2, 2000

Presidential Decree No. 16801, May 1, 2000

Presidential Decree No. 17043, Dec. 29, 2000

Presidential Decree No. 17319, Jul. 30, 2001

Presidential Decree No. 17644, jun. 29, 2002

Presidential Decree No. 17973, May 1, 2003

Presidential Decree No. 18032, jun. 30, 2003

Presidential Decree No. 18180, Dec. 30, 2003

Presidential Decree No. 18298, Feb. 28, 2004

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18446, jun. 29, 2004

Presidential Decree No. 18473, Jul. 20, 2004

Presidential Decree No. 18554, Oct. 1, 2004

Presidential Decree No. 18796, Apr. 22, 2005

Presidential Decree No. 18941, Jul. 8, 2005

Presidential Decree No. 19581, jun. 30, 2006

Presidential Decree No. 19897, Feb. 28, 2007

Presidential Decree No. 20120, jun. 28, 2007

Presidential Decree No. 20181, Jul. 23, 2007

Presidential Decree No. 20627, Feb. 22, 2008

Presidential Decree No. 20720, Feb. 29, 2008

Presidential Decree No. 20744, Mar. 10, 2008

Presidential Decree No. 21065, Oct. 7, 2008

Presidential Decree No. 21215, Dec. 31, 2008

Presidential Decree No. 21462, Apr. 30, 2009

Presidential Decree No. 21494, May 21, 2009

Presidential Decree No. 22151, May 4, 2010

Presidential Decree No. 22571, Dec. 30, 2010

Presidential Decree No. 23599, Feb. 2, 2012

Presidential Decree No. 24362, Feb. 15, 2013

Presidential Decree No. 24441, Mar. 23, 2013

Presidential Decree No. 24638, jun. 28, 2013

Presidential Decree No. 25198, Feb. 21, 2014

Presidential Decree No. 26951, Feb. 5, 2016

 Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated from the Traffic, Energy and Environment Tax Act and matters necessary for the enforcement of said Act. <Amended by Presidential Decree No. 18941, Jul, 8, 2005; Presidential Decree No. 19897, Feb. 28, 2007>
 Article 2 (Definitions)
The terms used in the application of the Traffic, Energy and Environment Tax Act (hereinafter referred to as the "Act") and this Decree, shall be defined as follows: <Amended by Presidential Decree No. 15970, Dec. 31, 1998; Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 17043, Dec. 29, 2000; Presidential Decree No. 18941, Jul, 8, 2005; Presidential Decree No. 19897, Feb. 28, 2007; Presidential Decree No. 24362, Feb. 15, 2013>
1. The term "export" means each of the following:
(a) Shipping goods produced in the Republic of Korea out of a port of the Republic of Korea;
(b) Delivering goods produced in the Republic of Korea by a winning bidder in international competitive bidding implemented to purchase goods with funds loaned by a foreign public institution or an international financial institution, which is made pursuant to the conditions of the relevant contract;
(c) and (d) Deleted; <by Presidential Decree No. 17043, Dec. 29, 2000>
2. The term "goods delivered to foreign armed forces in the Republic of Korea" means goods sold to an agency of the foreign armed forces, or used to perform construction works of such agency, or to provide services to such agency;
3. The term "raw materials of goods on which traffic, energy, and environment tax has already been paid or will be paid" means each of the following:
(a) Raw materials forming taxable articles or export goods;
(b) Raw materials not forming taxable articles or export goods, but directly used for manufacturing or processing the relevant goods, which are used only once in the process of manufacturing or processing goods that cause chemical reactions and the relevant taxable articles or export goods;
4. The term "place which has a special relationship with a manufacturing place" means the following:
(a) A special shop established by a manufacturer to directly sell his/her own products (including a storage yard);
(b) A shop operated by a person who has a relationship prescribed in Article 98 (1) of the Enforcement Decree of the Income Tax Act or any of the subparagraphs of Article 87 (1) of the Enforcement Decree of the Corporate Tax Act with a manufacturer.
(c) through (g) Deleted. <by Presidential Decree No. 16656, Dec. 31, 1999>
 Article 3 (Details of Taxable Articles)
The detailed list of taxable articles mentioned in Article 2 (2) of the Act are as follows: <Amended by Presidential Decree No. 15970, Dec. 31, 1998; Presidential Decree No. 17043, Dec. 29, 2000; Presidential Decree No. 16801, May 1, 2000; Presidential Decree No. 17973, May 1, 2003; Presidential Decree No. 18473, Jul. 20, 2004; Presidential Decree No. 18796, Apr. 22, 2005; Presidential Decree No. 18941, Jul. 8, 2005; Presidential Decree No. 20627, Feb. 22, 2008, Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 21462, Apr. 30, 2009; Presidential Decree No. 24362, Feb. 15, 2013; Presidential Decree No. 24441, Mar. 23, 2013>
1. Gasoline and substitute fuels similar thereto:
(a) Gasoline;
(b) Fake petroleum products similar to gasoline as defined in subparagraph 10 of Article 2 of the Petroleum and Petroleum Substitute Fuel Business Act;
(c) Other fuel substitutes for motor vehicles as defined in subparagraph 1 of Article 2 of the Motor Vehicle Management Act and machines or vehicles (limited to gasoline-powered vehicles) as defined in the subparagraphs of Article 2 of the Enforcement Decree of the aforesaid Act, which do not fall within item (b): Provided, That fuels publicly notified by the Minister of Trade, Industry and Energy pursuant to Article 29 (2) 6 of the Petroleum and Petroleum Substitute Fuel Business Act are excluded herefrom;
2. Diesel and substitute fuels similar thereto:
(a) Diesel;
(b) Fake petroleum products similar to diesel as defined in subparagraph 10 of Article 2 of the Petroleum and Petroleum Substitute Fuel Business Act;
(c) Other fuel substitutes for motor vehicles as defined in subparagraph 1 of Article 2 of the Motor Vehicle Management Act and machines or vehicles (limited to diesel-powered vehicles) as defined in the subparagraphs of Article 2 of the Enforcement Decree of the aforesaid Act, which do not fall within item (b).
 Article 3-2 (Elastic Tax Rates)
Taxable goods to which elastic tax rates apply pursuant to Article 2 (3) of the Act and the tax rates thereof shall be as follows: <Amended by Presidential Decree No. 16740, Mar. 2, 2000; Presidential Decree No. 16801, May 1, 2000; Presidential Decree No. 17043, Dec. 29, 2000; Presidential Decree No. 17644, Jun 29, 2002; Presidential Decree No. 18032, Jun. 30, 2003; Presidential Decree No. 18298, Feb. 28, 2004; Presidential Decree No. 18446, Jun. 29, 2004; Presidential Decree No. 18554, Oct. 1, 2004; Presidential Decree No. 18941, Jul. 8, 2005; Presidential Decree No. 19581, Jun. 30, 2006; Presidential Decree No. 20181, Jul. 23, 2007; Presidential Decree No. 20744, Mar. 10, 2008, Presidential Decree No. 21065, Oct. 7, 2008; Presidential Decree No. 21494, May 21, 2009>
1. Gasoline and substitute fuels similar thereto listed in subparagraph 1 of Article 3: 529won per liter;
2. Diesel and substitute fuels similar thereto listed in subparagraph 2 of Article 3: 375won per liter.
[This Article Wholly Amended by Presidential Decree No. 16656, Dec. 31, 1999]
 Article 4 (Determination of Taxable Articles)
In determining taxable articles under Article 2 of the Act, even where the relevant item is shipped from the manufacturing place incomplete or unfinished, it shall be treated as a finished item if it has the main ingredients of such item and can demonstrate its function.
 Article 5 (Cases Not Deemed Shipped from Manufacturing Place and Application for Approval Thereof)
(1) Cases in which items are deemed not shipped from a manufacturing place pursuant to the proviso to Article 5 (2) 1 of the Act, shall be as follows: <Amended by Presidential Decree No. 19897, Feb. 28, 2007>
1. Where the relevant item is used as a raw material of a taxable article in the same manufacturing place;
2. Where the relevant item is used for inspecting quality or performance of a taxable article in the same manufacturing place;
3. Where relevant item is directly used as a raw material for manufacturing petroleum products on which a traffic, energy and environment tax is not imposed in the refinery process.
(2) Cases in which items are deemed not shipped from a manufacturing place pursuant to the proviso to Article 5 (2) 3 of the Act, shall be those where the quantity of taxable articles that remain in the relevant manufacturing place as at the time of the discontinuance of the production thereof, exceeds the normal monthly quantity of the articles shipped from the manufacturing place.
(3) A person who intends to obtain approval under the proviso to Article 5 (2) 3 of the Act shall submit (including via the national tax information and communications network) an application stating the following information to the head of the competent tax office by the end of the month following the month to which the date of discontinuance of the production belongs: <Amended by Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 23599, Feb. 2, 2012>
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Location of the manufacturing place;
3. Name, address and title of the manufacturer;
4. Date of discontinuation of the production;
5. Name, quantity, standards, unit price, and price of goods remaining at the time the production thereof is discontinued;
6. Scheduled date to complete shipment;
7. Ground for filing the application.
(4) The head of the competent tax office who receives an application for approval under paragraph (3), may approve the application for a period not exceeding six moths, if he/she deems that no issue will be caused in covering traffic, energy and environment taxes and conducting other regulatory activities. <Amended by Presidential Decree No. 19897, Feb. 28, 2007>
 Article 6 (Natural Vaporization Rate of Gasoline)
"Rate prescribed by Presidential Decree in view of the extent of their natural decrease due to vaporization, etc." in the proviso to Article 6 (1) 1 of the Act means 0.5 percent of the relevant taxable article.
[This Article Newly Inserted by Presidential Decree No. 17319, Jul. 30, 3001]
 Article 7 Deleted. <by Presidential Decree No. 23599, Feb. 2, 2012>
 Articles 8 through 11 Deleted. <by Presidential Decree No. 17043, Dec. 29, 2000>
 Article 12 (Report of Tax Base)
(1) A person required to report a tax base pursuant to Article 7 (1) of the Act shall submit (including via the national tax information and communications network) a tax return stating the following information to the head of the competent tax office, along with a detailed statement of unpaid tax or tax-exempt transfer (including a letter of recommendation to purchase tax-exempt petroleum products), a detailed statement of tax paid transfer, a table of incoming and outgoing products, and an application for refund or deduction: <Amended by Presidential Decree No. 18312, Mar. 17, 2004>
1. Location of the manufacturing place, name, address, title, and resident registration number or business registration number of the person who files the tax return;
2. Name, quantity, standards, unit price, price for each type of items shipped from the manufacturing place, and the relevant tax amount;
3. Amount of unpaid tax or tax exemption for items shipped from the manufacturing place;
4. Amount of tax refund or deduction;
5. Amount of tax that should be paid voluntarily.
(2) A person required to report a tax base because he/she falls under Article 5 (2) 2 or 3 of the Act shall file a tax return by stating the relevant grounds with a document meeting the requirements of paragraph (1). <Amended by Presidential Decree No. 23599, Feb. 2, 2012>
 Article 13 (Payment)
A person who intends to pay traffic, energy, and environment tax pursuant to Article 8 shall pay the relevant tax within the time specified in Article 7 of the Act to the head of the competent tax office, the Bank of Korea (including its agency), or a postal service agency. <Amended by Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 19897, Feb. 28, 2007>
[This Article Wholly Amended by Presidential Decree No. 14866, Dec. 30, 1995]
 Article 13-2 (Events Corresponding to Special Cases concerning Blend, etc. of Different Petroleum Products at Oil Reservoirs)
(1) "Any event prescribed by Presidential Decree" in the main sentence of Article 8-3 of the Act means any of the following:
1. Where taxable items are blended with other petroleum products in the oil reservoir;
2. Where additives (including all substances that improve the efficiency of petroleum products, such as octane improvers, anticorrosive agents, combustion improvers, and coloring agents, and other substances added to oil as needed) are added to or blended with taxable items in the oil storage facilities.
(2) Upon occurrence of an event that falls within any subparagraph of paragraph (1), the manufacturer, etc. prescribed in Article 8-3 of the Act (hereafter in this paragraph referred to as "manufacturer, etc.") shall submit (including via the national tax information and communications network) a tax return under Article 12 (1), along with the following documents, to the head of the tax office having jurisdiction over the manufacturer, etc., when he/she reports a tax base under Article 7 of the Act: Provided, That he/she shall submit the application under subparagraph 1 when he/she reports the first tax base by applying Article 8-3 of the Act, and where any change occurs in the contents of the application already submitted, he/she shall re-submit the application:
1. Application for special treatment for blend, etc. of different petroleum products at oil reservoirs, which states the following information:
(a) Name, address, title, and resident registration number or business registration number of the manufacturer, etc.;
(b) Location of the oil reservoir and the competent tax office;
(c) Other references;
2. A report of tax base for each oil reservoir.
(3) The head of the competent tax office in receipt of an application under paragraph (2) 1 shall notify the head of the tax office having jurisdiction over the relevant oil reservoir of the receipt thereof.
[This Article Newly Inserted by Presidential Decree No. 23599, Feb. 2, 2012]
 Article 14 (Determination by Estimation)
(1) Deleted. <by Presidential Decree No. 23599, Feb. 2, 2012>
(2) Where estimation is made pursuant to the proviso to Article 9 (2) of the Act, any one of the following methods shall be adopted: <Amended by Presidential Decree No. 23599, Feb. 2, 2012>
1. Calculating the amount in comparison with other fellow traders who have not been subject to a determination or decision of re-assessment under Article 9 (1) of the Act because his/her entry is deemed proper and he/she has filed a conscientious tax return;
2. Where the rates exist on the following relationships surveyed by the Commissioner of the National Tax Service in consideration of the types of business, region, etc., calculating the amount by applying such rates:
(a) Relationship between the inputs of all or some of the raw materials or auxiliary materials and the outputs;
(b) Relationship between the inputs of all or some of the human and physical facilities (employees, the place of business, motor vehicles, water supply, electricity, etc.) related to the business and the outputs;
(c) Relationship between the average stock-in-trade and the outputs during a given period;
(d) Relationship between gross profit on sales or the amount of value added and sales during a given period;
3. Where the rates specified in subparagraph 2 can be directly calculated with regard to the business operator subject to a determination or decision of re-assessment, calculating the amount by applying such rates.
 Article 14-2 Deleted. <by Presidential Decree No. 19897, Feb. 28, 2007>
 Article 15 (Application for Release of Articles without Tax Payment)
(1) A person who intends to ship articles under any subparagraph of Article 12 (1) of the Act from the manufacturing place or bonded area shall, when he/she releases said articles (in the case of imported goods, from the time of making a declaration until an import permit is issued), submit an application stating the following information, to the head of the competent tax office or customs office and obtain his/her approval:
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Place of release;
3. Name, quantity, standards, unit price, and price of articles, and the relevant tax amount
4. Point of entry of the articles;
5. Name, address and title of the person who admits the articles;
6. Scheduled date of release;
7. Deadline for submission of a certificate of entry;
8. Ground for filing the application;
9. Other references.
(2) Where the head of the competent tax office or customs office in receipt of an application under paragraph (1) approves such application, he/she shall issue a letter of approval for the matters stated in the application and notify the head of the tax office or customs office having jurisdiction over the place of entry, of the purport thereof.
(3) "The release of the articles prescribed by Presidential Decree is allowed" in Article 12 (1) 5 of the Act, means occurrence of any of the following events: <Amended by Presidential Decree No. 17043, Dec. 29, 2000; Presidential Decree No. 18032, Jun. 30, 2003; Presidential Decree No. 18796, Apr. 22, 2005; Presidential Decree No. 18941, Jul. 8, 2005; Presidential Decree No. 22571, Dec. 30, 2010>
1. Where articles to be exported or goods for manufacturing or processing such articles are shipped to an exporter or a manufacturer or processor of the articles to be exported under a local letter of credit (limited to a master local letter of credit and a sub-letter of credit);
2. Where the articles are used as raw materials to manufacture or process articles to be exported in the same manufacturing place;
3. Where the articles are shipped to another manufacturing place to manufacture or process articles to be exported;
4. Where the articles are shipped from the manufacturing place for the relocation of the manufacturing place;
5. Where the articles are shipped to another manufacturing place to be used as raw materials for manufacturing or processing taxable articles;
6. Where articles specified in Article 2 (1) of the Act are shipped from the manufacturing place or bonded area for supply to the Korea National Oil Corporation established under the Korea National Oil Corporation Act in compliance with the oil stockpiling policy specified in Article 16 of the Petroleum and Petroleum Substitute Fuel Business Act, and where they are shipped from the manufacturing place or bonded area and supplied to the Korea National Oil Corporation through the oil reservoirs of a manufacturer or importer by the methods determined by the Commissioner of the national tax Service;
7. Where the articles are shipped to another manufacturing place of the same manufacturer to manufacture or process taxable articles.
(4) A person who intends to release articles falling under paragraph (3) 1 or 3, shall submit (including via the national tax information and communications network) an application to the head of the competent tax office or customs office, along with a copy of a local letter of credit or export letter of credit, or other document proving that they are to be exported and shall obtain his/her approval. In such cases, the head of the competent tax office or customs office shall verify his/her certificate of business registration through the shared use of administrative information under Article 36 (1) of the Electronic Government Act and, where the applicant withholds consent to such verification, shall require him/her to submit the certificate of business registration. <Amended by Presidential Decree No. 20120, Jun. 28, 2007; Presidential Decree No. 22151, May 4, 2010>
(5) A person who intends to release articles falling under paragraph (3) 4, 5 or 7, shall submit (including via the national tax information and communications network) an application to the head of the competent tax office or customs office and obtain his/her approval. In such cases, the head of the competent tax office or customs office shall verify a certificate of business registration for the place of entry of such articles through the shared use of administrative information under Article 36 (1) of the Electronic Government Act. <Amended by Presidential Decree No. 20120, Jun. 28, 2007; Presidential Decree No. 22151, may 4, 2010; Presidential Decree No. 22571, Dec. 30, 2010>
(6) Paragraphs (3) and (4) shall apply mutatis mutandis where a person intends to ship out taxable articles or non-taxable articles (limited to where the raw materials of such non-taxable articles are taxable articles) manufactured or processed with goods brought in pursuant to paragraph (3) 1 or 3 from the manufacturing place.
 Article 16 (Special Cases for Application, etc. for Approval of Tax Exempt Release)
Notwithstanding Articles 15 (1), (4) and (5), 17 (4), 19 (1) and 22 (1), a person who intends to obtain tax exemption for articles shipped from the manufacturing place to be supplied for a purpose set out in Article 12 (1), 13 (1) or 15 (1) of the Act shall file the tax base for the relevant month by the end of the month following the month to which the date of release of the relevant articles belongs, along with a certificate of entry of Article 17 (2) or a certificate of use of Article 17 (3).
 Article 17 (Report of Entry, Certificate of Entry, and Certificate of Use)
(1) When reporting on articles brought in under Article 12 (5) or 15 (3) of the Act, a declaration stating the following information shall be submitted to the head of the tax office or customs office having jurisdiction of the place of entry:
1. Name, address, title, and resident registration number or business registration number of the reporter;
2. Approval number and approval date;
3. Name, quantity, standards, unit price, price of goods, and the relevant tax amount;
4. Point of entry of the articles;
5. Reason for bringing in the articles;
6. Date of entry of the articles;
7. Name, address and title of the person who ships the articles from the manufacturing place;
8. Deadline for submission of a certificate of entry;
9. Other references.
(2) Verification of the bringing-in of articles under Article 12 (2) of the Act and the upper part of the main sentence of Article 15 (2) of the Act shall be made by a certificate stating information contained in a report under paragraph (1): Provided, That in any of the following cases, it shall be made by means of a document classified as follows: <Amended by Presidential Decree No. 24362, Feb. 15, 2013>
1. In case of articles brought into a bonded area and free export zone: A written verification of entry of goods issued by the head of the competent customs office;
2. Petroleum products used to power ships for international routes or deep-sea fishery vessels under Article 15 (1) 3 of the Act: A detailed statement of supply of oil (in case of a deep-sea fishery vessel that is a coaster, a report of entry filed by a person who brings the relevant articles in);
3. Petroleum products used to power airplanes under Article 15 (1) 3 of the Act: An aircraft registration permit issued by the head of the competent customs office.
(3) Verification of the achievement of the prescribed purpose under Article 13 (2) of the Act shall be made by any one of the following documents:
1. An export license issued by the head of the customs office who has permitted the export;
2. A certificate of delivery (including a written verification of use) issued by the head of the military agency who has been supplied the articles;
3. Other documents that can certify the fact of exportation, determined by the Commissioner of the National Tax Service.
(4) Verification of the fact of bring-in of articles or the achievement of the prescribed purpose under Article 12 (2), 13 (2), or the upper part of the main sentence of Article 15 (2) of the Act shall be submitted within three months form the date of shipping such articles from the manufacturing place to the date determined by the head of the tax office or customs office having jurisdiction over the place of release.
(5) Where a person is unable to submit verification of the relevant fact by the deadline specified in paragraph (4) and Article 16 due to unavoidable circumstances, he/she may file an application for postponement of the deadline for submission with the head of the competent tax office or customs office. In such cases, the head of the competent tax office or customs office may extend the deadline by up to three months from the date the deadline for submission of verification of the relevant fact expires.
(6) Where the head of the competent tax office or customs office intends to collect the relevant tax amount pursuant to Article 12 (2), 13 (2), or the upper part of the main sentence of Article 15 (2) of the Act, if the person who has shipped the articles from the manufacturing place or the person who has made the import declaration fails to submit verification of the relevant fact within 30 days from the date the relevant tax amount is collectable, he/she shall immediately notify such person of his/her intention of collecting the relevant amount.
 Article 18 (Application for Approval of Destruction or Loss)
(1) A person who wishes to be subject to Article 12 (3) of the Act shall submit, without delay, an application for approval of destruction or loss stating the following information, to the head of the tax office or customs office having jurisdiction over the place of release, along with a document proving the destruction or loss of the relevant articles, within the time specified for submission of the relevant certificate of entry and shall obtain his/her approval:
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Location, approval number, and approval date of the manufacturing place;
3. Name, quantity, standards, unit price and price of the articles destroyed or lost, and the relevant tax amount;
4. Date and place of the destruction or loss, and methods of handling the articles destroyed or lost;
5. Deadline for submission of a certificate of entry;
6. Other references.
(2) In cases falling under paragraph (1), where the place of destruction or loss falls within the jurisdiction of the head of another tax office, the applicant shall submit a certificate stating the following information, issued by the head of the tax office having jurisdiction over the place where the relevant destruction or loss occurred:
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Location of the manufacturing place;
3. Name of the tax office that granted the original approval, approval date and approval number;
4. Name, quantity, standards, unit price, and price of the articles destroyed or lost;
5. Name, address and title of the person who has shipped the articles from the manufacturing place or the person who delivers the articles;
6. Date and place of, and reason for, the destruction or loss;
7. Other references.
 Article 19 (Application for Approval of Tax Exemption for Army Supply and Export)
(1) A person who wishes to obtain tax exemption for articles mentioned in the subparagraphs of Article 13 (1) of the Act shall submit an application stating the following information to the head of the competent tax office or customs office, along with an export letter of credit and a copy of documents proving the articles are to be exported or a supply contract when he/she ships the relevant articles from the manufacturing place (in case of imported goods, from the time of making an import declaration until the import license is issued), and obtain his/her approval. In such cases, if the manufacturer and the exporter or supplier of the relevant articles are not the same person, the manufacturer and the exporter or supplier shall file the application under joint signature:
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Place of release;
3. Name, quantity, standards, unit price, and price of the articles, and the relevant tax amount;
4. Place of the army supply or export;
5. Name of the customs office of export;
6. Name, address and title of the exporter;
7. Scheduled date of release;
8. Deadline for submission of a certificate of export or army supply;
9. Other references.
(2) Where the competent tax office or customs office in receipt of an application under paragraph (1) approves such application, he/she shall issue a letter of approval stating matters contained in the application.
 Article 20 (Special Cases for Tax Exemption for Petroleum Products for Foreign Missions)
(1) When selling petroleum products exempt from traffic, energy, and environment tax pursuant to Article 14 (1) of the Act at the manufacturing place or shop of petroleum products, the manufacturer or dealer of such petroleum products (hereafter in this Article referred to as "seller") shall receive a letter of recommendation to purchase tax-exempt petroleum products stating the quantity of use for each diplomatic mission and other necessary matters issued by the Minister of Foreign Affairs, and deliver the products after deducting the amount equivalent to the traffic, energy and environment tax from the price thereof. <Amended by Presidential Decree No. 19897, Feb. 28, 2007; Presidential Decree No. 22751, Dec. 30, 2010; Presidential Decree No. 24441, Mar. 23, 2013>
(2) In cases falling under paragraph (1), the seller shall notify the manufacturer of monthly sales along with a letter of recommendation to purchase the relevant petroleum products, and the manufacturer in receipt of such notification shall grant the amount equivalent to the deducted traffic, energy and environment tax to the seller. <Amended by Presidential Decree No. 19897, Feb. 28, 2007>
(3) The manufacturer shall report monthly sales of the petroleum products he/she directly sells to the diplomatic missions in the Republic of Korea and monthly sales of the seller notified pursuant to paragraph (2), to the head of the competent tax office. In such cases, he/she shall also submit the letter of recommendation to purchase tax-exempt petroleum products. <Amended by Presidential Decree No. 22571, Dec. 30, 2010>
(4) The head of the competent tax office in receipt of a report under paragraph (3) shall refund the amount of traffic, energy and environment tax already paid for the petroleum products sold by the seller to the manufacturer: Provided, That he/she may deduct such amount from the amount of tax payable in the future, at the request of the person entitled to the refund. <Amended by Presidential Decree No. 19897, Feb. 28, 2007>
 Article 21 (Scope of Foreign Missions in Korea, etc.)
(1) "Organizations as prescribed Presidential Decree" in Article 14 (1) of the Act means consulates permanently stationed in the Republic of Korea (excluding consulates headed by the honorary consul), the United Nations, and international organizations corresponding thereto (only applicable where the Republic of Korea may be granted privilege and exemption pursuant to treaties to which it is a party, and other statutes of the Republic of Korea).
(2) "Persons prescribed by Presidential Decree" in Article 14 (1) of the Act means persons other than Korean citizens who have achieved civil servant status from the relevant country as a staff member of an organization described in paragraph (1) or whose status corresponding thereto has been verified by the Minister of Foreign Affairs. <Amended by Presidential Decree No. 24441, Mar. 23, 2013>
[This Article Wholly Amended by Presidential Decree No. 22571, Dec. 30, 2010]
 Article 22 (Application for Approval of Tax Exemption)
(1) A person who wishes to obtain tax exemption pursuant to the subparagraphs of Article 15 (1) of the Act or the subparagraphs of Article 16 of the Act, shall submit an application stating the following information to the head of the competent tax office or customs office when he/she ships the relevant articles from the manufacturing place (in case of imported goods, from the time of import declaration for the imported goods until an import license is issued), and shall obtain his/her approval: <Amended by Presidential Decree No. 24362, Feb. 15, 2013>
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Place of release;
3. Name, quantity, standards, unit price, and price of the articles, and the relevant tax amount;
4. Place of entry;
5. Name, address and title of the person who brings the articles in;
6. Scheduled date of release;
7. Deadline for submission of a certificate of entry, a letter of verification of entry of goods, a detailed statement of supply of oil (in case of a deep-sea fishery vessel that is a coaster, a report of entry filed by a person who brings the relevant articles in), or an aircraft registration permit;
8. Ground for filing an application;
9. Other references.
(2) An application under paragraph (1) shall be accompanied by the following documents: Provided, That in relation to matters evidenced for the exemption of customs duties, the relevant document may be omitted: <Amended by Presidential decree No. 18941, Jul. 8, 2005>
1. In cases falling under Article 15 (1) 1 and 3 of the Act and subparagraphs 1 and 4 of Article 16 of the Act, a document evidencing the relevant fact issued by the head of the competent authorities;
2. In cases falling under Article 15 (1) 2 of the Act and subparagraph 2 of Article 16 of the Act, a document required to file an application for tax exemption under the Customs Act;
3. In cases falling under subparagraph 3 of Article 16 of the Act, a document evidencing donation issued by the head of a government agency or a local government to which the relevant goods are donated;
4. In cases falling under subparagraph 5 or 6 of Article 16 of the Act, a document evidencing the relevant fact issued by the head of the competent tax office.
(3) Where the head of the competent tax office or customs office in receipt of an application under paragraph (1) approves such application, he/she shall issue a letter of approval of the matters contained in the application and, where the approval thereof falls under Article 15 (1) of the Act, shall notify the head of the tax office or customs office having jurisdiction over the place of entry, of the purport of his/her approval.
 Article 23 (Alteration, etc. of Uses by Persons Who Bring Conditional Tax- Exempt Articles)
(1) Where any of the following events occurs in relation to articles falling under Article 15 (1) of the Act, after they are brought in, the person who has brought in the relevant articles shall report on and pay the traffic, energy, and environment tax to the head of the tax office having jurisdiction over the place of entry (to he head of the competent tax office in cases falling under subparagraph 3) pursuant to Article 15 (2) of the Act: <Amended by Presidential Decree No. 18180, Dec. 30, 2003; Presidential Decree No. 19897, Feb. 28, 2007; Presidential Decree No. 23599, Feb. 2, 2012; Presidential Decree No. 24362, Feb. 15, 2013>
1. Where the person who has brought in articles falling under Article 15 (1) 1 or 2 of the Act alters the uses thereof or transfer the articles to another person;
2. Where the person who has brought in a petroleum product falling under Article 15 (1) 3 of the Act (excluding petroleum products used to power ships for international routes or deep-sea fishery vessels) fails to submit the following documents to the head of the tax office having jurisdiction over the place of entry within six months from the date the petroleum product is brought in: Provided, That the head of the tax office having jurisdiction over the place of entry may extend the period by up to three months, when it is unavoidable:
(a) In the case of a petroleum product used to power aircraft, a report on use made by the user for the petroleum product;
(b) In the case of a petroleum product used as a raw material for medical care, medicine production, fertilizer production or agricultural chemical production, a report on use made by the user and a written verification of use issued by the head of the competent authorities;
3. Where the person alters the use of a petroleum product used to power ships for international routes or deep-sea fishery vessels or transfers such product after he/she has submitted a detailed statement of supply of oil (in case of a deep-sea fishery vessel that is a coaster, a report of entry filed by a person who brings the relevant articles in) under Article 17 (2) 2, of the petroleum products mentioned in Article 15 (1) 3 of the Act.
(2) Where any event described in the subparagraphs of Article 15 (1) of the Act occurs, a person who proves a fact falling under any subparagraph of said paragraph shall immediately notify the Commissioner of the National Tax Service or the Commissioner of the Korea Customs Service thereof. <Amended by Presidential Decree No. 18180, Dec. 30, 2003>
(3) Where a person intends to scrap an item falling under any subparagraph of Article 15 (1) of the Act, which has been brought in after having obtained approval under Article 22, because continued use thereof for the prescribed purpose is not possible due to spoilage, damage, or other reasons similar thereto, and thereby submits an application stating the following information to the head of the competent tax office and obtains his/her approval, the relevant traffic, energy, and environment tax shall be exempted: <Amended by Presidential Decree No. 19897, Feb. 28, 2007>
1. Name, address, title, and resident registration number or business registration number of the applicant;
2. Name, quantity, standards, unit price, and price of the item, and the relevant tax amount;
3. Quantity of the item to be scrapped and ground for scrapping;
4. Ground for bringing the item in and the date of entry;
5. Other references.
 Article 24 (Application for Tax Deduction or Refund)
(1) A person who intends to obtain a tax deduction or refund due to the occurrence of an event prescribed in Article 17 (1) or (2) of the Act shall file an application (including via the national tax information and communications network) with the head of the competent tax office or customs office, in accordance with the following provisions in the form prescribed by Ordinance of the Ministry of Strategy and Finance, along with a document evidencing the occurrence of the relevant event and a document evidencing that the traffic, energy, and environment tax has already been paid or will be paid: Provided, That where petroleum products on which the tax is imposed, have been used by foreign missions stationed in the Republic of Korea or other agencies corresponding thereto, Article 20 shall apply thereto: <Amended by Presidential Decree No.14438, Dec. 23, 1994; Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 19897, Feb. 28, 2007; Presidential Decree No. 20720, Feb. 29, 2008>
1. In cases falling under Article 17 (1) or (2) 2 of the Act, submit to the head of the tax office having jurisdiction over the domicile of the applicant;
2. In cases falling under Article 17 (2) 1, 3 or 4 of the Act, submit to the head of the competent tax office or customs office who has imposed or will impose the relevant traffic, energy, and environment tax, with a person who has paid the traffic, energy, and environment tax on the relevant articles under joint signature: Provided, That where the applicant and the person who has actually borne the traffic, energy, and environment tax are not the same person, the person who has actually borne the traffic, energy, and environment tax may jointly file the application with the person who has paid the tax.
(2) The evidentiary documents mentioned in paragraph (1) shall be as follows: <Amended by Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 21215, Dec. 31, 2008; Presidential Decree No. 22151, May 4, 2010; Presidential Decree No. 24362, Feb. 15, 2013; Presidential Decree No. 24441, Mar. 23, 2013>
1. In cases falling under Article 17 (1) and (2) 2 of the Act, a detailed statement of goods used in the relevant articles;
2. In cases falling under Article 17 (2) 1 of the Act, a certificate of export declaration or a certificate of delivery of goods, a detailed statement of goods used in the relevant articles, and a certificate of quantity of raw materials used, issued by an institution designated by the Minister of Trade, Industry and Energy, as prescribed by the Minister of Trade, Industry and Energy: Provided, That in case of a certificate of export declaration, verification of the head of the competent tax office or the head of the competent customs through the shared use of administrative information under Article 36 (1) of the Electronic Government Act shall take the place of the appending thereof, and where the applicant withholds consent to such verification, he/she shall require the applicant to submit the application along with the certificate of export declaration;
3. In cases falling under Article 17 (2) 3 of the Act, a document vefitying the relevant return of the articles;
4. In cases of articles used as a raw material for medical care, medicine production, fertilizer production or agricultural chemical production under Article 17 (2) 4 of the Act, a report on use filed by the user and a written verification of use issued by the head of the competent authorities; in cases of articles used for airplanes, a report on use filed by the user; and in cases of ships for international routes or deep-sea fishery vessels, a detailed statement of supply of petroleum products under Article 17 (2) 2 (in case of a deep-sea fishery vessel that is a coaster, a report of entry filed by the person who brings the relevant articles in).
(3) Where the head of the competent tax office in receipt of an application under paragraph (1) discovers that the applicant is liable for a tax in the future, he/she shall deduct the amount of tax already paid from the amount of tax payable; and where the applicant is not liable for the tax in the future due to the discontinuance of sales or manufacturing, etc., he/she shall refund the tax amount already paid within 30 days from the date of receipt of the application.
(4) A person who intends to file a report with the head of the competent tax office pursuant to Article 17 (2) 3 and (3) of the Act shall submit (including via the national tax information and communications network) a report and an application for verification prescribed by Ordinance of the Ministry of Strategy and Finance. In such cases, the head of the competent tax office shall immediately verify such fact and issue a written verification. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 19570, Dec. 31, 1999; Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 20720, Feb. 29, 2008>
(5) In cases falling under Article 17 (8) of the Act, the head of the competent tax office shall collect the relevant traffic, energy, and environment tax from a person who has failed to use the relevant items for the prescribed purpose. In such cases, for petroleum products used to power ships for international routes or deep-sea fishery vessels under Article 17 (2) 4 of the Act, the head of the competent customs office having jurisdiction over the person who has failed to use the relevant items for the prescribed purpose shall collect the relevant traffic, energy, and environment tax. <Amended by Presidential Decree No. 18180, Dec. 30, 2003; Presidential Decree No. 19897, Feb. 28, 2007>
 Article 25 (Report of Founding, Closure, etc. of Business)
(1) A person who intends to file a report under the upper part of the main sentence of Article 18 (1) of the Act or paragraph (3) of the same Article, shall submit a report prescribed by Ordinance of the Ministry of Strategy and Finance to the head of the tax office having jurisdiction over the manufacturing place or the head of the tax office having jurisdiction over the head office or principal office by no later than five days prior to the commencement of the business. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22571, Dec. 30, 3010>
(2) In the case of a business requiring permission, authorization, registration, etc. (hereafter in this paragraph referred to as "authorization or permission") pursuant to Acts and subordinate statutes, a copy of a certificate on such authorization or permission (before the grant of authorization or permission, a copy of an application for such authorization or permission or a business plan) shall be submitted along with a report under paragraph (1): Provided, That a person registered pursuant to Article 8 of the Value Added Tax Act need not submit such certificate. <Amended by Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 18941, Jul. 8, 2005; Presidential Decree No. 24638, Jun. 28, 2013>
(3) Where a manufacturer of taxable articles intends to suspend its business for at least one month pursuant to the latter part of Article 18 (1) of the Act, he/she shall submit a report prescribed by Ordinance of the Ministry of Strategy and Finance to the head of the competent tax office before such suspension. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 20720, Feb. 29, 2008>
(4) Where a person who has filed a report under paragraphs (1) through (3) amends a reported matter or closes the relevant business, he/she shall, without delay, submit a report prescribed by Ordinance of the Ministry of Strategy and Finance to the head of the tax office having jurisdiction over the manufacturing place or the head of the tax office having jurisdiction over the head office or principal office: Provided, That where a manufacturer of taxable articles submits a report under Article 12, specifying the date of cessation of business and reason for the cessation thereof, he/she shall be deemed to have submitted a report of cessation of business. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 16656, Dec. 31, 1999; Presidential Decree No. 20720, Feb. 29, 2008; Presidential Decree No. 22571, Dec. 30, 2010>
(5) Where an entrepreneur who has filed a report on business unit pursuant to Article 18 (3) or (4) of the Act intends to report his/her tax base under Article 7 of the Act for each manufacturing place, he/she shall submit a report of conversion to filing on unit of manufacturing place prescribed by Ordinance of the Ministry of Strategy and Finance to the head of the tax office having jurisdiction over the head office or principal office by no later than 20 days prior to the commencement of the month in which he/she intends to be treated as a taxable entrepreneur on unit of manufacturing place. <Newly Inserted by Presidential Decree No. 25198, Feb. 21, 2014>
(6) The head of a tax office in receipt of a report of conversion to filing on manufacturing place pursuant to paragraph (5) shall notify, without delay, the result of the processing thereof to the relevant entrepreneur and the heads of tax offices having jurisdiction over other manufacturing places. <Newly Inserted by Presidential Decree No. 25198, Feb. 21, 2014>
 Article 26 (Book-Keeping Obligation)
A manufacturer of taxable articles shall record the following information in the book under Article 19 of the Act:
1. Name, kind, quantity and standards of raw materials or goods purchased, the date of purchase, and the name, address and title of the seller;
2. Name, kind, quantity and standards of raw materials or goods used, and the date of use;
3. Name, quantity and standards of goods manufactured, and the manufacturing date;
4. Name, quantity, standards, and price of goods released, the date of release, and the name, address and title of the purchaser.
 Article 27 (Orders)
(1) The commissioner of the competent regional tax office or the head of the competent tax office may order the following persons to issue tax invoices, keep and retain books and perform activities necessary for control under Article 21 (1) of the Act: <Amended by Presidential Decree No. 26951, Feb. 5, 2016>
1. A manufacturer of taxable goods;
2. A seller, etc. under Article 11 (1) of the Act.
(2) Pursuant to Article 21 (2) of the Act, the director of the competent regional tax service or the head of the competent tax office may order persons falling under the latter part of the main sentence of Article 20 of the Act to classify, load and store articles brought in without paying any duty and taxes thereon, to prepare and reserve books, and to take other action necessary for regulatory purposes. <Amended by Presidential Decree No. 21494, May 21, 2009>
ADDENDA <Presidential Decree No. 14078, Dec. 31, 1993>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 1994.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, as of January 1, 1994.
(3) (Transitional Measures concerning Application for Deduction of Amount of Tax) A person who intends to obtain a deduction from or refund on a special consumption tax already paid pursuant to the former Special Consumption Tax Act, from the amount of traffic tax pursuant to the proviso to Article 5 of the Addenda of the Act, shall submit an application under Article 24 to the head of the competent tax office or customs office, along with the documents specified in the former Special Consumption Tax Act.
(4) Omitted.
ADDENDA <Presidential Decree No. 14164, Feb. 15, 1994>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 14324, Jul. 15, 1994>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14749, Aug. 12, 1995>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable goods shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 14866, Dec. 30, 1995>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 1996.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA<Presidential Decree No. 15179, Dec. 13, 1996>
(1) (Enforcement Date) This Decree shall enter into force on the date following the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 15605, Jan. 8, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the date following the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the taxable articles shipped from the manufacturing place or for which an import declaration is filed after this Decree enters into force.
ADDENDA <Presidential Decree No. 15787, May 2, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the day following the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the taxable articles shipped from the manufacturing place or for which an import declaration is filed after this Decree enters into force.
ADDENDA <Presidential Decree No. 15890, Sep. 16, 1998>
(1) (Enforcement Date) This Decree shall enter into force on the day following the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 15970, Dec. 31, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1999. (Proviso Omitted).
Articles 2 through 19 Omitted.
ADDENDA <Presidential Decree No. 16286, May 6, 1999>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 16656, Dec. 31, 1999>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 2000.
(2) (Applicability) The amended provisions of Article 3-2 shall apply beginning with the first taxable articles, the reporting deadline for which arrives, or the import declaration for which is to be filed pursuant to Article 7 of the Act, after this Decree enters into force.
ADDENDA <Presidential Decree No. 16740, Mar. 2, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 16801, May 1, 2000>
(1) (Enforcement Date) This Decree shall enter into force on May 1, 2000.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 17043, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2001: Provided, That the amended provisions of Articles 3 and 15 shall enter into force on January 1, 2001.
Article 2 (General Applicability)
This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
Article 3 (Applicability, etc. to Release of Articles without Tax Payment)
(1) The amended provisions of Article 15 shall apply beginning with the first taxable articles shipped from the manufacturing place or bonded area to be supplied to the Korea National Oil Corporation for storage purpose as of January 1, 2001.
(2) On the amount equivalent to the quantity of articles taxable under Article 2 (1) of the Act reserved by the Korea National Oil Corporation, on which traffic tax was imposed on or before December 31, 2000, no traffic tax shall be collected even if such articles are shipped from the Korea National Oil Corporation on or after January 1, 2001.
(3) The Korea National Oil Corporation shall report the quantity of taxable articles reserved under Article 2 (1) of the Act, on which traffic tax was imposed on or before December 31, 2000, to the head of the tax office having jurisdiction over its head office, within 20 days from January 1, 2001.
ADDENDA <Presidential Decree No. 17319, Jul. 30, 2001>
(1) (Enforcement Date) This Decree shall enter into force on August 1, 2001.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Transitional Measures) The former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 17644, Jun. 29, 2002>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2002.
(2) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Transitional Measures) The former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 17973, May 1, 2003>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 18032, Jun. 30, 2003>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2003.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Applicability to Release of Articles without Tax Payment) The amended provision of Article 15 (3) 6 shall apply beginning with the first taxable articles shipped from the manufacturing place or bonded area, to be supplied for storage purpose to the Korea National Oil Corporation incorporated pursuant to the Korea National Oil Corporation Act as of July 1, 2003.
(4) (Transitional Measures) The former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 18180, Dec. 30, 2003>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 2004.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Applicability to Standards of Competent Tax Authority Due to Alteration of Purposes, etc.) The amended provisions of Articles 23 (1) and 24 (5) shall apply to articles in regards to which any event for alteration of purposes, etc. occurs after this Decree enters into force.
ADDENDA <Presidential Decree No. 18298, Feb. 28, 2004>
(1) (Enforcement Date) This Decree shall enter into force on March 1, 2004.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Transitional Measures) The former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18446, Jun. 29, 2004>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2004.
(2) (General Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Transitional Measures) The former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 18473, Jul. 20, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 23, 2004. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 18554, Oct. 1, 2004>
(1) (Enforcement Date) This Decree shall enter into force on October 1, 2004.
(2) (Period of Validity) The amended provision of the proviso to subparagraph 2 of Article 3-2 shall remain in force until November 30, 2005.
(3) (Applicability) This Decree shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(4) (Transitional Measures) The former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 18796, Apr. 22, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 23, 2005. (Proviso Omitted).
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18941, Jul. 8, 2005>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability to Adjustment of Elastic Tax Rates) The amended provisions of Article 3-2 shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Transitional Measures Following Adjustment of Elastic Tax Rates) Notwithstanding the amended provisions of Article 3-2, the former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
(4) (Adjustment of Contract Amount Following Increase in Tax Rates on Diesel Fuel) With regard to a contract to which the State, a local government, or a government-invested institution established under the Framework Act on the Management of Government-Invested Institutions is a party, where the price of diesel fuel required for construction machinery under the Construction Machinery Management Act is included in the relevant contract amount, the institution placing a contract order shall reflect the price of diesel fuel increased commensurate with the tax rate pursuant to the amended provision of subparagraph 2 of Article 3-2 in the contract amount for adjustment of the contract amount.
ADDENDA <Presidential Decree No. 19581, Jun. 30, 2006>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2006.
(2) (Applicability to Adjustment of Elastic Tax Rates) The amended provisions of Article 3-2 shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
(3) (Transitional Measures Following Adjustment of Elastic Tax Rates) Notwithstanding the amended provisions of Article 3-2, the former provisions shall apply to any traffic tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
(4) (Adjustment of Contract Amount Following Increase in Tax Rates on Diesel Fuel) With regard to a contract to which the State, a local government, or a government-invested institution established under the Framework Act on the Management of Government-Invested Institutions is a party, where the price of diesel fuel required for construction machinery under the Construction Machinery Management Act is included in the relevant contract amount, the institution placing a contract order shall reflect the price of diesel fuel increased commensurate with the tax rate pursuant to the amended provision of subparagraph 2 of Article 3-2 in the contract amount for adjustment of the contract amount.
ADDENDA <Presidential Decree No. 19897, Feb. 28, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
Article 3 (Relationship with Other Acts and Subordinate Statutes)
Where the former Enforcement Decree of the Traffic Tax Act or any provision thereof is cited by another Act or subordinate statute as at the time this Decree enters into force, if a provision corresponding thereto exists in this Decree, this Decree or the relevant provision of this Decree shall be deemed cited, in lieu of the former provision.
ADDENDUM <Presidential Decree No. 20120, Jun. 28, 2007>
This Decree shall enter into force on July 4, 2007.
ADDENDA <Presidential Decree No. 20181, Jul. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Adjustment of Elastic Tax Rates)
The amended provisions of Article 3-2 shall apply beginning with the first taxable articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force
Article 3 (Transitional Measures concerning Adjustment of Elastic Tax Rates)
Notwithstanding the amended provisions of Article 3-2, the former provisions shall apply to any traffic, energy and environment tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
Article 4 (Adjustment of Contract Amount Following Increase in Tax Rates on Diesel Fuel)
In cases of a contract to which the State, a local government, or a public institution established under the Act on the Management of Public Institutions (limited to a public institution that was a government-invested institution under the former Framework Act on the Management of Government-Invested Institutions (referring to the aforesaid Act before repealed by the Act on the Management of Public Institutions as amended by Act No. 8258)) is a party, where the price of diesel fuel required for construction machinery under the Construction Machinery Management Act is included in the relevant contract amount, the institution placing a contract order shall reflect the price of diesel fuel increased commensurate with the tax rate pursuant to the amended provision of subparagraph 2 of Article 3-2 in the contract amount for adjustment of the contract amount.
ADDENDUM <Presidential Decree No. 20627, Feb. 22, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That of the Presidential Decrees amended pursuant to Article 8 of the Addenda, amendments of the Presidential Decrees which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the respective dates on which the relevant Presidential Decrees enter into force.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 20744, Mar. 10, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Adjustment of Elastic Tax Rates)
The amended provisions of Article 3-2 shall apply beginning with the first articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
Article 3 (Transitional Measures Following Adjustment of Elastic Tax Rates)
The former provisions shall apply to any traffic, energy and environment tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
Article 4 (Special Cases for Application of Elastic Tax Rates)
Notwithstanding the amended provisions of subparagraphs 1 and 2 of Article 3-2, the following tax rates shall apply to articles shipped from the manufacturing place or for which an import declaration is filed by December 31, 2008: <Amended by Presidential Decree No. 21065, Oct. 7, 2008>
1. Gasoline and substitute fuels similar thereto mentioned in subparagraph 1 of Article 3-2: 462 won per liter;
2. Diesel and substitute fuels similar thereto mentioned in subparagraph 2 of Article 3-2: 328 won per liter
Article 5 (Adjustment of Contract Amount Following Increase in Tax Rates on Diesel Fuel)
(1) With regard to a contract to which the State, a local government, or a public institution established under the Act on the Management of Public Institutions (limited to a public institution that was a government-invested institution under the former Framework Act on the Management of Government-Invested Institutions (referring to the aforesaid Act before being repealed by the Act on the Management of Public Institutions as amended by Act No. 8258)) is a party, where the price of diesel fuel required for construction machinery under the Construction Machinery Management Act is included in the relevant contract amount, the institution placing a contract order shall reflect the price of diesel fuel changed commensurate with the change of the tax rate on diesel fuel pursuant to the amended provision of subparagraph 2 of Article 3-2 and Article 4 of the Addenda in the contract amount for adjustment of the contract amount: Provided, That the foregoing shall not apply to contracts concluded as of July 23, 2007 (excluding contracts for which the deadline for submission of bidding documents is on or before July 22, 2007) or contracts the amount of which was adjusted due to price fluctuations under Article 19 of the Act on Contracts to Which the State is a Party and Article 64 of the Enforcement Decree of the aforesaid Act on or after July 23, 2007.
(2) Notwithstanding paragraph (1), the range of adjustment of the price of diesel fuel for contracts concluded during the period from July 1, 2006 to July 22, 2007, contracts the amount of which was adjusted due to price fluctuations under Article 19 of the Act on Contracts to Which the State is a Party and Article 64 of the Enforcement Decree of the aforesaid Act during the aforesaid period, and contracts concluded on or after July 23, 2007, for which the deadline for submission of bidding documents is on or before July 22, 2007, shall not exceed the additional amount to the price of diesel fuel calculated as at the time of adjustment of the contract amount in accordance with Article 4 of the Addenda of the Enforcement Decree of the Traffic, Energy and Environment Tax partially amended by Presidential Decree No. 20181.
ADDENDA <Presidential Decree No. 21065, Oct. 7, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 3-2 shall enter into force on January 1, 2009.
Article 2 (Applicability to Adjustment of Elastic Tax Rates)
The amended provisions of Article 4 of the Addenda to the Enforcement Decree of the Traffic, Energy and Environment Tax Act partially amended by Presidential Decree No. 20744 shall apply beginning with the first articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
Article 3 (Transitional Measures Following Adjustment of Elastic Tax Rates)
The former provisions shall apply to a traffic, energy and environment tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDUM <Presidential Decree No. 21215, Dec. 31, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21462, Apr. 30, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 1, 2009.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 21494, May 21, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Adjustment of Elastic Tax Rates)
The amended provisions of Article 3-2 shall apply beginning with the first articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
Article 3 (Transitional Measures Following Adjustment of Elastic Tax Rates)
The former provisions shall apply to a traffic, energy and environment tax imposed or to be imposed pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22571, Dec. 30, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011: Provided, That the amended provision of Article 25 (1) shall enter into force on July 1, 2011.
Article 2 (General Applicability)
This Decree shall apply beginning with the first articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 23599, Feb. 2, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Adjustment of Deadline for Filing Application for Approval Where Manufacturing of Taxable Articles is Actually Discontinued)
The amended provisions of Article 5 (3) shall also apply to articles in regards to which the deadline for filing an application for approval under the former provisions as at the time this Decree enters into force, has not elapsed.
Article 3 (Applicability to Events Corresponding to Special Cases concerning Blend, etc. of Different Petroleum Products at Oil Reservoirs)
The amended provisions of Article 13-2 shall apply beginning with the occurrence of the first event corresponding to a special case after this Decree enters into force.
Article 4 (Applicability to Methods of Determination by Estimation)
The amended provisions of Article 14 (2) shall apply beginning with the first determination of a tax base and a tax amount by estimation made after this Decree enters into force.
Article 5 (General Transitional Measures)
The former provisions shall apply to any traffic, energy and environment tax imposed or exempted, or to be imposed or exempted pursuant to the former provisions as at the time this Decree enters into force.
ADDENDA <Presidential Decree No. 24362, Feb. 15, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2013: Provided, That the amended provisions of subparagraph 4 (b) of Article 2, and subparagraphs 1 (b) and 2 (b) of Article 3 shall enter into force on the date of its promulgation.
Article 2 (General Applicability)
This Decree shall apply beginning with the first articles shipped from the manufacturing place, or for which an import declaration is filed, after this Decree enters into force.
ADDENDA <Presidential Decree No. 24441, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 24638, Jun. 28, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2013. (Proviso Omitted).
Articles 2 through 17 Omitted.
ADDENDUM <Presidential Decree No. 25198, Feb. 21, 2014>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 26951, Feb. 5, 2016>
This Decree shall enter into force on the date of its promulgation.