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ENFORCEMENT DECREE OF THE CUSTOMS ACT

Wholly Amended by Presidential Decree No. 17048, Dec. 29, 2000

Amended by Presidential Decree No. 17166, Mar. 27, 2001

Presidential Decree No. 17157, Mar. 27, 2001

Presidential Decree No. 17320, Jul. 30, 2001

Presidential Decree No. 17425, Dec. 15, 2001

Presidential Decree No. 17467, Dec. 31, 2001

Presidential Decree No. 17602, May 13, 2002

Presidential Decree No. 17833, Dec. 30, 2002

Presidential Decree No. 18039, jun. 30, 2003

Presidential Decree No. 18074, Jul. 30, 2003

Presidential Decree No. 18086, Aug. 21, 2003

Presidential Decree No. 18136, Nov. 20, 2003

Presidential Decree No. 18333, Mar. 29, 2004

Presidential Decree No. 18493, Jul. 29, 2004

Presidential Decree No. 18530, Aug. 30, 2004

Presidential Decree No. 18624, Dec. 30, 2004

Presidential Decree No. 18903, jun. 30, 2005

Presidential Decree No. 19478, May 22, 2006

Presidential Decree No. 19513, jun. 12, 2006

Presidential Decree No. 19507, jun. 12, 2006

Presidential Decree No. 19563, jun. 29, 2006

Presidential Decree No. 19993, Apr. 5, 2007

Presidential Decree No. 20438, Dec. 13, 2007

Presidential Decree No. 20516, Dec. 31, 2007

Presidential Decree No. 20624, Feb. 22, 2008

Presidential Decree No. 20720, Feb. 29, 2008

Presidential Decree No. 21305, Feb. 4, 2009

Presidential Decree No. 21634, Jul. 22, 2009

Presidential Decree No. 22086, Mar. 26, 2010

Presidential Decree No. 22151, May 4, 2010

Presidential Decree No. 22467, Nov. 2, 2010

Presidential Decree No. 22493, Nov. 15, 2010

Presidential Decree No. 23127, Sep. 7, 2011

Presidential Decree No. 23488, Jan. 6, 2012

Presidential Decree No. 23602, Feb. 2, 2012

Presidential Decree No. 23759, May 1, 2012

Presidential Decree No. 23827, jun. 5, 2012

Presidential Decree No. 23845, jun. 7, 2012

Presidential Decree No. 24441, Mar. 23, 2013

Presidential Decree No. 24697, Aug. 27, 2013

Presidential Decree No. 24825, Nov. 5, 2013

Presidential Decree No. 25224, Mar. 5, 2014

Presidential Decree No. 25279, Mar. 24, 2014

Presidential Decree No. 25495, Jul. 21, 2014

Presidential Decree No. 25523, Jul. 28, 2014

Presidential Decree No. 25751, Nov. 19, 2014

Presidential Decree No. 25836, Dec. 9, 2014

Presidential Decree No. 25898, Dec. 30, 2014

Presidential Decree No. 26089, Feb. 6, 2015

Presidential Decree No. 26473, Aug. 3, 2015

Presidential Decree No. 26516, Sep. 9, 2015

Presidential Decree No. 26669, Nov. 27, 2015

Presidential Decree No. 26791, Dec. 30, 2015

Presidential Decree No. 26830, Dec. 31, 2015

Presidential Decree No. 26858, Jan. 6, 2016

Presidential Decree No. 26957, Feb. 5, 2016

Presidential Decree No. 27129, May 10, 2016

Presidential Decree No. 27300, jun. 30, 2016

Presidential Decree No. 27464, Aug. 29, 2016

Presidential Decree No. 27472, Aug. 31, 2016

Presidential Decree No. 27793, Jan. 17, 2017

Presidential Decree No. 27952, Mar. 27, 2017

Presidential Decree No. 27958, Mar. 27, 2017

Presidential Decree No. 27970, Mar. 29, 2017

Presidential Decree No. 27972, Mar. 29, 2017

Presidential Decree No. 28211, Jul. 26, 2017

Presidential Decree No. 28443, Nov. 28, 2017

Presidential Decree No. 28642, Feb. 13, 2018

Presidential Decree No. 28864, May 8, 2018

Presidential Decree No. 29530, Feb. 12, 2019

Presidential Decree No. 30087, Sep. 24, 2019

Presidential Decree No. 30399, Feb. 11, 2020

Presidential Decree No. 30753, jun. 2, 2020

Presidential Decree No. 31088, Oct. 7, 2020

Presidential Decree No. 31291, Dec. 29, 2020

CHAPTER I GENERAL PROVISIONS
SECTION 1 Common Provisions
 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Customs Act and matters necessary for the enforcement thereof.
[This Article Newly Inserted on Feb. 15, 2013]
[Previous Article 1 Moved to Article 1-3 <Feb. 15, 2013>]
 Article 1-2 (Collection of Internal Taxes, etc. in Arrears by Head of Tax Office)
(1) In order for the head of a tax office having jurisdiction over the place of domicile of a person liable to pay duties (in cases of a corporation, the seat of the head office or the principal office as indicated in the register of such corporation) to collect a value-added tax, local consumption tax, individual consumption tax, liquor tax, education tax, traffic, energy and environment tax, and special rural development tax (hereinafter referred to as "internal taxes, etc." and inclusive of surcharges, additional duties, and expenses for disposition on default) in arrears, under Article 4 (2) of the Customs Act (hereinafter referred to as the "Act"), a defaulter shall fall under all of the following requirements: Provided, That where the raising of an objection, request for examination, request for adjudication, or administrative litigation under the Act is pending, where he/she has received a decision on authorization for a rehabilitation plan under Article 243 of the Debtor Rehabilitation and Bankruptcy Act, or where disposition on default, such as an attachment of property, is being taken or postponed, the head of a customs office shall not request the head of a tax office to collect internal taxes, etc. in arrears: <Amended on Feb. 11, 2020; Feb. 17, 2021>
1. A defaulter has paid customs duties but has failed to pay internal taxes, etc.;
2. Deleted; <Mar. 27, 2017>
3. The total amount of internal taxes, etc. in arrears has exceeded ten million won.
(2) Where the head of a customs office requests the head of a tax office to collect internal taxes, etc. of a defaulter falling under the requirements referred to in paragraph (1), the head of the customs office shall request the head of the relevant tax office to collect such internal taxes, etc. in arrears in writing, mentioning matters concerning the collection of internal taxes, etc. of the defaulter, as prescribed by the Commissioner of the Korea Customs Service, following a resolution passed by a customs duties arrearages adjustment committee under Article 45 of the Act and shall notify the relevant defaulter of the fact.
(3) Where the head of a tax office requested to collect internal taxes, etc. in arrears pursuant to paragraph (2) has collected such internal taxes, etc. in arrears, he/she shall notify the head of a customs office who requested collection, of the details of the collection thereof, and where reasons, such as the commencement of appeal procedure for, or rehabilitation procedure for, internal taxes, etc. in arrears, or the unknown whereabouts of a defaulter, make further procedure for disposition on default impracticable, the head of the tax office shall provide a notification and notice to the head of the customs office who requested collection and a defaulter. <Amended on Feb. 17, 2021>
[This Article Newly Inserted on Feb. 15, 2013]
[Previous Article 1-4 Moved to Article 1-4 <Feb. 15, 2013>]
 Article 1-3 (Procedures for and Methods of Responding to Inquiries concerning Interpretation of the Customs Act)
(1) In response to any inquiry concerning an interpretation of the Act, the Minister of Economy and Finance and the Commissioner of the Korea Customs Service shall make a reply in accordance with the interpretation made in accordance with the standards for interpretation prescribed in Article 5 of the Act. <Amended on Feb. 15, 2013>
(2) The Commissioner of the Korea Customs Service shall forward to the Minister of Economy and Finance a copy of the reply sent as prescribed in paragraph (1) by the end of the month following the month in which the enforcement date of the relevant document falls. <Amended on Feb. 15, 2013>
(3) Where the Commissioner of the Korea Customs Service deems an inquiry referred to in paragraph (1) falls under any subparagraph of Article 9-3 (1) of the Enforcement Decree of the Framework Act on National Taxes, he/she shall request the Minister of Economy and Finance to make an interpretation, stating his/her opinion.
(4) Where the Commissioner of the Korea Customs Service dissents from an interpretation made by Minister of Economy and Finance pursuant to paragraph (3), he/she may request a reinterpretation, stating the reason therefor.
(5) An inquiry concerning interpretations of the Act submitted to the Minister of Economy and Finance shall be forwarded to the Commissioner of the Korea Customs Service and the relevant civil petitioner shall be informed of such fact: Provided, That the Minister of Economy and Finance may directly reply thereto in any of the following cases and a copy of the reply shall be forwarded to the Commissioner of the Korea Customs Service in such cases:
1. In cases of an inquiry that requires a deliberation by the Examination Committee on Established Rules for National Taxes provided in Article 18-2 of the Framework Act on National Taxes as such inquiry falls under any subparagraph of Article 9-3 (1) of the Enforcement Decree of the Framework Act on National Taxes;
2. In cases of an inquiry on a matter that has been re-inquired concerning an interpretation of the Act made by the Commissioner of the Korea Customs Service, accompanied by the reply from the Commissioner (excluding matters related to a factual judgment);
3. In cases where an interpretation made by the Minister of Economy and Finance is required following a new enactment or amendment of the Act.
(6) Where the Commissioner of the Korea Customs Service has a question about the interpretation of any treaty on customs duties to which the Republic of Korea has acceded, he/she shall request the Minister of Economy and Finance to make an interpretation thereof, stating his/her opinion. In such cases, the Minister of Economy and Finance may inquire such interpretation of the relevant international organization.
(7) Except as provided in paragraphs (1) through (6), matters necessary for responding to inquiries concerning interpretations of the Act shall be prescribed by Ordinance of the Ministry of Economy and Finance.
[This Article Newly Inserted on Feb. 2, 2012]
[Moved from Article 1; Previous Article 1-3 Moved to Article 1-5 <Feb. 15, 2013>]
SECTION 1-2 Terms and Due Dates
 Article 1-4 (Calculation of Due Dates)
(1) "Day prescribed by Presidential Decree" in Article 8 (3) of the Act means a day determined by the Commissioner of the Korea Customs Service on which it is deemed impractical to make normal payment of customs duties due to the closing of financial institutions (limited to the national treasury agencies of the Bank of Korea and financial institutions which are national treasury receipt agencies; hereinafter the same shall apply) or postal service offices or on other inevitable grounds. <Amended on Apr. 5, 2007; Apr. 1, 2011; Feb. 2, 2012>
(2) When it is impracticable to make a declaration, an application, approval, permission, acceptance, delivery, notice, notification, payment, etc. under the provisions of the Act by the deadline due to a shutdown of the operation of the Comprehensive Customs Duties Information Network of Korea or electronic data-processing equipment under Article 327 of the Act, which is caused by a power failure, a program error, or the abnormal operation of the electronic data-processing equipment in the Bank of Korea (including its branch offices) or postal service offices, or on other grounds prescribed by the Commissioner of the Korea Customs Service, the day following the day on which the breakdown of the relevant Comprehensive Customs Duties Information Network of Korea or electronic data-processing equipment is repaired into normal operation pursuant to Article 8 (4) of the Act shall be the deadline. <Amended on Dec. 30, 2002; Feb. 4, 2009; Feb. 17, 2021>
[Moved from Article 1-2 <Feb. 15, 2013>]
 Article 1-5 (Monthly Payment)
(1) Any person who intends to pay monthly the amount of his/her customs duties in a lump sum (hereinafter referred to as "monthly payment"), whose the due date for payment falls in the same month under Article 9 (3) of the Act, shall file an application, accompanied by documents prescribed by the Commissioner of the Korea Customs Service, including a document that includes the record of his/her payment of customs duties and the record of his/her exports and imports of goods, etc. with the head of the relevant customs office for the approval thereof.
(2) Where any person who files an application for the approval of the monthly payment in accordance with paragraph (1) meets the requirements prescribed by the Commissioner of the Korea Customs Service under Article 9 (3) of the Act, the head of the relevant customs office shall grant the approval thereof. In such cases, the effective period of approval shall be the period from the date of approval to the last day of the month including the date when two years pass from the date of approval. <Amended on Mar. 26, 2010>
(3) Deleted. <Mar. 27, 2017>
(4) Where any person liable to pay customs duties falls under each of the following subparagraphs, the head of the relevant customs office may revoke his/her approval of the monthly payment referred to in paragraph (2). In such cases, with respect to the amount of customs duties on which a declaration for duty payment is filed for their monthly payment, the head of the relevant customs office shall serve a notice about the payment of such customs duties for a fixed due date for payment not exceeding 15 days: <Amended on Feb. 17, 2021>
1. If he/she fails to pay the customs duties within 15 days from the date on which the payment deadline expires;
2. If he/she, as a person liable to pay customs duties who has obtained approval of the monthly payment, fails to meet the requirements prescribed by the Commissioner of the Korea Customs Service in accordance with Article 9 (3) of the Act;
3. If he/she is recognized by the head of the relevant customs office to have difficulty in making monthly payments due to business closure, a serious crisis in business management, bankruptcy adjudication, corporation dissolution, etc.
(5) A person who intends to renew approval granted under paragraph (2) shall file an application for renewal of approval, accompanied by the documents prescribed in paragraph (1), by one month before the expiration date of the effective period. <Newly Inserted on Mar. 26, 2010>
(6) The head of the relevant customs office shall inform, in advance, each person who has obtained approval under paragraph (2) of the fact that he/she should file an application for renewal of approval by no later than one month prior to the expiration date of the effective period of the approval if he/she intends to renew such approval and the renewal procedures, by no later than two months prior to the expiration date of the effective period of the approval by text messaging the aforesaid information to a mobile phone, through e-mail, facsimile, or telephone, or by a document, etc. <Newly Inserted on Feb. 2, 2012>
[This Article Newly Inserted on Mar. 29, 2004]
[Moved from Article 1-2 <Feb. 15, 2013>]
 Article 2 (Extension of Due Dates due to Natural Disasters, etc.)
(1) "Other grounds prescribed by Presidential Decree" in Article 10 of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where property is severely damaged by war, fire, disaster or robbery;
2. Where a considerable operating loss is incurred;
3. Where the business is in a serious crisis;
4. Where the head of the relevant customs office recognizes the existence of a cause corresponding to the provisions of subparagraphs 1 through 3.
(2) The head of the relevant customs office shall extend the due date for payment under Article 10 of the Act according to the standards set by the Commissioner of the Korea Customs Service.
(3) Any person who intends to get his/her due date for payment extended under Article 10 of the Act shall file an application stating the following matters with the head of the relevant customs office prior to the expiration of his/her due date for payment:
1. The name, domicile and firm name of the person liable for duty payment;
2. The amount of customs duties whose due date for payment is intended to get extended, the date on which a declaration is filed on the relevant goods, the number of such declaration and the names, standard, quantity and price of the relevant goods;
3. Reasons for extending the due date for payment and an extended period.
(4) When the head of the relevant customs office extends the deadline under Article 10 of the Act, he/she shall serve a duty payment notice in accordance with Article 39 of the Act. <Amended on Feb. 17, 2021>
(5) Deleted. <Mar. 27, 2017>
(6) When any person liable for duty payment of which the deadline is extended under Article 10 of the Act falls under any of the following subparagraphs, the head of the relevant customs office may cancel the extension of the deadline for his/her duty payment:
1. When he/she fails to pay customs duties within a fixed due date;
2. When he/she deems it no longer necessary to extend his/her due date for payment after the value of his/her property has risen and circumstances surrounding him/her have changed;
3. When the collection of the total amount of his/her customs duties is deemed impracticable, due to the adjudication of bankruptcy against him/her or the dissolution of his/her corporation or for other reasons.
(7) When the head of the relevant customs office cancels the extension of deadline of duty payment under paragraph (6), he/she shall serve a duty payment notice as prescribed in Article 39 of the Act by setting deadline for duty payment not exceeding 15 days. <Amended on Feb. 15, 2013; Feb. 17, 2021>
[Title Amended on Apr. 1, 2011]
SECTION 2 Delivery of Documents, etc.
 Article 3 (Period for Keeping Declaration-Related Documents)
(1) "Period prescribed by Presidential Decree" in Article 12 of the Act means a period prescribed in the following classifications: <Amended on Dec. 31, 2001; Apr. 5, 2007; Apr. 1, 2011; Feb. 17, 2021>
1. Any of the following documents: Five years from the date on which the relevant declaration is accepted:
(a) Import declaration completion certificate;
(b) Contracts concerning import transactions or other documents substituting such contracts;
(c) Contracts related to the trade of intellectual property rights under Article 237 or other documents substituting such contracts;
(d) Data on the determination of prices of imported goods;
2. Any of the following documents: Three years from the date on which the relevant declaration is accepted:
(a) Export declaration completion certificate;
(b) Return declaration completion certificate;
(c) Data on the determination of prices of exported or returned goods;
(d) Contracts related to export transactions or returning transactions or other documents substituting such contracts;
3. Any of the following documents: Two years from the date on which the relevant declaration is accepted:
(a) Data pertaining to the shipment of bonded cargoes;
(b) Data pertaining to cargo manifesto;
(c) Data pertaining to bonded transportation.
(2) Documents referred to in the subparagraphs of paragraph (1) may be retained by using the data transmission and storage media, including microfilms and optical disks prescribed by the Commissioner of the Korea Customs Service. <Amended on Feb. 6, 2015>
SECTION 3 Deleted.
 Article 4 Deleted. <Feb. 4, 2009>
CHAPTER II CUSTOMS VALUES AND ASSESSMENT AND COLLECTION OF CUSTOMS DUTIES
SECTION 1 Common Provisions
 Article 5 (Persons Liable for Duty Payment)
"Commercial document prescribed by Presidential Decree" in Article 19 (1) 1 (b) of the Act means any of the following subparagraphs: <Amended on Apr. 1, 2011>
1. Invoice;
2. The bill of lading and the airway bill.
SECTION 2 Extinguishment, etc. of Liability for Duty Payment
 Article 6 (Initial Date in Calculating Limitation Period for Assessing Customs Duties)
In calculating the limitation period for assessing customs duties under Article 21 (1) of the Act, the day following the day on which an import declaration is filed shall be the day on which customs duties may be assessed: Provided, That in cases falling under each of the following subparagraphs, the day prescribed by the relevant subparagraph shall be the day on which customs duties are assessed: <Amended on Dec. 31, 2001; Feb. 2, 2012>
1. In cases falling under subparagraphs 1 through 11 of Article 16 of the Act, the day following the day on which the fact occurs;
2. Where reduced or exempted customs duties are collected on the ground that obligations are not fulfilled, the day following the day on which the ground therefor arises;
3. In cases of foreign goods shipped into a bonded construction work site, the day following the day that arrives first between the following days:
(a) The day on which a report is filed on the completion of construction works under Article 211;
(b) The day on which the license period (referring to the extended license period if extended) expires under Article 176 of the Act;
4. The day following the day on which customs duties are collected on the grounds of excessive refund, unfair refund, etc.;
5. The day following the day on which the final value is filed, if the final value is filed after filing the provisional value in accordance with Article 28 of the Act (Provided, That, where no final value is filed within the period prescribed in Article 28 (2) of the Act, the day following the expiration date of the relevant period).
 Article 7 (Initial Date of Extinctive Prescription of Authority to Collect Customs Duties)
(1) The day the authority to collect customs duties may be exercised under Article 22 (1) of the Act shall be each of the following days: <Amended on Dec. 30, 2002; Mar. 29, 2004; Feb. 2, 2012; Feb. 15, 2013; Feb. 17, 2021>
1. With respect to customs duties paid by self-assessment under Article 38 of the Act, the day following the day 15 days elapse from the day an import declaration is accepted: Provided, That in cases of the monthly payment referred to in Article 1-5, such day shall be the day following the day the payment due date expires;
1-2. With respect to customs duties paid in accordance with Article 38-2 (4) of the Act, the day after the day following the day an application is filed for a revision with respect to the deficient amount of customs duties;
2. With respect to customs duties paid under Article 38-3 (1) of the Act, the day after the day following the day an amended declaration is filed;
3. With respect to customs duties assessed by a duty assessment notice under Article 39 of the Act, the day following the day 15 days elapse from the day a duty payment notice is served;
4. With respect to customs duties paid under Article 253 (3) of the Act, the day following the day 15 days elapse from the day an import declaration is filed;
5. With respect to customs duties assessed by a duty payment notice under other statutes, the day following the day the due date for payment expires, if such payment due date is set.
(2) The day the right to request a refund of customs duties may be exercised under Article 22 (2) of the Act shall be each of the following days: <Amended on Mar. 29, 2004; Mar. 26, 2010; Feb. 2, 2012; Mar. 27, 2017; Feb. 13, 2018>
1. Where customs duties are refunded upon an application for rectification under Article 38-3 (6) of the Act, the day a decision of rectification is made;
2. Where customs duties are refunded after they are found to have been paid erroneously or in double, the day such customs duties are paid;
3. Where customs duties assessed on goods, etc. which are different from terms of a contract under Article 106 (1) of the Act are refunded, the day an export declaration on the relevant goods is accepted or a report is made on the shipment of the relevant goods into a bonded factory;
3-2. Where customs duties assessed on goods which are disposed of, destroyed or lost, changed qualitatively or damaged under Article 106 (3) or (4) of the Act are refunded, the day the relevant goods are disposed of, destroyed or lost, changed qualitatively or damaged;
3-3. Where custom duties on goods for private use which are exported in original conditions pursuant to Article 106-2 (1) of the Act are refunded, the day on which an export declaration is accepted: Provided, That in cases of goods on which the export declaration is omitted, it shall be the day they are loaded onto the means of transportation;
3-4. Where any person who sells goods in any general bonded area intends to get customs duties refunded in accordance with Article 199-2 of the Act and Article 216-5 (2) of this Decree, the day documents necessary to be refunded under the respective provisions are submitted;
4. Where an import declaration or an import declaration prior to port entry is withdrawn or rejected under Article 250 of the Act after customs duties have been paid following the import declaration or the import declaration prior to port entry, the day the import declaration or the import declaration prior to port entry is withdrawn or rejected;
5. Where customs duties are refunded pursuant to the amended Act after the customs duties have been legally paid, the day such amended Act enters into force.
SECTION 3 Security for Payment of Customs Duties
 Article 8 Deleted. <Feb. 4, 2009>
 Article 9 (Appraisal of Security)
(1) The appraisal of security provided for in Article 24 (1) 2 and 3 of the Act shall be made in accordance with the following subparagraphs: <Amended on Aug. 27, 2013>
1. Securities that have been traded among securities listed on the securities market established by the Exchange under the Financial Investment Services and Capital Markets Act: Final quotations of the securities published on the preceding day of the day when they are provided as security;
2. Securities other than those of subparagraph 1: Values calculated by applying mutatis mutandis Article 58 (1) 2 of the Enforcement Decree of the Inheritance Tax and Gift Tax Act on the preceding day of the day when they are provided as security.
(2) The appraisal of security under Article 24 (1) 5 and 6 of the Act shall be made according to the following subparagraphs: <Amended on Aug. 31, 2016>
1. Appraisal of land or buildings: Values appraised by applying mutatis mutandis Article 61 of the Inheritance Tax and Gift Tax Act;
2. Factory foundations, mining foundations, ships, aircraft or construction machinery: Values appraised by an appraisal business entity under the Act on Appraisal and Certified Appraisers or standard market prices prescribed in the Local Tax Act.
[This Article Wholly Amended on Feb. 4, 2009]
 Article 10 (Procedures for Offering Security)
(1) Any person who intends to offer security against his/her customs duties shall furnish a security-offering document stating the kind, quantity and amount of such security, and reasons therefor to the head of the relevant customs office.
(2) Any person who intends to offer money as security shall pay it to a financial institution designated by the Commissioner of the Korea Customs Service among the financial institutions referred to in subparagraphs of Article 11 (1) of the Enforcement Decree of the Management of the National Funds Act and append a written confirmation of such fact to a security-offering document. <Newly Inserted on Feb. 12, 2019>
(3) Any person who intends to offer government bonds or municipal bonds as security shall append a power of attorney of a person who can exercise all the powers on the relevant bonds to the security-offering document. <Amended on Feb. 4, 2009; Feb. 12, 2019>
(4) Any person who intends to offer securities under Article 24 (1) 3 of the Act as security shall append a written confirmation of securities granted by the issuer of the relevant securities and a power of attorney of a person who can exercise all the powers on the relevant securities to the security-offering document. <Amended on, Feb. 4, 2009; Feb. 12, 2019>
(5) Any person who intends to offer an guarantee insurance policy on duty payment under Article 24 (1) 4 of the Act or an letter of guarantee for payment of customs duties of guarantors approved by the head of a customs office pursuant to subparagraph 7 of the same paragraph as security shall append the guarantee insurance policy on duty payment or the letter of guarantee for payment of customs duties to the security-offering document. In such cases, the term of guarantee or insurance which becomes security shall be the period requiring the relevant security, on condition that it shall be the term prescribed by the Commissioner of the Korea Customs Services if the due date for payment has not been determined. <Amended on Feb. 4, 2009;, Feb. 12, 2019>
(6) Any person who intends to offer land under Article 24 (1) 5 of the Act or factories, factory foundations, mining foundations, ships, aircraft or construction machinery under subparagraph 6 of the same paragraph as security shall append documents required for the establishment of mortgage to the security-offering document. In such cases, the head of a customs office shall take measures for registering or recording the establishment of mortgage. <Amended on Feb. 4, 2009; Feb. 12, 2019>
(7) Any person who intends to offer buildings, factory foundations, mining foundations, ships, aircraft or construction machinery insured pursuant to paragraph (6) as security shall furnish an insurance policy thereof. In such cases, the term of such insurance shall be obtained by adding at least 30 days to the period requiring the security. <Amended on Feb. 4, 2009; Feb. 12, 2019>
(8) The amount of the security intended to be offered shall be equivalent to the amount of customs duties payable: Provided, That where the amount of such customs duties is not determined, the Commissioner of the Korea Customs Service shall determine such amount.
(9) In cases falling under each of the following subparagraphs, the head of the relevant customs office shall serve the duty payment notice on any person liable for duty payment under Article 39 of the Act: <Amended on Feb. 17, 2021>
1. Where a person who intends to offer security for payment of customs duties fails to do so within ten days from the day on which the amount of such security was fixed;
2. Where a person liable for duty payment fails to offer security under Article 248 (2) of the Act within ten days from the day on which an import declaration was filed.
 Article 11 (Comprehensive Security)
(1) Any person who intends to offer comprehensive security in accordance with Article 24 (4) of the Act shall file with the head of the relevant customs office an application describing the period, the maximum amount of such comprehensive security, the security offerer's export and import performance of the preceding year and the estimated quantity of export and import goods.
(2) Requirements for offering the comprehensive security, the kinds of such security and other necessary matters shall be prescribed by the Commissioner of the Korea Customs Service.
 Article 12 (Change in Security)
(1) Any person who offers security for payment of customs duties shall, when the head of the relevant customs office notifies him/her to increase or change such security as the security's value falls, act, without delay, according to such notification.
(2) Any person who furnishes security for payment of customs duties shall, when he/she intends to modify the security, the guaranteed bank, the guaranteed insurance company, the date for payment of customs duties guaranteed by the bank or the period for payment of customs duties guaranteed by insurance, obtain approval therefor from the head of the relevant customs office.
 Article 13 (Request for Rescission of Security)
Any person who intends to have his/her security rescinded shall file with the head of the relevant customs office a written application describing the kind, quantity and amount of security, the date of offering security and reasons for rescission, appended by a document attesting the reasons for rescission: Provided, That where the head of the relevant customs office may be able to verify the reasons for rescission of security, such as the fact of ex post facto payment of customs duties, by using the electronic data processing equipment of the Comprehensive Customs Duties Information Network of Korea referred to in Article 327 of the Act, documents, etc. attesting the pertinent reasons determined and publicly announced by the Commissioner of the Korea Customs Service may not be submitted. <Amended on Apr. 5, 2007; Feb. 4, 2009>
 Article 14 (Sale of Security)
(1) The head of the relevant customs office shall, when he/she intends to sell any security furnished, publish the domicile, the name of the security furnisher, the kind and quantity of the security, reasons for sale, sale place as well as sale date and time and other necessary matters.
(2) The head of the relevant customs office shall, when a person liable for duty payment pays customs duties and other fee by one day before the sale is scheduled, suspend the sale thereof.
SECTION 4 Declaration and Determination of Customs Value
 Article 15 (Value Declaration)
(1) Any person who intends to file a value declaration under the main clause of Article 27 (1) of the Act shall submit documents to the head of the relevant customs office, stating the following matters: <Amended on Feb. 22, 2008>
1. Transactions involving importation;
2. The calculation of a customs value.
(2) Cases prescribed and publicly announced by the Commissioner of the Korea Customs Service, and cases falling under any of the following subparagraphs, all or some of the documents falling under the subparagraphs of paragraph (1) may be exempt from submission: <Newly Inserted on Feb. 22, 2008>
1. Cases of repeatedly importing the same goods under the same conditions;
2. Cases where no other addable amounts to the value, which has been actually paid, or to be paid by a buyer for goods for sale to export to Korea, exist except for shipping charges to the port of entry and insurance premiums;
3. Other cases the Commissioner of the Korea Customs Service determines that there is no difficulty in determining a customs value.
(3) Where any persons who intend to file value declarations fall under paragraph (2) 1, the the head of the relevant customs office may allow them to collectively file value declarations, under the main clause of Article 27 (1) of the Act, for a certain period. <Newly Inserted on Feb. 22, 2008>
(4) Any person who intends to file a value declaration prior to filing an import declaration on goods in accordance with the proviso to Article 27 (1) of the Act shall submit a report stating the reason therefor and the matters of each subparagraph of paragraph (1) to the head of the relevant customs office. <Amended on Feb. 22, 2008>
(5) The duty data to be submitted when a value declaration is filed under Article 27 (2) of the Act shall be as follows: Provided, That where the head of the relevant customs office deems it clear to determine a customs value in light of the transaction of the relevant goods and the method of determining such customs value, etc., part of such duty data may be omitted: <Amended on Feb. 22, 2008>
1. Invoice;
2. Contract;
3. Evidential documents showing the amount of various costs and the base for calculating such amount;
4. Other materials necessary for verifying contents of the value declaration.
 Article 16 (Declaration, etc. of Provisional Value)
(1) "Cases prescribed by Presidential Decree" in the former part of Article 28 (1) of the Act means any of the following cases: <Amended on Feb. 22, 2008; Feb. 29, 2008: Apr. 1, 2011; Mar. 27, 2017; Oct. 7, 2020; Feb. 17, 2021>
1. Where the price of goods (limited to the goods prescribed by Ordinance of the Ministry of Economy and Finance), which is determined after the expiration of a certain period of time after the effectuation of transaction thereon considering the transaction practices, has yet to be determined as of the day on which an import declaration thereon is filed;
2. Where the amount that has to be adjusted in accordance with each subparagraph of Article 30 (1) of the Act is confirmed by document, etc. described in paragraph (2) that such amount may be determined after the expiration of a certain period of time from the day on which an import declaration thereon is filed;
2-2. Where an application for an advance ruling on the method for determining a customs value is filed under Article 37 (1) 3 of the Act;
2-3. Where the requirements prescribed by Ordinance of the Ministry of Economy and Finance are fulfilled, as a transaction in which the transaction value of imported goods under the main clause of Article 30 (1) of the Act is expected to be adjusted to the arm's length price under Article 8 of the Adjustment of International Taxes Act, among the transactions between a buyer and a seller who are in any of the special relationship set forth in each subparagraph of Article 23 (1);
3. Cases prescribed by Ordinance of the Ministry of Economy and Finance and deemed inevitable to file a value declaration based on a provisional value declaration in light of contents of the contract involved and characteristics of the transaction involved.
(2) Any person who intends to file a provisional value declaration in accordance with paragraph (1) shall file such declaration with the head of the relevant customs office, stating the following matters, along with documents under each subparagraph of Article 15 (5): <Amended on Feb. 22, 2008>
1. The matters of each subparagraph of Article 15 (1);
2. Details of transaction;
3. Reasons for the impossibility of determining a value;
4. A provisional value and a method for determination thereof;
5. Estimated time that a value is finally determined.
(3) Any person who has filed a value declaration based on a provisional value declaration shall file a final value (hereafter in this Article referred to as "final value") within a period fixed by the head of the relevant customs office up to two years taking into account the content, etc. of the transaction contract between the buyer and the seller. In such cases, the person who has filed a value declaration based on a provisional value declaration may request additional rates be computed for calculation of a final value by 30 days prior to the expiration date of the declaration period specified in the former part as prescribed by the Commissioner of the Korea Customs Service. <Amended on Apr. 5, 2007; Oct. 7, 2020>
(4) Where the head of the relevant customs office deems that there exists an unavoidable reason making it impossible to determine a provisional value due to a revision of the transaction contract between the buyer and the seller, he/she may extend, upon a request from a person liable for duty payment, the period fixed pursuant to the former part of paragraph (3). In such cases, the period so extended cannot exceed two years beginning from the expiration date of the period fixed under the former part of paragraph (3). <Amended on Apr. 5, 2007; Oct. 7, 2020>
(5) Any person who intends to file a final value declaration in accordance with Article 28 (2) of the Act shall file such declaration with the head of the relevant customs office, stating the following matters, along with the data prescribed in Article 15 (5) 3 and 4: <Amended on Feb. 22, 2008>
1. The number of a provisional value declaration, the number of an import declaration and the date of declaration;
2. The name of goods and the date on which an import declaration is accepted;
3. The difference between the provisional value and the final value.
(6) Articles 33, 34 (3) through (5) and 50 through 55 shall apply mutatis mutandis where the difference between the amount of payment of customs duties by self-assessment by based on a provisional value declaration and that of customs duties paid based on a final value declaration is collected or refunded in accordance with Article 28 (4) of the Act. <Amended on May 22, 2006; Feb. 2, 2012>
 Article 16-2 (Publication of Declared Value for Imported Goods, etc.)
(1) Where the Commissioner of the Korea Customs Service publishes the compiled data on the average declared values or quantities of imported goods under Article 29 (2) of the Act, he/she shall do so on the website of the Korea Customs Service. In such cases, the Commissioner of the Korea Customs Service shall also publish standards for selecting the imported goods to be published and the method of compiling data on the average declared values or quantities of the imported goods.
(2) The Commissioner of the Korea Customs Service shall not publish any of the following:
1. The trademarks and trade names of imported goods;
2. Matters on business secrets of each importer;
3. Other matters likely to substantially infringe on each importer's justifiable interests if disclosed.
(3) The imported goods that are comparable with the domestic goods under Article 29 (2) of the Act shall satisfy the following requirements:
1. They shall fall under the item code specified in the Harmonized System of Korea under Article 98;
2. There shall be at least two importers of the relevant imported goods.
[This Article Newly Inserted on Apr. 1, 2011]
 Article 17 (Scope of Goods Sold to be Exported to Korea)
The goods sold to be exported to Korea under the main clause of Article 30 (1) of the Act shall not include any goods falling under each of the following subparagraphs:
1. Goods imported free of charge;
2. Goods imported to be sold on consignment, whose sale price is determined through auction, etc.;
3. Goods imported to be sold in Korea on an importer's responsibility;
4. Goods imported by a branch office, etc. that is not a legally separate and independent company;
5. Goods imported under a lease agreement;
6. Goods imported on a free lease;
7. Goods, including industrial wastes, imported to be disposed of in Korea at the expense of the importer thereof.
 Article 17-2 (Scope, etc. of Purchase Commissions)
(1) The purchase commissions under the proviso to Article 30 (1) 1 of the Act (hereinafter referred to "purchase commissions") shall be the amount payable by the buyer to his/her purchasing agent as consideration for services provided by the purchasing agent for the buyer abroad in connection with the purchase of the relevant imported goods.
(2) Where the costs other than the purchase commissions are included in the costs paid by a buyer to his/her purchasing agent, the relevant amount shall be deemed the purchase commission only in cases where the amount equivalent to the purchase commissions among the costs paid can be separately calculated.
(3) Where it is deemed necessary, the head of a customs office may request a buyer to submit the data concerning the purchase commissions.
[This Article Newly Inserted on Apr. 1, 2011]
 Article 18 (Scope of Goods and Services Supplied without Compensation or at Reduced Price)
"Goods and services prescribed by Presidential Decree" in Article 30 (1) 3 of the Act means any of the following goods and services supplied directly or indirectly by a buyer: <Amended on Jun. 30, 2005; Feb. 29, 2008; Apr. 1, 2011>
1. Materials, components, parts and similar goods combined with imported goods;
2. Tools, molds, dies and other similar goods used for the production of imported goods, which are prescribed by Ordinance of the Ministry of Economy and Finance;
3. Goods used in the production process of imported goods;
4. Technology, plan, device, technical art and design for the production of imported goods: Provided, That those developed in Korea shall be excluded herefrom.
 Article 18-2 (Distribution, etc. of Amount of Goods and Services Supplied Free of Charge or at Discounted Prices)
Where the amount of goods and services supplied free of charge or at discounted prices under Article 30 (1) 3 of the Act (referring to the amount computed based on the actual transaction value; where goods and services produced in the Republic of Korea are supplied, such amount shall be computed with the exception of value-added tax) is added up, such amount shall be distributed in consideration of the following factors: <Amended on Oct. 7, 2020>
1. The ratio of goods actually imported to the total production of the relevant imported goods;
2. Where goods and services supplied are related to the production of goods other than the relevant imported goods, the ratio of the transaction value of the relevant imported goods to the total amount of transaction values of each produced goods (where goods other than the relevant imported goods are produced in the Republic of Korea, value-added taxes shall be excluded from transaction values).
(2) Notwithstanding paragraph (1), a person liable to pay tax may distribute the price of goods and services supplied free of charge or at discounted prices pursuant to Article 30 (1) 3 of the Act or the total amount of discount to the price which has actually been paid or is payable for the first imported goods. In such cases, where a number of goods, the tariff rates of which are different in total imported goods, the whole amount referred to in the former part shall be apportioned among the prices of goods imported first by other goods, the tariff rate of which is different. <Newly Inserted on Oct. 7, 2020>
[This Article Newly Inserted on Feb. 15, 2013]
 Article 19 (Calculation of Royalty of Use of Right)
(1) "Other rights similar thereto" in Article 30 (1) 4 of the Act means the following:
1. Legal rights such as copyright;
2. Production method and sale method as well as technical and operational information, etc. useful for business activities, which are not deemed legal rights, but economically valuable and kept secret with considerable efforts (hereinafter referred to as "business secret").
(2) The price for using the rights of patent, utility model, design, trademark and similar rights (excluding the price for any right to reproduce any specific device or original idea on other goods in Korea using imported goods in which such device or original idea is embodied; hereinafter referred to as "royalty"), which is to be added to the price paid or to be paid by the buyer of the relevant goods under Article 30 (1) of the Act shall be the amount which is paid directly or indirectly by the buyer according to the terms and conditions of transaction in relation to the relevant goods. <Amended on Jun. 30, 2005>
(3) In applying paragraph (2), the royalty shall be deemed related to the relevant goods in cases falling under each of the following subparagraphs: <Amended on Jun. 30, 2005>
1. If the royalty is paid for the right of patent, imported goods shall fall under each of the following goods:
(a) Goods produced using any patent or any invention;
(b) Goods produced using a patented method;
(c) Parts, raw materials and components of goods to be produced in Korea using the relevant patent, which are embodied with the relevant patent in whole or in part;
(d) Facilities and equipment, machinery and apparatus (including parts, etc. with major characteristics) designed suitable for the application of the patented method;
2. If the royalty is paid for the right of design, where the imported goods are the goods which express the relevant design or parts or components of goods to be produced in Korea using the relevant right of design and express the relevant design in whole or in part;
3. If the royalty is paid for the right of trademark, where the trademark is attached to the imported goods, or the trademark is attached to the imported goods after the slight processing such as diluting, mixing, classifying, simply assembling, repacking, etc.;
4. If the royalty is paid for a copyright, where the imported goods contain lyrics, melodies, pictures and computer software, etc.;
5. If the royalty is paid for the right of utility model or business secret, where such right of utility model or such business secret has a relationship corresponding to that of subparagraph 1 with the imported goods;
6. If the royalty is paid for other rights, where the relevant right has a relationship corresponding to the provisions governing the right most similar to the relevant right in light of right nature, from among the provisions of subparagraphs 1 through 5, with the imported goods.
(4) In applying paragraph (2), royalties paid with respect to computer software shall be deemed unrelated to magnetic tapes, magnetic disks, CD-ROMs and articles similar thereto (limited to those included in codes (hereinafter referred to as "HS code") 8523 on the Schedules of Tariff Rates of attached Table of the Act) on which computer software is recorded. <Amended on Apr. 5, 2007; Apr. 1, 2011>
(5) In applying the provisions of paragraph (2), the royalty shall be deemed paid according to the conditions of transaction of the relevant goods in cases falling under each of the following subparagraphs:
1. Where a buyer pays the royalty to a seller to purchase imported goods;
2. Where a buyer pays the royalty to a person other than a seller to purchase imported goods according to an agreement between the buyer and the seller;
3. Where a buyer, upon permission of a person other than a seller for the use of a patent right, etc., allows such seller to use such patent right and pays the royalty to a person who is not the seller to purchase imported goods.
(6) In applying paragraph (2), where the price for goods not related to imported goods or activities such as domestic production or other businesses is included in the royalty paid by a buyer, the royalty related to imported goods, from among the total royalty, shall be added. In such cases, the Commissioner of the Korea Customs Service may prescribe a necessary formula. <Amended on Oct. 7, 2020>
 Article 19-2 (Scope of Amount of Revenue accruing from Resale, Disposal or Use of Imported Goods)
"Amount of profit accruing from the resale, disposal or use of the relevant imported goods" in Article 30 (1) 5 of the Act means the proceeds from the resale, disposal or rent of the relevant imported goods. Provided, That amounts not related to imported goods, such as stock dividends and the prices of financial services, shall be excluded herefrom.
[This Article Newly Inserted on Oct. 7, 2020]
 Article 20 (Determination of Freight, etc.)
(1) The freight and insurance bill as prescribed in Article 30 (1) 6 of the Act shall be calculated according to the statements of freight, insurance bill issued by the relevant businessman or documents in lieu thereof.
(2) Where it is impossible to calculate the freight and insurance bill under paragraph (1), such freight and insurance bill shall be calculated according to that prescribed by the Ordinance of the Ministry of Economy and Finance taking into account the transportation distance and method, etc. <Amended on Oct. 7, 2020>
(3) Where goods prescribed by the Ordinance of the Ministry of Economy and Finance are transported by aircraft, the freight and insurance bill thereof shall be calculated assuming that such goods are transported by other general transportation method than aircraft. <Amended on Oct. 7, 2020>
(4) Where the freight of goods falling under each of the following subparagraphs is considerably different from the normal freight, the freight normally applied by a shipping company or an airline (including persons acting for such affairs. hereinafter referred to as “shipping company, etc.” in this paragraph) under Article 225 (1) of the Act may be the freight for the relevant goods: <Amended on Oct. 7, 2020>
1. Goods transported through means of transportation of an importer or a shipping company, etc. in special relationship with an importer;
2. Goods transported according to a maritime charter containing a special agreement on the freight and loading quantity (including cases where the actual loading quantity falls short of the specially agreed quantity);
3. Other goods transported under special conditions.
(5) The amount described in the main clause of Article 30 (1) 6 of the Act means the cost borne by an importer to cover the arrival of a vessel loaded with the relevant goods at the port of entry and the unloading work of such goods.
(6) A person liable to pay tax who intends to be applied a freight or an insurance bill calculated pursuant to paragraph (3), when filing a value declaration of the relevant goods pursuant to Article 27 of the Act, shall submit documents proving that the goods fall under the goods prescribed by the Ordinance of the Ministry of Economy and Finance: Provided, That cases where the head of a customs office deems that data submission is not needed, such as where the amount of customs value is small. <Amended on Oct. 7, 2020>
(7) Deleted. <Oct. 7, 2020>
 Article 20-2 (Indirect Payments)
(6) "Other indirect payments" in the main clause, with the exception of the subparagraphs of Article 30 (2) of the Act means payments falling under each of the following subparagraphs:
1. Where the price for imported goods, upon a seller's request, is paid, in whole or in part, to a third person, the amount of such payment;
2. Where a buyer, who acts on behalf of a seller or a third person in pledging a maintenance bond under the transaction conditions of the relevant imported goods, gets the amount accruing therefrom discounted or pays separately costs involved in the maintenance bond, in whole or in part, the paid amount;
3. Cost involved in training or education conducted abroad, which is paid by a buyer under transaction conditions of imported goods;
4. Where a buyer pays financial expenses, etc. which are to be borne by a seller, the amount paid.
(2) Expenses incurred by a buyer on his/her account, other than the additional amount referred to in the subparagraphs of Article 30 (1) of the Act, shall not be deemed "other indirect payments" in the main clause, with the exception of the subparagraphs, of paragraph (2) of the same Article.
(3) Where interest on deferred payment of imported goods is deducted from the total amount a buyer has paid or should pay pursuant to Article 30 (2) 4 of the Act, the relevant interest on deferred payment shall meet all the following requirements:
1. The interest shall be separately counted from the amount paid or payable as a price for imported goods;
2. The interest shall be confirmed in a written contract;
3. The relevant goods shall be sold at a value specified in an import declaration and the interest rate is required not to exceed the level widely applied to such transaction effected at the time in a country where loans are extended.
[This Article Newly Inserted on Oct. 7, 2020]
 Article 21 (Scope of Limit on Disposal or Use)
Where the disposal or use of goods is limited in accordance with Article 30 (3) 1 of the Act, the limit falling under each of the following subparagraphs shall be deemed included therein:
1. The limit that is made for the relevant goods to be used for specific purpose such as exhibition, charity and education, etc.;
2. The limit that is made for the relevant goods to be sold or rented only to specific persons;
3. The limit that is made to practically affect the price of the relevant goods.
 Article 22 (Limit, etc. not Affecting Transaction Value)
(1) "Cases prescribed by Presidential Decree, such as where there is a restriction deemed by the head of a customs office as not practically affecting the transaction value" in the proviso to Article 30 (3) 1 of the Act means the existence of any of the following restrictions: <Amended on Apr. 1, 2011; Feb. 6, 2015; Oct. 7, 2020>
1. The restriction imposed or required by Korean statutes or a disposition taken in accordance with Korean statutes;
2. The restriction on areas where imported goods are marketable;
3. Other normally permissible restrictions in consideration of characteristics of the relevant imported goods, practices of the relevant industry, etc., as those deemed by the head of the relevant customs office as not practically affecting the price of imported goods.
(2) Cases where the determination of price of the relevant goods is affected by conditions or considerations which cannot be counted in terms of money under Article 30 (3) 2 of the Act, shall include any of the following cases:
1. Where the price of the relevant goods is determined on the condition that a buyer purchases a specific quantity of other goods from a seller;
2. Where the price of the relevant goods is determined depending on the price of other goods sold by a buyer to a seller;
3. Where the price of the relevant goods is determined on the condition that a seller receives a certain quantity of finished goods in return for supplying semi-finished goods to a buyer.
 Article 23 (Scope of Special Relationship, etc.)
(1) "Special relationship prescribed by Presidential Decree" in Article 30 (3) 4 of the Act means any of the following cases: <Amended on May 22, 2006; Apr. 1, 2011; Feb. 15, 2013>
1. Where the buyer and the seller are an executive officer or manager of their business;
2. Where the buyer and the seller are legally in the same line of business;
3. Where the buyer and the seller are in the employment relationship;
4. Where any specified person holds or controls, directly or indirectly, at least five percent of the voting stocks of the buyer and the seller;
5. Where either the buyer or the seller is in a position to direct or control the other legally or practically or one party controls directly or indirectly the other party;
6. Where the buyer and the seller are controlled directly or indirectly by the same third person;
7. Where the buyer and the seller jointly control directly or indirectly the same third person;
8. Where the buyer and the seller are in a relationship by blood falling under any of the subparagraphs of Article 1-2 (1) of the Enforcement Decree of the Framework Act on National Taxes.
(2) "Cases prescribed by Presidential Decree, such as where it is determined in a manner conforming to the normal pricing practices in the relevant industry" in the proviso to Article 30 (3) 4 of the Act means any of the following cases: <Amended on Feb. 29, 2008; Feb. 6, 2015; Oct. 7, 2020>
1. Where the price of the relevant goods is determined by pricing ordinarily adopted by the buyer and the seller having no special relationship;
2. Where the price of the relevant goods is determined in a manner conforming to the normal pricing practices in the relevant industry;
3. Where the price of the relevant goods is close to one of the following prices (hereinafter referred to as “comparative price, etc.” in this paragraph) and is proved by buyers that they are at the level of the prices prescribed by the Ordinance of the Ministry of Economy and Finance. In such cases, the base point for calculating the comparative price is prescribed by the Ordinance of the Ministry of Economy and Finance:
(a) The transaction price of the goods identical or similar to the relevant goods in terms of kind or quality, exported to a buyer of Korea who has no special relationship;
(b) The customs value of the goods of identical or similar to the relevant goods in terms of kind or quality, which is determined in accordance with Articles 33 and 34 of the Act.
(3) In comparing the price of the relevant goods with its comparative price, the transaction channel and quantity of the relevant goods and the difference between the relevant goods and matters described in Article 30 (1) of the Act shall be considered. <Amended on Oct. 7, 2020>
(4) Each person, who intends to apply the provisions of paragraph (2), shall provide data necessary to verify his/her qualification when he/she files a value declaration as prescribed by the Commissioner of the Korea Customs Service.
 Article 24 (Scope, etc. of Disapproval of Customs Value)
(1) "Cases prescribed by Presidential Decree" in Article 30 (4) of the Act means any of the following cases: <Amended on Feb. 29, 2008; Apr. 1, 2011; Feb. 15, 2013; Feb. 5, 2016>
1. Where any value declared by a person liable for duty payment is substantially different from the value of the goods of the same kind or quality or the similar goods;
2. Where any value declared by a person liable for duty payment has substantially fluctuated although he/she has continued to import goods from the same supplier;
3. Where declared goods are crude oil, minerals, grains, etc., the international market prices of which are published, and the declared values are substantially different from their published international market prices;
3-2. Where declared goods are crude oil, minerals, grains, etc., the international market prices of which are not published, and when the value in a producing area of imported goods is surveyed by the Commissioner of the Korea Customs Service or by a person appointed by him/her, the declared value is substantially different from such surveyed value;
4. Where the previous value declared by a person liable for duty payment is substantially different from a new value declared by him/her after he/she changes his/her customer;
5. Cases prescribed by Ordinance of the Ministry of Economy and Finance, similar to those of subparagraphs 1 through 4.
(2) When the head of the relevant customs office requests a person liable for duty payment to furnish data under Article 30 (4) of the Act, he/she shall provide such person with a written request, stating reasons therefor and the period required for furnishing such data. <Amended on Oct. 7, 2020>
(3) "Where it is impracticable to accept the value declared by him/her as the customs value on the grounds prescribed by Presidential Decree" in Article 30 (5) 3 of the Act, means any of the following cases: <Newly Inserted on Apr. 5, 2007; Apr. 1, 2011>
1. Where data submitted by the person liable for duty payment fails to specifically represent the transaction relations of import goods;
2. Where other reasonable grounds exist to suspect the accuracy or truth of the declared value, such as being unable to verify the factual relations with respect to data submitted by the person liable for duty payment.
 Article 25 (Scope of Goods of Same Kind or Quality)
"Goods of the same kind or quality" in Article 31 (1), with the exception of the subparagraphs, of the Act means the goods identical to the relevant imported goods in terms of physical characteristics, quality and consumer credit with the former produced in the country which produces the latter (including any identical goods in all respect with the slight difference of their appearance). <Amended on Oct. 7, 2020>
(2) "Loading" in Article 31 (1) 1 of the Act means the date of loading the imported goods from an exporting country to transport them to the Republic of Korea, and shall be confirmed as a bill of lading, a invoice, etc. Provided, That where it is impracticable to ascertain the date of shipment and the country and means of shipment of the relevant goods are the same as those of the goods of the same kind or quality, “date of shipment” and “shipment" under the same subparagraph shall be construed as "date of entry into the port" and "arrival into the port", respectively. <Newly Inserted on Oct. 7, 2020>
(3) "The period for which no change is made in the market conditions or the commercial practices that affect the price before and after the loading date of the relevant goods" in Article 31 (1) 1 of the Act shall be the sum of 60 days before and 60 days after the loading date of the relevant goods: Provided, That in cases of goods the price of which is different depending on the season, such as agricultural, forestry, and livestock products, the period shall be the sum of 30 days before the date of shipment and 30 days after the date of shipment. <Newly Inserted on Oct. 7, 2020>
(2) The adjustment of price difference pursuant to Article 31 (1) 2 of the Act shall be made by the methods classified as follows: <Newly Inserted on Oct. 7, 2020>
1. Where the trading levels are different: The adjustment shall be made by reflecting the price difference at each stage normally recognized in the exporting country;
2. Where the quantity of transactions is different: Adjustment of price difference in consideration of evidentiary data, such as quantity-based discount, etc.
3. Where the distance of transport is different: The price difference shall be adjusted in proportion to the distance of transport;
4. Where the types of transportation are different: The adjustment shall be made by reflecting the price difference normally applied to each type of transportation.
(5) In the application of Article 31 (3) of the Act, the goods of the same kind and quality produced by the producer of the relevant goods shall take precedence over the goods of the same kind and quality produced by other producers. <Newly Inserted on Oct. 7, 2020>
 Article 26 (Scope of Similar Goods)
"Similar goods" in Article 32 (1) of the Act means the goods produced in the country which produces the relevant imported goods, and the former, though not identical to the latter in all aspects, performs the same function as that of the latter and is similar to the latter in terms of characteristics and components to the point that the former can be used as an alternative of the latter. <Amended on Oct. 7, 2020>
(2) Article 25 (2) through (5) shall apply mutatis mutandis to the determination of a customs value under Article 32 of the Act. In such cases, "goods of the same kind or quality" shall be construed as "similar goods." <Newly Inserted on Oct. 7, 2020>
 Article 27 (Domestic Sales Price, etc. of Imported Goods)
(1) "Unit price of goods sold in Korea" in Article 33 (1) 1 of the Act means the unit price of goods sold in the first transaction effected after importation: Provided, That the price fixed in any of the following cases shall not be deemed the unit price of goods sold in Korea: <Amended on Apr. 1, 2011>
1. Where the first buyer is in a special relationship with a seller or an importer as prescribed in Article 23 (1);
2. Where the first buyer supplies such goods and services as prescribed in each subparagraph of Article 18 without compensation or at a reduced price to a seller or an importer in connection with the production and transaction of imported goods.
(2) In the calculation of Article 33 (1) 1 of the Act, the order of the relevant goods, the same type and quality, and similar goods shall be applied. In such cases, where the relevant importer sells the goods of the same type or quality, or similar goods, the sales price of the relevant importer shall take precedence over the sales prices of other importers. <Amended on Oct. 7, 2020>
(3) In the application of Article 33 (1) 1 of the Act, the unit price of goods sold nearly at the same time when an import declaration thereon is filed shall be the sales price in a period during which the unit price of the relevant goods, depending on kinds and characteristics, is deemed unchanged from that of the day on which such import declaration is filed: Provided, That the unit price of goods sold after the elapse of 90 days from the day on which such import declaration is filed, shall be excluded herefrom. <Amended on Oct. 7, 2020>
(4) "Goods of the same kind or class" in Article 33 (1) 2 of the Act means the goods which belong to the category generally identical to that of the relevant imported goods (including goods of the same kind and class or similar goods) and are produced by a specific industry or an industry which produces the relevant imported goods. <Amended on Oct. 7, 2020>
(4) Profits and general expenses prescribed in Article 33 (1) 2 of the Act shall be treated as totals and calculated based on an accounting report compiled according to the generally recognized accounting principles and in accordance with the following classifications: <Amended on Feb. 2, 2012; Oct. 7, 2020>
1. Where the rate of profits and general expenses calculated based on an accounting report compiled by a person liable for duty payment does not exceed 110/100 of the rate of profits and general expenses calculated in accordance with paragraph (5) or (7) (hereafter referred to as "rate of the same kind or class" in this Article): Profits and general expenses submitted by the person liable for duty payment;
2. In cases other than those falling under subparagraph 1: Profits and general expenses calculated by applying the rate of the same kind or class.
(5) The head of a customs office shall select the imported goods of the same kind or class taking the characteristics, trade volume, etc. of the relevant imported goods into consideration, as prescribed by the Commissioner of the Korea Customs Service, and calculate the rate of the same kind or class based on the average value of the profits and general expenses added when they are sold in the Republic of Korea. <Newly Inserted on Feb. 2, 2012; Oct. 7, 2020>
(6) The head of a customs office shall notify, in writing, a person liable for duty payment of the rate of the same kind or class and the calculation basis thereof. <Newly Inserted on Feb. 2, 2012; Oct. 7, 2020>
(7) If a person liable for duty payment deems the rate of the same kind or class calculated by the head of the relevant customs office is unreasonable, he/she may file an objection to the Commissioner of the Korea Customs Service, within 30 days from the date of receiving the notification under paragraph (6), through the head of the customs office where his/her imported goods have passed or will pass customs clearance. In such cases, the Commissioner of the Korea Customs Service may recalculate the rate of the same kind or class after examining the data submitted by the relevant person liable for duty payment and those of relevant industries or organizations. <Newly Inserted on Feb. 2, 2012; Feb. 13, 2018; Oct. 7, 2020>
(9) "Other related expenses" in Article 33 (1) 3 of the Act means expenses incurred in connection with importation, such as loading and unloading, inspection, quarantine, inspection and customs clearance of the relevant goods, the goods of the same kind or quality, or similar goods. <Newly Inserted on Oct. 7, 2020>
(10) "Where reasonable grounds exist to suspect the accuracy and authenticity of the relevant price" in Article 33 (2) of the Act means where the domestic sales price of the relevant goods is substantially lower than the domestic sales price of the goods of the same kind or quality or similar goods. <Newly Inserted on Oct. 7, 2020>
 Article 28 (Determination of Customs Value Based on Calculated Price)
(1) An amount falling under Article 34 (1) 1 of the Act shall be calculated based on production-related data, such as accounting books, etc. prepared and provided by the producer of the relevant good in accordance with the generally recognized accounting principles in the country of origin. <Newly Inserted on Oct. 7, 2020>
(2) Expenses incurred in assembling and processing goods and the price thereof prescribed in Article 34 (1) 1 of the Act shall be deemed to include the amount prescribed in Article 30 (1) 2 of the Act, and where costs required to develop any technology, plan, device, design and technical art in Korea is borne by a producer, such costs shall be also deemed included therein. <Amended on Jun. 30, 2005; Oct. 7, 2020>
[Title Amended on Apr. 7, 2020]
 Article 29 (Determination of Customs Value Based on Reasonable Standards)
(1) The determination of any customs value under Article 35 of the Act shall be based on data available in Korea in the application of the following methods. In such cases, the order of application shall be governed by Articles 30 through 34: <Amended on Feb. 15, 2013; Oct. 7, 2020>
1. The method of flexibly interpreting and applying the requirement prescribed in Article 31 (1) 1 of the Act in the application of Article 31 or 32 of the Act;
2. The method of flexibly interpreting and applying the requirement that goods be sold in the same condition as that of the imported goods in the application of Article 33 of the Act;
3. The method of determining a customs value based on a customs value of the goods of the same kind or quality or similar goods, which is deemed a customs value under Article 33 or 34 of the Act;
4. The method of not applying the proviso to Article 27 (3);
5. Other methods deemed reasonable in the light of the substance and common practices of transaction.
(2) The determination of any customs value under Article 35 of the Act shall not be based on the following prices:
1. Domestic sale price of goods produced in Korea;
2. Price determined according to the criteria that the highest price among selectable prices ought to be a customs value;
3. Domestic sale price of goods in an exporting nation;
4. Price determined based on the production cost using the method other than the method prescribed in Article 34 of the Act with respect to the goods of the same kind or quality or similar goods;
5. Price of goods exported to a nation other than Korea;
6. Minimum dutiable standard price established in advance for specific imported goods;
7. Arbitrary or fictitious price.
(3) Where it is impracticable or impossible to apply the methods specified in paragraph (1) 1 through 4, details necessary for determining the customs value of each of the following goods, such as basic data and methods of calculating the amount of the customs value may be prescribed by the Ordinance of the Ministry of Economy and Finance: <Amended on Feb. 11, 2020; Oct. 7, 2020>
1. Goods which are qualitatively changed or damaged before an import declaration thereon is filed;
2. Personal effects of travelers or crew, postal materials, consignments and unaccompanied goods;
3. Leased imported goods;
4. Used goods;
5. Goods deemed foreign goods under the proviso to Article 188 of the Act;
6. Illegal goods;
7. Petroleum referred to in subparagraph 1 of Article 2 of the Petroleum and Alternative Fuel Business Act, as goods traded at a price which has adjusted the international market prices in a bonded area;
8. Other goods prescribed by Ordinance of the Ministry of Economy and Finance, feared to cause confusion in determining a customs value thereof
[Title Amended on Oct. 7, 2020]
 Article 30 (Application of Additional Rates or Deduction Rates)
(1) The Commissioner of the Korea Customs Service or the head of the relevant customs office may set normally recognized additional rates or deduction rates and apply such rates to the relevant goods, as prescribed by Ordinance of the Ministry of Economy and Finance, when deemed necessary to ensure conveniences for persons liable for duty payment and expedite customs clearance in the application of Article 30 (1) or 33 (1) or (3) of the Act. <Amended on Feb. 12, 2019; Oct. 7, 2020>
(2) The additional rates and deduction rates referred to in paragraph (1) shall be applied only when any person liable for duty payment files a request therefor.
 Article 31 (Advance Rulings on Method for Determining Customs Value)
(1) Each applicant, who intends to request an advance ruling on the method for determining a customs value in accordance with Article 37 (1) of the Act, shall file an application with the Commissioner of the Korea Customs Service, stating his/her trading party, the relevant customs office where declaration of such goods will pass, and the details of the application, along with the following documents: <Amended on Feb. 22, 2008; Oct. 7, 2020>
1. A basic contract for the trading relation (investment contract, agency contract, technical service contract, technology introduction contract, etc.);
2. A business plan related to the imported goods;
3. A contract for the supply of imported goods;
4. Data used as a basis for determining the price of imported goods;
4-2. In cases of matters provided in Article 37 (1) 3 of the Act, documents prescribed by Ordinance of the Ministry of Economy and Finance;
5. Other reference materials necessary for determining a customs value.
(2) When the Commissioner of the Korea Customs Service deems any application filed and any document submitted in accordance with paragraph (1) insufficient to determine a customs value, he/she may request the applicant to supplement such application and document within fixed periods classified as follows: <Amended on Feb. 22, 2008; Oct. 7, 2020>
1. In cases falling under Article 37 (1) 1 and 2: 20 days;
2. In cases falling under Article 37 (1) 3: 30 days.
(3) "Period prescribed by Presidential Decree" in Article 37 (2) of the Act means the periods prescribed in the following classifications. In such cases, where the Commissioner of the Korea Customs Service requests to supplement any application filed or any document submitted pursuant to paragraph (2), the period for supplementation shall not be counted: <Amended on Feb. 22, 2008; Apr. 1, 2011>
1. In cases falling under Article 37 (1) 1 and 2: One month;
2. In cases falling under Article 37 (1) 3: One year.
(4) Each person, who intends to file an application for a review of the result of an advance ruling prescribed in the former part of Article 37 (3) of the Act, shall submit an application stating the gist and details of the application for the review to the Commissioner of the Korea Customs Service, along with the following documents and data: <Newly Inserted on Feb. 6, 2015>
1. A copy of an advance ruling on the method for determining the customs value under Article 37 (2) of the Act;
2. Data substantiating the gist and details of the application for the review.
(5) Each applicant shall prepare and submit data referred to in each subparagraph of paragraph (1) and (4) in Korean: Provided, That where the Commissioner of the Korea Customs Service allows such applicant to submit data prepared in English, he/she may do so. <Newly Inserted on Oct. 7, 2020>
(6) Where an application for an advance ruling under Article 37 (1) of the Act or review under the former part of Article 37 (3) of the Act falls under any of the following cases, the Commissioner of the Korea Customs Service may return such application: <Newly Inserted on Oct. 7, 2020>
1. Where a customs duty investigation under Article 110 (2) 2 of the Act (limited to a customs duty investigation on customs value) on the relevant applicant is in progress;
2. Where no change is made in the contract relations or the substance of transactions after the method of determining the customs is confirmed by the customs duty investigation under Article 110 (2) 2 of the Act on the relevant applicant;
3. Where the relevant applicant is in the process of filing an application for an objection, a request for examination or adjudication, or administrative litigation under Article 119 of the Act;
4. Where the relevant applicant has failed to submit supplementary documents during the period specified in paragraph (2).
(7) "Requirements prescribed by Presidential Decree" in Article 37 (4) of the Act means the following: <Amended on Feb. 22, 2008; Apr. 1, 2011; Feb. 6, 2015; Feb. 12, 2019; Oct. 7, 2020>
1. An applicant prescribed in Article 37 (1) of the Act shall be the person liable for duty payment;
2. No falsity exists in the details of documents submitted under paragraph (1), and the details thereof shall be the same as the details of the value declaration;
3. No statutes and transaction relations, etc., which constitute the basis of advance rulings, shall be modified;
4. A value declaration shall be filed within three years from the date of the result notified under Article 37 (2) of the Act (or five years, if a person in a special relationship under Article 23 (1) has filed an application to extend the declaration period for two years, by at least 30 days before three years pass after the lapse of two years from the date of the result notified under Article 37 (2) of the Act and the Commissioner of the Korea Customs Service grants permission for such extension).
(6) A person liable to submit a report under Article 37 (5) of the Act shall file a report including the following matters with the Commissioner of the Korea Customs Service within six months after the end of each business year: <Newly Inserted on Feb. 12, 2019; Oct. 7, 2020>
1. Whether conditions or assumptions which are premises of the method for determining the customs value, determined as a result of an advance ruling, are substantiated;
2. Customs value calculated by the method of determining the customs value, determined as a result of an advance ruling, and the calculation process of such customs value;
3. Details of the transaction of difference between the customs value calculated pursuant to subparagraph 2 and the actual transaction value;
4. Other matters notified by the Commissioner of the Korea Customs Service to be included in the report when the result prescribed in Article 37 (2) of the Act is notified.
(9) The applicant may file a new application or withdraw the application by changing the details of the application before the Commissioner of the Korea Customs Service notifies the method of determining a customs value pursuant to Article 37 (2) or (3) of the Act, and when the applicant withdraws the application, the Commissioner of the Korea Customs Service shall return all data submitted under paragraphs (1), (2), (4), and (5)). <Newly Inserted on Oct. 7, 2020>
(7) "Any ground prescribed by Presidential Decree, such as the case where he/she fails to submit the report referred to in paragraph (5)" in the former part of Article 37 (6) of the Act means any of the following grounds: <Newly Inserted on Feb. 12, 2019; Oct. 7, 2020>
1. Grounds for modification of the result of an advance ruling: In any of the following cases:
(a) Where any important part of conditions or assumptions which are premises of the method of determining the customs value determined as a result of an advance ruling, is modified or unsubstantiated;
(b) Where the method of determining the customs value determined as a result of an advance ruling, becomes no more appropriate due to the amendment of any related statute or convention;
(c) Where a person notified of the method of determining the customs value determined as a result of an advance ruling requests to modify the method of determining the customs value due to changes in domestic and overseas market conditions, etc.;
(d) Other cases falling under any ground determined and publicly notified by the Commissioner of the Korea Customs Service where deemed necessary to modify the method of determining the customs value determined as a result of an advance ruling;
2. Grounds for withdrawal of the result of an advance ruling: In any of the following cases:
(a) Where the applicant fails to make supplementation despite a request for supplementation, by failing to submit all or important part of the report referred to in paragraph (8);
(b) Where the applicant intentionally omits or falsely prepares any important part of the report referred to in paragraph (8);
3. Grounds for cancelling the result of an advance ruling: In any of the following cases;
(a) Where the applicant intentionally omits or falsely prepares any important part of the data referred to in paragraph (1);
(b) Where the applicant files a customs value declaration without complying with the details or conditions of the method of determining the customs value determined as a result of an advance ruling.
(8) The Commissioner of the Korea Customs Service or the head of a customs office shall not use the documents and data submitted under paragraphs (1), (2), (4), (5), and (8) for any purpose other than an advance ruling on the method of determining the customs value under Article 37 of the Act. <Newly Inserted on Feb. 11, 2020; Oct. 7, 2020>
 Article 31-2 Deleted. <Feb. 13, 2018>
 Article 31-3 (Procedures, etc. for Pre-Adjustment)
(1) Within 90 days from the date on which an application is received under Article 37-2 (1) of the Act, the Commissioner of the Korea Customs Service shall commence the procedures for pre-adjustment pursuant to paragraph (2) of the same Article and notify the applicant of such fact: Provided, That if the procedures for pre-adjustment cannot be commenced due to reasons, such as the data referred to in Article 31 (1) and (2) being not submitted or falsely prepared, the Commissioner of the Korea Customs Service shall notify the applicant of such reasons. <Amended on Feb. 13, 2018>
(2) If an applicant is notified that the procedures for pre-adjustment cannot be commenced under the proviso to paragraph (1), he/she may, within 30 days from the date of receipt of such notification, submit supplemented data or notify the Commissioner of the Korea Customs Service as to whether an advance ruling on a matter referred to in Article 37 (1) 3 of the Act and the procedures for prior approval under the proviso to Article 14 (2) of the Adjustment of International Taxes Act will be processed separately from each other. In such cases, the Commissioner of the Korea Customs Service shall inform the Commissioner of the National Tax Service of the matters notified without delay. <Amended on Feb. 13, 2018; Feb. 17, 2021>
(3) Article 31 of this Decree and Articles 26, 27, 29, 30, 32, and 40 (3) of the Adjustment of International Taxes Act shall apply mutatis mutandis to the methods, procedures, etc. for filing an application for pre-adjustment pursuant to Article 37-2 (5) of the Act. <Amended on Feb. 13, 2018; Feb. 17, 2021>
(4) Except as provided in paragraphs (1) through (3), matters necessary for conducting pre-adjustment and other matters concerning pre-adjustment shall be prescribed by Ordinance of the Ministry of Economy and Finance.
[This Article Newly Inserted on Feb. 6, 2015]
[Previous Article 31-3 Moved to Article 31-5 <Feb. 6, 2015>]
 Article 31-4 (Scope of Information to be Provided for Assessment, etc. of Customs Duties)
"Any information or data prescribed by Presidential Decree" in the former part of Article 37-3 of the Act means any of the following information or data: <Amended on Feb. 6, 2015; Feb. 17, 2021>
1. Information or data related to the determination or rectification of the tax bases and tax amounts under Article 7 of the Adjustment of International Taxes Act;
2. Other data necessary for determining or rectifying the customs value.
[This Article Newly Inserted on Feb. 2, 2012]
[Moved from Article 31-2 <Feb. 6, 2015>]
 Article 31-5 (Scope, etc. of Submission of Data to Determine Customs Values of Goods Imported by Persons in Special Relationships)
(1) Data that the head of a customs office may request the relevant person in a special relationship to submit pursuant to Article 37-4 (1) of the Act shall be as follows. In such cases, the head of a customs office shall request data by a document stating the reason for such request and the period for submission of the requested data: <Amended on Feb. 6, 2015; Feb. 13, 2018; Feb. 12, 2019; Feb. 17, 2021>
1. The current status of mutual investments among persons in special relationships;
2. Deleted; <Feb. 12, 2019>
3. Data about internal price determination, such as the details of price calculation for imported goods, and international market price policies;
4. A contract for purchasing imported goods and a contract for sharing the cost price;
5. A contract for franchise fees, royalties for technology transfer, fees, etc.;
6. A contract for supporting business and management, such as advertising and sales promotion;
7. Deleted; < Feb. 12, 2019>
8. Accounting standards and methods related to the relevant transactions;
9. An audit report and an annual report of an overseas person in a special relationship;
10. Details of overseas payments and receipts, and evidential data;
11. The relevant Master File and Local Files referred to in Article 33 of the Enforcement Decree of the Adjustment of International Taxes Act;
12. Other data necessary to determine the customs value of imported goods.
(2) Each person in a special relationship shall prepare and submit data referred to in paragraph (1) in Korean: Provided, That where the head of a customs office allows such person to submit data prepared in English, he/she may do so.
(3) "Extenuating circumstances prescribed by Presidential Decree" in the proviso to Article 37-4 (3) of the Act means any of the following cases: <Amended on Feb. 6, 2015; Mar. 27, 2017>
1. Where a person requested to submit data is unable to submit data due to fire, burglary, etc.;
2. Where it is substantially impracticable for a person requested to submit data because his/her business is in a serious danger;
3. Where an authorized agency has seized, or has the custody of, related books of account and documents;
4. Where a person requested to submit data is unable to submit data by the deadline because it takes a considerable period of time to collect or prepare data;
5. Where it is deemed that a person requested to submit data is unable to submit data by the deadline due to any grounds referred to in subparagraphs 1 through 4.
(4) A person who intends to apply for an extension of the submission deadline pursuant to the proviso to Article 37-4 (3) of the Act shall submit an application for an extension of the deadline for submission of data prescribed by the Commissioner of the Korea Customs Service to the head of a customs office by not later than 15 days before the deadline expires. <Amended on Feb. 6, 2015; Mar. 27, 2017>
(5) The head of a customs office shall notify an applicant as to whether he/she allows an extension, within seven days from the date an application for an extension of the deadline for submission of data referred to in paragraph (4) is received. In such cases, where he/she fails to notify an applicant as to whether he/she allows an extension within seven days, the deadline for submission of data shall be deemed extended to the deadline an application for the extension of which has been filed.
(6) Pursuant to the latter part of Article 37-4 (4) of the Act, the head of a customs office shall consult with a person in a special relationship on the following matters and grant him/her an opportunity to present his/her opinion for a period of at least 10 days: <Newly Inserted on Feb. 12, 2019>
1. Whether the customs value is to be determined pursuant to Article 30 (1) and (2) of the Act after the person in a special relationship proves, pursuant to Article 37-4 (5) of the Act, that the case falls under the proviso to Article 30 (3) 4;
2. Method of determining the customs value among the methods prescribed in Articles 31 through 35 of the Act.
[This Article Newly Inserted on Feb. 15, 2013]
[Moved from Article 31-3 <Feb. 6, 2015>]
SECTION 5 Assessment and Collection
 Article 32 (Declaration for Duty Payment)
(1) Any person who intends to file a declaration for duty payment in accordance with Article 38 (1) of the Act shall file with the head of the relevant customs office an import declaration in accordance with Article 246, which includes the following matters except as otherwise provided for in each subparagraph of Article 246:
1. The tariff classification and the tariff rate on the Schedules of Tariff Rates, the amount of customs duties payable by every tariff classification and total amount of customs duties;
2. Where customs duties are reduced or exempted in accordance with the Act or other tariff-related Acts and conventions, the amount of reduced or exempted customs duties and legal grounds therefor;
3. Whether the person falls under the special relation described in Article 23 (1);
4. Other matters used as a reference for determining a customs value.
(2) The Commissioner of the Korea Customs Service may, when he/she deems it necessary to smoothly examine the amount of customs duties under Article 38 (2) of the Act, set criteria for ways, etc. to examine the amount of customs duties.
 Article 32-2 (Self-Review)
(1) Where any person liable for the payment of customs duties files an application for performing the self-review of the amount of declaration for duty payment in accordance with Article 38 (3) of the Act, the head of the relevant customs office may approve him/her as a person liable for the payment of customs duties who is allowed to perform the self-review of the amount of his/her customs duties according to the procedures prescribed by the Commissioner of the Korea Customs Service (hereinafter referred to as "company eligible for the self-review"). In such cases, the head of the relevant customs office may consult with any company eligible for the self-review about methods and schedules, etc. for performing the self-review.
(2) The head of the relevant customs office shall furnish every company eligible for the self-review with materials concerning methods for conducting export and import business and the system by which such export and import business is conducted etc., which are prescribed by the Commissioner of the Korea Customs Service.
(3) Every company eligible for the self-review shall file a report to the head of the relevant customs office on findings of its self-review and details of measures taken based on the materials furnished by the head of the relevant customs office under paragraph (2), which includes matters set forth in the following subparagraphs. In such cases, every company eligible for the self-review shall, if it finds any excessive or deficient amount in paid customs duties prior to reporting, file an application for a revision, an amended declaration, or an application for rectification with respect to the amount, and if every company eligible for the self-review finds any excessively refunded amount, it shall notify the head of the relevant customs office thereof:
1. Findings of the self-review that are compiled by using the materials furnished by the head of the relevant customs office under paragraph (2);
2. Details of measures that are taken with respect to matters needed to supplement the methods for conducting the business, the system by which the business is conducted and the amount of customs duties, etc., through the self-review.
(4) The head of the relevant customs office shall evaluate the findings of the self-review submitted under paragraph (3) and notify the relevant company eligible for the self-review of his/her evaluation: Provided, That where the self-review is judged to have been performed improperly, the head of the relevant customs office may ask the relevant company eligible for the self-review for submitting additional materials or visit the company eligible for the self-review for his/her evaluation.
(5) The head of the relevant customs office may ask the relevant company eligible for the self-review for submitting materials referred to in the proviso to paragraph (4) or inform the relevant company of matters to be supplemented in order to help such company properly perform the self-review; and the head of the relevant customs office may also ask the relevant company eligible for the self-review to put forward its opinion on improvement methods and schedules, etc., that are necessary to maintain the self-review.
(6) The head of the relevant customs office may, when any company eligible for the self-review falls under the following subparagraphs, revoke his/her approval of its self-review:
1. Where it fails to meet the requirements prescribed by the Commissioner of the Korea Customs Service in accordance with Article 38 (3) of the Act;
2. Where it expresses its intention of not performing the self-review;
3. Where it fails to submit findings of its self-review and to meet its obligation, etc. necessary to maintain the self-review.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 32-3 (Correction of Amount of Customs Duties)
Any person who intends to correct the amount of his/her customs duties in accordance with Article 38 (4) of the Act shall take the delivery of documents related to the relevant declaration for duty payment from the head of the relevant customs office and then correct his/her customs duty base and the amount of his/her customs duties, etc. and submit it to the head of the relevant customs office after signing his/her name or affixing a seal on the corrections.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 32-4 (Revision of Amount of Customs Duties)
(1) When the head of the relevant customs office notifies the revision of the amount of customs duties under the former part of Article 38-2 (2) of the Act, he/she shall serve a revision notice stating each of the following matters:
1. Import declaration number, name, standard and quantity of the relevant goods;
2. The tariff classification, duty base, tariff rate and the amount of customs duties of the relevant goods before making the revision thereof;
3. The tariff classification, duty base, tariff rate and the amount of customs duties of the relevant goods after making the revision thereof;
4. Grounds for the revision and the term of the revision;
5. Other reference matters.
(2) Any person who intends to revise the amount of customs duties paid by self-assessment in accordance with Article 38-2 (1) and the latter part of (2) of the Act shall have an import declaration he/she has submitted issued from the head of the relevant customs office after filing an application with the head of the relevant customs office for the revision of the amount of his/her customs duties and then revise the tariff classification, the duty base, the tariff rate, the amount of customs duties and other related matters that are to be stated in the import declaration and submit it to the head of the relevant customs office after signing his/her name or affixing a seal on the revisions.
(3) Deleted. <Feb. 2, 2012>
(4) Article 56 (2) shall apply mutatis mutandis to the calculation of the interest rate to be added to the deficient amount of customs duties in accordance with the main clause of Article 38-2 (5) of the Act. <Amended on Mar. 26, 2010>
(5) The “goods prescribed by Presidential Decree such as goods imported directly by the State or a local government” under Article 38-2 (5) 1 of the Act means any of the following: <Newly Inserted on Feb. 11, 2020>
1. Goods imported directly by the State or local governments (including associations of local governments referred to in Local Autonomy Act; hereinafter the same shall apply) or goods donated to the State or local governments;
2. Postal items: Provided, That those in need of declaration on import pursuant to Article 241 of the Act shall be excluded herefrom.
(6) The “good cause prescribed by Presidential Decree” under Article 38-2 (5) 2 of the Act means any of the following cases: <Newly Inserted on Feb. 11, 2020>
1. Where a case constitutes grounds for the extension of a deadline under Article 10 of the Act;
2. Where a tax return is filed and payment is made subsequent to the same case following the receipt of a return and payment under the provisions of Article 1-3, such as inquires and replies;
3. Where a person liable for duty payment has a good cause for his/her failure to fulfill his/her obligations.
(7) A person who intends to qualify for an exemption from the amount to be added to the deficient amount of customs duties pursuant to Article 38-2 (5) 2 of the Act shall file an application indicating the following matters with the head of the relevant customs office. In such cases, the evidentiary data related to matters prescribed in subparagraphs 2 and 3, if any, may be attached thereto: <Newly Inserted on Mar. 26, 2010; Feb. 11, 2020>
1. The name or trade name and address of a person liable for payment;
2. The amount intended to be exempted;
3. Good cause.
(8) Upon receipt of the application under paragraph (7), the head of a customs office shall provide written notice as to whether the relevant exemption is granted within 20 days from the application date. <Newly Inserted on Mar. 26, 2010; Feb. 11, 2020>
[This Article Newly Inserted on Mar. 29, 2004]
 Article 32-5 (Payment of Customs Duties, etc. with Credit Cards, etc.)
(1) The tax amount (including the amount of internal taxes, etc. collected by the head of a customs office together with customs duties) declared by a person liable for duty payment, or assessed or reassessed and notified by the head of a customs office pursuant to Article 38 (6) of the Act may be paid by credit card, debit card or such (hereafter referred to as "credit card, etc." in this Article). <Amended on Mar. 26, 2010; Feb. 2, 2012; Mar. 5, 2014; Feb. 6, 2015>
(2) A national tax payment agency prescribed in Article 12 (1) 3, with the exception of its items, of the National Tax Collection Act, which is applied mutatis mutandis pursuant to Article 38 (6) of the Act, means a customs duty payment agency (hereafter referred to as "customs duty payment agency" in this Article) prescribed by Ordinance of the Ministry of Economy and Finance as an agency engaging in the settlement of accounts by credit card, etc. through information and communications networks. <Amended on Feb. 17, 2021>
(3) A customs duty payment agency may receive agency fees for payment from duty payers in consideration for agency of the payment of customs duties by credit card, etc., as prescribed by Ordinance of the Ministry of Economy and Finance.
(4) The Commissioner of the Korea Customs Service may determine the type of credit cards, etc. used for the payment of customs duties and other necessary matters concerning the payment of customs duties.
[This Article Newly Inserted on Feb. 4, 2009]
[This Article Wholly Amended on Feb. 6, 2015]
 Article 33 (Amended Declaration)
Any person who intends to file an amended declaration in accordance with Article 38-3 (1) of the Act shall file such amended declaration stating the following matters with the head of the relevant customs office: <Amended on Mar. 29, 2004>
1. Import declaration number, name, standard and quantity of the relevant goods;
2. Tariff classification, duty base, tariff rate and the amount of customs duties of the relevant goods before an amended declaration is filed;
3. Tariff classification, duty base, tariff rate and the amount of customs duties of the relevant goods after an amended declaration is filed;
4. The amount of an additional duty;
5. Other reference matters.
 Article 34 (Rectification of Amount of Customs Duties)
(1) Any person who intends to file an application to rectify a declared amount of duty in accordance with Article 38-3 (2) of the Act, shall file an application for rectification stating the following matters with the head of the relevant customs office: <Amended on Mar. 29, 2004>
1. Import declaration number, name, standard and quantity of the relevant goods;
2. Tariff classification, duty base, tariff rate, and the amount of customs duties of the relevant goods before the relevant rectification is made;
3. Tariff classification, duty base, tariff rate, and the amount of customs duties of the relevant goods after the relevant rectification is made;
4. Grounds for such rectification;
5. Other reference matters.
(2) "Any reason prescribed by Presidential Decree, such as where any transaction or act, etc. which is the basis of calculating the duty base and the amount of duty in the first declaration or rectification becomes final and conclusive as different by a ruling (including a settlement or other act as effective as the ruling) of the relevant lawsuit" in Article 38-3 (3) of the Act means any of the following cases: <Newly Inserted on Feb. 2, 2012; Feb. 15, 2013>
1. Where any transaction, act, etc. which is the basis of calculating the duty base and the amount of duty in the first declaration or rectification becomes final and conclusive as different by a ruling (including a settlement or other act as effective as the ruling) of the relevant lawsuit;
2. Where it has been impracticable to calculate the duty base and the amount of duty when filing the first declaration or rectification due to the seizure of books of accounting or evidentiary documents or on any other unavoidable ground but such relevant ground ceases to exist thereafter;
3. Where a person who intends to file an application for rectification is notified of the details of a reply by the head of a customs office who has received such reply regarding the authenticity of a certificate of origin, etc. pursuant to the latter part of Article 233 (1) of the Act.
(3) Where the head of the relevant customs office intends to rectify the amount of customs duties in accordance with Article 38-3 (6) of the Act, he/she shall issue a written rectification notice stating the following matters to a person liable for duty payment: <Amended on Mar. 29, 2004; Feb. 2, 2012; Mar. 27, 2017>
1. Import declaration number, name, standard and quantity of the relevant goods;
2. Tariff classification, duty base, tariff rate, and the amount of customs duties of the relevant goods before the relevant rectification is made;
3. Tariff classification, duty base, tariff rate, and the amount of customs duties of the relevant goods after the relevant rectification is made;
4. The amount of an additional duty;
5. Grounds for rectification;
6. Other reference matters.
(4) Where the deficient amount of customs duties paid or payable is rectified under paragraph (3), a duty payment notice under Article 36 shall be served on a person liable for duty payment with respect to such deficiency. In such cases, where a number of duty payment notices are to be served on the same person liable for duty payment, they may be integrated into and issued as one notice. <Amended on Feb. 2, 2012; Feb. 15, 2013; Feb. 5, 2016; Feb. 17, 2021>
(5) Where the head of the relevant customs office finds that the amount of customs duties is excessive or deficient after making rectification according to paragraph (3), he/she shall re-rectify the rectified amount of customs duties. <Amended on Feb. 2, 2012; Feb. 15, 2013>
 Article 35 (Rectification due to Adjustment of Customs Value of Imported Goods)
(1) Any person who intends to file an application for rectification under Article 38-4 (1) of the Act shall submit to the head of the relevant customs office such application for rectification stating each of the following matters:
1. Import declaration number, name, standard, and quantity of the relevant goods;
2. Tariff classification, duty base, duty rate, and the amount of customs duties of the relevant goods before the relevant rectification is made;
3. Tariff classification, duty base, duty rate, and the amount of customs duties of the relevant goods after the relevant rectification is made;
4. Details of adjustment of the price of the relevant imported goods, the method of determining the price, and data on which calculation of price is based;
5. Grounds for rectification;
6. Other necessary matters.
(2) The head of a customs office in receipt an application for rectification pursuant to paragraph (1) shall file a report thereon to the Commissioner of the Korea Customs Service, accompanied by the fact that the declaration for duty payment which is the object of the application for rectification has been filed and his/her opinion on such application for rectification. In such cases, if any other application for rectification containing the same details filed with the head of another customs office, the Commissioner of the Korea Customs Service may determine standards for the disposition of rectification or designate the head of a customs office who shall conduct a consolidated review of such applications for rectification.
(3) In any of the following subparagraphs, the head of a customs office may rectify the amount of duty pursuant to Article 38-4 (2) of the Act: <Amended on Feb. 17, 2021>
1. Where matters adjusted in accordance with the disposition of determination or rectification made by the commissioner of a regional tax office or the head of a tax office is acknowledged as the customs value under Article 30 (1) of the Act, such as the paid price of the imported goods and a royalty of use of right;
2. Where the commissioner of a regional tax office or the head of a tax office makes an adjustment based on the method of calculating the arm's length price under Article 8 of the Adjustment of International Taxes Act and the method of adjustment, such as comparable transactions and application of normal profits, and the calculation basis are deemed in compliance with Articles 31 through 35 of the Act.
(4) Where the amount of duty is rectified under paragraph (3), Article 34 (3) through (5) shall apply mutatis mutandis to procedures for issuing a written rectification notice, servicing of a duty payment notice, re-rectification of rectified matters, etc. <Amended on Feb. 17, 2021>
[This Article Newly Inserted on Feb. 2, 2012]
 Article 36 (Duty Payment Notice)
The head of the relevant customs office shall, when he/she intends to collect customs duties in accordance with Article 39 (3), 47 (1) or the latter part of 270 (5) of the Act, deliver a duty payment notice stating the item of duty, the amount of customs duties and the place of payment, etc., to a person liable for duty payment: Provided, That where a customs officer who inspects goods receives customs duties thereon in accordance with Article 43 of the Act, the head of the relevant customs office may allow such customs officer to deliver a verbal notice thereon to a person liable for duty payment. <Amended on Dec. 31, 2001; Feb. 17, 2021>
[This Article Newly Inserted on Feb. 17, 2021]
 Article 37 (Minimum Amount of Collectable Duties)
(1) The amount of customs duties that the head of the relevant customs office does not collect in accordance with Article 40 of the Act shall be 10,000 won. <Amended on Dec. 31, 2001; May 22, 2006>
(2) Where the customs duties are not collected under paragraph (1), the day on which an import declaration on the relevant goods is filed shall be deemed the day on which the customs duties thereof are paid. <Newly Inserted on Dec. 31, 2001>
 Article 38 Deleted. <Feb. 11, 2020>
 Article 39 (Additional Duties)
(1) "Interest rate prescribed by Presidential Decree" in the formula provided for in Article 42 (1) 2 (a) and (3) 2 (a) of the Act means the rate of 25/100,000 per day, respectively. <Amended on May 22, 2006; Apr. 1, 2011; Feb. 6, 2015; Feb. 5, 2016; Feb. 12, 2019; Feb. 11, 2020>
(2) The “goods prescribed by Presidential Decree such as goods imported directly by the State or a local government” under Article 42-2 (1) 6 means any of the goods specified in subparagraphs of Article 32-4 (5) of the Act: <Amended on Feb. 11, 2020>
(3) “A good cause prescribed by Presidential Decree” in Article 42-2 (1) 8 of the Act means any of the cases specified in subparagraphs of Article 32-4 (6) of the Act: <Amended on Feb. 11, 2020>
(4) "Means prescribed by Presidential Decree" in Article 42 (2) of the Act, means any of the following: <Newly Inserted on Feb. 4, 2009; Feb. 2, 2012; Feb. 15, 2013>
1. Preparing or accepting a false certificate or false document, such as a double invoice and double contract;
2. Destructing data required for assessment of the amount of tax;
3. Manipulating or concealing acts or transactions which become grounds for the assessment of customs duties;
4. Engaging in improper activities to evade or get a refund or reduction of or exemption from customs duties.
(5) Article 32-4 (7) and (8) shall apply mutatis mutandis to the procedures for exempting from the assessment of additional duties prescribed in Article 42 (2) 2 of the Act. <Amended on Feb. 11, 2020>
 Article 40 (Deferment of Seizure or Sale)
(1) A defaulter who intends to have seizure or sale deferred pursuant to Article 43-2 (1) of the Act shall file an application with the head of the competent customs office stating the following matters: <Amended on Feb. 17, 2021>
1. The address or residence and name of the defaulter;
2. The item of duty of the amount in arrears to be paid, the amount of customs duties and the deadline for payment;
3. Reasons why the deferment of seizure or sale is intended, and the period of intended deferment;
4. Where the defaulter intends to pay the amount in arrears in installments, the amount intended to be paid per installment, and the number of times of payments that he/she intends to make in installments.
(2) Where the head of a customs office defers seizure or sale in compliance with an application filed under paragraph (1), the period of deferment shall not exceed two years from the date on which the deferment is granted. In such cases, the head of a customs office may allow the defaulter to make payment in installments within the period of deferment. <Amended on Feb. 17, 2021>
(3) A plan to pay the amount in arrears to be submitted pursuant to Article 43-2 (4) of the Act shall include the following:
1. Matters concerning the property or income to be provided to pay the amount in arrears;
2. Matters concerning the payment schedule of the amount in arrears (where the payment is made to be paid in installments pursuant to the latter part of paragraph (2), an installment payment schedule shall be included therein);
3. Other matters related to a plan to pay the amount in arrears, which are determined and publicly notified by the Commissioner of the Korea Customs Service.
(4) Where the head of a customs office defers seizure or sale in compliance with an application filed under paragraph (1) and notifies such fact, a document stating the following matters shall be served: <Amended on Feb. 17, 2021>
1. The item of duty of the amount in arrears for which seizure or sale is deferred, the amount of customs duties and the deadline for payment;
2. Where the amount in arrears is made to be paid in installments, the amount to be paid per installment, and the number of times payment is to be made in installments;
3. The period of deferment of seizure or sale.
(5) When declining an application referred to in paragraph (1) or revoking the deferment of seizure or sale pursuant to Article 43-2 (5) of the Act, the head of a customs office shall notify such fact by serving a document stating the reasons therefor. <Amended on Feb. 17, 2021>
[This Article Newly Inserted on Feb. 12, 2019]
[This Article Newly Inserted on Feb. 17, 2021]
 Article 41 (Provision, etc. of Materials on Arrears)
(1) "Cases prescribed by Presidential Decree" in the proviso, with the exception of the subparagraphs, of Article 44 (1) of the Act means any of the following cases: <Amended on Feb. 17, 2021>
1. Cases that constitute reasons referred to in Article 2 (1) 1 through 3;
2. Cases where seizure or sale is deferred.
(2) "Amount prescribed by Presidential Decree" in the subparagraphs of Article 44 (1) of the Act means five million won, respectively.
(3) Where the head of a customs office processes materials on arrears (hereafter referred to as "materials on arrears" in this Article) in the main clause, with the exception of the subparagraphs, of Article 44 (1) of the Act by means of a computerized information processing system, he/she may prepare a file of materials on arrears (referring to magnetic tapes, magnetic discs, and other similar media in which materials on arrears are recorded and stored; hereinafter the same shall apply).
(4) A person who intends to make a request for materials on arrears (hereafter referred to as "requester" in this Article) pursuant to the main clause, with the exception of the subparagraphs, of Article 44 (1) of the Act shall submit a document stating the following matters to the head of a customs office:
1. The name and domicile of a requester;
2. The details of materials for which he/she make a request and the purpose of the use thereof.
(5) The head of a customs office requested to provide materials on arrears pursuant to paragraph (4) may provide a file or document of materials on arrears referred to in paragraph (3).
(6) Where materials on arrears provided pursuant to paragraph (5) do not fall under materials on arrears due to the payment of the amount in arrears, the head of a customs office shall notify a requester of the fact within 15 days from the date the reason therefor occurs.
(7) Matters necessary for the arrangement, management, storage, etc. of the files of materials on arrears under paragraph (3) or matters necessary for a request for and provision of materials on arrears except as provided in this Article shall be prescribed by the Commissioner of the Korea Customs Service.
[This Article Wholly Amended on Feb. 15, 2013]
 Article 42 (Composition of Customs Duties Arrearages Adjustment Committee)
(1) Any customs duties arrearages adjustment committee (hereinafter referred to as "customs duties arrearages adjustment committee") shall be established in every customs office in accordance with Article 45 of the Act.
(2) Every customs duties arrearages adjustment committee shall consist of not less than five to not more than seven members including one chairperson.
(3) The chairperson of each customs duties arrearages adjustment committee shall be the head of each customs office, and the members shall be appointed or commissioned by the head of each customs office from among the persons falling under each of the following subparagraphs: <Amended on Feb. 29, 2008>
1. Customs officers;
2. Attorneys, licensed customs broker, certified public accountants or certified tax accountant;
3. Representatives of the commerce and industry circles;
4. Persons of profound knowledge and experience in economy and finance.
(4) The term of office of members falling under paragraph (3) 2 through 4 shall be two years and may be renewed only once: Provided, That a member appointed to fill a vacancy occurring before the expiration of the term for which his/her predecessor was appointed, shall serve for the remainder of such term. <Newly Inserted on Mar. 27, 2017; Feb. 13, 2018>
 Article 43 (Removal, etc. of Members of Custom Duties Arrearages Adjustment Committee)
When any member of each customs duties arrearages adjustment committee falls under any of the following subparagraphs, the head of each customs office may remove or dismiss such member: <Amended on Feb. 13, 2018>
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where he/she is deemed unfit to serve as a member of the Committee due to neglect of the duties, injury to dignity, or other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties.
5. Where the member loses his/her status referred to in Article 42 (3) 1 or 2;
6. Where the member fails to refrain from participating in deliberation and resolution, in spite of falling under any subparagraph of Article 45-2 (1);
7. Where the member does not reside in the jurisdictional area;
8. Where the member is delinquent in customs duties or national taxes.
[This Article Wholly Amended on Mar. 27, 2017]
 Article 44 (Duties of Chairperson of Customs Duties Arrearages Adjustment Committee)
(1) The chairperson of each customs duties arrearages adjustment committee shall exercise overall control over his/her committee's affairs and represent his/her committee. <Amended on Dec. 29, 2020>
(2) Where the chairperson of each customs duties arrearages adjustment committee is in unavoidable circumstances that make it unable for him/her to perform his/her duties, a member designated by the chairperson shall act on behalf of the chairperson in performing the duties.
 Article 45 (Meetings of Customs Duties Arrearages Adjustment Committee)
(1) Where the amount of customs duties in arrears is not less than the amount determined by the Commissioner of the Korea Customs Service and falls under any of the following cases, the chairperson of each customs duties arrearages committee shall call a meeting and preside over such meeting: <Amended on May 22, 2006; Feb. 4, 2009; Feb. 15, 2013; Feb. 17, 2021>
1. Where it is intended to release a seizure for a reason referred to in the main clause of Article 57 (1) 4 of the National Tax Collection Act pursuant to Article 26 (1) of the Act;
2. Deleted; <Feb. 15, 2013>
3. Where the head of a tax office collects internal taxes, etc. in arrears pursuant to Article 4 (2) of the Act.
(2) A majority of the members including the chairperson of the customs duties arrearages adjustment committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present.
(3) Deleted. <Feb. 13, 2018>
 Article 45-2 (Exclusion and Refrainment of Members of Customs Duties Arrearages Adjustment Committee)
(1) Any member of a customs duties arrearages adjustment committee who falls under any of the following cases shall be excluded from the deliberation and resolution:
1. Where the member is a party to the relevant agenda (where a party to the relevant agenda is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this paragraph) or a person directly interested in the relevant agenda;
2. Where the member's spouse, relative within the fourth degree of consanguinity, or relative within the second degree of affinity within the second degree is a party to the relevant agenda or has direct interest in the relevant agenda;
3. Where the member is a current representative or was the representative of a party to the relevant agenda within the recent five years;
4. Where the member belongs to or has belonged within the recent five years to a corporation, organization, etc. which is the current representative or was the representative of a party to the relevant agenda;
5. Where the member has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.;
6. Where the member currently belongs to or has belonged within the recent five years to a corporation, organization, etc. which has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.
(2) If any member of a customs duties arrearages adjustment committee falls under any subparagraph of paragraph (1), he/she shall voluntarily refrain from the deliberation and resolution on the relevant agenda.
[This Article Newly Inserted on Feb. 13, 2018]
 Article 46 (Hearing of Opinions)
Every customs duties arrearages adjustment committee may, when deemed necessary in relation to the agenda, seek the opinion from any delinquent or any interested person, etc.
 Article 47 (Minute of Customs Duties Arrearages Adjustment Committee)
The chairperson of each customs duties arrearages adjustment committee shall, when a meeting is held, compile and keep a minute of such meeting.
 Article 48 (Notification of Resolved Matters)
The chairperson of each customs duties arrearages adjustment committee shall notify the Commissioner of the Korea Customs Service of matters resolved at any meeting of the Committee.
 Article 49 (Allowances)
Members who are not public officials and attend meetings of each customs duties arrearages adjustment committee may be paid allowances within budgetary limits.
 Article 50 (Application for Payment of Customs Refunds)
Any person who intends to receive a customs refund under Article 46 (1) of the Act (hereafter referred to as "customs refund" in this Article through Article 56) shall submit an application stating the name, specifications, quantity, the date of acceptance of an import declaration, the declaration number of the relevant goods, the reason for refund, and the amount of refund he/she intends to receive to the head of a customs office. <Amended on Feb. 15, 2013>
[This Article Wholly Amended on Feb. 15, 2013]
 Article 51 (Notice of Refund of Customs Duties)
(1) When the head of the relevant customs office has confirmed the reason for the refund of customs duties, he/she shall notify the person holding the right to claim the refund thereof of the amount, the reason, etc. <Amended on Feb. 15, 2013>
(2) The head of the relevant customs office shall keep a book and a supplementary book on the determination of customs refund and shall state necessary matters in such book. <Amended on Feb. 15, 2013>
(3) The head of the relevant customs office shall compile a monthly report on the amount of customs refunds determined and file such report with the Minister of Economy and Finance. <Amended Feb. 29, 2008; Feb. 15, 2013>
(4) The head of the relevant customs office shall submit an account of the amount of customs refunds determined and evidential documents thereof to the Board of Audit and Inspection as prescribed by the Chairman of the Board of Audit and Inspection. <Amended on Feb. 15, 2013>
[This Article Wholly Amended on Feb. 15, 2013]
 Article 52 (Notification on Appropriation of Customs Refunds)
Where the head of the relevant customs office appropriates any customs refunds for any payments in accordance with Article 46 (2) of the Act, he/she shall notify the right holder of the fact: Provided, That where such appropriation is made upon a request of the right holder, such notification shall be omitted. <Amended on Feb. 15, 2013>
[This Article Wholly Amended on Feb. 15, 2013]
 Article 53 (Transfer of Customs Refunds)
Any person who intends to transfer his/her right on customs refunds to a third person pursuant to Article 46 (3) of the Act shall submit a document stating each of the following matters to the head of the relevant customs office: <Amended on Feb. 15, 2013; Feb. 12, 2019>
1. Domicile and name of a transferor;
2. Domicile and name of a transferee;
3. The reason for refund;
4. The amount of customs refunds.
[This Article Wholly Amended on Feb. 15, 2013]
 Article 54 (Procedures for Refund)
(1) When the head of the relevant customs office determines the amount of customs refunds, he/she shall send an instruction for the prompt payment of a refund to a person entitled for such refund to the Bank of Korea (including any national treasury agency; hereinafter the same shall apply) and shall serve a refund notice stating details and methods of such refund on the person entitled for the refund. <Amended on Feb. 15, 2013>
(2) Upon receiving the instruction from the head of the relevant customs office under paragraph (1), the Bank of Korea shall promptly transfer the amount necessary for the refund from the revenues of the current year under jurisdiction of the head of the relevant customs office to the refund payment account of the head of the relevant customs office and then shall notify the head of the relevant customs office of the contents thereof.
(3) When the Bank of Korea is presented with the refund notice referred to in paragraph (1), it shall pay such refund after comparing it with the payment instruction sent by the head of the relevant customs office and shall notify the head of the relevant customs office of the payment thereof.
(4) When the Bank of Korea pays the refund in accordance with paragraph (3), it shall have any person entitled to receive such refund produce his/her resident registration certificate and other identification cards and shall confirm that he/she is legally entitled for such refund.
(5) If any person who intends to receive a customs refund files an application under Article 50, he/she may apply to the head of the relevant customs office for remitting his/her refund to any branch of the Bank of Korea or for transferring such refund to an account at a financial institution after opening such account and reporting thereon to the head of the relevant customs office. <Amended on Feb. 15, 2013>
(6) Upon receiving the application under paragraph (5), the head of the relevant customs office shall send the payment instruction stating the details of application to the Bank of Korea under paragraph (1). In such cases, the head of the relevant customs office shall append a written treasury remittance request or a written treasury receipt request to such payment instruction.
(7) Upon receiving the payment instruction from the head of the relevant customs office under paragraph (6), the Bank of Korea shall promptly remit the amount to the account of the relevant branch or transfer the amount to the account of the relevant financial institution and then shall notify the head of the relevant customs office of the fact.
(8) Upon receiving the remittance of the refund under paragraph (7), any branch of the Bank of Korea shall pay such refund in accordance with paragraphs (3) and (4).
 Article 55 (Adjustment of Unpaid Refund)
(1) The Bank of Korea shall carry over the refund unpaid by January 15 of the next fiscal year from among the refund transferred by the Bank of Korea to the refund payment account of the head of the relevant customs office, for which payment instructions are given, during the current fiscal year to the unpaid customs office refund carry-over account.
(2) Any amount that is unpaid within one year from the day on which the instructions for the payment of refund were issued from among the amount carried over to the unpaid customs office refund carry-over account under paragraph (1) shall revert to the revenue of the fiscal year belonging to the day on which such period expires.
(3) Where any person entitled to receive a customs refund has not been paid the customs refund within one year from the day on which a refund notice was issued, he/she may request the head of the relevant customs office to retake procedures for such refund and the head of the relevant customs office shall investigate and confirm such fact and take measures necessary for making such refund. <Amended on Feb. 15, 2013>
 Article 56 (Determination of Surcharges, etc. on Refund of Customs Duties)
(1) When the head of a customs office appropriates or refunds customs duties pursuant to Article 46 of the Act (excluding where he/she appropriates or refunds the amount of payment of customs duties by self-assessment based on a provisional value under Article 28 (4) of the Act and the amount of customs duties based on the final value) or collects the over-refunded amount pursuant to Article 47 (1) of the Act, he/she shall determine a surcharge under Article 47 (2) or 48 of the Act. <Amended on Feb. 15, 2013>
(2) The interest rate on the surcharge referred to in paragraph (1) shall be prescribed by Ordinance of the Ministry of Economy and Finance, taking into account the average interest rate on one year term deposits in any bank authorized to engage in banking business under the Banking Act with its principal office located in the Seoul Special Metropolitan City. <Amended on Dec. 31, 2001; May 22, 2006; Nov. 15, 2010; Feb. 2, 2012; Dec. 29, 2020>
(3) "Initial date in calculating a surcharge on the refund of customs duties, prescribed by Presidential Decree" in Article 48 of the Act shall be the date following each of the following dates: <Newly Inserted on Feb. 15, 2013; Feb. 6, 2015; Jun. 30, 2016; Feb. 17, 2021>
1. A customs refund that results from an erroneous payment, a double payment, or the rectification or revocation of a declaration or assessment that has become the basis of payment of customs duties after such payment: The date of payment: Provided, That where customs duties have been paid in installments at least two times, the day shall be the date of the final payment, and where the amount of customs refund exceeds the amount of customs duties finally paid, the date shall be the date of each payment of a customs refund calculated retroactively from the dates of payments until the amount of customs duties reaches the amount of customs refund;
2. A customs refund that results from a reduction of, or exemption from, customs duties lawfully paid: The date on which a reduction or exemption is determined;
3. A customs refund that results from the amendment of statutes after customs duties have been paid lawfully: The enforcement date of the amended statutes;
4. An amount of customs duties refunded after an application for refund is filed under this Decree (referring to the amount of customs duties rectified after an erroneous application has been filed): At least 30 days after the date of filing an application: Provided, That where the head of a customs office ex officio refunds the amount of customs duties determined without an application for refund of customs duties, the date shall be at least 30 days after the date of the relevant determination;
5. A customs refund prescribed in Article 9 (5) of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements: The date on which the application of a conventional tariff, etc. is notified under the latter part of Article 9 (4).
(4) "Goods prescribed by Presidential Decree such as goods directly imported by the State or a local government" in the proviso to Article 48 of the Act means any goods specified in the subparagraphs of Article 32-4 (5). <Newly Inserted on Feb. 11, 2020>
[This Article Wholly Amended on Feb. 15, 2013]
CHAPTER III TARIFF RATES AND TARIFF CLASSIFICATION
SECTION 1 Common Provisions
 Article 57 (Suspension, etc. of Application of Provisional Tariff Rates)
(1) The ministers of competent ministries or interested persons related to goods subject to the application of the provisional tariff rates in the attached Schedules of Tariff Rates of the Act (hereinafter referred to as "provisional tariff rates") may, when they deem it necessary to suspend the application of the provisional tariff rates, or raise or lower the provisional tariff rates under Article 50 (4) of the Act, request the Minister of Economy and Finance to do so. <Amended on Feb. 29, 2008>
(2) The ministers of competent ministries or interested persons shall, when they make a request as prescribed in paragraph (1), furnish data concerning the matters which are related to the relevant goods and fall under each of the following subparagraphs to the Minister of Economy and Finance: <Amended on Feb. 29, 2008; Apr. 1, 2011>
1. The HS code, name, standard, purpose of use, and alternatives of the relevant goods;
2. Raw materials input for manufacturing the relevant goods, the description of the process of manufacturing related goods using the relevant goods as raw materials and the purpose of use of related goods;
3. Reasons for suspending the application of the provisional tariff rates and a period for suspended application thereof;
4. Tariff rates to be modified, reasons therefor and the application period thereof;
5. The monthly import price of the relevant goods by major exporting countries and import records thereof of the current year;
6. The monthly factory price of the relevant goods by major domestic manufacturers and their shipment records out of factories of the current year;
7. Other reference matters.
(3) The Minister of Economy and Finance may, when he/she deems it necessary to survey matters concerning the suspension of application of the provisional tariff rates, etc., request administrative agencies and institutions concerned, exporters, importers and other interested persons to furnish their related data and seek their cooperation necessary therefor. <Amended on Feb. 29, 2008>
SECTION 2 Adjustment of Tariff Rates
 Article 58 (Comparison of Normal Price with Dumping Price)
(1) "Normal price" in Article 51 of the Act means the ordinary transaction value of the goods of the same kind consumed in the exporting country of the relevant goods: Provided, That where the goods of the same kind are not transacted in such exporting country or the ordinary transaction value cannot be applied due to the complicated market situation, etc., the typical and comparable price from among the price of the goods of the same kind exported by the relevant exporting country to a third country or the price that is an aggregate amount of the manufacturing cost and management expenses, the sale cost and the profit thereof at a reasonable level (hereinafter referred to as "constructive value") in the country of origin shall be deemed the normal price.
(2) Where the relevant goods are imported not directly from the country of origin, but through a third country, the ordinary transaction value in such third country shall be deemed the normal price: Provided, That if the relevant goods are simply transshipped in the third country that has not produced the goods of the same kind and no price exists that can be deemed the ordinary transaction value in the third country, the ordinary transaction value in the country of origin shall be deemed the normal price.
(3) Where the relevant goods are imported from a country whose economy is controlled without any market economy system, notwithstanding paragraphs (1) and (2), the price falling under each of the following subparagraphs shall be deemed the normal price: Provided, That if a country, prescribed by Ordinance of the Ministry of Economy and Finance, is in transition to a market economy system, the ordinary transaction value, etc. described in paragraphs (1) and (2) shall be deemed the normal price for such country: <Amended on Feb. 29, 2008>
1. The ordinary transaction value of the goods of the same kind, which are consumed in market economy countries other than Korea;
2. The export price or the constructive value of the goods exported by market economy countries with the exception of Korea to third countries including Korea.
(4) "Dumping price" in Article 51 of the Act means the price actually paid or payable for the goods subject to the investigation launched under Article 60: Provided, That if the existence of a special relation as prescribed in Article 23 (1) or a compensation agreement between a supplier, an importer or a third person makes it impossible to determine the dumping price according to the price actually paid or payable, the price falling under each of the following subparagraphs may be the dumping price: <Amended on Feb. 29, 2008>
1. Where imported goods are resold first to a buyer with no special relation or no compensation agreement, the price computed based on the resale price as prescribed by Ordinance of the Ministry of Economy and Finance;
2. Where imported goods have never been resold to a buyer with no special relation or no compensation agreement or remain not resold as imported, the price calculated based on the reasonable standards prescribed by Ordinance of the Ministry of Economy and Finance.
(5) The comparison of the normal price with the dumping price shall be made as much as possible at the same time and at the same transaction channel (any factory is ordinarily included in the transaction channel). In such cases, if the physical characteristics, sale quantity and sale conditions of the relevant goods, a disparity in the assessment of customs duties, a disparity in transaction channel and exchange rate fluctuations have an impact on the price comparison, the normal price and the dumping price shall be adjusted according to what is prescribed by Ordinance of the Ministry of Economy and Finance and the period for investigating any dumping rate shall be not less than six months. <Amended on Feb. 29, 2008>
(6) Any interested person shall, when he/she requests the price adjustment referred to in paragraph (5) due to a disparity in physical characteristics, sale quantity and sale conditions of the relevant goods, prove the fact that such disparity directly affects the market price and manufacturing cost.
 Article 59 (Request for Assessment of Anti-Dumping Duties)
(1) Persons interested in the domestic industry that suffers material injury, etc. (hereinafter referred to as "material injury, etc.") under Article 51 of the Act or the minister of the competent ministry in charge of such domestic industry, may ask the Minister of Economy and Finance to assess anti-dumping duties as prescribed by Ordinance of the Ministry of Economy and Finance; and such request shall be deemed a request filed with the Trade Committee (hereinafter referred to as the "Trade Committee") established pursuant to the provisions of Article 27 of the Act on the Investigation of Unfair International Trade Practices and Remedy against Injury to Industry, for making an investigation necessary to assess anti-dumping duties. <Amended on May 22, 2006; Feb. 29, 2008>
(2) The minister of the competent ministry may ask the head of the customs office to examine dumping transactions of the relevant imported goods before asking the Minister of Economy and Finance to assess anti-dumping duties pursuant to paragraph (1). <Newly Inserted on Feb. 11, 2020>
(3) Where any dumping transaction is likely to exist, although examination on any dumping transaction has been asked for pursuant to paragraph (2), the head of the customs office may examine whether a dumping transaction of the relevant imported goods exists and notify the competent minister thereof <Amended on Feb. 11, 2020>
(4) In the application of Article 51 of the Act, the domestic industry shall be deemed the domestic production business (the production business run by the producer in a special relation under Article 23 (1) with the supplier or the importer of the relevant imported goods and the production business run by the importer who is also the producer of the relevant goods, prescribed by Ordinance of the Ministry of Economy and Finance, may be excluded herefrom; hereafter in this paragraph the same shall apply) which accounts for the whole or a considerable portion of the total domestic production of the goods imported at a price lower than the normal price and the goods of the same kind. <Amended on Feb. 29, 2008; Feb. 11, 2020>
(5) "Persons interested in the domestic industry" in paragraph (1) means domestic producers belonging to the domestic industry that suffers material injury, etc., and any corporation and organization, both of which consist of such domestic producers and individuals for the purpose of speaking for their interests, all of which is prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 29, 2008; Feb. 11, 2020>
(6) A person who intends to apply for an investigation under paragraph (1) shall submit the following data to the Trade Commission: <Amended on Feb. 29, 2008; Feb. 11, 2020; Dec. 29, 2020>
1. Three copies of an application stating the following matters:
(a) The name, standard, characteristics, the purpose of use, producer and production quantity of the relevant goods;
(b) Supplying country, supplier, export performance and export potential of the relevant goods and importer, import record and import potential of the relevant goods in Korea;
(c) Factory price and market price of the relevant goods in the supplying country and export price of the relevant goods shipped to Korea and export price of the relevant goods shipped to third countries;
(d) The name, standard, characteristics, the purpose of use, producer, production quantity, factory price, market price and cost accounting of the domestic goods of the same kind or quality or similar goods;
(e) Material injury, etc. caused by the import of the relevant goods to the domestic industry;
(f) The extent of support by domestic producers of the goods of the same kind for the relevant request of an investigation;
(g) Where matters stated in an application and appended data need to be kept confidential, the reasons therefor;
(h) Other matters deemed necessary by the Minister of Economy and Finance;
2. Three copies of evidential data fully attesting the fact of dumping goods imported and material injury, etc. caused thereby.
(7) The Trade Commission shall notify the Minister of Economy and Finance, the head of the relevant administrative agency, and the government of a supplying country of the relevant goods of the receipt of an application for investigation pursuant to paragraph (6). In such cases, the information prescribed in the subparagraphs of paragraph (6) shall be notified after a decision on the commencement of an investigation is made under Article 60 (1). <Newly Inserted on Dec. 29, 2020>
 Article 60 (Commencement of Investigation of Dumping and Material Injury, etc.)
(1) Upon receiving a request for an investigation under Article 59 (1), the Trade Committee shall determine whether an investigation should be commenced as to the fact of dumping and the fact of damage, etc. caused thereby; and shall notify the Minister of Economy and Finance the result thereof and the following matters within two months from the day on which such request is received: <Amended on Feb. 22, 2008; Feb. 29, 2008>
1. Goods subject to the investigation (if goods subject to the investigation are many in number, goods selected as prescribed by Ordinance of the Ministry of Economy and Finance);
2. The investigation period;
3. Suppliers subject to the investigation (where suppliers subject to the investigation are many in number, suppliers selected in accordance with Ordinance of the Ministry of Economy and Finance).
(2) In determining whether an investigation should be commenced under paragraph (1), the Trade Committee shall, if an investigation application falls under any of the following cases, dismiss such investigation application: <Amended on Feb. 22, 2008; Feb. 29, 2008>
1. Where a person who files a request for an investigation is not a person entitled to request the assessment of anti-dumping duties under Article 59 (1);
2. Where adequate evidential data with respect to the fact of dumping and the fact of material injury, etc caused thereby are not submitted;
3. Where the dumping margin or the import quantity of dumping goods falls short of the standards prescribed by Ordinance of the Ministry of Economy and Finance and material injury, etc. caused thereby are deemed insignificant;
4. Where the aggregate quantity of production by domestic producers expressing their support for the relevant investigation application is deemed to fall short of the standards prescribed by Ordinance of the Ministry of Economy and Finance;
5. Where measures are taken to eliminate harmful effects on the domestic industry or a planned investigation becomes unnecessary prior to the commencement of the investigation.
(3) When the Trade Committee determines to commence an investigation under paragraph (1), it shall notify the applicant for such investigation, the Government of the supplying country of the relevant goods, a supplier and other interested persons of matters concerning the determination of the investigation commencement; and shall publish such matters in the Official Gazette within ten days from the day on which the determination is made to commence the investigation. In such cases, the Trade Committee shall provide the government of the supplying country and the supplier with data specified in each subparagraph of Article 59 (6). <Amended on Dec. 29, 2020>
(4) The Trade Committee may make selections with regard to tariff classification, etc. of goods subject to investigation under paragraph (1) 1 in consultation with the Commissioner of the Korea Customs Service. <Newly Inserted on Feb. 15, 2013>
 Article 61 (Investigation of Dumping and Material Injury, etc.)
(1) The Trade Committee shall take charge of investigating the fact of dumping, the fact of material injury, etc. caused thereby under Article 52 of the Act. In such cases, the Trade Committee may, if deemed necessary, have public officials working for administrative agencies concerned or related experts participate in investigation activities.
(2) The Trade Committee shall conduct a preliminary investigation into whether there is adequate evidence presuming the existence of the fact of dumping and the fact of material injury, etc. caused thereby; and shall report the results thereof to the Minister of Economy and Finance within three months from the day on which the matters concerning the determination of the investigation commencement are published in the Official Gazette under Article the former part of 60 (3). <Amended on Feb. 29, 2008; Dec. 29, 2020>
(3) The Minister of Economy and Finance shall determine whether measures should be taken under Article 53 (1) of the Act and the contents thereof, within one month from the day on which the results of the preliminary investigation are reported under paragraph (2): Provided, That, if deemed necessary, the period of one month may be extended within the limit of 20 days. <Amended on Feb. 29, 2008>
(4) Where the dumping margin or the import quantity of dumping goods falls short of the standards prescribed by Ordinance of the Ministry of Economy and Finance or the material injury, etc. caused thereby is deemed insignificant from the preliminary investigation under paragraph (2), the Trade Committee shall conclude a full-scale investigation thereon under paragraph (5). In such cases, the Minister of Economy and Finance shall post the matters related to the conclusion of the full-scale investigation on the Official Gazette. <Amended on Feb. 29, 2008; Mar. 26, 2010>
(5) The Trade Committee shall commence a full-scale investigation beginning from the day following the day on which the results of a preliminary investigation under paragraph (2) are submitted unless special reasons prescribed by Ordinance of the Ministry of Economy and Finance exist and report the results of such full-scale investigation to the Minister of Economy and Finance within three months from the day on which the full-scale investigation is launched. <Amended on Feb. 29, 2008>
(6) The Trade Committee may, when it is necessary to extend the investigation period in connection with the investigation under paragraphs (2) and (5) or any interested person requests the extension thereof, citing good cause, extend such period for up to two months.
(7) Where the Minister of Economy and Finance receives the results of a full-scale investigation prescribed in paragraph (5), he/she shall determine whether anti-dumping duties should be assessed and details thereof, within 12 months from the date on which such results are published in the Official Gazette under the former part of Article 60 (3); and take measures to assess anti-dumping duties in accordance with Article 51 of the Act: Provided, That where it is deemed that any special reason exists, he/she may take measures to assess anti-dumping duties within 18 months from the date of publication in the Official Gazette. <Amended on Feb. 29, 2008; Mar. 26, 2010; Mar. 5, 2014; Dec. 29, 2020>
(8) Despite paragraph (6), where the Minister of Economy and Finance deems that a special reason exists for taking measures to assess anti-dumping duties within 18 months pursuant to the proviso of paragraph (7), the Minister may, in consultation with the Trade Committee, extend the period of a full-scale investigation under paragraph (6) for up to two months <Newly Inserted on Dec. 29, 2020>
(9) The Trade Committee may, if deemed necessary, recommend the following matters to the Minister of Economy and Finance when it reports the results of the investigation required by paragraphs (2) and (5): <Amended on Feb. 29, 2008; Mar. 27, 2017>
1. The assessment of anti-dumping duties under Article 51 of the Act;
2. The provisional measure under Article 53 (1) of the Act;
3. The proposal or acceptance of pledge under Article 54 (1) of the Act.
(10) Except as provided in paragraphs (1) through (9), other necessary matters concerning the procedure for investigation shall be publicly notified by the Trade Committee, subject to the consultation with the Minister of Economy and Finance. <Newly Inserted on Mar. 26, 2010; Dec. 29, 2020>
 Article 62 (Withdrawal of Request for Assessing Anti-Dumping Duties)
(1) Any person who has applied for an investigation under Article 59 (1) shall, when he/she intends to withdraw such application, file a written notice to that effect with the Trade Committee. In such cases, when Trade Committee receives such written notice before the results of a preliminary investigation are reported under Article 61 (2), the Committee may suspend determination whether an investigation should be commenced under Article 60 (1) or may conclude the preliminary investigation under Article 61 (2), after consulting with the Minister of Economy and Finance and the heads of administrative agencies concerned; and when the Trade Committee receives such written notice after the results of a preliminary investigation are reported under Article 61 (2), the Committee shall file a notice thereon with the Minister of Economy and Finance. <Amended on Dec. 31, 2001; Feb. 29, 2008>
(2) The Minister of Economy and Finance may, when he/she receives a notice referred to in paragraph (1), get the investigation under Article 61 concluded after consulting with the Trade Committee and the heads of administrative agencies concerned and withdraw the provisional measures, if taken, under Article 53 (1) of the Act. <Amended on Feb. 29, 2008>
(3) The Minister of Economy and Finance shall, when he/she withdraws the provisional measure in accordance with the latter part of paragraph (2), refund anti-dumping duties paid and rescind security offered according to such provisional measure. <Amended on Feb. 29, 2008>
 Article 63 (Determination Whether Material Injury, etc. Exists)
(1) When the Trade Committee investigates and determines whether the fact of material injury, etc. exists in accordance with Article 61, the Committee shall do so based on concrete evidence and the following matters: <Amended on Dec. 29, 2020>
1. The import quantity of dumping goods (including whether the import of the relevant goods absolutely or markedly increases in comparison with the domestic production or domestic consumption);
2. The price of dumping goods (including whether the price of dumping goods markedly falls in comparison with the domestic price of the goods of the same kind);
3. The extent of dumping margin (including whether the import price of dumping goods markedly falls in comparison with the normal price of the exporting country thereof);
4. The output, operating rate, inventory, sale quantity, market share, price (including the effect of bringing down price or curbing price), profits, productivity, investment return, cash flow, employment, wages, growth, capital financing, investment capability of the domestic industry;
5. The actual and potential effect of the contents of subparagraphs 1 and 2 on the domestic industry.
(2) Where the material injury, etc. is investigated and determined in accordance with paragraph (1), determination as to whether the domestic industry is feared to suffer the material injury, etc. shall be made based on the fact, including the following matters, in addition to the matters of each subparagraph of paragraph (1); and the injury caused by any dumping goods shall be expectable and obviously urgent: <Amended on Dec. 29, 2020>
1. Remarkable increasing rate of dumping goods indicating the potential of substantially growing imports;
2. Substantial expansion of the production capacity indicating the potential of substantially boosting dumping exports to Korea (the export potential to other countries shall be taken into account);
3. Whether the price of dumping goods brings down or curbs the price of the goods of the same kind and the potential of increasing additional import demand;
4. Inventory of dumping goods and that of the goods of the same kind.
(3) In investigating and determining the fact of material injury, etc. in accordance with paragraph (1), if any goods imported from not less than two countries are made subject to an investigation at the same time and fall under each case of the following subparagraphs, the Trade Committee may cumulatively assess the injury caused by such import: <Amended on Feb. 29, 2008>
1. Where the dumping margin and the import quantity of dumping goods fall under the standards prescribed by Ordinance of the Ministry of Economy and Finance;
2. Where the dumping goods are competitive with each other and with the domestic goods of the same kind.
(4) The Trade Committee shall investigate factors other than the dumping, which inflict any damage on the domestic industry and shall not deem that any industrial damage, etc. caused by such factors has resulted from any dumping. <Amended on Dec. 29, 2020>
 Article 64 (Request for Cooperation of Interested Persons in Data)
(1) When deemed necessary for the investigation under Article 52 of the Act and for determination as to whether anti-dumping duties, etc. are assessed, the Minister of Economy and Finance or the Trade Committee may request necessary cooperation from administrative agencies concerned, domestic producers, suppliers, importers and interested persons, to furnish relevant data, etc.: Provided, That when any supplier is inquired as to whether he/she has been involved in dumping goods, he/she shall be given a period of not less than 40 days from the day on which a written inquiry is delivered to him/her for answering such inquiry; and if the relevant supplier requests for extending such period, citing the grounds therefor, proper consideration shall be given to his/her request. <Amended on Feb. 29, 2008>
(2) With respect to data, from among the data furnished in accordance with paragraph (1), the latter part of paragraph (8) and Article 59 (6), which are deemed appropriate to be handled confidentially in light of their nature or are requested by any person applying for an investigation or any interested person who cites good cause therefor to be handled confidentially, the Minister of Economy and Finance or the Trade Committee shall not disclose such data without the explicit consent of any person who has submitted such data. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(3) The Minister of Economy and Finance or the Trade Committee may ask any person who has furnished the data requested to be handled confidentially under paragraph (2) to furnish a summary of such data, which contains no secrets of the data. In such cases, if the person is unable to submit such summary, he/she shall submit a document citing the reasons therefor. <Amended on Feb. 29, 2008>
(4) Where any person who has furnished the data refuses to disclose such data without good cause or to furnish a summary of such data, which contains no secrets of the data under paragraph (3) although the request made under paragraph (2) that the data furnished be handled confidentially is deemed unjustifiable, the Minister of Economy and Finance or the Trade Committee may decide not to use such data as a reference unless the accuracy of the data is fully verified. <Amended on Feb. 29, 2008>
(5) In determining whether an investigation should be commenced under Article 52 of the Act or anti-dumping duties should be assessed, if it is impracticable to investigate or verify any data because any interested person fails to furnish the relevant data or rejects or obstructs an investigation conducted by the Trade Committee or due to other reasons, the Minister of Economy and Finance or the Trade Committee may determine whether measures to prevent any dumping should be taken, using available data, etc.. <Amended on Feb. 29, 2008>
(6) The Minister of Economy and Finance or the Trade Committee shall be prohibited from using any information and materials acquired from any interested person and facts learned in connection with procedures for the assessment of anti-dumping duties for other purposes. <Amended on Feb. 29, 2008>
(7) Where any interested person asks for a perusal of the data other than the data requested to be handled confidentially from among the related evidential data submitted under Article 59 (6) and the data furnished or reported under paragraph (1), the latter part of paragraph (8) and Article 68, the Minister of Economy and Finance or the Trade Committee shall comply with such request unless special reasons exist that make it impossible for him/her and it to do so. In such cases, the request by the interested person for the perusal of the data shall be made in writing, stating the reasons therefor and the list of data. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(8) The Minister of Economy and Finance or the Trade Committee may, when deemed necessary or there is a request from any interested person, give such interested person an opportunity to state his/her opinion at a public hearing, etc. or persons in conflict of their interests an opportunity to consult each other. In such cases, the oral statement or details of such consultation may be considered as data, only where either of them is submitted in writing within seven days after a hearing, etc. <Amended on Feb. 29, 2008; Dec. 29, 2020>
 Article 65 (Assessment of Anti-Dumping Duties)
(1) Any anti-dumping duties prescribed in Article 51 of the Act shall be assessed based on the rates of anti-dumping duties and the base import price prescribed by supplier and supplying country within the scope necessary to remedy actual damage, etc.: Provided, That with respect to any supplier who fails to furnish the data under Article 64 without good cause or refuses to disclose such data and it is impracticable to investigate or verify the data for other reasons, a single rate of anti-dumping duties or a single base import price shall be prescribed and then anti-dumping duties shall be assessed against him/her based on the single rate of anti-dumping duties or such single base import price. <Amended on Mar. 26, 2010>
(2) With respect to any supplier not selected for an investigation under Article 60 (1), anti-dumping duties shall be assessed against him/her based on the rate of anti-dumping duties or a base import price, which is weighted-averaged by the rate of anti-dumping duties or a base import price for the supplier selected for an investigation, as prescribed by Ordinance of the Ministry of Economy and Finance: Provided, That any person who furnishes the data under Article 64, from among persons who export goods during an investigation period and are not selected for an investigation, shall be governed by paragraph (1). <Amended on Feb. 29, 2008>
(3) Where anti-dumping duties are assessed against a supplying country designated in accordance with Article 51 of the Act, if a new supplier of the relevant supplying country which exports goods after an investigation period under Article 60 (1) has a special relation provided for in Article 23 (1) with an existing supplier who is subject to assessment of the anti-dumping duties under paragraph (1), anti-dumping duties shall be assessed against the new supplier, based on the rate of anti-dumping duties or the base import price applied to the existing supplier: Provided, That if the new supplier proves that he/she is not in a special relation with the existing supplier, anti-dumping duties may be assessed against him/her based on the rate of anti-dumping duties or a base import price, both of which are separately prescribed based on the result of an investigation. In such cases, the methods and procedures for the relevant investigation may be different from the existing method and procedures, as prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Dec. 31, 2001; Feb. 29, 2008>
(4) Where any investigation on a new supplier commences pursuant to the proviso to paragraph (3), the head of a customs office may receive security from a person who imports goods supplied by the new supplier and then defer the assessment of anti-dumping duties by the date when the investigation is completed. <Newly Inserted on Mar. 26, 2010>
(5) The rate of anti-dumping duties or base import price set under the proviso to paragraph (3) shall apply from the date the relevant investigation commences. <Newly Inserted on Mar. 26, 2010>
(6) Articles 68 (1) through (3), (5) and (6) shall apply mutatis mutandis to the pledge of price adjustment and export suspension, etc. by the new supplier, the investigation of which has commenced pursuant to the proviso to paragraph (3). In such cases, the term "the results of a full-scale investigation under Article 61 (5)" in the former part of Article 68 (1) shall be deemed "the conclusion of the investigation under the proviso to Article 65 (3)". <Newly Inserted on Mar. 26, 2010>
(7) The base import price referred to in paragraphs (1) through (3) shall be determined within the limit of an amount obtained by adding the import-related cost to the normal price of a supplying country, which is adjusted in accordance with Article 58 (5). <Amended on Mar. 26, 2010>
 Article 66 (Application of Provisional Measure)
(1) Where it is confirmed as a result of a preliminary investigation under Article 61 (2) that adequate evidence presuming the fact of dumping and the fact of material injury, etc. caused thereby exists, the provisional measure as prescribed in Article 53 (1) of the Act may be applied after the day on which at least 60 days expire from the day on which the relevant investigation was launched.
(2) The application period of the provisional measure as prescribed in Article 61 (3) shall be not more than four months: Provided, That such period may be extended up to six months if a supplier having a great influence in the trade of the relevant goods files a request to that effect.
(3) Notwithstanding paragraph (2), the application period of the provisional measure may be extended by up to nine months in accordance with conventions if the Minister of Economy and Finance deems it necessary to do so, such as where an investigation is conducted on whether damage to the domestic industry can be eliminated even by assessing customs duties below the amount equivalent to dumping margin. <Amended on Feb. 29, 2008; Mar. 27, 2017>
(4) Security offered in accordance with Article 53 (1) of the Act, which falls under Article 24 (1) 1 through 4 and 7 of the Act, shall be an amount equivalent to the amount of provisional anti-dumping duties. <Amended on Feb. 4, 2009>
 Article 67 (Settlement of Amount of Provisional Anti-Dumping Duties)
(1) Where the amount of anti-dumping duties assessed on the goods imported during a period in which the provisional measure is applied in accordance with Article 53 (3) of the Act, which falls under Article 69 (1), is equal to or exceeds the amount of provisional anti-dumping duties, the latter shall be deemed the former and any difference between them shall not be collected. Where the amount of anti-dumping duties is lower than that of the provisional anti-dumping duties, the amount of provisional anti-dumping duties, which is equivalent to a difference, shall be refunded.
(2) Where security offered under Article 53 (1) of the Act falls under Article 69 (1), the amount of anti-dumping duties to be assessed retroactively during a period in which the relevant provisional measure is applied shall not exceed an amount equivalent to the amount of the provisional anti-dumping duties.
(3) Where the pledge described in Article 68 (1) is accepted after the existence of the fact of dumping the relevant goods and the fact of material injury, etc, caused thereby is confirmed as a result of a full-scale investigation described in Article 61 (5) and the investigated final dumping rate is equal or exceeds the rate of the provisional anti-dumping duties, a difference accruing from the two different rates shall not be collected. Where the rate of the former is lower than that of the latter, the amount of provisional anti-dumping duties, which is equivalent to a difference between them, shall be refunded.
 Article 68 (Pledge of Price Adjustment and Export Suspension)
(1) Where an exporter of any goods on which an investigation is launched to determine whether anti-dumping duties thereon are assessed, intends to propose the pledge as prescribed in Article 54 (1) of the Act or to request the continuation of an investigation into injury under the proviso to Article 54 (2) of the Act, he/she shall file a written request therefor with the Trade Committee before a final decision is made according to the results of a full-scale investigation under Article 61 (5). In such cases, the Trade Committee shall serve without delay original copies of documents submitted on the Minister of Economy and Finance. <Amended on Feb. 29, 2008>
(2) Where the pledge offered under paragraph (1) goes to the effect that the price in question is immediately adjusted and the dumping export in question is suspended within six months from the date of pledge, the Minister of Economy and Finance may accept such pledge: Provided, That the same shall not apply to cases where it is deemed impracticable to secure the fulfillment of such pledge, which is prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 29, 2008>
(3) The Minister of Economy and Finance may, when deemed necessary, designate an exporter and propose that such exporter adjust the price of his/her export goods in accordance with Article 54 (1) of the Act. <Amended on Feb. 29, 2008>
(4) The Minister of Economy and Finance shall not accept the pledge under paragraph (2) or propose the pledge under paragraph (3) before it is confirmed as a result of a preliminary investigation under Article 61 (2) that there is adequate evidence presuming the existence of the fact of dumping and the fact of material injury, etc. caused thereby. <Amended on Feb. 29, 2008>
(5) Where any exporter fails to fulfill his/her pledge accepted under Article 54 (2) of the Act, the Minister of Economy and Finance may promptly take measures classified as follows to prevent any dumping. In such cases, Article 66 (2) and (3) shall apply mutatis mutandis to the period for application of the measures referred to in subparagraph 2: <Amended on Mar. 27, 2017>
1. Where the details of assessment, such as the rate of anti-dumping duties, are determined by conducting a continuous investigation under the proviso to Article 54 (2) of the Act: Assessment of anti-dumping duties;
2. In cases not falling under subparagraph 1: Provisional measures under Article 53 (1) 2 of the Act.
(6) Where the Minister of Economy and Finance confirms from the result of the continued investigation under the proviso to Article 54 (2) of the Act that the fact of any material injury, etc. or any dumping margin is nonexistent, the effect of the relevant pledge shall be deemed extinguished: Provided, That if it is judged that the nonexistence of material injury, etc. and the dumping margin have been caused by the pledge, the Minister of Economy and Finance may keep the pledge fulfilled for a properly fixed period and, if the exporter refuses to fulfill his/her pledge, the Minister of Economy and Finance may take prompt measures to prevent the dumping, including taking the provisional measures, on the basis of the best available information. <Amended on Feb. 29, 2008>
 Article 69 (Retroactive Assessment of Anti-Dumping Duties)
(1) Goods to which the provisional measure is applied under the proviso to Article 55 of the Act and on which anti-dumping duties are assessed, shall be as follows: <Amended on Feb. 29, 2008; Mar. 27, 2017>
1. Where the existence of material injury, etc. is finally confirmed, or it is finally confirmed that such material injury, etc. is feared to occur, but it is finally confirmed that a lack of the provisional measure causes the existence of such material injury, etc., goods imported during a period in which the provisional measures is applied;
2. Where it is necessary to assess retroactively anti-dumping duties to prevent a recurrence of the material injury, etc. caused by a massive import during a relatively short period, the relevant goods were dumped, causing the material injury, etc. in the past or an importer has learned or could have learned the fact of dumping and the fact of material injury, etc caused thereby, goods imported since 90 days prior to the day on which the provisional measure is applied;
3. Where the material injury, etc. caused by the import of goods subject to the application of the provisional measure in violation of the pledge described in Article 54 (1) of the Act (hereafter in this subparagraph referred as "pledge") is confirmed, goods imported since 90 days prior to the day on which the provisional measure is applied (where the Minister of Economy and Finance deems it necessary, they may be limited to goods in violation of the pledge). In such cases, goods imported before the day on which the pledge is broken shall be excluded herefrom;
4. Goods imported during a period fixed by the Minister of Economy and Finance in accordance with conventions.
(2) Any person interested in the domestic industry prescribed in Article 59 may request the assessment of anti-dumping duties in accordance with the proviso to Article 55 of the Act by presenting the evidence that the relevant goods fall under each subparagraph of paragraph (1) within seven days from the day on which he/she is notified of a final decision made based on a result of a full-scale investigation under Article 61 (5).
 Article 70 (Review of Anti-Dumping Duties and Pledge)
(1) Where deemed necessary, or whether any interested person or the competent minister in charge of the relevant industry files a request along with evidential data appended with respect to any case falling under the following subparagraphs, the Minister of Economy and Finance shall determine whether the goods on which anti-dumping duties are assessed or the pledge thereon is fulfilling, should be reviewed under Article 56 (1) of the Act: <Amended on Feb. 22, 2008; Feb. 29, 2008; Dec. 29, 2020>
1. Where circumstantial changes fully deemed necessary to modify the contents thereof take place, after anti-dumping duties are assessed and the pledge thereon is fulfilled;
2. Where dumping or any damage to the domestic industry continues or is feared to re-occur due to the expiration of anti-dumping duties and the pledge thereon;
3. Where the amount of anti-dumping duties is paid in excess of the amount of actual dumping margin.
(2) Any request for a review prescribed in paragraph (1) may be made after the expiration of one year from the day on which the relevant anti-dumping duties are assessed or the pledge thereon enters into force; and such request shall be made before six months from the day on which the effect of anti-dumping duties or the pledge thereon is lost. <Amended on Feb. 29, 2008; Mar. 26, 2010; Dec. 29, 2020>
(3) The Minister of Economy and Finance shall determine whether the review is required, within two months from the day on which a request is filed for such review under paragraph (1); shall notify the matters on determination as to the review to the person who has requested the review, the Government of the supplying country of the relevant goods and the supplier, and other interested persons; and then shall post them on the Official Gazette. In such cases, the Minister shall provide the Government of the supplying country of the relevant goods and the supplier with a request for review under paragraph (1). <Newly Inserted on Dec. 29, 2020>
(4) In addition to the cases of the review prescribed in paragraph (1), the Minister of Economy and Finance may review the appropriateness of any anti-dumping duties and any pledge thereon in force, and to that end, he/she shall review the dumping price in connection with the details of anti-dumping duties or the pledge thereon (including details modified according to the review) in the month of every year to which the enforcement date thereof belongs. In such cases, the Commissioner of he Korea Customs Service shall prepare data necessary for review and submit it to the Minister of Economy and Finance in the month of every year to which the enforcement date thereof belongs.<Amended on Feb. 29, 2008; Feb. 11, 2020; Dec. 29, 2020>
(5) When the Minister of Economy and Finance determines that review is required pursuant to paragraph (1) or (4), he/she may consult the heads of the relevant administrative agencies and the Trade Committee; and when it is determined that review is required, the Trade Committee shall investigate it. In such cases, such investigation shall be limited to the part which forms the grounds for such review. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(6) The Trade Committee shall conclude the investigation referred to in paragraph (5) within six months from the day on which the relevant review is launched, and shall report the results thereof to the Minister of Economy and Finance: Provided, That the Trade Committee may, if deemed necessary to extend the investigation period or any interested person requests the extension thereof, citing good cause, extend the investigation period for up to four months. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(7) If the Minister of Economy and Finance receives the results of an investigation under paragraph (6), he/she shall determine whether any measures should be taken and the details thereof under Article 56 (1) of the Act within 12 months from the date on which such results are published under the former part of paragraph (3), and shall take necessary measures. <Amended on Mar. 5, 2014; Dec. 29, 2020>
(8) Where the review is conducted for the reason of paragraph (1) 2, even where the due date applied to the relevant anti-dumping measure expires during the review period, the effect of such anti-dumping measure shall continue to be valid during such review period. <Amended on Dec. 29, 2020>
(9) When the Minister of Economy and Finance, pursuant to Article 56 (1) of the Act, assesses new anti-dumping duties or enforces such pledge as price adjustment or export suspension for goods, which anti-dumping duties have been continuously assessed upon during the review period under paragraph (8), such accounts may be settled in the same manner as provided for in Article 67 (1) and (3). <Newly Inserted on Feb. 22, 2008; Feb. 29, 2008; Dec. 29, 2020>
(10) When it is deemed from the review under paragraph (1) or (4) that the effectiveness of the pledge is lost or feared to be lost, the Minister of Economy and Finance may request any exporter who is committed to the pledge to modify such pledge; and if the exporter refuses to modify the pledge, the Minister may take an anti-dumping measure against him/her, based on available information. <Amended on Feb. 22, 2008; Feb. 29, 2008; Dec. 29, 2020>
(11) The Minister of Economy and Finance may have the Commissioner of the Korea Customs Service investigate the matters prescribed by Ordinance of the Ministry of Economy and Finance and report back the outcomes thereof to him/her for the review referred to in paragraph (1) or (4). <Amended on Feb. 22, 2008; Feb. 29, 2008; Dec. 29, 2020>
(12) Where a person that has made a request for the review pursuant to paragraph (1) intends to withdraw the relevant request, he/she shall submit his/her intent in writing to the Minister of Economy and Finance. In such cases, the Minister of Economy and Finance may suspend determination as to whether the review should be commenced under the former part of paragraph (3) in consultation with the Trade Committee and the head of a related administrative agency or may request them to conclude an investigation under paragraph (5). <Newly Inserted on Feb. 15, 2013; Dec. 29, 2020>
(12) Article 64 shall apply mutatis mutandis to the request for the cooperation to data required to conduct an investigation prescribed in paragraph (5); Article 65 shall apply mutatis mutandis to the assessment of anti-dumping duties, among measures taken by the Minister of Economy and Finance as a result of the review under Article 56 (1) of the Act; and the former part of Article 68 (1), and Article 68 (2), (3), (5) and (6) shall apply mutatis mutandis to the pledge of price adjustment, export suspension, etc. In such cases, "a final decision based on the results of a full-scale investigation under Article 61 (5)" in the former part of Article 68 (1) shall be deemed "the conclusion of the investigation under Article 70 (5)," and "the Trade Committee" shall be deemed "the Minister of Economy and Finance". <Amended on Mar. 26, 2010; Feb. 15, 2013; Dec. 29, 2020>
 Article 71 (Notice to Interested Person and Publication, etc.)
(1) Where the Minister of Economy and Finance takes measures falling under each of the following subparagraphs, he/she shall publish details thereof in the Official Gazette and shall serve a written notice thereon on any interested person: <Amended on Feb. 29, 2008; Mar. 26, 2010; Dec. 29, 2020>
1. Where he/she determines to take measures as prescribed in Articles 51 and 53 (1) of the Act or determines not to take such measures;
2. Where he/she suspends or concludes an investigation after accepting the pledge under Article 54 (1) of the Act or continues the investigation;
3. Where he/she modifies the details of an anti-dumping measure as a result of the review under Article 56 (1) of the Act;
4. Where he/she extends the effect of an anti-dumping measure under Article 70 (8).
(2) In each of the following cases, the Minister of Economy and Finance or the Trade Committee shall notify any interested person of the details thereof: <Amended on Feb. 29, 2008; Feb. 15, 2013; Mar. 5, 2014; Dec. 29, 2020>
1. Where an investigation application is dismissed under Article 60 (2) or an investigation is concluded under Article 61 (4);
2. Where a preliminary decision is made in accordance with the findings of a preliminary investigation under Article 61 (2);
3. Where a final decision is made in accordance with the findings of a full-scale investigation under Article 61 (5);
4. When the investigation period is extended in accordance with Article 61 (6) and (8), and the proviso to Article 70 (6);
5. Where the period is extended in accordance with the proviso to Article 61 (7);
6. Where, because a request for assessing anti-dumping duties or a request for a review is withdrawn under Articles 62 and 70 (12), determination as to whether the relevant investigation or review should be commenced, is suspended, or the relevant investigation is concluded;
7. Where the application period of the provisional measure is extended under Article 66 (2) or (3);
8. Where the Minister of Economy and Finance proposes the pledge under Article 68 (3);.
9. Where a final decision is made in accordance with the findings of a full-scale investigation under Article 70 (6).
(3) The Minister of Economy and Finance or the Trade Committee shall, when any interested person files a written request in connection with an investigation under Article 61 in the process of such investigation, notify such interested person of the progress of the investigation. <Amended on Feb. 29, 2008>
(4) The Trade Commission shall notify the interested persons concerned of the core considerations which constitute the basis of the relevant decision before making a final decision in accordance with the findings of the full-scale investigation under Article 61 (5) and the findings of the re-examination under Article 70 (6). <Newly Inserted on Dec. 29, 2020>
 Article 72 (Subsidies, etc.)
(1) Subsidies, etc. under Article 57 of the Act (hereinafter referred to as "subsidies, etc.") mean those having the nature of specification from among financial benefits provided by the Government and public institutions, etc.: Provided, That subsidies and bounties prescribed by Ordinance of the Ministry of Economy and Finance shall be excluded herefrom. <Amended on Feb. 29, 2008>
(2) "Nature of specification" in paragraph (1) means cases where subsidies, etc. are paid to specific companies or industries or a group of specific companies or a group of specific industries and a specific distinction criteria shall be prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 29, 2008>
(3) The amount of subsidies, etc. shall be calculated based on financial benefits that beneficiaries actually receive as prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 29, 2008>
 Article 73 (Request for Assessment of Countervailing Duty)
(1) Persons interested in the domestic industry that suffers material injury, etc. as prescribed by Article 57 of the Act or the minister of the competent ministry having jurisdiction over the relevant domestic industry may ask the Minister of Economy and Finance to assess a countervailing duty as prescribed by Ordinance of the Ministry of Economy and Finance; and such request shall be deemed a request filed with the Trade Committee for an investigation necessary to assess such countervailing duty. <Amended on Feb. 29, 2008>
(2) The minister of the competent ministry may ask the Commissioner of the Korea Customs Service to examine the fact of goods to which the relevant subsidies have been paid before asking the Minister of Economy and Finance to assess countervailing duty in accordance with paragraph (1). <Newly Inserted on Dec. 29, 2020>
(3) The Commissioner of the Korea Customs Service, where deeming that it is feared that goods to which the relevant subsidies have been paid are imported, despite absence of a request for examination of the fact of importing the aforementioned goods under paragraph (2), the Commissioner may examine whether the subsidized goods have been imported and notify the competent minister of its result. <Newly Inserted on Dec. 29, 2020>
(4) In the application of Article 57 of the Act, the domestic industry shall be the whole of the domestic production business (the production business run by a producer in a special relation under Article 23 (1) with the Government of an exporting country, or an exporter or an importer of the relevant imported goods and the production business run by an importer of the relevant imported goods who is also a producer prescribed by Ordinance of the Ministry of Economy and Finance may be excluded herefrom; hereafter the same shall apply in this paragraph) of the goods for which subsidies, etc. are paid or the domestic production business that accounts for a substantial portion of the quantity of total domestic production of such goods and other goods of the same kind. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(5) "Persons interested in the domestic industry" in paragraph (1) means domestic producers or individuals belonging to the domestic industry that suffers material injury, etc., any corporation and organization, both of which are established by such domestic producers and individuals for the purpose of speaking for their interests. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(6) A person who intends to apply for an investigation under paragraph (1) shall submit the following data to the Trade Commission: <Amended on Dec. 29, 2020>
1. Three copies of an application stating the following matters:
(a) The name, standard, characteristics, the purpose of use, producer and production quantity of the relevant goods;
(b) Exporting country, exporter, export performance, export potential of the relevant goods, and importer, import performance and import potential of the relevant goods in Korea;
(c) Factory price and market price of the relevant goods in an exporting country and the export price of the relevant goods to Korea and third countries;
(d) The name, standard, characteristics, the purpose of use, producer, production quantity, factory price, market price and cost accounting of the domestic goods of the same kind or quality or similar goods;
(e) Matters concerning material injury, etc., suffered by the related domestic industry due to the import of goods for which subsidies, etc. are paid;
(f) Details of subsidies, etc. paid for manufacturing, producing, or exporting the relevant goods in an exporting country and the ensuing effect of bringing down their export price;
(g) The extent of support by the domestic producers of the goods of the same kind or quality for the relevant investigation application;
(h) If appended data are required to be handled confidentially, the reasons therefor;
(i) Other matters deemed necessary by the Minister of Economy and Finance;
2. Three copies of evidential data fully attesting the fact of importing goods and material injury, etc. caused thereby.
(7) The Korea Trade Commission shall notify the Minister of Economy and Finance, the head of the relevant administrative agency, and the government of a country exporting the relevant goods of the receipt of an application for investigation pursuant to paragraph (6). In such cases, the data prescribed in the subparagraphs of paragraph (6) shall be notified after a decision on the commencement of an investigation is made under Article 74 (1). <Newly Inserted on Dec. 29, 2020>
 Article 74 (Commencement of Investigation of Import of Subsidized Goods and Material Injury, etc.)
(1) The Trade Committee shall, upon receiving an investigation application under the latter part of Article 73 (1), determine whether an investigation into the fact of importing goods for which subsidies, etc. are paid and the fact of material injury, etc. caused thereby, should be commenced; and shall notify the Minister of Economy and Finance of the findings of such investigation and the following matters within two months from the day on which the aforementioned investigation application is received: <Amended on Feb. 29, 2008>
1. Goods subject to the investigation (if goods subject to the investigation are many in number, goods selected as prescribed by Ordinance of the Ministry of Economy and Finance);
2. The investigation period;
3. The Government of a country exporting goods subject to the investigation or an exporter (if the Government of a country exporting such goods or an exporter is many in number, the governments or exporters selected as prescribed by Ordinance of the Ministry of Economy and Finance).
(2) In determining whether an investigation should be commenced under paragraph (1), the Trade Committee may, if an investigation application falls under any of the following subparagraphs, dismiss the relevant investigation application: <Amended on Feb. 29, 2008>
1. Where a person who files an investigation application is not eligible for requesting the assessment of a countervailing duty under Article 73 (1);
2. Where adequate evidential data concerning the fact of importing goods for which subsidies, etc. are paid and the fact of material injury, etc. caused thereby is not submitted;
3. Where the amount of subsidies, etc. or the quantity of imported goods for which subsidies, etc. are paid falls short of the criteria prescribed by Ordinance of the Ministry of Economy and Finance and material injury, etc. is deemed insignificant;
4. Where the aggregate quantity of production by domestic producers expressing their support for the relevant investigation application is deemed to fall short of the standards prescribed by Ordinance of the Ministry of Economy and Finance;
5. Where measures are taken to get rid of any adverse effect on the domestic industry before an investigation commences, making it unnecessary to launch an investigation.
(3) The Trade Committee shall, when it determines to commence an investigation under paragraph (1), notify an investigation applicant, the Government of a country exporting the relevant goods, an exporter and any interested person of the matters concerning the determination on the commencement of such investigation and publish such matters in the Official Gazette within ten days from the day on which it determines to commence such investigation. In such cases, the Minister shall provide the Government of the supplying country of the relevant goods and the supplier with data specified in each subparagraph of Article 73 (6) <Newly Inserted on Dec. 29, 2020>
(4) The Trade Committee may make selections with regard to tariff classification, etc. of goods subject to investigation under paragraph (1) 1 in consultation with the Commissioner of the Korea Customs Service. <Newly Inserted on Dec. 29, 2020>
 Article 75 (Investigation of Import of Subsidized Goods and Material Injury, etc.)
(1) The Trade Committee shall take charge of any investigation into the fact of importing goods for which subsidies, etc. are paid and the fact of material injury, etc. caused thereby under Article 57 of the Act. In such cases, the Trade Committee may, when deemed necessary, have public officials working for administrative agencies concerned or related experts participate in investigation activities.
(2) The Trade Committee shall make a preliminary investigation into whether there is adequate evidence presuming the existence of the fact of importing goods for which subsidies, etc. are paid and the fact of material injury, etc. caused thereby within three months from the day on which the matters concerning the assessment of a countervailing duty under the former part of Article 74 (3) and the determination on the commencement of an investigation are published in the Official Gazette and report the results of such investigation to the Minister of Economy and Finance. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(3) The Minister of Economy and Finance shall determine the matters concerning whether it is necessary to take the measure described in Article 59 (1) of the Act and the contents thereof within one month from the day on which the results of a preliminary investigation under paragraph (2) are reported: Provided, That the period of one month may, if deemed necessary, be extended by up to 20 days. <Amended on Feb. 29, 2008>
(4) Where the amount of subsidies, etc. or the quantity of imported goods for which subsidies, etc. are paid falls short of the standards prescribed by Ordinance of the Ministry of Economy and Finance or material injury, etc. is deemed insignificant from a preliminary investigation under paragraph (2), the Trade Committee shall conclude the full-scale investigation under paragraph (5). In such cases, the Minister of Economy and Finance shall publish the conclusion of the full-scale investigation in the Official Gazette. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(5) The Trade Committee shall commence a full-scale investigation beginning from the day following the day on which the results of a preliminary investigation under paragraph (2) are reported unless special reasons prescribed by Ordinance of the Ministry of Economy and Finance exist that make it impossible for it to commence such investigation and report the results of such full-scale investigation to the Minister of Economy and Finance within three months from the day on which the full-scale investigation is launched. <Amended on Feb. 29, 2008>
(6) The Trade Committee may, when it is necessary to extend the investigation period in connection with the investigation under paragraphs (2) and (5) or any interested person requests the extension thereof, citing good cause, extend such period for up to two months.
(7) Where the Minister of Economy and Finance receives the results of a full-scale investigation prescribed in paragraph (5), he/she shall determine whether countervailing duty should be assessed and details thereof, within 12 months from the date on which such results are published in the Official Gazette under the former part of Article 74 (3); and take measures to assess anti-dumping duties in accordance with Article 57 of the Act: Provided, That where any special reason is deemed existing, he/she may take measures to assess countervailing duties within 18 months from the date of publication in the Official Gazette. <Amended on Dec. 29, 2020>
(8) Notwithstanding paragraph (6), the Minister of Economy and Finance may, where deemed that special reasons exist to take a measure to assess a countervailing duty within 18 months pursuant to the proviso to paragraph (7), extend the period of a full-scale investigation under paragraph (6) by up to two months. <Amended on Dec. 29, 2020>
(9) The Trade Committee may, if deemed necessary, recommend the following matters to the Minister of Economy and Finance when it reports the results of the full-scale investigation under paragraphs (2) and (5): <Amended on Feb. 29, 2008; Dec. 29, 2020>
1. The assessment of a countervailing duty under Article 57 of the Act;
2. The provisional measure under Article 59 (1) of the Act;
3. The proposal or acceptance of the pledge under Article 60 (1) of the Act.
(10) Except as provided in paragraphs (1) through (9), other necessary matters concerning the procedures for application for assessment, investigation, and decision of countervailing duties shall be publicly notified by the Trade Committee after the consultation with the Minister of Economy and Finance. <Newly Inserted on Dec. 29, 2020>
 Article 76 (Withdrawal of Request for Assessment of Countervailing Duty)
(1) Any person who has applied for an investigation under Article 73 (1) shall, when he/she intends to withdraw such application, file a written notice thereon with the Trade Committee. In such cases, when the Trade Committee receives a written withdrawal notice before the results of a preliminary investigation under Article 75 (2) are reported, the Committee may suspend determination as to whether an investigation should be commenced under Article 74 (1), or may conclude the relevant investigation under Article 75 (2), after consulting with the Minister of Economy and Finance and the heads of administrative agencies concerned; and when The Trade Committee receives such written withdrawal notice after the results of such preliminary investigation are reported, the Committee shall file a notice thereon with the Minister of Economy and Finance. <Amended on Feb. 29, 2008>
(2) The Minister of Economy and Finance may, upon receiving the notice referred to in paragraph (1), get the investigation under Article 75 concluded after consulting with the Trade Committee and the heads of administrative agencies concerned and withdraw the provisional measure, if taken under Article 59 (1) of the Act. <Amended on Feb. 29, 2008>
(3) The Minister of Economy and Finance shall, when he/she withdraws the provisional measure in accordance with the latter part of paragraph (2), refund any provisional countervailing duty paid according to the relevant provisional measure and rescind any security offered. <Amended on Feb. 29, 2008>
 Article 77 (Decision on Material Injury, etc.)
(1) When the Trade Committee investigates and determines the fact of material injury, etc. in accordance with Article 75, the Committee shall do so based on substantial evidence, including the following matters: <Amended on Dec. 29, 2020>
1. Import quantity of goods for which subsidies, etc. are paid (including whether the import of the relevant goods markedly and absolutely increases in comparison with the domestic production or the domestic consumption);
2. The price of goods for which subsidies, etc. are paid (including whether such price markedly falls in comparison with that of the domestic goods of the same kind);
3. The extent of the amount of subsidies, etc. (including whether the import price of goods for which subsidies, etc. are paid markedly falls in comparison with the normal price of the exporting country);
4. The output, operating rate, inventory, sale quantity, market share, price (including the effect of bringing down price or curbing price), profits, productivity, investment return, cash flow, employment, wages, growth, capital financing, investment capability and technology development of the domestic industry;
5. The actual and potential effect of the contents of subparagraphs 1 and 2 on the domestic industry.
(2) Where material injury, etc. is investigated and determined under paragraph (1), determination as to whether the domestic industry is feared to suffer material injury, etc. shall be made based on the fact including the following matters in addition to the matters of each subparagraph of paragraph (1); and the injury caused by any goods for which subsidiaries, etc. are paid shall be expectable and obviously urgent: <Amended on Dec. 29, 2020>
1. The characteristic of the relevant subsidies, etc. and the trade effect resulting therefrom;
2. The remarkable growth rate of goods for which subsidies, etc. are paid, an indication of a potential growth in actual imports;
3. The substantial expansion of the production capacity which makes it possible to boost the export of goods for which subsidies, etc are paid to Korea (the potential of exporting goods to other countries shall be taken into account);
4. Whether the price of goods for which subsidies, etc. are paid brings down or curbs the price of the goods of the same kind, and the potential of increasing additional import demand;
5. The inventory of goods for which subsidies, etc. are paid and the current inventory of the goods of the same kind.
(3) In investigating and deciding the fact of material injury, etc. under paragraph (1), where goods imported simultaneously from not less than two countries are subjected to an investigation and fall under each of the following subparagraphs, the Trade Committee may cumulatively assess the injury caused thereby: <Amended on Feb. 29, 2008>
1. Where the amount of subsidies, etc. and the import quantity of goods for which subsidies, etc. are paid fall under the standards prescribed by Ordinance of the Ministry of Economy and Finance;
2. Where goods for which subsidies, etc. are paid are in competition with each other and also with the domestic goods of the same kind.
(4) The Trade Committee shall investigate factors other than the import of goods for which subsidies, etc. are paid, which inflict injury on the domestic industry, and shall not deem that industrial injury, etc. caused by such factors has resulted from the import of goods for which subsidies, etc. are paid.
[Title Amended on Dec. 29, 2020]
 Article 78 (Request for Interested Person's Cooperation in Data)
(1) Where it is deemed necessary to determine whether an investigation should be commenced as prescribed in Article 58 of the Act and whether a countervailing duty, etc. should be assessed, the Minister of Economy and Finance or the Trade Committee may request cooperation from administrative agencies concerned, the Government of any exporting country, any exporter, any importer and any interested person, to furnish relevant data, etc.: Provided, That, where the Minister of Economy and Finance or the Trade Committee inquires of the Government of any exporting country or any exporter about whether subsidies, etc. are paid, the Minister or Committee shall give them a period of not less than 40 days for answering such inquiries. Where the Government of the exporting country or the exporter requests the extension of the aforementioned period, citing reasons therefor, proper consideration shall be given to such request. <Amended on Feb. 29, 2008>
(2) With respect to any data, from among the data furnished under paragraph (1) and the latter part of paragraph (8) and Article 73 (6), which are deemed appropriate to be handled confidentially in light of their nature or are requested by any investigation applicant or any interested person to be handled confidentially, citing good cause, the Minister of Economy and Finance or the Trade Committee shall not make public such data without the explicit consent of any person who has furnished the data. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(3) The Minister of Economy and Finance or the Trade Committee may ask any person who has furnished the data requested to be handled confidentially under paragraph (2) to furnish a summary of such data, which contains no secrets of the data. In such cases, if the person is unable to submit such summary, he/she shall submit a document citing the reasons therefor. <Amended on Feb. 29, 2008>
(4) Where any person who has furnished the data refuses to disclose such data without good cause or to furnish a summary of such data, which contains no secrets of the data under paragraph (3) although the request made under paragraph (2) that the data furnished be handled confidentially is deemed unjustifiable, the Minister of Economy and Finance or the Trade Committee may decide not to use such data as a reference unless the accuracy of the data is fully verified. <Amended on Feb. 29, 2008>
(5) In determining whether an investigation is required under Article 58 of the Act or whether a countervailing duty should be assessed, if any interested person fails to furnish the relevant data or rejects or obstructs an investigation conducted by the Trade Committee and it is impracticable to investigate or verify any data because of other reasons, the Minister of Economy and Finance or the Trade Committee may determine whether a measure should be taken to assess a countervailing duty, using available data, etc.. <Amended on Feb. 29, 2008>
(6) The Minister of Economy and Finance or the Trade Committee shall be prohibited from using any information and data acquired from any interested person and facts learned in connection with procedures for the assessment of any countervailing duty. <Amended on Feb. 29, 2008>
(7) Where any interested person asks for a perusal of the data other than the data requested to be handled confidentially from among the related evidential data furnished under Article 73 (6) and the data furnished or reported under paragraph (1) and the latter part of paragraph (8) and Article 81, the Minister of Economy and Finance or the Trade Committee shall comply with such request unless special reasons exist that make it impossible for him/her and it to do so. In such cases, the request by the interested person for the perusal of the data shall be made in writing, stating the reasons therefor and the list of data. <Amended on Feb. 29, 2008; Dec. 29, 2020>
(8) The Minister of Economy and Finance or the Trade Committee may, when deemed necessary or there is a request from any interested person, give such interested person an opportunity to state his/her opinion at a public hearing, etc. or persons in conflict of their interests an opportunity to consult with each other. In such cases, the oral statement or details of such consultation may be considered as data, only where either of them is submitted in writing within seven days after a hearing, etc. <Amended on Feb. 29, 2008; Dec. 29, 2020>
 Article 79 (Assessment of Countervailing Duty)
(1) Any countervailing duty as prescribed in Article 57 of the Act may be assessed based on the rates of countervailing duty prescribed by exporters or exporting countries: Provided, That with respect to any exporter who fails to furnish the data under Article 78 without good cause or refuses to disclose such data and it is impracticable to investigate or verify his/her data for other reasons, a single rate of countervailing duty may be prescribed and then a countervailing duty may be assessed against him/her based on such single rate.
(2) With respect to any exporter not selected to be subject to an investigation under Article 74 (1), a countervailing duty shall be assessed against him/her based on a countervailing duty rate which is weighted-averaged by a countervailing duty rate for an exporter selected to be subject to an investigation as prescribed by Ordinance of the Ministry of Economy and Finance: Provided, That any person who furnishes the data under Article 78, from among persons who export goods during an investigation period and are not selected to be subject to an investigation, shall be governed by the provisions of paragraph (1). <Amended on Feb. 29, 2008>
(3) Where a countervailing duty is assessed against an exporting country designated in accordance with Article 57 (1) of the Act, if a new exporter of the relevant exporting country which exports goods after an investigation period under Article 74 (1) is in a special relation as prescribed in Article 23 (1) with an existing exporter who is subject to the assessment of a countervailing duty under paragraph (1), a countervailing duty shall be assessed against the new exporter, based on the rate of countervailing duty applied to the existing exporter: Provided, That if the new exporter proves that he/she is not in a special relation with the existing exporter, a countervailing duty may be assessed against him/her, based on the rate of countervailing duty which is separately prescribed as a result of an investigation. In such cases, the method of and procedures for the relevant investigation may be different from the existing method and procedures as prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 29, 2008>
(4) Where any investigation on a new supplier commences pursuant to the proviso to paragraph (3), the head of a customs office may receive security from a person who imports goods supplied by the new supplier and then defer the assessment of countervailing duty by the date when the investigation is completed. <Newly Inserted on Dec. 29, 2020>
(5) The rate of countervailing duty or base import price set under the proviso to paragraph (3) shall apply from the date the relevant investigation commences. <Newly Inserted on Dec. 29, 2020>
(6) Articles 81 (1) through (3), (5) and (6) shall apply mutatis mutandis to the pledge of price adjustment and export suspension, etc. by the new supplier, the investigation of which has commenced pursuant to the proviso to paragraph (3). In such cases, the term "the final decision based on the results of a full-scale investigation under Article 75 (5)" in the former part of Article 81 (1) shall be deemed "the conclusion of the investigation under the proviso to Article 79 (3)". <Newly Inserted on Dec. 29, 2020>
 Article 80 (Application of Provisional Measures)
(1) Where it is confirmed from a preliminary investigation under Article 75 (2) that there is adequate evidence presuming the existence of the fact of the payment of subsidies, etc. and the fact of material injury, etc. caused thereby, the provisional measure as prescribed in Article 59 (1) of the Act may be applied after the day on which at least 60 days expire from the day on which the relevant investigation was launched.
(2) The application period of the provisional measure as prescribed in Article 75 (3) shall be not more than four months: Provided, where the exporter who accounts for a significant portion of the trade of the relevant goods requests an extension, the period may be extended by up to six months. <Amended on Dec. 29, 2020>
(3) Notwithstanding paragraph (2), the application period of the provisional measure may be extended by up to nine months in accordance with conventions if the Minister of Economy and Finance deems it necessary to do so, such as where an investigation is conducted on whether damage to the domestic industry can be eliminated even by assessing customs duties below the amount equivalent to subsidies, etc. <Newly Inserted on Dec. 29, 2020>
(3) Security offered in accordance with Article 59 (1) of the Act, which falls under Article 24 (1) 1 through 4 and 7 of the Act, shall be an amount equivalent to the amount of a provisional countervailing duty. <Amended on Feb. 4, 2009; Dec. 29, 2020>
 Article 81 (Abolition or Cut of Subsidies, etc. and Pledge of Price Adjustment)
(1) Where the Government of an export country or an exporter of any goods on which an investigation is launched to determine whether a countervailing duty should be assessed, intends to propose the pledge as prescribed in Article 60 (1) of the Act or to request the continuation of an investigation into injury under Article 60 (2) of the Act, such Government or exporter shall file a request therefor in writing with the Trade Committee before a final decision is made according to the results of a full-scale investigation under Article 75 (5). In such cases, the Trade Committee shall serve, without delay, original copies of documents submitted on the Minister of Economy and Finance. <Amended on Feb. 29, 2008>
(2) Where the pledge offered under paragraph (1) falls under each of the following subparagraphs, the Minister of Economy and Finance may accept such pledge: Provided, That the same shall not apply to cases where it is deemed impracticable to secure the fulfillment of such pledge, which is prescribed by Ordinance of the Ministry of Economy and Finance: <Amended on Feb. 29, 2008>
1. Where the pledge is to adjust the price without delay;
2. Where the pledge is to abolish or cut subsidies, etc., within six months from the day on which such pledge is given;
3. Where the pledge is to take a proper measure to remove the effect of subsidies causing injury to the domestic industry within six months from the day on which such pledge is given.
(3) When deemed necessary, the Minister of Economy and Finance may designate the Government of an export country or an exporter, and then propose that such Government or such exporter make the pledge as prescribed in Article 60 (1) of the Act. <Amended on Feb. 29, 2008>
(4) The Minister of Economy and Finance shall not accept the pledge under paragraph (2) or propose the pledge under paragraph (3) before it is confirmed from the result of a preliminary investigation under Article 75 (2) that there is adequate evidence presuming the existence of the fact of payment of subsidies, etc. and the fact of material injury, etc. caused thereby. <Amended on Feb. 29, 2008>
(5) Where the Government of any exporting country or any exporter fails to fulfill the pledge accepted under Article 60 (2) of the Act, the Minister of Economy and Finance may promptly take a measure to assess a countervailing duty, including taking the provisional measure, on the basis of the best available information. In such cases, Articles 80 (2) and (3) shall apply mutatis mutandis to the application period of the measure specified in subparagraph 2: <Amended on Dec. 29, 2020>
1. Where the details of assessment, such as the rate of countervailing duty, are determined by conducting a continuous investigation under the proviso to Article 60 (2) of the Act: Assessment of countervailing duty;
2. In cases not falling under subparagraph 1: Provisional measures under Article 59 (1) 2 of the Act.
(6) Where the Minister of Economy and Finance confirms from the result of the continued investigation under the proviso to Article 60 (2) of the Act that the fact of material injury, etc. or the fact of payment of subsidies, etc. is nonexistent, the effect of the relevant pledge shall be deemed extinguished: Provided, That if it is judged that the nonexistence of material injury, etc. and the payment of subsidies, etc. have been caused by the pledge, the Minister of Economy and Finance may keep the pledge fulfilled for a properly fixed period and, if the Government of any exporting country or any exporter refuses to fulfill the pledge, the Minister of Economy and Finance may take a prompt measure to assess a countervailing duty, including taking the provisional measure, on the basis of the best available information. <Amended on Feb. 29, 2008>
 Article 82 (Retroactive Assessment of Countervailing Duty)
(1) Goods to which the provisional measure is applied under the proviso of Article 61 of the Act and on which a countervailing duty is assessed shall be as follows: <Amended on Feb. 29, 2008>
1. Where the existence of material injury, etc. is finally confirmed, or it is finally confirmed that such material injury, etc. is feared to occur, but it is finally confirmed that a lack of the provisional measure causes the existence of such material injury, etc., goods imported during a period in which the provisional measures is applied;
2. Where it is necessary to assess retroactively a countervailing duty to prevent a recurrence of the material injury, etc. caused by a massive import during a relatively short period, the relevant goods for which subsidies, etc. are paid were imported, causing the material injury, etc. in the past or an importer has leaned or could have learned the fact of importing the goods for which the subsidies, etc. are paid and the fact of the material injury, etc. caused thereby, the goods imported since 90 days prior to the day on which the provisional measure is applied;
3. Where the material injury, etc. caused by the import of goods subject to the application of the provisional measure in violation of the pledge described in Article 60 (1) of the Act is confirmed, goods imported since 90 days prior to the day on which the provisional measure is applied. In such cases, goods imported before the day on which the pledge is broken shall be excluded herefrom;
4. Goods imported during a period fixed by the Minister of Economy and Finance in accordance with conventions.
(2) Any person interested in the domestic industry as prescribed in Article 73 may request the assessment of a countervailing duty in accordance with the proviso to Article 61 of the Act by presenting the evidence that the relevant goods fall under each subparagraph of paragraph (1) within seven days from the day on which he/she is notified of a final decision made based on a result of a full-scale investigation under Article 75 (5).
 Article 83 (Settlement of Amount of Provisional Countervailing Duty)
(1) Where the amount of a countervailing duty assessed on the goods imported during a period in which the provisional measure is applied in accordance with Article 59 (2) of the Act, which falls under Article 82 (1), is equal to or exceeds the amount of a provisional countervailing duty, the latter shall be deemed the former and any difference between them shall not be collected. Where the amount of a countervailing duty is lower than that of a provisional countervailing duty, the amount of a provisional countervailing duty, which is equivalent to a difference, shall be refunded.
(2) Where security offered under Article 59 (1) of the Act falls under Article 82 (1), the amount of a countervailing duty to be assessed retroactively during a period in which the relevant provisional measure is applied shall not exceed an amount equivalent to the amount of a provisional countervailing duty.
(3) Where the pledge described in Article 81 (1) is accepted after the existence of the fact of payment of subsidies, etc. and the fact of material injury, etc., caused thereby is confirmed from a full-scale investigation described in Article 75 (5) and the investigated final countervailing duty rate is equal to or exceeds the rate of a provisional countervailing duty, a difference accruing from the different two rates shall not be collected and if the rate of the former is lower than that of the latter, the amount of a countervailing duty, which is equivalent to a difference between them, shall be refunded
 Article 84 (Review of Countervailing Duty and Pledge)
(1) When deemed necessary, or when any interested person or the minister of the ministry in charge of the relevant industry files a request along with evidential data appended with respect to any case falling under the following subparagraphs, the Minister of Economy and Finance shall determine whether the goods on which a countervailing duty is assessed or the pledge thereon is fulfilling, should be reviewed under Article 62 (1) of the Act:
1. After a countervailing duty is assessed and the pledge thereon is fulfilled, where circumstantial changes fully deemed necessary to modify the contents thereof take place;
2. Where the domestic industry is threatened with injury after the completion of a countervailing duty and the pledge thereon;
3. Where the amount of a countervailing duty is paid in excess of the amount of actual subsidies, etc.
(2) Any request for a review referred to in paragraph (1) may be filed after the expiration of one year from the day on which a countervailing duty or the pledge thereon enters into force; and such request shall be made before six months from the day on which the effect of any countervailing duty or the pledge thereon is lost.
(3) The Minister of Economy and Finance shall determine whether the review is required within two months from the day on which a request is filed for such review and notify an investigation applicant, the Government of a country exporting the relevant goods, an exporter and any interested person of the matters concerning the determination on the commencement of such investigation and publish such matters in the Official Gazette within ten days from the day on which it determines to commence such investigation. In such cases, the Minister shall provide the Government of the supplying country of the relevant goods and the supplier with a request provided for in paragraph (1).
(4) In addition to cases of the review under paragraph (1), the Minister of Economy and Finance may review the appropriateness of any countervailing duty and any pledge thereon in force, and to that end, he/she shall review the import price of goods for which subsidies, etc. are paid in the month of every year, which includes the day on which the relevant countervailing duty or the pledge enters into force in connection with the contents of such countervailing duty or such pledge (including contents modified according to the review). In such cases, the Commissioner of the Korea Customs Service shall prepare data necessary for review and submit it to the Minister of Economy and Finance in the month of every year to which the enforcement date thereof belongs.
(5) When the Minister of Economy and Finance determines whether the review is required under paragraph (1) or (4), he/she may consult with the heads of administrative agencies concerned and the Trade Committee; and when he/she determines that such review is required, the Trade Committee shall investigate any countervailing duty and any pledge. In such cases, the Trade Committee shall investigate only the portion which is the cause of such review.
(6) The Trade Committee shall conclude the investigation referred to in paragraph (5) within six months from the day on which the relevant review is launched and report the results thereof to the Minister of Economy and Finance: Provided, That the Trade Committee may, when necessary to extend the investigation period or any interested person requests the extension thereof, citing good cause, extend the investigation period by up to four months.
(7) If the results of an investigation under paragraph (6) is submitted, the Minister of Economy and Finance shall determine whether any measures should be taken and the details thereof under Article 62 (1) of the Act within 12 months from the date on which such results are published under the former part of paragraph (3), and shall take necessary measures.
(8) Where the review is conducted for the reason of paragraph (1) 2, even if the due date applied to the relevant countervailing duty expires during the review period, the effect of the relevant measure shall continue to be valid during such review period.
(9) When the Minister of Economy and Finance, under paragraph article 62 (1), assesses new countervailing duties or enforces such pledge as price adjustment or export suspension for goods, which countervailing duties have been continuously assessed upon during the review period referred to in paragraph (8) such accounts may be settled in the same manner as provided for in Article 83 (1) and (3).
(10) When it is judged from the result of the review under paragraph (1) or (4) that the effectiveness of the pledge is lost or feared to be lost, the Minister of Economy and Finance may ask the Government of any exporting country or any exporter that is fulfilling the relevant pledge to modify such pledge; and, if the Government of such exporting country or such exporter refuses to modify the pledge, may assess a countervailing duty measure against such Government or exporter, based on available information.
(11) The Minister of Economy and Finance may have the Commissioner of the Korea Customs Service investigate the matters prescribed by Ordinance of the Ministry of Economy and Finance and report back the results thereof to him/her for the review referred to in paragraph (1) or (4).
(12) Where a person that has made a request for the review pursuant to paragraph (1) intends to withdraw the relevant request, he/she shall submit his/her intent in writing to the Minister of Economy and Finance. In such cases, the Minister of Economy and Finance may suspend determination as to whether the review should be commenced under the former part of paragraph (3) in consultation with the Trade Committee and the head of a related administrative agency or may request them to conclude an investigation under paragraph (5).
(13) Article 78 shall apply mutatis mutandis to the request for the cooperation to data required to conduct an investigation prescribed in paragraph (5); Article 79 shall apply mutatis mutandis to the assessment of anti-dumping duties, among measures taken by the Minister of Economy and Finance from the result of the review under Article 62 (1) of the Act; and the former part of Articles 81 (1), (2), (3), (5) and (6) shall apply mutatis mutandis to the pledge of price adjustment, export suspension, etc. In such cases, "the final decision based on the results of a full-scale investigation under Article 75 (5)" in the former part of Article 81 (1) shall be deemed "the conclusion of the investigation under Article 84 (6)," and "the Trade Committee" shall be deemed "the Minister of Economy and Finance".
[This Article Wholly Amended on Dec. 29, 2020]
 Article 85 (Notice to Interested Person and Publication, etc.)
(1) The Minister of Economy and Finance shall, when he/she takes measures falling under each of the following subparagraphs, publish contents thereof in the Official Gazette and serve a written notice thereon on any interested person: <Amended on Feb. 29, 2008; Dec. 29, 2020>
1. When he/she determines to take measures as prescribed in Articles 57 and 59 (1) of the Act or determines not to take such measure;
2. When he/she suspends or concludes an investigation after accepting the pledge as prescribed in Article 60 (1) of the Act or continues the investigation;
3. When he/she commences the review under Article 62 (1) of the Act or modifies the details of a countervailing duty measure according to the result of such review;
4. When he/she extends the effect of a countervailing duty measure under Article 84 (8).
(2) In any of the cases falling under the following subparagraphs, the Minister of Economy and Finance or the Trade Committee shall notify any interested person of the contents thereof: <Amended on Feb. 29, 2008; Dec. 29, 2020>
1. When an investigation application is dismissed under Article 74 (2) or an investigation is concluded under Article 75 (4);
2. When a preliminary decision is made according to the results of a preliminary investigation under Article 75 (2);
3. Where a final decision is made according to the results of a full-scale investigation under Article 75 (5);
4. When the investigation period is extended pursuant to Article 75 (6) and (8) and the proviso to Article 84 (6);
5. When the period is extended pursuant to the proviso to Article 75 (7);
6. When a request for assessing a countervailing duty is withdrawn under Article 76, and then determination as to whether an investigation should be commenced is suspended or the relevant investigation is concluded;
7. Deleted; <Dec. 31, 2001>
8. When the Minister of Economy and Finance proposes the pledge under Article 81 (3);
9. Where a final decision is made according to the results of a full-scale investigation under Article 84 (6).
(3) The Minister of Economy and Finance or the Trade Committee shall, when any interested person files a written request in connection with an investigation under Article 75 in the process of such investigation, notify such interested person of the progress of the investigation. <Amended on Feb. 29, 2008>
(4) The Trade Commission shall notify interested persons of the core considerations which constitute the basis of the relevant decision before making a final decision based on the findings of the full-scale investigation under Article 75 (5) and the findings of the re-investigation under Article 84 (6). <Newly Inserted on Dec. 29, 2020>
 Article 86 (Retaliatory Duties)
(1) The minister of any ministry concerned or any interested person shall, when he/she intends to request the assessment of retaliatory duties (hereinafter referred to as "retaliatory duties") under Article 63 of the Act, furnish data concerning any of the following matters to the Minister of Economy and Finance: <Amended on Feb. 29, 2008>
1. The country that performs the act falling under each subparagraph of Article 63 (1) of the Act and the details thereof;
2. Goods subject to the retaliatory measure taken by Korea;
3. The amount equivalent to the amount of injury, calculation particulars thereof, and details of assessment of retaliatory duties.
(2) The Minister of Economy and Finance may, when deemed necessary to investigate matters with respect to the application of retaliatory duties, ask administrative agencies concerned, any exporter, any importer and any interested person to furnish data and provide necessary cooperation. <Amended on Feb. 29, 2008>
 Article 87 (Assessment of Emergency Tariffs)
Determination shall be made as to whether emergency tariffs should be assessed under Article 65 (1) of the Act (hereinafter referred to as "emergency tariffs") and the contents thereof, within one month from the day on which a recommendation for assessment filed by the Trade Committee is received: Provided, That any period required to consult with any major trading country about the assessment of emergency tariffs shall not be included in the period of one month.
 Article 88 (Assessment of Provisional Emergency Tariffs, etc.)
(1) Determination shall be made as to whether provisional emergency tariffs should be assessed under Article 66 (1) of the Act (hereinafter referred to as "provisional emergency tariffs") and the details thereof, taking into account the matters of examination under Article 65 (2) of the Act within one month from the day on which a recommendation for assessment filed by the Trade Committee is received: Provided, That where the Minister of Economy and Finance deems it necessary, the period of one month may be extended by up to 20 days. <Amended on Feb. 29, 2008>
(2) Where it is determined to assess emergency tariffs on the specific imported goods to which provisional emergency tariffs are applied and the amount of such emergency tariffs is equal to or exceeds the amount of such provisional emergency tariffs, the latter shall be deemed the former and any difference between them shall not be collected. If the amount of such emergency tariffs is lower than that of such provisional emergency tariffs, the amount of the provisional emergency tariffs, which is equivalent to a difference, shall be refunded.
(3) Where the Trade Committee judges that any domestic industry is not injured and then notifies the Minister of Economy and Finance thereof, the amount of provisional emergency tariffs paid shall be refunded. <Amended on Feb. 29, 2008>
 Article 89 (Review of Emergency Tariffs)
Where the Trade Committee recommends that emergency tariffs, the assessment of which is in force, be relaxed, canceled or extended, etc., the Minister of Economy and Finance shall review such emergency tariffs in accordance with Article 67 of the Act within one month from the day on which such recommendation is received; and shall determine whether measures to relax, cancel or extend, etc. the emergency tariffs should be taken: Provided, That if the Minister of Economy and Finance deems it necessary, the period of one month may be expended by up to 20 days. <Amended on Feb. 29, 2008>
 Article 89-2 (Assessment of Emergency Tariffs on Goods from Particular Country, etc.)
(1) Deleted. <Feb. 6, 2015>
(2) Deleted. <Feb. 6, 2015>
(3) Articles 87 through 89 shall apply mutatis mutandis to the emergency tariffs on the goods of the particular country or the assessment of the provisional emergency tariffs on the goods of the particular country provided for in Article 67-2 (5) of the Act.
[This Article Newly Inserted on Dec. 30, 2002]
 Article 90 (Special Emergency Tariffs on Agricultural, Forest and Livestock Products)
(1) In any of the following subparagraphs, the special emergency tariffs may be assessed under Article 68 (1) of the Act (hereinafter referred to as "special emergency tariffs"): Provided, That in cases falling under all of the following cases, one of them may be selected, as prescribed by Ordinance of the Ministry of Economy and Finance: <Amended on Feb. 29, 2008; Dec. 30, 2014>
1. Where the import quantity of the current year exceeds the base trigger volume referred to in paragraph (2);
2. Where the import price of the relevant goods, including the freight and insurance premium, converted into won currency (hereinafter referred to as "import price"), has fallen in excess of 10/100 of the average import price from 1988 to 1990 (in cases of goods enumerated in attached Table 1, in excess of 10/100 of the average import price from 1986 to 1988; hereinafter referred to as "base price").
(2) The base trigger volume referred to in paragraph (1) 1 shall be the volume obtained by multiplying the coefficient classified in each of the following subparagraphs (hereinafter referred to as "base trigger coefficient") by the average import quantity of the preceding three years in which data are available and by summing up the changed quantity in comparison with the preceding year in the domestic consumption of the relevant goods for the recent years in which data are available (hereinafter referred to as "base trigger volume"): Provided, That if the base trigger volume runs below 105/100 of the average import quantity of the preceding three years, the base trigger volume shall be 105/100 of the average import quantity of the preceding three years:
1. If the percentage of the import quantity in the domestic consumption of the relevant goods for the preceding three years in which data are available (hereinafter referred to as "market share") runs below 10/100: 125/100;
2. If the market share runs above 10/100 and below 30/100: 110/100;
3. If the market share exceeds 30/100: 105/100;
4. If the market share is incalculable: 125/100.
(3) The special emergency tariffs assessed under paragraph (1) 1 may be assessed at the rate calculated by adding a third of the concession tariff rate to the relevant tariff concession rate equivalent to the difference between the domestic and foreign prices, and such special emergency tariffs shall apply only to the portion imported by the end of the current year.
(4) The special emergency tariffs assessed under paragraph (1) 2 may be assessed by adding the amount classified in each of the following subparagraphs to the customs duties based on the relevant concession tariff rate equivalent to the difference between domestic and foreign prices: Provided, That when the import quantity declines, the special emergency tariffs based on each of the following subparagraphs may not be assessed as prescribed by Ordinance of the Ministry of Economy and Finance: <Amended on Feb. 29, 2008>
1. If the decline rates of import price in comparison with the base price runs above 10/100 and 40/100 and below: 30/100 of the amount exceeding 10/100 of the base price;
2. If the decline rates of import price in comparison with the base price runs above 40/100 and 60/100 and below: (30/100 of the amount exceeding 10/100 or up to 40/100 of the base price)+(50/100 of the amount exceeding 40/100 of the base price);
3. If the decline rates of import price in comparison with the base price runs above 60/100 and 75/100 and below: (30/100 of the amount exceeding 10/100 or up to 40/100 of the base price)+(50/100 of the amount exceeding 40/100 or up to 60/100 of the base price)+(70/ 100 of the amount exceeding 60/100 of the base price);
4. If the decline rates of import price in comparison with the base price runs above 75/100: (30/100 of the amount exceeding 10/100 or up to 40/100 of the base price)+(50/100 of the amount exceeding 40/ 100 or up to 60/100 of the base price)+(70/100 of the amount exceeding 60/100 or up to 75/100 of the base price)+(90/100 of the amount exceeding 75/100 of the base price).
(5) In applying paragraph (1), when the base trigger volume is calculated for any perishable or seasonable goods, a period shorter than three years shall be applied and when the base price is computed, the price prevailing during another period shall be applied and the characteristics of the relevant goods shall be taken into account.
(6) Any goods imported as the market access volume to which a tariff concession is given in tariff negotiations with an international organization under Article 73 of the Act shall be excluded from the subject of the assessment of the special emergency tariffs: Provided, That if the import quantity is calculated to assess special emergency tariffs under paragraph (1) 1, such goods shall be included in the calculation.
(7) Any goods which are being transported in accordance with a contract concluded before a special emergency tariff is assessed thereon shall be excluded from the subject of the assessment of such special emergency tariff under paragraph (1) 1: Provided, That the goods may be counted in the import quantity necessary for the assessment of a special emergency tariff next year under paragraph (1) 1.
(8) When the head of a related government ministry or agency or an interested person intends to make requests for measures as prescribed in Article 68 of the Act, he/she shall furnish the data pertaining to the following matters, which are related to the relevant goods, to the Minister of Economy and Finance: <Amended on Feb. 29, 2008; Apr. 1, 2011; Dec. 30, 2014>
1. The HS code, name, standard, purpose of use, and alternatives of the relevant goods;
2. The domestic consumption quantity and import quantity of the relevant goods by year for the preceding three years and the base price;
3. Tariff rates to be raised, grounds therefor, application period and other reference matters.
(9) The Minister of Economy and Finance may, when deemed necessary to survey matters necessary for applying the special emergency tariff, request relevant institutions, exporters, importers and other interested persons to furnish related data and provide necessary cooperation. <Amended on Feb. 29, 2008>
 Article 91 (Adjusted Duties)
(1) The minister of competent ministry or an interested person shall, when he/she intends to make requests for the measures as prescribed in Article 69 of the Act, furnish the data pertaining to the following matters, which are related to the relevant goods, to the Minister of Economy and Finance: <Amended on Feb. 29, 2008; Apr. 1, 2011; Feb. 12, 2019>
1. The HS code, name, standard, purpose of use, and alternatives of the relevant goods;
2. Raw materials input for manufacturing the relevant goods, the description of the process of manufacturing related goods using the relevant goods as raw materials and the purpose of use of related goods;
3. The supply and demand of the relevant goods for the current year and the year preceding and following the current year, and the plan therefor;
4. The monthly import price and import quantity by major importing country for the preceding year;
5. The monthly factory price and the shipment of goods out of factory by major domestic manufacturing business for the preceding year;
6. Tariff rates to be raised, grounds therefor and the application period thereof;
7. The impact of an increase in tariff rates on the domestic industry, customer interests, prices of commodities, etc. (limited to cases falling under subparagraph 2 of Article 69 of the Act).
(2) The Minister of Economy and Finance may, when deemed necessary to survey matters necessary for applying the adjusted duties under Article 69 of the Act, request institutions concerned, exporters, importers and other interested persons to furnish related data and provide necessary cooperation. <Amended on Feb. 29, 2008>
(3) When the Minister of Economy and Finance intends to assess any adjusted duties pursuant to subparagraph 2 of Article 69 of the Act, he/she shall hear opinions of the ministers of competent ministries beforehand. <Newly Inserted on Feb. 12, 2019>
 Article 92 (Quota Tariff)
(1) Where the head of a related government ministry or agency or any interested person intends to request the assessment of a quota tariff under Article 71 (1) of the Act, he/she shall furnish the data pertaining to the following matters, which are related to the relevant goods, to the Minister of Economy and Finance: <Amended on Feb. 29, 2008>
1. Materials concerning the matters referred to in Article 91 (1) 1 through 5;
2. The rate to be applied to the relevant quota tariff, reasons for lowering the rate and the application period thereof;
3. If the quantity is required to be restricted under the latter part of Article 71 (1) of the Act, such quantity and the calculation basis thereof.
(2) Where the head of a related government ministry or agency or any interested person intends to request the assessment of a quota tariff in accordance with Article 71 (2) of the Act, he/she shall furnish the data pertaining to the following matters, which are related to the relevant goods, to the Minister of Economy and Finance: <Amended on Feb. 29, 2008>
1. Materials concerning the matters referred to in Article 91 (1) 1 through 5;
2. The rate to be applied to the relevant quota tariff, reasons for raising the rate and the application period thereof;
3. The quantity to which the basic tariff rate is to apply and calculation basis thereof;
4. In cases of agricultural, forest, livestock and marine products prescribed in Article 71 (2) of the Act, the domestic and foreign price trends of the goods of the same kind, similar goods or alternative goods by month and quarter for the preceding two years.
(3) The quota of a certain quantity prescribed in Article 71 of the Act shall be allocated within the limit of the relevant quantity on the recommendation of the head of a related government ministry or agency or any person entrusted by him/her: Provided, That with respect to any goods designated by the Minister of Economy and Finance, the quota shall be allocated in order of import declaration and the quota on the day on which a certain quantity reaches shall be allocated according to the proportion of the import declaration filed on the day to the relevant quantity. <Amended on Feb. 29, 2008>
(4) Each person, who receives a letter of recommendation from the head of a related government ministry or agency or any person entrusted by him/her under the main clause of paragraph (3), shall submit such letter of recommendation to the head of the relevant customs office before an import declaration is accepted: Provided, That he/she may submit by 15th day after when an import declaration is accepted where the relevant goods are not carried out of a bonded area. <Amended on Feb. 17, 2021>
(5) The records of customs clearance for goods until they reach a certain quantity under Article 71 of the Act shall be confirmed by the Commissioner of the Korea Customs Service.
(6) When the head of a related government ministry or agency requests the assessment of a quota tariff under paragraph (1) or (2), he/she shall collect opinions by posting the following matters on the Internet home page, etc. of the relevant ministry concerned for at least 10 days and submit the result thereof to the Minister of Economy and Finance: Provided, That where it is necessary to urgently assess a quota tariff due to a natural disaster, jump in prices, etc., he/she may omit the collection of opinions following consultation with the Minister of Economy and Finance: <Newly Inserted on Feb. 6, 2015>
1. The HS code, name, standard, the purpose of use and alternative goods of the relevant goods;
2. Matters set forth in paragraph (1) 2 and 3 or (2) 2 and 3.
(7) If deemed necessary to survey matters necessary for applying the quota tariff under paragraphs (1) and (2), the Minister of Economy and Finance may ask relevant institutions, exporters, importers and other interested persons to furnish related data and provide necessary cooperation. <Amended on Feb. 29, 2008; Feb. 6, 2015>
(8) In order to file a report on the record, etc. of customs duties assessed in the previous year pursuant to Article 71 (4) of the Act, the Ministry of Economy and Finance shall may request the heads of the ministries concerned to submit data concerning the result, effect, etc. of the assessment of customs duties to the Minister of Economy and Finance within three months after the end of each fiscal year. In such cases, the heads of the related government ministries or agencies in receipt of such request shall comply therewith, unless any extenuating circumstances exist. <Newly Inserted on Feb. 6, 2015>
 Article 93 (Seasonal Duties)
(1) The head of any administrative agency or any interested person shall, when he/she intends to request the assessment of seasonal duties (hereinafter referred to as "seasonal duties") under Article 72 of the Act, furnish the data pertaining to the following matters, which are related to the relevant goods, to the Minister of Economy and Finance: <Amended on Feb. 29, 2008>
1. Name, standard, the purpose of use, and alternative goods;
2. The monthly import price and the price trends in major international commodity market in the most recent of one year;
3. The monthly factory price by major domestic manufacturing company in the most recent of one year;
4. The producer price index, consumer price index and import price index of the relevant goods and major related goods;
5. Reasons for applying the seasonal duties and the application period thereof;
6. The supply and demand by season and prospect thereof;
7. The tariff rate intended to be changed and particulars of calculation thereof.
(2) When the Minister of Economy and Finance deems it necessary to survey matters necessary for applying the seasonal duties, he/she may request relevant data or necessary cooperation from relevant institutions, exporters, importers and other interested persons. <Amended on Feb. 29, 2008>
 Article 94 (Request for Applying Concession Tariff Rate to Agricultural, Forest and Livestock Products)
With respect of agricultural, forest and livestock products to which a tariff concession was made at a rate equivalent to the difference between domestic and foreign prices and at a rate higher than the basic tariff rate in the process of opening up the domestic market and increasing market access in tariff negotiations with an international organization under Article 73 of the Act, any person who imports such products upon a recommendation from an relevant administrative agency within the limit of the market access volume shall submit a letter of such recommendation to the head of the relevant customs office before the import declaration is accepted. Provided, That where the relevant agricultural, forest and livestock products are not carried out of the bonded zone, a letter of such recommendation may be submitted by the date when 15 days pass from the date of acceptance of import declaration.
 Article 95 (Beneficial Tariffs)
(1) Countries that may be beneficiaries of customs duties under Article 74 of the Act are as shown in the following table: <Amended on Feb. 15, 2013: Feb. 6, 2015; Mar. 27, 2017>
(2) Goods subject to benefits regarding tariffs under Article 74 of the Act shall be the goods prescribed in (a) through (c) of attached Table 1 (hereafter referred to as "schedules of concessions" in this Article) of the Regulations on Tariff Concessions in the Framework of the Agreement Establishing the World Trade Organization, Etc. from among the goods produced by countries shown in the table of paragraph (1). In such cases, the relevant goods shall be subject to the same benefits of tariffs even if the tariff classification of such goods in the schedules of tariff rates are subdivided or integrated. <Amended on May 22, 2006; Feb. 6, 2015; Mar. 27, 2017>
(3) The rates prescribed in the schedules of concessions shall apply to the goods prescribed in paragraph (2): Provided, That in each of the following cases, the tariff rates prescribed in each of the following subparagraphs shall take precedence over those prescribed in the schedules of concessions in their application: <Amended on Feb. 29, 2008>
1. Where the tariff rates of this Act are lower than those prescribed in the schedules of concessions, the tariff rates prescribed in this Act shall apply: Provided, That in cases of agricultural, forest and livestock products prescribed in the proviso to Article 50 (3) of the Act, the tariff rates prescribed in the schedules of concessions shall take precedence over the tariff rate and the provisional basic tariff rate in the application;
2. Where the tariff rates are prescribed by Presidential Decree or Ordinance of the Ministry of Economy and Finance under Article 51, 57, 63, 65 or 68, such tariff rates shall apply.
(4) When each of the following reasons arises, the Minister of Economy and Finance may designate countries, goods and period, and suspend the application of beneficial tariffs under Article 74 of the Act (hereinafter referred to as "beneficial tariffs"): <Amended on Feb. 29, 2008>
1. When the application of beneficial tariffs causes or is feared to cause a serious impact on the national economy;
2. When an emergency situation occurs that requires the suspension of beneficial tariffs.
(5) The Minister of Economy and Finance may, when deemed necessary to survey the matters necessary for applying the beneficial tariffs, ask related administrative agencies, exporters, importers and interested persons to furnish related data and provide necessary cooperation. <Amended on Feb. 29, 2008>
SECTION 3 Application of Tariff Rates, etc.
 Article 96 (Application of Simplified Tariff Rates)
(1) The goods to which the simplified tariff rates are applied under Article 81 of the Act (hereinafter referred to as "simplified tariff rates") and the simplified tariff rates are as shown in attached Table 2.
(2) Notwithstanding paragraph (1), the simplified tariff rates shall not apply to the goods falling under each of the following subparagraphs: <Amended on Dec. 31, 2001>
1. Goods on which the applicable tariff rate is zero and goods for which customs duties are reduced or exempted;
2. Raw materials for export;
3. Goods related to the customs offense described in the Chapter XI of the Act;
4. Goods to which specific duties are applied;
5. Goods, prescribed by the Commissioner of the Korea Customs Service, which fall under each of the following items:
(a) Goods, the quantity of which is deemed commercially used;
(b) High-priced goods;
(c) Goods, the import of which is feared to damage the domestic industry;
(d) Goods which, as the single and simplified tariff rates are applied under Article 81 (4) of the Act, are feared to disrupt the equity of duty assessment;
6. Goods whose owner asks not to apply the simplified tariff rates to the whole of such goods subject to the assessment of customs duties when he/she files an import declaration.
 Article 97 (Request for Application of Usage Tariff Rates)
Any person who intends to get the usage tariff rates applied under Article 83 of the Act shall file with the head of the relevant customs office an application stating name, standard, quantity, price, the purpose of use, the method of use, and the place of use of the relevant goods before an import declaration thereon is accepted from the day on which such declaration is filed.
SECTION 4 Tariff Classification
 Article 98 (Harmonized Schedules)
(1) For the purpose of swift customs clearance and the grasp of statistics with respect to the export and import of goods in accordance with Article 3 (3) of the International Convention on Harmonized Commodity Description and Coding System (hereafter referred to as the "Convention" in this Article and Articles 98-2 and 99), the Minister of Economy and Finance may publish the harmonized tariff and statistical schedules (hereafter referred to as the "Harmonized Schedules" in this Article) in which items are subdivided based on the Convention and the attached Schedules of Tariff Rates under the Act. <Amended on May 22, 2006; Feb. 29, 2008: Feb. 6, 2015; Feb. 12, 2019>
(2) Where the Customs Cooperation Council makes a recommendation or a decision with respect to the tariff classification of the Convention or new commodities are developed, making it necessary to modify the attached Schedules of Tariff Rates under the Act, the tariff classification and the Harmonized Schedules established in accordance with the Regulations on Tariff Concessions in the Framework of the Agreement Establishing the World Trade Organization, the Regulations on the Application of International Cooperative Taxes pursuant to Negotiations on Tariffs with Particular Countries and the Regulations on Preferential Tariffs for Least-Developed Countries (hereafter referred to as the "regulations on tariff concessions, etc." in this paragraph), the Minister of Economy and Finance may modify and publish the attached Schedules of Tariff Rates pursuant to the Act, the tariff classification and the Harmonized Schedules under the regulations on tariff concessions, etc. without modifying tariff rates. <Amended on Dec. 30, 2002; May 22, 2006; Feb. 29, 2008>
(3) When the Minister of Economy and Finance modifies the tariff classification in response to a recommendation or a decision made by the Customs Cooperation Council with respect to the tariff classification of the Convention, he/she shall reflect such modification in the tariff classification on the attached Schedules of Tariff Rates under the Act and the Harmonized Schedules by the deadline prescribed in Article 16 (4) of the Convention. <Amended on Feb. 29, 2008>
 Article 98-2 (Procedures for Settling Disputes on Tariff Classification)
(1) The Minister of Economy and Finance or the Commissioner of the Korea Customs Service shall proceed with a consultation with the other country in accordance with paragraph 1 of Article 10 of the Convention, when he/she becomes aware of the dispute on tariff classification with the other country: Provided, That where the Commissioner of the Korea Customs Office proceeds with relevant consultation, he/she shall report such fact of dispute, details of consultation, etc. to the Minister of Economy and Finance by the end of each semiannual period.
(2) Where the consultation on disputes on tariff classification conducted pursuant to paragraph (1) fails to reach an agreement with the other country, the Minister of Economy and Finance may request the Customs Cooperation Council to settle the relevant dispute in accordance with paragraph 2 of Article 10 of the Convention.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 99 (Standards for Applying Tariff Classification)
(1) The standards for applying tariff classification provided for in Article 85 (1) of the Act shall be prescribed by Ordinance of the Ministry of Economy and Finance.
(2) The Minister of Economy and Finance may have the Commissioner of the Korea Customs Service publicly announce the matters concerning the tariff classification of harmonized commodity description and coding system recommended by the Customs Cooperation Council in accordance with the Convention. In such cases, the Commissioner of the Korea Customs Service shall obtain approval from the Minister of Economy and Finance when he/she makes a public announcement.
[This Article Wholly Amended on Feb. 6, 2015]
 Article 100 (Composition of Tariff Classification Committee, etc.)
(1) The Tariff Classification Committee established pursuant to Article 85 (2) of the Act (hereinafter referred to as the "Tariff Classification Committee") shall consist of one chairperson and members of not less than 30 but not more than 40 persons. <Amended on Mar. 29, 2004; Apr. 5, 2007; Feb. 12, 2019>
(2) A public official of Grade III or public official in general service belonging to the Senior Executive Service of the Korea Customs Service shall be designated by the Commissioner of the Korea Customs Service as the chairperson of the Tariff Classification Committee, and the members shall be appointed or commissioned by the Commissioner of the Korea Customs Service from among persons falling under any one of the following subparagraphs: <Amended on Mar. 29, 2004; May 22, 2006; Jun. 12, 2006; Apr. 5, 2007>
1. Public officials belonging to the Korea Customs Service;
2. Public officials belonging to central administrative agencies concerned;
3. Deleted; <Mar. 29, 2004>
4. Persons recommended by non-governmental organizations (meaning nonprofit and non-government organizations under Article 2 of the Assistance for Non-profit, Non-Governmental Organizations Act; hereinafter the same shall apply);
5. Other persons of profound learning in the study of merchandising.
(3) The term of office of members falling under paragraph (2) 4 and 5 shall be two years and may be renewed only once: Provided, That a member appointed to fill a vacancy occurring before the expiration of the term for which his/her predecessor was appointed, shall serve for the remainder of such term. <Newly Inserted on Mar. 27, 2017; Feb. 13, 2018>
(4) When any member of the Tariff Classification Committee falls under any of the following, the Commissioner of the Korea Customs Service may remove or dismiss such member: <Newly Inserted on Mar. 27, 2017; Feb. 13, 2018>
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where he/she is deemed unfit to serve as a member of the Committee due to neglect of the duties, injury to dignity, or other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties.
5. Where the member fails to refrain from participating in deliberation and resolution, in spite of falling under any subparagraph of Article 101-2 (1);
(5) The chairperson of the Tariff Classification Committee shall exercise overall control over the affairs of the Committee and represent the Committee. <Amended on Mar. 27, 2017; Dec. 29, 2020>
(6) Where the chairperson of the Tariff Classification Committee is unable to discharge his/her duties for unavoidable reasons, a member designated by the chairperson shall act on behalf of the chairperson in discharging his/her duties. <Amended on Mar. 27, 2017>
(7) Where any member, who is a public official, from among the members of the Tariff Classification Committee, is unable to attend a meeting of the Tariff Classification Committee due to extenuating circumstances, any other public official working for an institution to which the member belongs may attend the meeting to act on behalf of such member. <Amended on Mar. 27, 2017>
(8) The Commissioner of the Korea Customs Service may commission persons who work for relevant academia, research institutes or associations, etc. as its technical advisory members to hear their opinions on technical matters, etc. related to the tariff classification in order to ensure the smooth holding of meetings. <Newly Inserted on Mar. 29, 2004; Mar. 27, 2017>
 Article 101 (Meetings of Tariff Classification Committee)
(1) The chairperson of the Tariff Classification Committee shall convene any meeting and preside over such meeting.
(2) A meeting of the Tariff Classification Committee shall consist of the chairperson and members of not less than 14 but not more than 16 persons designated by the chairperson at every meeting, but at least two members referred to in Article 100 (2) 2 and at least eight members referred to in subparagraph 4 or 5 of the same paragraph shall be included therein. <Newly Inserted on Apr. 5, 2007; Feb. 12, 2019>
(3) The Tariff Classification Committee shall resolve at its meeting with the attendance of a majority of the constituent members referred to in paragraph (2) and with the concurrent vote of a majority of the members present. <Amended on Apr. 5, 2007>
(4) If it is intended to include the members referred to in Article 100 (2) 4 or 5 as participants of a meeting pursuant to paragraph (2) where the Tariff Classification Committee intends to deliberate on a review of tariff classification pursuant to Article 85 (2) 2 or 3 of the Act, members who have not attended the meeting at the time an advance ruling on tariff classification or deliberation on the modification of tariff classification which are subject to the review is conducted, shall be included as participants of the meeting. <Newly Inserted on Feb. 12, 2019>
 Article 101-2 (Exclusion and Refrainment of Members of Tariff Classification Committee)
(1) Any member of the Tariff Classification Committee who falls under any of the following cases shall be excluded from the deliberation and resolution:
1. Where the member is a party to the relevant agenda (where a party to the relevant agenda is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this paragraph) or a person directly interested in the relevant agenda;
2. Where the member's spouse, relative within the fourth degree of consanguinity, or relative within the second degree of affinity within the second degree is a party to the relevant agenda or has direct interest in the relevant agenda;
3. Where the member is a current representative or was the representative of a party to the relevant agenda within the recent five years;
4. Where the member belongs to or has belonged within the recent five years to a corporation, organization, etc. which is the current representative or was the representative of a party to the relevant agenda;
5. Where the member has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.;
6. Where the member currently belongs to or has belonged within the recent five years to a corporation, organization, etc. which has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.
(2) If any member of the Tariff Classification Committee falls under any subparagraph of paragraph (1), he/she shall voluntarily refrain from the deliberation and resolution on the relevant agenda.
[This Article Newly Inserted on Feb. 13, 2018]
 Article 102 (Secretary of Tariff Classification Committee)
(1) The Tariff Classification Committee shall appoint one secretary charged with dealing with administrative affairs.
(2) The secretary shall be appointed by the Commissioner of the Customs Service from among his/her public officials.
 Article 103 (Allowances)
Other members and technical advisory members than public officials who attend any meeting of the Tariff Classification Commission shall be paid allowances and travel expenses within budgetary limits. <Amended on Mar. 29, 2004>
 Article 104 (Regulations for Operating Tariff Classification Committee)
The chairperson of the Tariff Classification Committee shall determine matters necessary for operating the Committee after going through a resolution adopted at a meeting of the Committee except as otherwise provided for by this Decree.
 Article 105 Deleted. <Mar. 29, 2004>
 Article 106 (Advance Rulings, etc. on Tariff Classification to be Applied to Specific Goods)
(1) Each person, who intends to apply for an advance ruling on or review of the tariff classification to be applied to specific goods under Article 86 (1) or (3), Article 87 (3) of the Act (hereafter referred to as "advance ruling or review" in this Article), shall furnish each of the following documents and goods: Provided, That where it is deemed impracticable to present samples of goods in light of the nature of such goods, the lack of such samples does not impede any examination of the tariff classification therefor, and the head of the relevant customs office confirms that fact at the time of customs clearance, the Commissioner of the Korea Customs Service may permit the omission of the samples required under subparagraph 2: <Amended on Feb. 6, 2015>
1. An application stating the name of such goods, standard, manufacturing process, the country of origin, the purpose of use, the relevant customs office in which such goods are planned to go through customs clearance, grounds for application, etc.;
2. Samples of goods subject to the application;
3. Other explanatory materials.
(2) Where the application filed, the samples presented and the explanatory materials furnished under paragraph (1) are inadequate, making it impracticable to examine the tariff classification for the relevant goods, the Commissioner of the Korea Customs Service may ask for supplementing them by fixing a period not exceeding 20 days. <Amended on Feb. 6, 2015>
(3) Where an application for an advance ruling or review falls under any of the following cases, the Commissioner of the Korea Customs Service may return such application: <Amended on Feb. 6, 2015; Feb. 11, 2020>
1. Where no supplementation is made within the period for supplementation specified in paragraph (2);
2. Where the applicant has already filed an export or import declaration of the same goods as those for which an application for an advance ruling or review is filed;
3. Where the applicant requests the return of the application;
4. Where procedures for raising an objection or the like or litigation are in progress;
5. Other cases prescribed by Ordinance of the Ministry of Economy and Finance, such as cases where it is impractical to issue an advance ruling on tariff classification or to review thereon.
(4) "Period prescribed by Presidential Decree" in the main clause of Article 86 (2) of the Act means 30 days (excluding each of the following periods) from the date on which an application for an advance ruling is received: <Amended on Feb. 12, 2019>
1. Where deliberation on the advance ruling is conducted by the Tariff Classification Committee pursuant to Article 85 (2) of the Act, the period required for the relevant deliberation;
2. Period for supplementation under paragraph (2);
3. Where it is necessary to conduct physical and chemical analysis of the components of the relevant goods, the period required for the relevant analysis;
4. Where an inquiry is made to the Customs Cooperation Council, the period required for the relevant inquiry.
(5) Where the Commissioner of the Korea Customs Service examines the tariff classification and serves a notice thereof on the applicant under Article 86 (2) of the Act, he/she shall also notify the head of the relevant customs office in which the relevant goods are planned to go through customs clearance of the details thereof. In such cases, he/she shall send the explanatory materials together. <Newly Inserted on Feb. 6, 2015>
(6) In examining the tariff classification under Article 86 (2) of the Act, where an applicant requests examination of the tariff classification specified in headings and subheadings of Schedules of Tariff Rates of the Act, the Commissioner of the Korea Customs Service may examine and notify the goods specified in the Act. <Newly Inserted on Feb. 12, 2019>
(7) "Period prescribed by the Presidential Decree" in the latter part of Article 86 (3) of the Act means 60 days (excluding the period required for the relevant review where the review is deliberated on by the Tariff Classification Committee pursuant to Article 85 (2) of the Act and the periods falling under paragraph (4) 2 through 4) from the date on which an application for the review is received. <Newly Inserted on Feb. 12, 2019; Sept. 24, 2019>
(8) Where goods for which a review is applied pursuant to Article 86 (3) of the Act or Article 87 (3) of the Act falls under any of the following cases, the Commissioner of the Korea Customs Service shall refer the reexamination to the Tariff Classification Committee for deliberation: <Newly Inserted on Feb. 12, 2019; Sep. 24, 2019>
1. Where the relevant matter is deemed to have a serious impact on the rights and duties of duty payers (including exporters), if the tariff classification of the relevant goods is modified;
2. Where it is deemed necessary to make a preliminary interpretation on the standards for applying the Schedules of Tariff Rates and tariff classification specified in the attached Table of the Act;
3. Other cases determined and publicly notified by the Commissioner of the Korea Customs Service as those similar to subparagraphs 1 and 2.
[This Article Wholly Amended on Feb. 6, 2015]
 Article 107 (Grounds for Modifying Tariff Classification)
Cases prescribed by Presidential Decree such as “if the Commissioner of the Korea Customs Service modifies tariff classification conducted ex officio due to an unforeseen circumstance” in Article 87 (1) of the Act are as follows: <Amended on Sept. 24, 2019; Feb. 11, 2020>
1. Where the tariff classification of the relevant goods is modified in accordance with relevant statutes;
2. Where the tariff classification is modified in accordance with Article 84 of the Act;
3. Where a serious error occurs in the tariff classification because of the false materials furnished by an applicant;
4. Where there is a recommendation or decision by the Customs Cooperation Council in accordance with International Convention on the Harmonized Commodity Description and Coding System, or a final and conclusive judgment by the court;
5. Where the same or similar goods are divided into different tariff classifications.
(2) Where it necessary to modify tariff classification under Article 87 (1) of the Act according to a recommendation or decision by the Customs Cooperation Council in accordance with the International Convention on the Harmonized Commodity Description and Coding System or according to a final and conclusive judgment by the court, the Commissioner of the Korea Customs Service shall refer such tariff classification to the Tariff Classification Committee for deliberation within three months from the date on which the recommendation or decision is made or the judgment is finalized. <Newly Inserted on Sep. 24, 2019>
[This Article Newly Inserted on Sep. 24, 2019]
CHAPTER IV REDUCTION AND EXEMPTION, REFUND, AND INSTALLMENT PAYMENT
SECTION 1 Reduction or Exemption
 Article 108 (Designation of Embassy Staff, etc.)
"Staff members prescribed by Presidential Decree" in Article 88 (1) 4 of the Act means persons in positions, equal to or higher than any of the following positions: <Amended on Apr. 1, 2011>
1. Counselors, first secretaries, second secretaries, third secretaries and attaches of an embassy or legation;
2. Consul generals, consuls, vice consuls and assistant consuls of consulate generals or consulates (excluding any honorary consul general and honorary consul);
3. Those who do not fall under subparagraphs 1 and 2, such as foreign service officers of embassies, legations, consulate generals and consulates.
 Article 109 (Application for Approving Use of Goods Whose Customs Duties Are Reduced or Exempted for Other Purpose)
(1) Any person who intends to obtain approval from the head of the relevant customs office in accordance with the proviso to Article 83 (2) of the Act, the proviso to Article 88 (2) of the Act, the proviso to Article 97 (2) of the Act (including cases applicable mutatis mutandis in Article 98 (2) of the Act) or the proviso to Article 102 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office (hereinafter referred to as "head of the jurisdictional customs office") who has jurisdiction over the location of the relevant goods: Provided, That in cases falling under the proviso to Article 97 (2) of the Act (including cases applicable mutatis mutandis in Article 98 (2) of the Act), such application may be filed with the head of the relevant customs office with which an import declaration of the relevant goods has been first filed:
1. The name, standard, quantity, the amount of customs duties reduced or exempted, the usage tariff rate to be applied, the date on which an import declaration is accepted and the number of import declaration of the relevant goods;
2. The name of the relevant customs office in which the relevant goods go through customs clearance;
3. Reasons for applying for approval;
4. The business type, domicile, firm name and name (the name of representative in cases of a corporation) of a transferee of the relevant goods.
(2) Any person who intends to make goods destroyed or lost as a result of a calamity or any other unavoidable grounds subject to the application of Article 83 (3) of the Act, the proviso to Article 97 (3) of the Act (including cases applicable mutatis mutandis in Article 98 (2) of the Act), the proviso to Article 102 (2) of the Act or the proviso to Article 109 (2) of the Act shall promptly file an application stating the following matters, appended by a document attesting the fact, with the head of the relevant customs office after such goods are destroyed or lost:
1. The name, standard, quantity, the date on which an import declaration is accepted and the number of import declaration of the destroyed or lost goods;
2. The date on which the goods are destroyed or lost and place where the goods are destroyed or lost;
3. The name of the relevant customs office in which the destroyed or lost goods go through customs clearance.
(3) Any person who intends to obtain approval for disposing of goods from the head of the relevant customs office in accordance with the proviso to Article 83 (3) of the Act, the proviso to Article 97 (3) of the Act (including cases applicable mutatis mutandis in Article 98 (2) of the Act) the proviso to Article 102 (2) of the Act or the proviso to Article 109 (2) of the Act shall file an application stating the following matters with the head of such customs office:
1. The name, standard, quantity, the date on which an import declaration is accepted and the number of the import declaration of the relevant goods;
2. The name of the relevant customs office in which the relevant goods go through customs clearance;
3. Reasons for and methods of disposing of the relevant goods, the place where such goods are disposed of and the date on which such goods are disposed of.
 Article 110 (Prohibition Period for Use of Goods Reduced or Exempted from Customs Duties for Other Purpose)
The Commissioner of the Korea Customs Service shall, when he/she intends to fix a period for prohibition from using for other purpose than specific purpose or a period for prohibition from acquiring by transfer or transferring the goods whose customs duties are reduced or exempted in accordance with Article 83 (2), 88 (2) or 102 (1) of the Act (hereinafter referred to as "post management period"), conform to the standards falling under each of the following subparagraphs but if such post management periods differ for the same goods as a result of applying the standards of the respective subparagraphs, he/she may set a shorter period from among them: <Amended on Dec. 31, 2001; May 22, 2006; Apr. 5, 2007; Feb. 13, 2018; Feb. 17, 2021>
1. A post management period based on the durable years of goods (referring to the standard durable years referred to in Article 28 of the Enforcement Decree of the Corporate Tax Act) shall be a period fixed according to the division of each of the following items:
(a) Goods whose useful life is not less than five years: three years: Provided, That two years shall be applied to any goods whose customs duties are reduced or exempted under Article 90 of the Act;
(b) Goods whose useful life is four years: two years;
(c) Goods whose useful life is not more than three years: A period determined and publicly notified by the Commissioner of the Korea Customs Service within the limit of one year;
2. Post management period, where there is little chance of using the goods whose customs duties are reduced or exempted for other purpose: A period determined and publicly notified by the Commissioner of the Korea Customs Service within the limit of one year: Provided, That in cases of goods which are used only by specific persons such as the handicapped and the metallic pattern which cannot be used for other purpose in light of its nature, the post management period thereof shall be up to the day on which an import declaration thereon is accepted. In cases of goods used for any exhibition and any exposition, etc., the post management period thereof shall be up to the day on which the purpose of use is extinguished or such events come to the end;
3. Post management period, where goods whose customs duties are reduced or exempted are used as raw materials, components or samples: A period determined and publicly notified by the Commissioner of the Korea Customs Service within the limit of one year: Provided, That in cases of goods which are in fact consumed after being used as raw materials, components or samples, etc., the post management period thereof shall be up to the day on which such goods are confirmed to be shipped into a place where they are used for the purpose of reduction or exemption; and where the goods are stored without being used for the purpose of reduction or exemption until the relevant period lapses, the post management period thereof shall be up to the day such goods are completely used;
4. The post management period based on the rate obtained by multiplying the tariff rate described in Article 50 of the Act for the goods whose customs duties are reduced or exempted by the reduction and exemption rate: In cases of not more than three percent, a period determined and publicly notified by the Commissioner of the Korea Customs Service within the limit of one year; and in cases of more than three percent to not more than seven percent, a period determined and publicly notified by the Commissioner of the Korea Customs Service within the limit of two years.
 Article 111 (Standards for Calculating Abatement Rate of Customs Duties)
(1) In abating customs duties in accordance with Articles 89, 90, 95 and 98 of the Act, the calculation of the abatement rate shall be based on the tariff rates actually applied (excluding the tariff rate of Article 50 (2) 1 of the Act).
(2) Where customs duties are exempted in accordance with this Act and other Acts or treaties, the tariff rate described in Article 50 (2) 1 of the Act shall not be included in the scope of the exemption of customs duties except as otherwise provided for the scope of the exemption of customs duties.
 Article 112 (Application for Reduction or Exemption of Customs Duties)
(1) Any person who intends to obtain a reduction or exemption of customs duties in accordance with this Act, other Acts related to customs duties or treaties shall file an application stating the following matters with the head of the relevant customs office before an import declaration thereon is accepted: Provided, That an application for a reduction or exemption of customs duties may be filed in a simplified manner in cases prescribed by the Commissioner of the Korea Customs Service: <Amended on Feb. 2, 2012>
1. The domicile, name and firm name of a person who intends to obtain a reduction or exemption of customs duties;
2. The kind of business (needs to be specifically stated if a reduction or exemption is granted by type of business);
3. The name, standard, quantity, price, the use and the place where the relevant goods are installed and used;
4. A legal ground for a reduction or exemption of customs duties;
5. Other reference matters.
(2) Notwithstanding the main clause of paragraph (1), with the exception of its subparagraphs, an application for reduction or exemption of custom duties may be filed within the due date set forth in the following classifications if any of the following grounds arises: <Newly Inserted on Feb. 2, 2012>
1. Where customs duties are collected pursuant to Article 39 (2) of the Act: Within five days from the date on which the relevant notice of payment is served;
2. Where an application for reduction or exemption is not submitted until an import declaration is accepted: Within 15 days from the date on which the relevant import declaration is accepted (limited to the cases where the relevant goods are not carried out of the bonded zone).
(3) Documents to be appended to an application under paragraphs (1) and (2) and entries therein shall be determined by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 29, 2008; Feb. 2, 2012>
 Article 113 (Designation of Manufacturing and Repair Factory)
(1) Any person who intends to have his/her manufacturing and repair factory designated in accordance with Article 89 (1) of the Act shall file an application stating the following matters, accompanied by a business plan and a drawing showing the relevant area and its nearby area, with the head of the relevant customs office: <Amended on Dec. 30, 2002>
1. The name, location, structure, the number of buildings and area of the relevant manufacturing and repair factory;
2. The name of goods manufactured therein and names of raw materials and components;
3. Operational facilities and equipment and their capacity;
4. Period intended to be designated.
(2) The head of the relevant customs office in receipt of an application pursuant to paragraph (1) shall designate a manufacturing and repair factory for a fixed period up to three years if he/she deems such designation does not hinder supervision and control. In such cases, the fixed period may be renewed, as prescribed by the Commissioner of the Korea Customs Service. <Amended on Dec. 30, 2002>
(3) Where nothing prevents the supervision and control of a specific area at any airport, in which an aircraft is repaired temporarily under Article 89 (1) of the Act and it is deemed necessary to efficiently manage a reduction or exemption of customs duties on goods, the tariff rates of which differ from each other, the Commissioner of the Korea Customs Service may designate such specific area as a manufacturing and repair factory in accordance with paragraphs (1) and (2). <Newly Inserted on Dec. 30, 2002; Feb. 17, 2021>
(4) Deleted. <Mar. 27, 2017>
 Article 114 (Application for Extending Re-Export Period)
Any person who intends to get his/her re-export period extended in accordance with the proviso to Article 97 (1) 1 of the Act shall file an application stating the date on which the import declaration is accepted, the import declaration number, name, standard and quantity of the relevant goods, and a desired period of extension and reasons for extending the period with the head of the relevant customs office having jurisdiction over the location where the relevant goods are imported: Provided, That with respect to any goods prescribed by the Commissioner of the Korea Customs Service, approval may be granted from the relevant customs office other than the relevant customs office where the relevant goods are imported for extending such re-export period. <Amended on Mar. 29, 2004>
 Article 115 (Duty Exemption Period for Re-Export)
(1) The head of the relevant customs office shall, when he/she intends to fix a duty exemption period for goods to be re-exported in accordance with Article 97 (1) of the Act, make the period falling under each of the following subparagraphs such duty exemption period for such goods. In such cases, if the goods subject to the duty exemption for their re-export are seized by administrative authorities, the period of their seizure shall not be included in their duty exemption period: <Amended on Dec. 30, 2002>
1. In cases of personal effects, news coverage goods and other similar goods imported by hand or imported separately by persons when they enter Korea for the purpose of re-exporting such personal effects and goods after using them during their temporal stay in Korea, a period from the day of their entry to the day of their departure;
2. In cases of personal effects, news coverage goods and other similar goods imported by hand or imported separately by persons when they enter Korea for the purpose of re-exporting such personal effects and goods after using them during their temporal stay in Korea, a period from the day of their entry to the day of their departure;
3. In cases of goods and materials for processing and repair, a period which is deemed necessary for such processing and repair;
4. In cases of other goods imported in accordance with a shipment contract, a period confirmed by an evidential document pertaining to such shipment contract. If it is impossible to confirm such period with such evidential document, the head of the relevant customs office shall determine a period taking into account the nature, the purpose of use, the importer and useful life of the relevant goods, etc.
(2) The head of the relevant customs office shall, when he/she intends to fix a re-export period within the limit of four years in accordance with Article 98 (1) of the Act, fix such period based on a period confirmed by an evidential document concerning a shipment contract of the relevant goods: Provided, That where it is inappropriate to fix a period based on such period confirmed by such evidential document or it is impossible to confirm such period with such evidential document, the head of the relevant customs office may fix a re-export period based on a period deemed appropriate in light of the nature, the purpose of use, the lease period or the contract period of the relevant goods.
 Article 116 (Export of Goods Whose Customs Duties have been Reduced or Exempted on Condition of Re-Export and Collection of Additional Duties)
(1) Any person who intends to re-export goods whose customs duties have been reduced or exempted under Article 97 (1) or 98 (1) of the Act within the relevant period shall file an export declaration appended by the import declaration completion certificate on the relevant goods or another certificate substituting such certificate and other reference documents.
(2) When the goods referred to in paragraph (1) are exported, the head of the relevant customs office shall enter the fact of the export of such goods in the import declaration completion certificate or another certificate substituting such certificate, which is issued by the relevant customs office, and shall deliver it to a person who files an export declaration.
(3) Deleted. <Feb. 15, 2013>
 Article 117 Deleted. <May 22, 2006>
 Article 118 (Amount of Reduced or Exempted Customs Duties for Qualitatively Changed and Damaged Goods)
(1) The amount of customs duties reduced in accordance with Article 100 of the Act shall be the amount, whichever is larger, from among the amount of customs duties falling under each of the following subparagraphs:
1. The amount of customs duties corresponding to the fall in value due to the qualitative change, damage or use of the imported goods;
2. The difference obtained by deducting the amount of customs duties calculated according to the nature and quantity of the imported goods after the fall in value due to the qualitative change, damage or use of such imported goods from the amount of customs duties assessed on such imported goods.
(2) The standard for calculating the decrease in value due to qualitative change, damage or use described in paragraph (1) may be set by Ordinance of the Ministry of Economy and Finance. <Amended on Oct. 7, 2020>
 Article 119 (Amount of Reduced or Exempted Customs Duties for Overseas Wage-Processed Goods)
The amount of customs duties that is reduced or exempted in accordance with Article 101 (1) of the Act shall be as follows: <Amended on Mar. 29, 2004; Feb. 6, 2015>
1. The goods provided for in Article 101 (1) 1 of the Act: The amount obtained by multiplying the export declaration value on raw materials or components used to manufacture or process the export goods by the tariff rate applied to the relevant import goods;
2. The goods provided for in Article 101 (1) 2 of the Act: The amount obtained by multiplying the export declaration value on the repaired and processed goods by the tariff rate applied to the imported goods: Provided, That with respect to the goods exported to be processed or repaired at the cost of a foreign seller after their defects are found or their breakdown occurs during the defect-repairing guarantee period (limited to one year after an import declaration thereon is accepted) that is specified in a purchase and sale contract, the amount obtained by multiplying the total amount of the following items by the tariff rate applied to imported goods:
(a) Export declaration value of export goods;
(b) Freight and insurance premiums of export goods to the port of unloading;
(c) Freight and insurance premiums of them from the port of loading to the domestic port of unloading after they are processed or repaired;
(d) The amount corresponding to the expenses for the processing or repairing.
 Article 120 (Application for Reduction or Exemption of Customs Duties for Goods Used for Other Purpose)
(1) Any person who intends to get the reduction or exemption of customs duties under Article 103 of the Act shall file an application stating the following matters, appended by documents necessary to get customs duties reduced or exempted for goods imported to be used for the new purpose with the head of the relevant customs office when he/she applies for approval or files an application for confirmation in accordance with Article 109 (1) or 134:
1. The name, standard, quantity, and price of the relevant goods;
2. The import declaration number, the date on which the import declaration is accepted and the name of the relevant customs office in which goods go through customs clearance;
3. The original purpose of use, business type, the place where goods are installed or used and the legal basis for the reduction or exemption of customs duties;
4. The new purpose of use of the relevant goods, business type, the place where goods are installed and used and the legal basis for the reduction or exemption of customs duties.
(2) Where customs duties are reduced or exempted under Article 103 of the Act, if the amount of customs duties which are reduced or exempted according to the new purpose of use is smaller than that of customs duties which are originally reduced or exempted, the amount of customs duties, which is equivalent to a difference therefrom, shall be collected.
[Title Amended on Feb. 17, 2021]
SECTION 2 Refund and Installment Payment, etc.
 Article 121 (Refund of Customs Duties Due to Export, etc. of Goods Different from Contract Contents)
(1) Where goods, on which an import declaration is accepted, are different from contents of a contract and remain unchanged in the form and nature from the time that they are imported, any person, who intends to export the relevant goods under Article 106 (1) or (2) of the Act or to ship the relevant goods into a bonded factory, shall file an export declaration or file a report on the shipment of the relevant goods into such bonded factory, accompanied by the statement, stating the name, specification, quantity, price of such goods and reasons for their export or shipment, an evidential document with respect to the details of such contract on the import of the relevant goods, then import declaration completion certificate or an evidential document issued by the relevant customs office in lieu of such certificate, with the head of the relevant customs office. <Amended on Mar. 29, 2004; Feb. 22, 2008>
(2) Any person who intends to get customs duties refunded after exporting the goods under paragraph (1) or shipping the goods into a bonded factory shall file an application stating the name, standard, quantity, the date on which an import declaration is accepted, the import declaration number of the relevant goods and the amount of customs duties he/she wants to be refunded, appended by the import declaration completion certificate, the written approval for the shipment of the goods into the bonded factory or other certificates issued by the relevant customs office in lieu of such certificate, with the head of the relevant customs office. <Amended on Mar. 29, 2004>
(3) The amount of customs duties to be refunded under paragraph (2) shall be the total amount of customs duties already paid for the goods and where part of the goods are exported or are shipped into a bonded factory, the amount of customs duties to be refunded shall be the amount of customs duties, which corresponds to the part of such goods<Amended on Mar. 29, 2004>
 Article 122 (Refund of Customs Duties for Disposed Goods)
(1) Any person who intends to obtain approval for disposing of goods under Article 106 (3) of the Act shall file an application stating the following matters, appended by the import declaration completion certificate of the relevant goods or any certificate issued by the relevant customs office in lieu of such certificate and an evidential document explaining the inevitability of disposing of the relevant goods, with the head of the relevant customs office:
1. The name, standard, quantity of the relevant goods, the date on which the import declaration thereon is accepted, the import declaration number and the place where such goods are stored;
2. The method of disposing of the relevant goods, the date on which the relevant goods are planned to be disposed of, and the place where the relevant goods are planned to be disposed of;
3. Reasons for disposing of such goods.
(2) Any person who intends to get customs duties refunded under Article 106 (3) of the Act, which are paid on goods disposed upon the approval described in paragraph (1), shall file an application stating the matters falling under each of the following subparagraphs, appended by a written disposal approval under paragraph (1), with the head of the relevant customs office:
1. The name, standard, quantity of the relevant goods, the date on which the import declaration thereon is accepted, the import declaration number and the place where such goods are stored;
2. The date on which the relevant goods are disposed of;
3. The name, standard and quantity of remainders resulting from the disposal of the relevant goods.
(3) The amount of customs duties to be refunded under paragraph (2) shall be the amount of customs duties that are already paid on the goods: Provided, That with respect to the remainders referred to in paragraph (2) 3, the amount of customs duties to be refunded shall be the amount obtained by deducting the amount of customs duties to be assessed according to the nature, quantity and price of such remainders at the time the goods are disposed of from the amount of customs duties that are already paid.
 Article 123 (Refund of Customs Duties Due to Destruction or Loss, Qualitative Change and Damage, etc.)
(1) Any person who intends to get customs duties refunded in accordance with Article 106 (4) of the Act shall file an application stating the following matters, appended by the import declaration completion certificate or other certificate issued by the relevant customs office in lieu of such certificate, with the head of the relevant customs office:
1. The name, standard, quantity of the relevant goods, the date on which the import declaration thereon is accepted, the import declaration number and the place where such goods are stored;
2. The extent of damage and other reference materials;
3. The amount of customs duties he/she wants to be refunded and the base for calculating such amount.
(2) The amount of customs duties that are refunded in accordance with paragraph (1) shall be the amount classified according to each of the following subparagraphs:
1. Goods destroyed or lost: The whole amount of customs duties that are already paid;
2. Qualitatively changed or damaged goods: The amount calculated applying mutatis mutandis the provisions of Article 118 of the Act.
 Article 124 (Application for Canceling Assessment of Customs Duties on Goods that is Unpaid and Different from Contents of Contract)
Any person who intends to get the assessment of customs duties canceled in accordance with Article 106 (5) of the Act shall file an application therefor with the head of a customs office before the due date for payment of customs duties on the relevant imported goods (in cases of the postponement of collection or payment in installments, referring to the closing date of the period of postponement of collection or the period of payment in installments). <Amended on Feb. 15, 2013>
 Article 124-2 (Refund of Customs Duties on Goods for Private Use Exported in Original Conditions)
(1) Goods for private use exported in original conditions referred to in the former part of Article 106-2 (1) of the Act shall meet all of the following requirements:
1. Must be exported without changing the nature or shape as at the time an import declaration is filed;
2. Must be verified by the head of a customs office that they have never been used in Korea.
(2) A person who intends to receive the refund of any customs duty under Article 106-2 (1) of the Act, shall submit an application stating the name, specification, and quantity of the relevant goods, and import declaration number and the amount of customs duty that he/she intends to be refunded, to the head of a customs office, along with the following documents:
1. Certificate of import declaration completion of the relevant goods;
2. Certificate of export declaration completion of the relevant goods or any certificate issued by a customs office substituting it.
(3) The amount of a customs duty to be refunded under Article 106-2 (1) of the Act, shall be the amount classified as follows:
1. Where all of the goods are exported: The whole amount of custom duty already paid;
2. Where some of the goods are exported: The amount of custom duty assessed on such goods.
[This Article Newly Inserted on Feb. 5, 2016]
 Article 125 (Payment of Customs Duties in Installments Due to Force Majeure)
(1) Any person who intends to pay customs duties in installments under Article 107 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office within the payment due date:
1. The name, domicile and firm name of the person liable for duty payment;
2. The amount of customs duties he/she wants to pay in installments, the date on which an import declaration of the relevant goods is filed, the import declaration number, and the name, standard, quantity and price of the relevant goods;
3. Reasons for paying customs duties in installments and a period therefor;
4. The amount of customs duties to be paid in installments and frequency.
(2) Where the head of the relevant customs office allows the payment of customs duties in installments under paragraph (1), the provisions of Article 2 shall apply mutatis mutandis thereto.
 Article 126 (Application for Approving Payment of Customs Duties in Installments)
Any person who intends to obtain approval for paying customs duties in installments in accordance with Article 107 (2) of the Act shall file an application stating the name, standard, quantity, price, the purpose of use of the relevant goods, the place where such goods are used and business type with the head of the relevant customs office from the time that an import declaration thereon is filed before the time that such import declaration is accepted.
 Article 127 (Notice of Payment of Customs Duties in Installments)
(1) When the head of the relevant customs office grants approval for paying customs duties in installments under Article 126, he/she shall issue a duty payment notice by the payment due date in accordance with Article 39 of the Act. <Amended on Feb. 17, 2021>
(2) When the head of the relevant customs office collects customs duties in accordance with Article 107 (9) of the Act, he/she shall issue a duty payment notice under Article 39 of the Act, for a fixed due date for payment not exceeding 15 days. <Amended on Feb. 15, 2013; Feb. 17, 2021>
(3) Any duty payment notice that is issued on customs duties under paragraph (1) after the payment due date referred to in paragraph (2) shall be canceled. <Amended on Feb. 17, 2021>
 Article 128 (Approval for Using Goods for Other Purpose)
Any person who intends to obtain approval from the head of the relevant customs office under Article 107 (3) of the Act shall file an application stating the following matters, appended by a copy of the contract on transfer and acquisition by transfer of the relevant goods, with the head of a customs office having jurisdiction over the place where such goods are located:
1. The name, standard, quantity, price of the relevant goods, the name of the relevant customs office in which such goods go through customs clearance, the date on which an import declaration thereon is accepted and the import declaration number;
2. The amount of customs duties he/she wants to pay in installments and the amount of customs duties that are already paid;
3. The transferee;
4. Reasons for obtaining such approval.
 Article 129 (Shipment of Goods Whose Customs Duties are Approved to be Reduced or Exempted or Paid in Installments and Change Report)
(1) Any person who has obtained approval for the application of the usage tariff rate, the reduction or exemption of customs duties or the payment of customs duties in installments in accordance with Articles 83, 89 (1) 2, 90, 91, 93, 95, 98 and 107 of the Act shall ship the relevant goods into the place where such goods are installed or used within one month from the day on which an import declaration thereon is accepted. <Amended on Mar. 27, 2017>
(2) Any person who has obtained approval for the application of the usage tariff rate, the reduction or exemption of customs duties, or the payment of customs duties in installments pursuant to paragraph (1) may file an application for the extension of the due date for shipment with the head of a customs office, as determined by the Commissioner of the Korea Customs Service, where any extenuating circumstance exists for delay in shipment, such as the shortage of place where the goods are to be installed. <Newly Inserted on Mar. 27, 2017>
(3) The head of a customs office in receipt of an application under paragraph (2) may extend the relevant period for up to three months from the date the relevant import declaration is accepted. <Newly Inserted on Mar. 27, 2017>
(4) Any person who ships the relevant goods into the place where such goods are installed or used in accordance with paragraph (1) shall keep a book in which any of the following matters are stated: <Newly Inserted on Mar. 27, 2017>
1. The name, standard and quantity of the relevant goods;
2. Matters concerning the price of the relevant goods, the application of the usage tariff rate, the reduction or exemption of customs duties or the payment of customs duties in installments;
3. The import declaration number of the relevant goods, the date on which the import declaration thereon is accepted and the name of the relevant customs office in which such goods go through customs clearance;
4. The date on which the relevant goods are shipped into the place where such goods are installed or used and the date on which the use of such goods commences;
5. The place where such goods are installed or used and details of their use.
(5) Where it is intended to change the place in which goods are installed or used for the goods for which approval is granted for the application of the usage tariff rate or the goods whose customs duties are reduced or exempted in accordance with Articles 83, 89 (1) 2, 90, 91, 93, 95 and 98 of the Act within the period prescribed in the relevant provisions, or the goods for which approval is granted for the payment of customs duties in installments in accordance with Article 107 of the Act within the installment payment period expires, a report stating the change of the place and the following matters shall be made to the head of the relevant customs office having jurisdiction over the previous place and the goods shall be shipped into the changed place within one month from the day on which such report is filed: Provided, That where a person intends to ship his/her goods into his/her another domestic place due to an emergency situation such as a natural disaster or a labor-management dispute, he/she shall file a report thereon to the head of the relevant customs office having jurisdiction over the place and file a report on the change of the place to the head of the relevant customs office within one month from the day on which he/she ships his/her goods into the changed place: <Newly Inserted on Mar. 27, 2017>
1. The name, standard and quantity of the relevant goods;
2. The price, the applied usage tariff rate, the amount of exempted customs duties or the amount of approved payment of customs duties in installments and the legal basis therefor of the relevant goods;
3. The import declaration number of the relevant goods and the relevant customs office in which such goods go through customs clearance;
4. The date on which the relevant goods are shipped into the place where such goods are installed or used and the date on which the use of such goods commences;
5. The place where the relevant goods are installed or used and the name and domicile of the reporter.
 Article 130 (Transfer of Goods Subject to Follow-up Management and Collection of Customs Duties)
(1) With respect to goods for which approval is granted for the application of the usage tariff rate, the reduction or exemption of customs duties or the payment of customs duties in installments in accordance with Articles 83, 89 (1) 2, 90, 91, 93, 95 (1) 1 through 3, 98 and 107 of the Act, if the relevant customs office in which such goods are cleared and the jurisdictional customs office are different, the head of the relevant customs office in which the goods are cleared shall turn over related documents concerning the relevant goods to the head of the jurisdictional customs office as prescribed by the Commissioner of the Korea Customs Service. <Amended on Apr. 1, 2011>
(2) With respect to goods, the related documents of which are handed over by the head of the relevant customs office where such goods are cleared, to the head of the jurisdictional customs office under paragraph (1), the customs duties to be assessed on such goods in accordance with Article 97 (3) of the Act (including cases applicable mutatis mutandis in Article 98 (2) of the Act) and Article 102 (2) of the Act shall be collected by the head of the jurisdictional customs office.
 Article 131 (Reporting on Offering Securities, etc.)
(1) Determination as to whether security should be provided under the provisions of Article 108 (1) of the Act shall be made, based on the nature and kind of the goods, the possibility of securing duty claims, etc. but it shall be limited to cases falling under any one of the following subparagraphs: <Amended on Apr. 5, 2007>
1. Where customs duties are reduced or exempted under Article 97 or 98 of the Act;
2. Where approval is granted for the payment of customs duties in installments under Article 107 of the Act.
(2) The head of the relevant customs office may have security offered under Article 108 (1) of the Act by the time import declaration is accepted: Provided, That with regard to goods which are imported on a day in which no financial institutions may conduct business, such as holidays (including the Workers' Day under the Designation of Workers' Day Act and Saturdays) due to an urgent reason and are determined and publicly announced by the Commissioner of the Korea Customs Service taking into account the level of urgency, etc., he/she may have security offered by the day in which financial institutions conduct their business first after the time the import declaration is accepted. <Newly Inserted on Apr. 5, 2007>
 Article 132 (Confirmation of Implementation of Conditions for Reduction or Exemption of Customs Duties, etc.)
(1) The head of the relevant customs office may take measures as prescribed by the Commissioner of the Korea Customs Service necessary to confirm implementation of the relevant conditions for the goods which are granted approval for the application of the usage tariff rate, the reduction or exemption of customs duties or the payment of customs duties in installments. <Amended on Aug. 21, 2003>
(2) The documents provided for in Article 108 (2) of the Act shall be submitted to the head of the relevant customs office in which goods go through customs clearance or the head of the jurisdictional customs office as prescribed by the Commissioner of the Korea Customs Service.
 Article 133 (Entrustment of Follow-up Management)
(1) When it is necessary to confirm implementation of the conditions for the goods which are granted approval for the application of usage tariff rates, the reduction or exemption of customs duties or the payment of customs duties in installments, the Commissioner of the Korea Customs Service shall entrust the matters concerning the post management according to the following classifications under Article 108 (3) of the Act: <Amended on Dec. 31, 2001; Apr. 1, 2011>
1. In cases of Article 109 (1) of the Act: The Minister of the Ministry in charge of the enforcement of the relevant Act and treaty, etc;
2. In cases of Article 83 (1), 90, 91, 93, 95 (1) 1 through 3 or 107 of the Act: The minister of the ministry in charge of the relevant affairs.
(2) When the minister of the ministry entrusted with the follow-up management under paragraph (1) confirms the cause exists for collecting customs duties on the goods which are granted approval for collecting customs duties on the goods which are granted approval for the application of usage tariff rates, the reduction or exemption of customs duties or the payment of customs duties in installments, he/she shall promptly serve a written notice stating the following matters on the head of the relevant customs office having jurisdiction over the place where the relevant goods are located: <Amended on Dec. 30, 2002>
1. The import declaration number of the relevant goods;
2. The name and quantity of the relevant goods;
3. Reasons for collecting customs duties on the relevant goods which are granted approval for the reduction or exemption of customs duties or the payment of customs duties in installments;
4. The domicile and name of the owner of the relevant goods.
(3) Matters concerning the post management of the goods entrusted under paragraph (1) shall be determined by the minister of the ministry entrusted with the post management after consulting with the Commissioner of the Korea Customs Service.
 Article 134 (Application for Confirming Use of Goods for Other Purpose under Other Statutes or Treaties)
Any person who intends to obtain confirmation under Article 109 (1) of the Act shall file with the head of the relevant customs office having jurisdiction over the place where the relevant goods are located a confirmation application stating the matters prescribed in Article 120 (1) of the Act and other statutes, a treaty or a convention and the provisions which are the basis for the reduction or exemption of customs duties of the relevant goods, appended by a document attesting the fulfillment of the requirements necessary for the transfer of the relevant goods or the use of the relevant goods for other purpose under such statutes, treaty, or convention.
CHAPTER V RIGHTS OF DUTY PAYERS AND PROCEDURES FOR RAISING OBJECTION
SECTION 1 Rights of Duty Payers
 Article 135 (Time for Delivering Duty Payer Right Charter)
"Cases prescribed by Presidential Decree" in Article 110 (2) 3 of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where the seizure is made to secure the collection right;
2. Where a bonded store is investigated.
 Article 135-2 (Exceptions to Principles of Consolidated Investigations)
"Cases prescribed by Presidential Decree where a customs officer needs to investigate a specific field only" in Article 110-2 of the Act means any of the following cases:
1. Where it is necessary to investigate a specific field only in consideration of a suspicion of tax evasion or an offense of duties related to import and export, type and scale of business, etc. of an exporter, importer, etc.;
2. Where an urgent investigation is necessary to secure duty claims, etc.;
3. Cases prescribed by Ordinance of the Ministry of Economy and Finance where it is necessary to investigate a specific field only in consideration of the efficiency of investigation, convenience of duty payers, etc.
[This Article Newly Inserted on Feb. 2, 2012]
 Article 135-3 (Standards for Customs Duty Investigations against Persons who have not been Investigated for Long Period)
Investigations prescribed in Article 110-3 (1) 2 of the Act shall be conducted in compliance with standards prescribed by the Commissioner of the Korea Customs Service in consideration of the type, scale, history, etc. of business of the exporters, importers, etc.
[This Article Newly Inserted on Feb. 2, 2012]
 Article 135-4 (Exemption from Customs Duty Investigations against Faithful Entity of Small Scale Business)
In accordance with the main clause of Article 110-3 (4) of the Act, a person who meets all the following requirements may be exempted from an investigations provided in Article 110-3 (1): <Amended on Mar. 27, 2017>
1. The scale of export and import declarations for the preceding two years shall not exceed three billion won;
2. He/she shall not fall under any of the following subparagraphs within the preceding four years:
(a) The fact that he/she has been subject to a disposition of notification or a fine or a heavier punishment for violating any statute related to export and import;
(b) The fact that he/she has failed to pay customs duties or any internal tax;
(c) The fact that a rectification has been made by the head of a customs office as the amount of payment of customs duties by self-assessment pursuant to Article 38-3 (6) of the Act is deficient.
[This Article Newly Inserted on Feb. 2, 2012]
 Article 136 (Prohibition on Repetitious Investigation)
"General investigations are conducted against persons who have been on suspicion of tax evasion and other cases prescribed by Presidential Decree" in Article 111 (2) 5 of the Act means the case where a general investigation is conducted on persons suspected of evading customs duties through smuggling, illegal or unfair trade or other acts which disrupt economic order. <Amended on Apr. 1, 2011; Feb. 2, 2012; Feb. 13, 2018>
 Article 137 Deleted. <Mar. 5, 2014>
 Article 138 (Grounds for Excluding from Assumption of Duty Payer's Good Faith, etc.)
(1) "Other cases prescribed by Presidential Decree" in Article 113 (1) of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where any duty payer fails to perform his/her duty to cooperate in payment of duties, such as a declaration for duty payment, an application and the submission of duty data;
2. Where there is specific information about duty evasion by a duty payer;
3. Where a declaration for duty payment contains indisputable data corroborating an omission or an error;
4. Where the content of a declaration for duty payment filed by a duty payer are deemed non-compliant in comparison with the standards prescribed by the Commissioner of the Korea Customs Service.
(2) "Acts prescribed by Presidential Decree" in Article 113 (2) of the Act means any of the following: <Amended on May 22, 2006; Apr. 1, 2011>
1. An question or request for submitting data necessary for examining the amount of customs duties under Article 38 (2) of the Act;
2. An inspection of goods under Article 246 of the Act;
3. Submission of books or data under Article 266 (1) of the Act;
4. A data survey or a request for submission of data under other Acts (including the Act on Special Cases concerning the Refund of Customs, etc. Levied on Raw Materials for Export).
 Article 139 (Prior Notice on Customs Investigation)
Where a prior notice of a customs investigation is served on a duty payer or any authorized person pursuant to Article 114 (1) of the Act, such prior notice shall be made in writing stating the following matters: <Amended on Feb. 2, 2012>
1. The name, domicile or residence of the duty payer or the authorized person;
2. A period for investigation;
3. The subject of investigation and reasons for investigation;
4. Deleted. <Feb. 13, 2018>
5. Other necessary matters.
 Article 139-2 (Period for Customs Investigations)
(1) A period for investigation referred to in subparagraph 2 of Article 139 shall be minimized in comprehensive consideration of the scale of export and import of the person subject to investigation, number of personnel, methods, scope and difficulty in the investigation, but a period for investigation shall not exceed 20 days in cases of visiting investigations. <Amended on Feb. 2, 2012>
(2) Notwithstanding paragraph (1), a period for investigation may be extended up to 20 days in any of the following subparagraphs. In such cases, if the period is extended at least two times, each extension of the period up to 20 days may be obtained with approval from the Commissioner of the Korea Customs Service: <Amended on Feb. 15, 2013; Feb. 11, 2020>
1. Where it is apparent that the person to be investigated has intention to evade the investigation, by concealing books, documents, etc., or delaying or refusing the submission thereof;
2. Where it is necessary to extend the scope of the investigation to other goods or other party to a transaction;
3. Where the investigation is suspended due to natural disasters or labor disputes;
4. Where it is necessary to extend the period for investigation in order to verify the actual relation or secure evidence on a ground corresponding to those prescribed in subparagraphs 1 through 3;
5. Where a taxpayer advocate or local taxpayer advocate under Article 118-2 (2) of the Act (hereinafter in this Article, referred to as “taxpayer advocate”) acknowledges that additional fact-checking is required in relation to the suspicion of tax evasion;
6. Where a person subject to tax investigation applies for the extension of the tax investigation period to clarify the suspicion of tax evasion, etc. and the taxpayer advocate accepts such application.
(3) A customs officer may suspend an investigation if it is impractical to continue the investigation on any of the following grounds, such as a duty payer’s delay in submitting data. In such cases, the period of suspension shall not be included in the period for investigation or in the extended period for investigation referred to in paragraphs (1) and (2): <Newly Inserted on Feb. 2, 2012; Feb. 11, 2020>
1. Where a duty payer requests for suspension of investigation due to a natural disaster or on any ground for application for postponement of customs investigation provided in Article 140 (1);
2. Where it is impractical to normally continue the investigation as a duty payer conceals books, documents, etc., or delays or refuses the submission thereof;
3. Where it is impractical to normally continue the customs investigation due to the occurrence of a labor dispute, etc.;
4. Where a taxpayer advocate, etc. requests a temporary suspension of customs investigation pursuant to Article 144-2 (2) 1 (including cases delegated pursuant to 144-2 (3));
5. Where any extenuating circumstance prescribed by the Commissioner of the Korea Customs Service exists to suspend the customs investigation.
(4) When a customs officer has suspended a customs investigation pursuant to paragraph (3), he/she shall resume the investigation immediately after the ground for suspension has ceased: Provided, That he/she may resume the investigation ever before the ground for suspension has ceased if it is necessary to resume the investigation urgently for such purposes as securing of duty claims, etc. <Newly Inserted on Feb. 2, 2012>
(5) When a customs officer extends a period for investigation or suspends or resumes an investigation pursuant to paragraphs (2) through (4), he/she shall provide written notice of the ground and period therefor, etc. to a person to be investigated. <Amended on Feb. 2, 2012>
[This Article Newly Inserted on Mar. 26, 2010]
 Article 140 (Application for Postponing Customs Investigation)
(1) "Grounds prescribed by Presidential Decree" in Article 114 (2) of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where a fire or a disaster causes serious business difficulties;
2. Where a customs investigation is deemed impracticable to be conducted due to the illness, long-term official trip, etc. of a duty payer or an authorized person;
3. Where an authorized agency has seized or has the custody of books and evidential documents;
4. Where there are other reasons corresponding to the provisions of subparagraphs 1 through 3.
(2) Any person who intends to get the customs investigation postponed under Article 114 (2) of the Act shall submit a document stating the following matters to the head of the relevant customs office:
1. The name, domicile and residence of the person who intends to get the customs investigation postponed;
2. The period during which the customs investigation is postponed;
3. Grounds for getting the customs investigation postponed;
4. Other necessary matters.
(3) The head of a customs office who has received an application for postponement of an investigation on customs duties pursuant to paragraph (2) shall determine whether such application for postponement should be approved; and shall notify an applicant of the result thereof before he/she commences such investigation. <Newly Inserted on Feb. 15, 2013>
 Article 140-2 (Methods of and Procedures for Temporarily Keeping Books, etc.)
(1) Where a customs officer intends to temporarily keep books, documents or other goods (hereafter referred to as "books, etc." in this Article) pursuant to Article 114-2 (2) of the Act, he/she shall notify a person having legitimate authority of the following matters, such as a duty payer, holder or custodian (hereafter referred to as "duty payer, etc." in this Article), before temporarily keeping the books, etc.:
1. The reason for temporarily keeping the books, etc. prescribed in the subparagraphs of Article 110-3 (2) of the Act;
2. The content that the books, etc. cannot be temporarily kept without the consent of the duty payer, etc.;
3. The content that only the books, etc. voluntarily submitted by the duty payer, etc. can be temporarily kept;
4. The content that the books, etc. temporarily kept can be returned at the request of the duty payer, etc.
(2) A duty payer, etc. may request a customs officer to exclude books, etc. unrelated to the purpose or scope of investigation from the books, etc. to be temporarily kept.
(3) Upon completing the relevant customs duty investigation, a customs officer shall return all of the temporarily kept books, etc.
[This Article Newly Inserted on Feb. 13, 2018]
 Article 141 (Notice of Results of Customs Investigation)
"Cases prescribed by Presidential Decree" in the proviso to Article 115 of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where a notice disposition is taken to a duty payer;
2. Where an accusation is filed against a customs offense case;
3. Where the business is closed down;
4. Where it is deemed impracticable to serve a notice due to the impossibility of identifying the domicile and residence of a duty payer and other reasons.
 Article 141-2 (Publication of List of Names of Large-Amount and Habitually Delinquent Duty Payers)
(1) "Grounds prescribed by Presidential Decree exist, such as where the petition of appeal, including raising an objection and applying for examination, is being filed against the customs duties, etc. in arrears" in the proviso to Article 116-2 (1) of the Act means any of the following cases: <Amended on Apr. 1, 2011; Feb. 11, 2020; Feb. 17, 2021>
1. Where not less than 50/100 of the amount in arrears is found from the calculation using the following formula to have been paid during the past two years;
2. Where a person is in the grace period after the collection of his/her duty in arrears is deferred due to a decision to authorize the rehabilitation program provided for in Article 243 of the Debtor Rehabilitation and Bankruptcy Act or the person pays the duty in arrears according to the duty payment schedule fixed under the rehabilitation program;
3. Where the Customs Information Revelation Deliberative Committee provided for in Article 116-2 (2) of the Act finds it useless and inappropriate to publish the list of names of delinquent duty payers taking into account their property, whether they are minors, or other circumstances, etc.
(2) The Commissioner of the Korea Customs Service shall, when he/she notifies a person that he/she is subject to the disclosure the list of names of delinquent duty payers pursuant to Article 116-2 (3) of the Act, instruct them to pay their duties in arrears and where anyone falls under the grounds that he/she is excluded from the publication of the list of the names of delinquent duty payers, the Commissioner of the Korea Customs Service shall request him/her to furnish materials vindicating himself/herself.
(3) Matters to be included in the list of names of delinquent duty payers shall include the names of the delinquent duty payers, firm names (including the names of corporations), the ages, occupations and domiciles of the delinquent duty payers, the details of the amount in arrears, the payment deadline and the summary of arrearages, etc. and where the delinquent duty payer is a corporation, the representative of such corporation shall be included in the publication.
[This Article Newly Inserted on May 22, 2006]
 Article 141-3 (Composition and Operation of Duty Freedom of Information Deliberative Committee)
(1) The Deputy Commissioner of the Korea Customs Services shall concurrently serve as the chairperson of the Customs Information Disclosure Deliberative Committee provided for in the provisions of Article 116-2 (2) of the Act (hereafter referred to as the "Committee" in this Article) and the persons falling under each of the following subparagraphs shall be the members of the Committee: <Amended on Jun. 12, 2006; Feb. 11, 2020>
1. Four public officials who are appointed by the Commissioner of the Korea Customs Service from among the public officials in general service who belong to the Senior Executive Service of the Korea Customs Service;
2. Six persons who are commissioned by the Commissioner of the Korea Customs Service from among the persons of profound learning and experience in law, finance or economy.
(2) The term of office of the members who are commissioned pursuant to the provisions of paragraph (1) 2 shall be two years and may be renewed only once: Provided, That a member appointed to fill a vacancy occurring before the expiration of the term for which his/her predecessor was appointed, shall serve for the remainder of such term. <Amended on Mar. 27, 2017; Feb. 13, 2018>
(3) When any member of the Committee falls under any of the following, the Commissioner of the Korea Customs Service may remove or dismiss such member: <Newly Inserted on Mar. 27, 2017; Feb. 13, 2018>
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where he/she is deemed unfit to serve as a member of the Committee due to neglect of the duties, injury to dignity, or other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties;
5. Where the member fails to refrain from participating in deliberation and resolution, in spite of falling under any subparagraph of paragraph (5).
(4) The Committee's meetings shall open with the attendance of a majority of the total members including the chairperson and resolve with the concurrent vote of a majority of those present. <Amended on Mar. 27, 2017>
(5) Any Committee member who falls under any of the following cases shall be excluded from the deliberation and resolution: <Newly Inserted on Feb. 13, 2018>
1. Where the member is a party to the relevant agenda (where a party to the relevant agenda is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this paragraph) or a person directly interested in the relevant agenda;
2. Where the member's spouse, relative within the fourth degree of consanguinity, or relative within the second degree of affinity within the second degree is a party to the relevant agenda or has direct interest in the relevant agenda;
3. Where the member is a current representative or was the representative of a party to the relevant agenda within the recent five years;
4. Where the member belongs to or has belonged within the recent five years to a corporation, organization, etc. which is the current representative or was the representative of a party to the relevant agenda;
5. Where the member has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.;
6. Where the member currently belongs to or has belonged within the recent five years to a corporation, organization, etc. which has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.
(6) If any Committee member falls under any subparagraph of paragraph (5), he/she shall voluntarily refrain from the deliberation and resolution on the relevant agenda. <Newly Inserted on Feb. 13, 2018>
(7) Except as provided in paragraphs (1) through (6), matters necessary for the composition and operation of the Committee shall be prescribed by the Commissioner of the Korea Customs Service. <Amended on Mar. 27, 2017; Feb. 13, 2018>
[This Article Newly Inserted on May 22, 2006]
[Title Amended on Feb. 11, 2020]
 Article 141-4 (Submission of Certificate of Tax Payment)
(1) "Government-managed institution prescribed by Presidential Decree" in Article 116-3 (1) 1 of the Act means a corporation, organization, etc. which is subject to obligatory audit by the Board of Audit and Inspection pursuant to Article 22 (1) 3 or 4 of the Board of Audit and Inspection Act.
(2) "Permit for a stay prescribed by Presidential Decree, such as a permit to extend the period of sojourn" in Article 116-3 (1) 2 of the Act means any of the following: <Newly Inserted on Feb. 12, 2019>
1. Report on the place of residence in Korea under Article 6 of the Act on the Immigration and Legal Status of Overseas Koreans;
2. Permit to engage in activities not covered by original status of stay under Article 20 of the Immigration Act;
3. Permit or report a change in or addition of a workplace under Article 21 of the Immigration Act;
4. Grant of a status of stay under Article 23 of the Immigration Act;
5. Permit to change a status of stay under Article 24 of the Immigration Act;
6. Permit to extend a status of stay under Article 25 of the Immigration Act;
7. Registration of an alien under Article 31 of the Immigration Act.
(3) Article 107 (2) of the National Tax Collection Act (excluding the part concerning the extension of the designated deadline payment, with the exception of subparagraphs and subparagraph 1) Articles 90, 91, and 93, and 94 (excluding subparagraph 1) of the Enforcement Decree of the National Tax Collection Act shall apply mutatis mutandis to the content, submission, etc. of a certificate of tax payment prescribed in Article 116-3 of the Act. In such cases, "Commissioner of the National Tax Service (limited only through the Tax Information System) or the head of the competent tax office" in Article 93 of the Enforcement Decree of the National Tax Collection Act shall be construed as "Commissioner of the Korea Customs Service or the head of a customs office". <Amended on Feb. 12, 2019; Feb. 17, 2021>
[This Article Newly Inserted on Feb. 6, 2015]
 Article 141-5 (Application for Issuance of Certificate of Tax Payment)
Each person, who intends to obtain a certificate of tax payment under Article 116-3 (2) of the Act, shall submit an application in the form prescribed by Ordinance of the Ministry of Economy and Finance to the head of the relevant customs office.
[This Article Newly Inserted on Feb. 6, 2015]
 Article 141-6 (Term of Validity of Certificate of Tax Payment)
(1) The term of validity of a certificate of tax payment shall be 30 days from the date of the issuance thereof: Provided, That where it contains matters concerning any customs duties, internal taxes, etc. the period for payment of which is in progress as of the issuance date, the term of validity may be extended to the payment deadline thereof.
(2) When the head of a customs office determines a term of validity in accordance with the proviso to paragraph (1), he/she shall specify the ground and the term of validity in the relevant certificate of tax payment.
[This Article Newly Inserted on Feb. 6, 2015]
 Article 141-7 (Statement or Otherwise of Opinions by Persons Who Are Substantially or Habitually Delinquent in Payment of Customs Duties, on Request for Detention)
(1) The Commissioner of the Korea Customs Service shall notify each delinquent taxpayer of the documents including all of the following matters (including electronic documents if the delinquent taxpayer consents thereto), so that the delinquent taxpayer may submit explanatory materials or state his/her opinions pursuant to Article 116-4 (3) of the Act: In such cases, if no explanatory materials are submitted or no application is filed to state an opinion within the period under subparagraph 4, the delinquent taxpayer deemed to have no opinion:
1. The name and address of the taxpayer;
2. The requirements for court-ordered confinement, the fact based on which an application for court-ordered confinement is made, the period of court-ordered confinement, and applicable statutes and regulations;
3. The fact that the execution of detention may be terminated if customs duties in arrears are paid as prescribe by Article 116-4 (6) of the Act;
4. The fact that a delinquent taxpayer may submit explanatory materials or state his/her opinion, and the period for submitting explanatory materials and applying for stating his/her opinions. In such cases, the period shall be at least thirty days from the date of receipt of such notice;
5. Other matters necessary for submitting explanatory materials or applying for the statement of opinions.
(2) A person who intends to state his or her opinion pursuant to Article 116-4 (3) of the Act shall submit a document (including an electronic document) stating a summary of the details of his or her statement to the Commissioner of the Korea Customs Service within the period prescribed in paragraph (1) 4.
(3) The Commissioner of the Korea Customs Service, upon receipt of a request for the statement of opinion pursuant to paragraph (2), shall notify the applicant of the date and venue of a meeting by three days prior to the scheduled date for the meeting of the Customs Information Committee under Article 116-2 (2) of the Act.
[This Article Newly Inserted on Feb. 21, 2014]
 Article 141-8 (Request for Prohibition of Departure)
(2) "Persons prescribed by Presidential Decree" in Article 116-5 (1) of the Act means any of the following persons in whose cases the head of the competent tax office finds that he/she is unable to secure tax claims by attachment, public auction, collaterals, or a guarantor's letter of guarantee for the payment of taxes and that such persons are likely to evade the disposition on default: <Amended on Feb. 17, 2021>
1. A person whose spouse or lineal ascendants or descendants have emigrated abroad (including where they have stayed abroad for at least three years);
2. A person who has remitted amounts equivalent at least 50,000 U.S. dollars to a foreign country for the last two years as at the date a request for prohibition of departure from the Republic of Korea is made under Article 4 of the Immigration Act (including suspension of departure from the Republic of Korea is made under Article 29 of that Act: hereafter in this Article and Article 141-9, referred to as “prohibition of departure”);
3. A person who is found to have overseas assets equivalent to or over 50,000 U.S. dollars;
4. Any of the persons whose names are disclosed in the list of persons who are substantially or habitually delinquent in the payment of customs duties under Article 116-2 of the Act;
5. A person who has traveled abroad at least three times or has stayed abroad for at least six months without any good cause, such as business purposes, medical treatment of a disease, or death of a lineal ascendant or descendant, while his/her customs duties in arrears during the latest one year from the date a request for prohibition of departure is made amount to at least 50 million won;
6. A person against whom a lawsuit seeking the invalidation of a deceptive act is pending under Article 25 of the National Tax Collection Act pursuant to Article 26 of the Act or a lawsuit seeking the cancellation of a false contract made in conspiracy with a third party is pending pursuant to Article 35 (6) of the Framework Act on National Taxes.
(3) Where the Commissioner of the Korea Customs Service requests the Minister of Justice to impose prohibition of departure on a delinquent taxpayer pursuant to Article 116-5 (1) of the Act, he/she shall clearly disclose the grounds on which he/she finds that the relevant delinquent taxpayer falls under any subparagraph of paragraph (1), that it is impracticable to secure tax claims, and that the relevant delinquent taxpayer is likely to evade the disposition on default. <Amended on Feb. 17, 2021>
[This Article Newly Inserted on Feb. 11, 2020]
 Article 141-9 (Request for Lifting Prohibition of Departure)
(1) "Reasons prescribed by Presidential Decree" in Article 116-5 (3) 4 of the Act means cases falling under any of the following subparagraphs:
1. Where the amount of customs duties in arrears (including internal taxes, etc. imposed and collected by the head of a customs office) falls short of 50 million won following the revocation, etc. of a determination to impose the amount in arrears;
2. Where any of requirements for prohibition of departure specified in Article 141-8 (1) ceases to be met.
(2) If any of the following events occurs to a person under prohibition of departure and if the Commissioner of the Korea Customs Service finds that the person is unlikely to escape abroad with intent to evade the disposition on default, the Commissioner of the National Tax Service may request the Minister of Justice to lift prohibition of departure: <Amended on Feb. 17, 2021>
1. Where the person intends to depart from the Republic of Korea with a specific business plan, such as executing an overseas construction contract, opening an export letter of credit, executing a joint venture contract with a foreigner;
2. If the person intends to travel abroad because of the death of one of his/her lineal ascendants or descendants residing abroad;
3. If it is deemed necessary to lift prohibition of departure for a compelling cause, such as medical treatment of the person's disease, other than the events specified in subparagraphs 1 and 2.
[This Article Newly Inserted on Feb. 11, 2020]
 Article 142 (Omission of Notice Prior to Assessment of Customs Duties)
“Cases which are prescribed by Presidential Decree” in Article 118 (1) 6 of the Act means any of the following cases: <Amended on Mar. 29, 2004; May 22, 2006; Apr. 1, 2011; Feb. 13, 2018>
1. Where the amount of customs duties, which comes short due to an indisputable mistake such as an error in the calculation of the amount of customs duties to be paid, is collected;
2. Where customs duties are collected in compliance with a correction request made by the Board of Audit and Inspection under Article 33 of the Board of Audit and Inspection Act;
3. Where a duty payer is dishonored, suspends or closes his/her business, or goes bankrupt;
4. Where a deficient amount of customs duties is collected after the tariff rate or the HS code of the tariff classification that are to be applied to export and import goods is changed by the classification of items determined by a resolution of the Tariff Classification Committee provided in Article 85 of the Act;
5. Where the relevant disposition is revoked or corrected or any necessary disposition is taken based on the findings of the reinvestigation conducted pursuant to the latter part of Article 118 (4) 2 of the Act or the latter part of Article 128 (1) 3 of the Act (including cases applicable mutatis mutandis in Article 132 (4) of the Act).
 Article 142-2 (Notification of Dispositions Based on Findings of Reinvestigation)
Where the Commissioner of the Korea Customs Service or the head of a customs office revokes or amends a disposition with respect to the request, or takes a necessary disposition based on the findings of a reinvestigation conducted pursuant to the latter part of Article 118 (4) 2 of the Act or the latter part of Article 128 (1) 3 of the Act (including cases applicable mutatis mutandis in Article 132 (4) of the Act), he/she shall notify, without delay, the applicant for a pre-assessment review or the person who has filed a request for examination (in cases applicable mutatis mutandis in Article 132 (4) of the Act, referring to the person who has filed an objection), of the results of such disposition in writing.
[This Article Newly Inserted on Feb. 13, 2018]
 Article 143 (Scope of Pre-Assessment Review)
"If it is necessary to modify any authoritative interpretation made by the Commissioner of the Korea Customs Service or make a new authoritative interpretation with respect to statutes and Presidential Decree prescribes other cases" in the proviso to Article 118 (2) of the Act means any of the following cases: <Amended on Dec. 31, 2001; Mar. 29, 2004; Apr. 5, 2007; Mar. 26, 2010; Apr. 1, 2011; Feb. 2, 2012>
1. Where a new interpretation is required in connection with the directives, rules, publication, etc. of the Commissioner of the Korea Customs Service;
2. Where the amount of customs duties is rectified or any underpaid customs duty is collected according to instructions given by or as a result of an audit and inspection of official business conducted by the Commissioner of the Korea Customs Service;
3. Where the amount of customs duties is rectified or any underpaid customs duty is collected as the tariff rate or the code number of the Schedules of Tariff Rates in the classification of goods applicable to export and import goods is changed in accordance with the classification of items and authoritative interpretation by the director of the Customs Valuation and Classification Institute;
4. Where the same person liable to pay customs duties has to file a request for pre-assessment review with at least two heads of the relevant customs office in connection to the same matter;
5. Cases not falling under any of subparagraphs 1 through 4, where the amount for which the pre-assessment review is requested is not less than 500 million won.
 Article 144 (Grounds for Omitting Review of Customs Appeal Committee)
"Ground prescribed by Presidential Decree, such as where an application for pre-assessment review is filed after the lapse of the period for filing an application for pre-assessment review" in the proviso to Article 118 (3) of the Act means any of the following grounds: <Amended on Feb. 11, 2020>
1. Where an application for pre-assessment review is filed after the lapse of the period for filing an application for pre-assessment review;
2. Where no notice is given under the main clause, with the exception of the subparagraphs, of Article 118 (1) of the Act;
3. Where notice is given to a person other than the requester under the main clause, with the exception of the subparagraphs, of Article 118 (1) of the Act;
4. Where no revision is made during the revision period referred to in the main clause of Article 123 (1) of the Act which applies mutatis mutandis under Article 118 (6) of the Act;
5. Where the details of notice, dispute, etc. subject to the application for pre-assessment review are identical to the matters determined after undergoing deliberation thereon by the Customs Appeal Committee under Article 124 of the Act (hereinafter referred to as "Customs Appeal Committee").
[This Article Newly Inserted on Feb. 5, 2016]
 Article 144-2 (Qualifications and Duties of Taxpayer Advocates and Local Taxpayer Advocate)
(1) "Customs offices prescribed by Presidential Decree" in Article 118-2 (2) of the Act means Incheon Main Customs, Seoul Main Customs, Busan Main Customs, Daegu Main Customs, and Gwangju Main Customs (hereinafter referred to as "each Main Customs").
(2) Duties and authorities of a taxpayer advocate service prescribed in Article 118-2 (5) of the Act (hereinafter referred to as "taxpayer advocate") shall be as follows: <Amended on Feb. 17, 2021>
1. Temporary suspension and suspension of unlawful or unjust tax investigation and unlawful and unjust acts of tax officials in the process of tax investigation;
2. Requests for the correction of unlawful and unjust dispositions (excluding the notification of tax payment in accordance with law);
3. Where it is deemed that any unlawful or unjust disposition is likely to be imposed, temporary suspension or suspension of the procedure of such disposition;
4. Matters concerning the improvement of systems and procedures related to tax payment services;
5. Direction and supervision on local taxpayer advocates under Article 118-2 (2) of the Act (hereinafter referred to as "local taxpayer advocates") with respect to affairs to protect taxpayers' rights;
6. Matters concerning the protection of taxpayers' rights, such as the resolution of civil petitions for grievance related to taxes;
7. Other matters determined by the Commissioner of the Korea Customs Service with respect to the protection of taxpayers' rights.
(3) The taxpayer advocate may delegate part of his/her duties and authorities to local taxpayer advocates to efficiently perform the affairs specified in paragraph (2).
(4) Local taxpayer advocates shall be persons meeting the criteria determined by the Commissioner of the Korea Customs Service from among public officials under the National Tax Service, taking into account their position, career, etc.
(5) Duties and authorities of local taxpayer advocates shall be as follows:
1. Matters concerning the protection of taxpayers' rights, such as the resolution of civil petitions for grievance related to taxes;
2. Affairs delegated under paragraph (3);
3. Other matters determined by the Commissioner of the Korea Customs Service with respect to the protection of taxpayers’ rights.
[This Article Newly Inserted on Feb. 11, 2020]
 Article 144-3 (Taxpayer Protection Committees)
(1) Members of each Taxpayer Protection Committee established under Article 118-4 (1) of the Act (hereafter in this Article, referred to as "the Committee") shall be the following persons:
1. The Committee established in each Main Customs: The following persons:
(a) One local taxpayer advocate;
(b) Up to 17 persons commissioned by the head of the relevant customs office from among attorneys-at-law, licensed customs brokers, professors, etc. with abundant knowledge and experience in the field of customs, law, and finance, taking into consideration of gender equity;
2. The Committee established in the Korea Customs Service: The following persons:
(a) A taxpayer advocate;
(b) Five persons commissioned by the Commissioner of the Korea Customs Service in consideration of gender, from among experts in the fields of customs, law, and finance recommended by the Minister of Economy and Finance, taking into consideration of gender equity;
(c) Two persons commissioned by the Commissioner of the Korea Customs Service from among licensed customs brokers having at least five year's work experience who are recommended by the President of the Korea Customs Brokers Association established under Article 21 of the Licensed Customs Brokers Act;
(d) Two persons commissioned by the Commissioner of the Korea Customs Service from among certified tax accountants having at least five years' work experience who are recommended by the President of the Korean Association of Certified Public Tax Accountants established under Article 18 of the Certified Tax Accountant Act or certified public accountants having at least five years' work experience who are recommended by the President of the Korean Institute of Certified Public Accountants under Article 41 of the Certified Public Accountant Act;
(e) Two attorneys-at-laws having careers of at least five years who are commissioned by the Commissioner of the Korea Customs Service, with the recommendation of the President of the Korean Bar Association prescribed by the Attorney-at-Law Act;
(f) Four experts in the field of tax, law or accounting having careers of at least five years who are commissioned by the Commissioner of the Korea Customs Service, with the recommendation of non-profit, non-governmental organizations as defined in Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act.
(2) The chairperson of the Committee established under Article 118-4 (5) of the Act (hereafter in this Article, referred to as the “chairperson”) shall represent the Committee and exercise general control over the affairs thereof.
(3) Where the chairperson is unable to perform his/her duties due to unavoidable causes, a member (hereafter referred to as "civilian committee members") designated in advance by the chairperson from among members commissioned by the Commissioner of the Korea Customs Service (in cases of the committee established in each Main Customs, referring to the head of the relevant customs office) shall act on behalf of the chairperson.
(4) The term of office of the chairperson and members shall be two years, and reappointment is allowed only once.
(5) No person falling under any of the following cases may become a civilian committee member: <Amended on Jun. 2, 2020>
1. A person who has served as a public official in a customs office or the Korea Customs Service within the last three years;
2. A person belonging to an institution subject to employment screening under Article 17 of the Public Service Ethics Act or a person for whom three years have not passed since he or she retired from an institution subject to employment screening;
4. Any other person prescribed by the Commissioner of the Korea Customs Service as deemed to hinder the fair performance of duties.
(6) Where any of the chairpersons or the external committee members falls under any of the following cases, the Commissioner of the Korea Customs Service (in cases of the committee established in each Main Customs, referring to the head of the relevant customs office) may dismiss the relevant member:
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where the member is deemed unsuitable as a member due to neglecting duties, demeaning behavior, or for other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties;
5. Where the member fails to refrain from participating in deliberation and resolution, in spite of falling under any subparagraph of paragraph (12).
(7) If it is deemed necessary to deliberate on the items on the agenda in the subparagraphs of Article 118-4 (2) of the Act or in the subparagraphs of paragraph (3) of the same Article, or if a committee meeting is requested by a member who is a taxpayer advocate or local taxpayer advocate, the chairperson shall convene a meeting of the Committee by setting a date and chair the meeting.
(8) Each committee meeting shall be constituted by the chairperson, members who are taxpayer advocates or local taxpayer advocates and the following persons:
1. The committee established in each Main Customs: Seven persons designated by the chairperson for each meeting, taking into consideration of gender equity, after hearing the opinion of the member who is the local taxpayer advocate;
2. The committee established in the Korea Customs Service: Seven persons designated by the chairperson for each meeting, taking into consideration of gender equity after hearing the opinions of the member who is the taxpayer advocate.
(9) Each committee meeting shall be held with the attendance of a majority of all members constituted under paragraph (8); and resolutions shall be adopted with the affirmative vote of a majority of the members present.
(10) Each committee meeting shall not be open to the public: Provided, That the chairperson may open such meeting to the public upon receipt of the opinion of the member who is the taxpayer advocate or local taxpayer advocate, if deemed necessary.
(11) Each Committee shall have one administrative secretary to handle the general affairs of the Committee; and the administrative secretary shall be designated or appointed as follows:
1. The Committee established in each Main Customs: The person designated by the head of the relevant customs office from among the public officials under his/her jurisdiction;
2. The Committee established in the Korea Customs Service: The person appointed by the Commissioner of the National Tax Service from among the public officials under his/her jurisdiction.
(12) Any member of the Committee who falls under any of the following cases shall be excluded from deliberation and resolution by the Committee:
1. Where the member is under the customs investigation subject to deliberation (hereafter in this paragraph, referred to as "person subject to investigation") or is a person who provides or has provided assistance pursuant to Article 112 of the Act to the customs investigation of the person subject to investigation;
2. Where the member is a current or former relative of a person prescribed in subparagraph 1;
3. Where the member is a current or former employee of a person prescribed in subparagraph 1;
4. Where the member testified or made an appraisal concerning the customs investigation subject to deliberation;
5. Where the member has been involved in a report, application, or request made under the Act of the person subject to investigation within the last five years before the date of commencement of the customs investigation subject to deliberation;
6. Where the member belongs to a corporation or organization falling under subparagraph 4 or 5, or has belonged to such corporation or organization within the last five years before the date of commencement of the customs investigation subject to deliberation;
7. Where the member is or was involved in the business affairs of a person who provides assistance under Article 112 of the Act to the person subject to investigation or to the customs investigation of the person subject to investigation.
(13) If any member of the committee falls under any subparagraph of paragraph (12), he/she shall refrain from the deliberation and resolution on the relevant agenda.
(14) Except as provided in subparagraphs (1) through (13), matters necessary for composing and operating the Committee shall be determined by the Commissioners of the Korea Customs Service.
[This Article Newly Inserted on Feb. 11, 2020]
 Article 144-4 (Taxpayers' Requests for Deliberation by Taxpayer Protection Committees and Notification of Results of Deliberation)
(1) Where a taxpayer files a request for deliberation pursuant to Article 118-5 (1) of the Act and a request for cancellation or change pursuant to paragraph (3) of the same Article, he/she shall file such requests in writing.
(2) Where the head of the customs office notifies results provided for in Article 118-5 (2) of the Act, or the Commissioner of the Korea Customs Service notifies results provided for in paragraph (4) of the same Article, he/she shall make such notification in writing.
(3) "Cases specified by Presidential Decree, such as cases where it is obvious that a taxpayer intends to evade a customs investigation" in the proviso to Article 118-5 (5) of the Act means the following cases:
1. Where it is apparent that a taxpayer has intention to evade the investigation, by concealing books, documents, etc., or delaying or refusing the submission thereof;
2. Where a customs officer clearly proves, by data, grounds, etc., that a taxpayer's request for deliberation, or cancellation or change of such request is to evade a customs investigation.
(4) Any taxpayer who intends to apply for making a statement of opinion pursuant to Article 118-5 (7) of the Act shall submit documentation stating the following matters to the head of the competent customs office or the Commissioner of the Korea Customs Service:
1. Name of the person making a statement (in cases of corporations, the names of the representatives of the corporations);
2. Address or domicile of the person making a statement;
3. Details to be stated.
(5) The head of the competent customs office or the Commissioner of the Korea Customs Service who receives an application prescribed in paragraph (4) shall notify the taxpayer of the date and place of appearance and time deemed necessary to make a statement by at least three days before the date on which a committee meeting is held.
(6) Except as provided in paragraphs (1) through (5), the Commissioner of the Korea Customs Service shall determine matters necessary for taxpayers' requests for deliberation by a Taxpayer Protection Committee, and notification of results, etc. of deliberation.
[This Article Newly Inserted on Feb. 11, 2020]
SECTION 2 Examination and Adjudication
 Article 145 (Requests for Examinations)
(1) When a request for examination is filed under Article 119 of the Act, the following matters shall be entered in a written request for examination prescribed by the Commissioner of the Korea Customs Service. In such cases, a relevant evidential document or evidence, if any, may be appended thereto:
1. The domicile or residence and name of a person who files a request for examination;
2. The date on which a disposition is learned (where a notice is received, the date on which such notice is received);
3. The content of the disposition;
4. A summary of the request for examination and reasons for dissatisfaction.
(2) If deemed necessary for preparing a written opinion pursuant to Article 122 (3) of the Act on a request for examination under paragraph (1) or for an examination and decision under Article 127 of the Act, the head of a customs office or the Commissioner of the Korea Customs Service may, either ex officio or upon the application by a person who has filed the request for examination, ask questions as to how the customs clearance is conducted, to a licensed customs broker (including joint offices, corporate customs brokers, and customs clearance broker corporations) who has acted on behalf of his/her customer in the relevant customs clearance process which is subject to such request for examination; and may request the licensed customs broker to submit relevant data. <Amended on Mar. 26, 2010; Feb. 17, 2021>
(3) “Any interested person prescribed by Presidential Decree, including any secondary person liable for duty payment whose rights or interests are infringed on by any disposition taken in accordance with this Act, by other tariff-related Acts or by a convention” in the former part of Article 119 (9) of the Act means any of the following persons: <Amended on Feb. 29, 2008; Apr. 1, 2011; Feb. 12, 2019; Feb. 17, 2021>
1. A secondary person liable for duty payment who receives a duty payment notice;
2. A person liable for physical duty payment under Article 19 (10) of the Act who receives a duty payment notice;
3. A tax payment guarantee;
4. Other persons prescribed by Ordinance of the Ministry of Economy and Finance.
(4) Where a written request for examination is filed with the head of a customs office other than the head of the relevant customs office described in Article 122 (1) of the Act or with the Commissioner of the Korea Customs Service, such written request for examination shall be promptly sent to the head of the relevant customs office; and a notice thereon shall be served on the person requesting the relevant examination.
(5) Deleted. <Feb. 13, 2018>
(6) Deleted. <Feb. 13, 2018>
 Article 146 (Request for Revision)
Where a request is made for revising contents of or procedures for a request for examination under Article 123 of the Act, such request shall be made in a document stating the following matters:
1. Matters to be supplemented;
2. Reasons to request for supplement;
3. Supplement period;
4. Other necessary matters.
 Article 147 (Functions, Composition, etc. of Customs Appeal Committees)
(1) Matters to be deliberated by Customs Appeal Committees shall be classified as follows: <Amended on Feb. 6, 2015; Dec. 30, 2015; Feb. 11, 2020>
1. The Customs Appeal Committee established in the Korea Customs Service: Matters for which a pre-assessment review is filed with the Commissioner of the Korea Customs Service under the proviso to Article 118 (2) of the Act and matters for which a request for examination is filed with the Commissioner of the Korea Customs Service prescribed in Article 122 of the Act;
2. Customs Appeal Committees established respectively in the Incheon Main Customs, the Seoul Main Customs, the Busan Main Customs, the Daegu Main Customs and the Gwangju Main Customs (hereinafter referred to as "Main Customs"): Matters for which a pre-assessment review is filed under the main clause of Article 118 (2) of the Act and matters for which an objection is filed under Article 132 of the Act;
3. Customs Appeal Committees established in the customs other than Main Customs provided for in subparagraph 2 (hereinafter referred to as "Front Line Customs"): Matters for which an objection is filed under Article 132 of the Act.
(2) Each Customs Appeal Committee shall consist of the members classified in the following subparagraphs, including one chairperson:
1. The Customs Appeal Committee established in the Korea Customs Service: No more than 29 members;
2. The Customs Appeal Committee established in each Main Customs: No more than 22 members;
3. The Customs Appeal Committee established in each Front Line Customs: No more than 15 members.
(3) The chairperson of each Customs Appeal Committee shall be as follows: <Amended on Jun. 5, 2012>
1. The Customs Appeal Committee established in the Korea Customs Service: The Deputy Commissioner of the Korea Customs Service;
2. The Customs Appeal Committee established in each Main Customs: The head of each Main Customs;
3. The Customs Appeal Committee established in each Front Line Customs: The head of each Front Line Customs.
(4) Members of each Customs Appeal Committee shall be as follows: <Amended on Jun. 5, 2012>
1. The Customs Appeal Committee established in the Korea Customs Service:
(a) No more than eight persons designated by the Commissioner of the Korea Customs Service from among public officials of Grade III or public officials belonging to the Senior Executive Service, who belong to the Korea Customs Service;
(b) No more than 20 persons commissioned by the Commissioner of the Korea Customs Service from among persons with considerable knowledge and experience in law, finance or economy;
2. The Customs Appeal Committee established in each Main Customs:
(a) No more than six persons designated by the chairperson from among the public officials of Grades III through V belonging to the relevant Main Customs;
(b) No more than 15 persons commissioned by the chairperson from among persons with considerable knowledge and experience in law, finance or economy;
3. The Customs Appeal Committee established in each Front Line Customs:
(a) No more than four persons designated by the chairperson from among the public officials of Grades V or VI belonging to the relevant Font Line Customs;
(b) No more than ten persons commissioned by the chairperson from among persons with considerable knowledge and experience in law, finance or economy.
(5) The chairperson of each Customs Appeal Committee shall represent the relevant Customs Appeal Committee and exercise the overall control over its affairs.
(6) If the chairperson of each Customs Appeal Committee is unable to perform his/her duties due to any extenuating circumstances, a member designated, in advance, by the chairperson of the relevant Customs Appeal Committee (referring to the Commissioner of the Korea Customs Service in cases of the Customs Appeal Committee established in the Korea Customs Service; hereafter the same shall apply in this Article) from among the members set forth in each subparagraph of paragraph (4) shall act on his/her behalf. <Amended on Jun. 5, 2012>
(7) The term of office of members commissioned by the chairperson of each Customs Appeal Committee from among those referred to in each subparagraph of paragraph (4) (hereinafter referred to as "civilian members") shall be two years and may be renewed only once: Provided, That a member appointed to fill a vacancy occurring before the expiration of the term for which his/her predecessor was appointed, shall serve for the remainder of such term. <Amended on Mar. 27, 2017; Feb. 13, 2018>
(8) If any member of a Customs Appeal Committee falls under any of the following, the chairperson of the relevant Customs Appeal Committee may revoke the commission or dismiss him/her: <Amended on Mar. 27, 2017; Feb. 13, 2018>
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where he/she is deemed unfit to serve as a member of the Committee due to neglect of the duties, injury to dignity, or other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties.
5. Where the member fails to refrain from participating in deliberation and resolution, in spite of falling under Article 148-2 (1).
[This Article Wholly Amended on Feb. 2, 2012]
 Article 148 (Meetings of Customs Appeal Committees)
(1) Where a deliberation is required pursuant to Article 147 (1), the chairperson of each Customs Appeal Committee shall convene a meeting fixing a date and preside over such meeting.
(2) A meeting of each Customs Appeal Committee shall be attended by the chairperson and the persons designated by the chairperson for each meeting as classified in the following, but at least one half of the civilian members shall be included therein:
1. The Customs Appeal Committee established in the Korea Customs Service: Ten persons;
2. The Customs Appeal Committee established in each Main Customs: Eight persons;
3. The Customs Appeal Committee established in each Front Line Customs: Six persons.
(3) When the chairperson of each Customs Appeal Committee has fixed the date pursuant to paragraph (1), he/she shall notify the members designated under paragraph (2) and the relevant applicant or the person who has filed an application thereof by no later than seven days before the fixed date.
(4) A meeting of each Customs Appeal Committee shall be held with the attendance of a majority of the constituent members and pass a resolution with the concurrent vote of a majority of those present.
(5) Deleted. <Feb. 13, 2018>
(6) Each chairperson shall report the matters decided upon at a meeting of each Customs Appeal Committee to the Commissioner of the Korea Customs Service.
(7) To deal with the administrative affairs of each Customs Appeal Committee, each Committee shall have one secretary, who shall be designated from among public officials belonging thereto.
[This Article Wholly Amended on Feb. 2, 2012]
 Article 148-2 (Exclusion and Refrainment of Members of Customs Appeal Committee)
(1) Any member of a Customs Appeal Committee who falls under any of the following cases shall be excluded from the deliberation and resolution:
1. Where the member is a party to the relevant agenda (where a party to the relevant agenda is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this paragraph) or a person directly interested in the relevant agenda;
2. Where the member's spouse, relative within the fourth degree of consanguinity, or relative within the second degree of affinity within the second degree is a party to the relevant agenda or has direct interest in the relevant agenda;
3. Where the member is a current representative or was the representative of a party to the relevant agenda within the recent five years;
4. Where the member belongs to or has belonged within the recent five years to a corporation, organization, etc. which is the current representative or was the representative of a party to the relevant agenda;
5. Where the member has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.;
6. Where the member currently belongs to or has belonged within the recent five years to a corporation, organization, etc. which has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved within the recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.
(2) If a member of a Customs Appeal Committee falls under any subparagraph of paragraph (1), he/she shall voluntarily refrain from the deliberation and resolution on the relevant agenda.
[This Article Newly Inserted on Feb. 13, 2018]
 Article 149 (Allowances)
Members other than public officials who attend meetings of the Customs Appeal Committee, may be paid allowances within budgetary limits.
 Article 149-2 (Small-Sum Claims)
"Amount prescribed by Presidential Decree" in Article 126 (2) of the Act means 30 million won.
[This Article Newly Inserted on Mar. 27, 2017]
 Article 150 (Insignificant Matters)
"Cases that fall under the causes prescribed by Presidential Decree" in the proviso to Article 127 (1) of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where a period for a request for examination expires;
2. Where the disposition subject to a request for examination is nonexistent;
3. Where a person, whose right or interest is not infringed on by the relevant disposition, files a request for examination;
4. Where a request for examination is filed on a disposition that is not deemed subject to such request for examination;
5. Where a necessary revision is not made within the revision period under Article 123 (1) of the Act;
6. Where the contents and dispute of a disposition subject to a request for examination and applicable statutes, etc. are identical to the matters determined after undergoing a deliberation at the Customs Appeal Committee;
7. Where it is deemed helpful to make a quick decision and to submit the case to the higher court for deliberation in the interest of remedy for violation of a private right.
 Article 151 (Notice of Decision, etc.)
(1) Where a decision is made or a notice on the method of appealing dissatisfaction is served under Article 128 or 129 of the Act, such notice shall be made by a person or a registered mail, and where such notice is made by a person, a receipt shall be collected.
(2) Where it is impracticable to serve a notice on the decision, etc. in accordance with manners prescribed in paragraph (1) due to the impossibility of identifying the domicile or residence of a person who has filed a request for examination or other reasons, a summary thereof shall be published in the bulletin board of the relevant ruling agency and other appropriate place.
(3) Where the publication is made under paragraph (2), the notice on the decision, etc. shall be deemed received after the expiration of ten days from the day on which such publication is made.
 Article 151-2 (Postponement, Suspension, Extension, etc. of Reinvestigation)
Articles 139-2 (2) through (5) and 140 shall apply mutatis mutandis where a reinvestigation is postponed or suspended, or the period of investigation is extended pursuant to the latter part of Article 128 (5) of the Act (including cases applicable mutatis mutandis in Articles 118 (6) and 132 (4) of the Act).
[This Article Newly Inserted on Feb. 13, 2018]
 Article 152 (Redemption in Cases of Wrong Notice of Method of Appealing Dissatisfaction)
(1) Where a notice on the method of appealing dissatisfaction under Article 129 of the Act is omitted or filed with a wrong agency for dissatisfaction, but if a dissatisfaction request is filed with the notified agency or with an agency that has taken the relevant disposition, such dissatisfaction request shall be deemed filed with a lawful agency.
(2) Any agency that receives the request referred to in paragraph (1) shall turn over, without delay, such request to a lawful agency and serve a notice thereon on a requester.
 Article 153 (Statement of Opinion)
(1) Any person who intends to state his/her opinion under the provisions of Article 130 of the Act shall file a written application stating his/her domicile or residence, name and a summary of what he/she intends to state with the relevant ruling agency. <Amended on Apr. 5, 2007>
(2) The ruling agency shall, upon receiving the application referred to in paragraph (1), serve on an applicant for a request for examination, a notice stating the day, time and place of his/her attendance, and the time for stating his/her opinion, three days prior to a scheduled meeting of the Customs Appeal Committee, except in the case falling under each of the following subparagraphs and the case where the statement of opinion by the applicant for request for examination is deemed unnecessary:
1. Where the matters subject to the request for examination are insignificant;
2. Where the matters subject to the request for examination are concerned only with the interpretation of statutes.
(3) The ruling agency shall, upon receiving the application referred to in paragraph (1), if deemed unnecessary for the applicant for the request for examination to state his/her opinion, serve a notice thereon, citing reasons therefor in a document, on the relevant applicant.
(4) The submission of a document stating opinions intended to be stated may substitute for the statement of opinion under Article 130 of the Act.
 Article 153-2 Deleted. <Feb. 2, 2012>
 Article 154 (Provisions to be Applied Mutatis Mutandis)
The provisions of Articles 145, 146, and 150 through 153 shall apply mutatis mutandis to filing of objections.
[This Article Wholly Amended on Feb. 2, 2012]
CHAPTER VI MEANS OF TRANSPORTATION
SECTION 1 Open Ports
 Article 155 (Designation of Open Ports)
(1) The open ports (hereinafter referred to as "open ports") prescribed in Article 133 of the Act shall be as specified in the following table: <Amended on Feb. 2, 2012; Jun. 5, 2012;, Feb. 6, 2015; May 8, 2018; Feb. 17, 2021>
(2) The boundary of an open port shall be the water zone specified in attached Table 1 of the Enforcement Decree of the Harbor Act or the boundary prescribed in the Airport Facilities Act. <Amended on May 22, 2006; Aug. 3, 2015; Feb. 5, 2016; Mar. 29, 2017; Feb. 17, 2021>
[Title Amended on Feb. 17, 2021]
 Article 155-2 (Requirements for Designation of Open Ports)
(1) Requirements for the designation of any open port provided for in Article 133 (2) of the Act shall be as follows: <Amended on May 22, 2006; Feb. 6, 2015; Aug. 3, 2015; Mar. 29, 2017; Feb. 12, 2019; Feb. 17, 2021>
1. The open port is required to be made always accessible to foreign trade vessels (airliners) under the Act on the Arrival, Departure, etc. of Ships into and from Ports or the Airport Facilities Act;
2. Human resources, facilities and equipment are required to be secured, which are needed by administrative agencies in charge of controlling exclusive passageways for international vessels and airliners, which are separate from those for domestic vessels and airliners and also controlling the immigration of passengers;
3. The open port is required to meet the criteria concerning the number of passengers or the quantity of cargoes, etc. of an airport or a port, which are classified as follows:
(a) In cases of an airport: It shall meet either of the following requirements:
(i) Airliners shall land, or are expected to land, at the relevant airport at least six times a week;
(ii) The number of passengers who enter Korea through the relevant airport by airliners in a year shall not be less than 40,000 persons;
(b) In cases of a port, foreign trading vessels with a tonnage of at least 5,000 tons shall sail into, or are expected to sail into, the relevant port at least 50 times a year.
(2) Where any open port is deemed to considerably affect the performance of services by failing to meet the requirements for designation prescribed in paragraph (1), the Commissioner of the Korea Customs Service or the head of the relevant administrative agency shall report such fact to the Minister of Economy and Finance. In such cases, the Minister of Economy and Finance may conduct an on-site inspection of the open port with the Commissioner of the Korea Customs Service or the head of the managing authority of the facilities of the open port. <Newly Inserted on Feb. 12, 2019; Feb. 17, 2021>
(3) Where facilities, etc. need to be improved as a result of reviewing a report or on-site inspection referred to in paragraph (2), the Minister of Economy and Finance may order the operator of the relevant open port to formulate improvement plans and improve facilities, etc.; and may request such operator to report the result of such order implemented. <Newly Inserted on Feb. 12, 2019; Feb. 17, 2021>
[This Article Newly Inserted on Mar. 29, 2004]
[Title Amended on Feb. 17, 2021]
 Article 156 (Permission of Access to Unopen Ports)
(1) Any person who intends to obtain permission for entering into and departing from an area that is not an open port under the proviso to Article 134 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office having jurisdiction over the area: Provided, That such application may be filed with the head of the relevant customs office if it is required to secure conveniences for the navigation of any foreign trade vessel or any foreign trade aircraft and other special circumstances exist: <Amended on Feb. 17, 2021>
1. The type, name, registration mark, nationality, and gross tonnage and net tonnage or weight of vessel or aircraft;
2. The name of the area;
3. The period of mooring in the unopen port;
4. The classification of goods intended to be loaded or unloaded in the area into domestic and foreign goods, the kind, notation, number of packages and the number, name, quantity and price of the goods;
5. The reasons for entering into and departing from the area.
(2) The head of the relevant customs office, who grants permission for access to such area in accordance with the proviso to paragraph (1), shall make a notice thereon to the head of the relevant customs office having jurisdiction over the area.
[Title Amended on Feb. 17, 2021]
SECTION 2 Vessel and Aircraft
 Article 157 (Matters Entered in Port Entry Report)
(1) The following matters shall be entered in the port entry report of any vessel under Article 135 of the Act:
1. The type, registration mark, name, nationality, port of registry, gross tonnage, and net tonnage of the vessel;
2. The port of departure, ports of call, port of final destination, estimated date and time of port entry, and port of next destination of the vessel;
3. The number and tonnage of laden goods, and the number of passengers, crew and transit passengers.
(2) The following matters shall be entered in the list of supplies of any vessel referred to in Article 135 (1) of the Act: <Amended on Feb. 17, 2021>
1. The type, registration mark, name, nationality, and date of port entry of the vessel;
2. The names, quantity and prices of vessel supplies.
(3) The following matters shall be entered in the list of passengers of any vessel described in Article 135 of the Act: <Amended on Dec. 30, 2002>
1. The type, registration mark, name, nationality, and date of port entry of the vessel;
2. The nationalities, names, dates of birth, passport numbers, port of embarkation, and port of disembarkation of passengers.
(4) The following matters shall be entered in the list of crew of any vessel as prescribed in Article 135 of the Act:
1. The type, registration mark, name, nationality, and date of port entry of the vessel;
2. The nationalities, names, crew's book numbers or passport numbers, port of embarkation, and port of disembarkation of crew.
(5) The following matters shall be entered in the list of personal effects of crew as prescribed in Article 135 of the Act:
1. The type, registration mark, name, nationality, and date of port entry of the vessel;
2. The nationalities, names, and crew's book numbers or passport numbers of crew;
3. The names, quantity and prices of personal effects.
(6) The following matters shall be entered in the cargo manifest under Article 135 (1) of the Act: <Newly Inserted on Dec. 30, 2002; Feb. 17, 2021>
1. The name of ship and the quantity of cargoes laden therewith;
2. The names of cargoes, and consignees and shippers thereof;
3. Other information pertaining to the ship's log and cargoes, which is deemed necessary by the Commissioner of the Korea Customs Service.
(7) The following matters shall be entered in the port entry report of aircraft under Article 135 of the Act:
1. The type, registration mark, name, nationality, airport of disembarkation, and date and time of airport entry;
2. The place where goods are loaded, number and tonnage of cargoes;
3. The number of passengers, crew and transit passengers.
(8) The provisions of paragraphs (2) through (6) shall apply mutatis mutandis to the list of aircraft supplies, the list of passengers, the list of crew, the list of personal effects of the crew and the cargo manifest provided for in Article 135 of the Act. <Amended on Dec. 30, 2002; Feb. 17, 2021>
 Article 157-2 (Cargo Transportation Brokers Eligible to Submit Cargo Manifests)
"Cargo transportation broker that meets the requirements prescribed by Presidential Decree" in the proviso to Article 135 (2) of the Act means any of the following persons: <Amended on Feb. 17, 2021>
1. An enterprise certified as an authorized economic operator under Article 255-2 of the Act;
2. A person who has shown good performance in the measurement and evaluation of degree of law compliance conducted under Article 259-4 (1);
3. A person who has the record of brokering the transportation of cargo prescribed by Ordinance of the Ministry of Economy and Finance.
[This Article Newly Inserted on Feb. 5, 2016]
[Title Amended on Feb. 17, 2021]
 Article 158 (Application for Departure Permit)
(1) Any vessel shall, when it is intended to depart from an open port under Article 136 (1) of the Act, file an application stating the following matters with the head of the relevant customs office:
1. The type, registration mark, name, nationality, gross tonnage and net tonnage of the vessel;
2. The number of passengers, crew and transit passengers;
3. The number and tonnage of laden goods;
4. The place of loading goods, the airport of destination and the date and time of departure.
(2) Any aircraft shall, when it is intended to depart from an open port under Article 136 (1) of the Act, file an application stating the following matters with the head of the relevant customs office:
1. The type, registration mark, name and nationality;
2. The number of passengers, crew and transit passengers;
3. The number and tonnage of laden goods;
4. The place of loading goods, the airport of destination and the date and time of departure.
(3) The list of goods under Article 136 (2) of the Act shall be prescribed by the Commissioner of the Korea Customs Service.
 Article 158-2 (Access to Passenger Reservation Data)
(1) The head of the relevant customs office shall grant a personal identification number to his/her customs officers (referring to persons designated pursuant to Article 137-2 (3) of the Act; hereafter the same shall apply in this Article) who are authorized to access to passenger reservation data (hereafter referred to as "passenger reservation data" in this Article) that are furnished pursuant to Article 137-2 (1) of the Act as prescribed by the Commissioner of the Korea Customs Service in order to prevent anyone not authorized to peruse the data from perusing the passenger reservation data.
(2) When one month elapses from the date on which passengers embark or disembark their airliners or ships (hereafter referred to as "embarkation and disembarkation date" in this Article), the head of the relevant customs office shall manage the passenger reservation data separately from other passenger reservation data (referring to the passenger reservation data for which one month has yet to elapse from the date on which the passengers embark or disembark their airliners or ships).
(3) The head of the relevant customs office may keep the passenger reservation data separately managed pursuant to paragraph (2) (hereafter referred to as "preservative passenger reservation data" in this Article) for three years from the date on which the passengers embark or disembark their airliners or ships: Provided, That the head of the relevant customs office may keep the preservative passenger reservation data for the following persons for five years: <Amended on Jun. 7, 2012; Jan. 6, 2016>
1. A person who is subject to the notification disposition taken by the Commissioner of the Korea Customs Service or the head of the relevant customs office or who is sentenced to a fine or a heavier punishment since he/she has imported or exported goods on which an embargo is imposed in violation of Article 234 of the Act, or has tried to import or export such goods;
2. A person who is subject to the notification disposition taken by the Commissioner of the Korea Customs Service or the head of the relevant customs office or who is sentenced to a fine or a heavier punishment since he/she has violated Article 241 (1) and (2) of the Act, or has tried to export, import or return any of the following goods in violation of Article 241 (1) and (2) of the Act:
(a) Narcotics provided for in the Narcotics Control Act;
(b) Firearms, swords, explosives, electroshock weapons and crossbows provided for in the Act on the Safety Management of Guns, Swords, Explosives, Etc.;
3. A person who is deemed likely to perform any of the following activities and meets the standards set by the Commissioner of the Korea Customs Service based on information, etc. furnished by any investigative agency, etc. or on information, etc., obtained by the head of the relevant customs office:
(a) Exporting and importing goods on which an embargo is imposed, in violation of Article 234 of the Act;
(b) Exporting, importing or returning any of the following goods, in violation of Article 241 (1) or (2) of the Act:
(i) Narcotics provided for in the Act on the Control of Narcotics, etc.;
(ii) Firearms, swords, explosives, electroshock weapons and crossbows provided for in the Act on the Safety Management of Firearms, Knives, Swords, Explosives, Etc.
(4) When any customs officer intends to peruse the preservative passenger reservation data, he/she shall obtain prior approval therefor from the head of the relevant customs office, as prescribed by the Commissioner of the Korea Customs Service.
[This Article Newly Inserted on May 22, 2006]
 Article 159 (Report on Act Performed Due to Calamity, etc.)
The full report as prescribed in Article 138 (4) of the Act shall be a report stating the following matters:
1. Contents of the calamity, etc., the date and time of its occurrence and the date and time of its termination;
2. The act performed due to the calamity, etc.;
3. The matters of Article 166 (1) 2 and 3.
 Article 160 (Report on Entry into Foreign Open Port)
(1) The report as prescribed in Article 139 of the Act shall be a report stating the following matters: <Amended on Dec. 30, 2002; Feb. 17, 2021>
1. The type, name, registration mark, nationality, gross tonnage, and net tonnage or weight of vessel and aircraft;
2. The name of the open port which any vessel or aircraft enters into;
3. The period of mooring or stopover in the open port;
4. The reason for mooring or stopover in the open port;
5. Any goods loaded in the open port.
(2) The provisions of Article 158 (3) shall apply mutatis mutandis to the list of goods as prescribed in Article 139 of the Act.
[Title Amended on Feb. 17, 2021]
 Article 161 (Application for Permit of Loading and Unloading Goods)
(1) Any person who intends to obtain permission for loading, unloading or transshipping goods under the proviso to Article 140 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. The type, name, nationality and the date of port entry;
2. The classification of the relevant goods by domestic and foreign goods, names, quantity and prices of such goods;
3. The kind, notation, identification number and number of packages;
4. Reasons for the application.
(2) Any person who intends to load, unload or transship goods under Article 140 (4) of the Act shall file a declaration stating the following matters with the head of the relevant customs office and produce a declaration completion certificate to customs officers on the spot: Provided, That in cases of export goods, the submission of a list of such goods may be substituted for such declaration as prescribed by the Commissioner of the Korea Customs Service; and in cases of aircraft, a verbal declaration to the customs officer on the spot may be substituted for such declaration: <Amended on Dec. 30, 2002; Feb. 12, 2019>
1. Name of vessel or aircraft;
2. The name, number and weight of goods;
3. The number of passengers;
4. The agency of vessel or aircraft;
5. The work classification and the scheduled work period.
(3) The loading and unloading passage under Article 140 (5) of the Act shall be designated and published by the head of the relevant customs office. <Amended on Feb. 12, 2019>
(4) Any person who intends to obtain permission under the proviso to Article 140 (6) of the Act shall file an application stating the following matters with the head of the relevant customs office: <Amended on Feb. 12, 2019>
1. The classification of the relevant goods by domestic and foreign goods, names and quantity of such goods;
2. The kind and number of packages;
3. The name of laden vessel or laden aircraft and the loading and unloading period;
4. The address and name of the owner of goods;
5. Reasons for application.
(5) When permission is granted or an application is filed in connection with any of the following cases, the head of the relevant customs office may allow domestic goods to be loaded into any foreign trade vessel or any foreign trade aircraft, or foreign goods to be loaded into any domestic vessel or any domestic aircraft: <Amended on Feb. 17, 2021>
1. Where permission is obtained for loading and unloading goods under Article 143 of the Act;
2. Where a report is filed or approval is obtained for the bonded transportation under Article 213 of the Act;
3. Where a report is filed for the domestic transportation under Article 221 of the Act;
4. Where an export declaration is accepted under Article 248 of the Act.
 Article 162 (Declaration for Temporal Landing of Foreign Goods)
(1) Any person who intends to temporarily land foreign goods under subparagraph 1 of Article 141 of the Act shall file a report stating the following matters with the head of the relevant customs office and produce a report completion certificate to customs officers on the sport:
1. The type, name and nationality of vessel or aircraft;
2. The date of entry into open port;
3. The date and time, and period for which it is intended to land foreign goods;
4. The name, quantity and price of goods intended to be landed, and the kind, notation, identification number and number of packages;
5. The final destination of goods intended to be landed;
6. The place where the landed goods are intended to be stored.
(2) The scope of the place where the landed foreign goods are stored shall be determined by the Commissioner of the Korea Customs Service.
 Article 163 (Reporting on Boarding Vessel or Aircraft)
Any person who intends to board a vessel or aircraft under subparagraph 2 of Article 141 of the Act shall file a report stating the following matters with the head of the relevant customs office and produce a report completion certificate to customs officers on the spot:
1. Name of vessel or aircraft;
2. Names, nationalities and dates of birth of persons to board vessel or aircraft;
3. Reasons for boarding vessel or aircraft and the period therefor.
 Article 164 (Reporting on Transshipment and Transfer)
Any person who intends to transship or multiply transship goods, or transfer persons under subparagraph 3 of Article 141 of the Act shall file a report, stating the following matters with the head of the relevant customs office and produce a report completion certificate to customs officers on the spot: <Amended on Feb. 22, 2008>
1. The type, name and nationality of each transportation means;
2. The classification of goods to be transshipped by domestic and foreign goods;
3. The name, quantity and price of the goods to be transshipped, and the kind and notation, identification number and number of packages;
4. The names, nationalities, dates of birth, the place of embarkation and the place of disembarkation;
5. Reasons for filing such report.
 Article 165 (Application for Permission of Loading and Unloading Goods Outside Open Port)
Any person who intends to obtain permission for loading and unloading or transshipping goods outside an open port under Article 142 (1) of the Act shall file an application stating the matters falling under each of the following subparagraphs with the head of the relevant customs office: <Amended on Feb. 17, 2021>
1. The place where and date and time that goods are intended to be loaded, unloaded or transshipped outside an open port;
2. The type, name, nationality, gross tonnage and net tonnage;
3. The classification of the relevant goods by domestic and foreign goods, name, number and price of the relevant goods;
4. The kind, notation, identification number, number of packages of the relevant goods;
5. Reasons for application.
 Article 166 (Loading, Unloading and Transshipping of Vessel or Aircraft Supplies, etc.)
(1) Any person who intends to obtain permission for loading, unloading and transshipping goods onto or from any foreign trade vessel or any foreign trade aircraft under Article 143 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office: <Amended on Feb. 17, 2021>
1. The type, registration mark, name, nationality and the number of passengers and crew of vessel or aircraft;
2. The classification of the relevant goods by domestic and foreign goods, the name, standard, quantity and price of the relevant goods;
3. The kind, notation, identification number and number of packages of the relevant goods;
4. The scheduled place, date and time and method involving the loading, unloading and transshipping of the relevant goods.
(2) In cases of the goods referred to in paragraph (1), if such goods are foreign goods falling under Article 143 (2) of the Act, the application shall include the following matters in addition to the matters of each subparagraph of paragraph (1) and be appended by the invoice thereof and a document necessary to determine a customs value thereon:
1. The number of the bill of lading or airway bill of the relevant goods;
2. The place (in cases of a bonded area, the name thereof) where the relevant goods are stored and the date and time that such goods are shipped into the place.
(3) When deemed necessary to grant the permission referred to in paragraph (1), the head of the relevant customs office may have his/her customs officers inspect the relevant goods.
(4) When any person who has obtained permission under Article 143 (1) of the Act intends to modify permitted matters, he/she shall file an application stating the matters he/she intends to modify and reasons for such modification, with the head of the relevant customs office.
(5) When any person who has obtained permission in accordance with paragraph (1) completes the loading, unloading or transshipping goods according to contents of the permission, he/she shall record such fact and the date of loading and unloading or transshipping of the relevant goods in a written permission; and shall keep such written permission after the captain of the relevant vessel or aircraft signs the written permission. In such cases, when deemed necessary, the head of the relevant customs office may request the relevant goods to be verified by his/her customs officers, and the relevant person to submit the written permission signed by the captain of the relevant vessel or aircraft verifying the fact of loading.
(6) When any person who has obtained permission pursuant to paragraph (1) fails to load the permitted goods within the period described in Article 143 (6) 1 of the Act and ships such goods back into the bonded area, he/she shall record such fact and the date of shipment in the relevant permission, without delay; and shall submit such written permission signed by any customs officer who verifies the shipment of the relevant goods back into the bonded area, to the head of the relevant customs office who has granted such permission. <Amended on Feb. 12, 2019>
(7) When the relevant goods are destroyed or lost due to a disaster or other extenuating grounds prescribed in Article 143 (6) 2 of the Act, a person who has obtained permission in accordance with paragraph (1) shall submit a written report stating the matters of paragraph (1) 2, the place, date and time of destruction and loss and reasons therefor, appended by the written permission, with the head of the relevant customs office who has granted such permission. <Amended on Feb. 12, 2019>
(8) Any person who intends to obtain approval under Article 143 (6) 3 of the Act shall file an application stating the following matters concerning the goods he/she intends to dispose of, with the head of the relevant customs office who has granted such permission: <Amended on Feb. 12, 2019>
1. The matters prescribed in paragraph (1) 2;
2. The place where the relevant goods are located;
3. The scheduled date and time of disposal, the method of disposal and reasons for disposal.
[Title Amended on Feb. 17, 2021]
 Article 167 (Conversion of Vessel or Aircraft)
(1) Any person who intends to obtain approval as prescribed in Article 144 of the Act shall file an application stating the following matters with the head of the relevant customs office: <Amended on Feb. 17, 2021>
1. The name, type, registration mark, nationality, gross tonnage and net tonnage, weight and the port of registry of vessel or aircraft;
2. The domicile and name of the owner of vessel or aircraft;
3. Whether such vessel or aircraft falls under a domestic vessel or a domestic aircraft, or a foreign trade vessel or a foreign trade aircraft;
4. Contents of the intended conversion and reasons for conversion.
(2) The head of the relevant customs office may, upon receiving an application filed under paragraph (1), inspect the goods loaded in the relevant vessel or aircraft.
 Article 168 (Special Vessel)
"Vessel or aircraft prescribed by Presidential Decree" in the proviso to Article 146 of the Act means any of the following: <Amended on Apr. 1, 2011>
1. A warship or military aircraft;
2. A vessel or an aircraft used exclusively by the head of a State or any diplomatic mission representing the Government.
 Article 168-2 (Management of Aircraft Navigating Domestically for Transfer Only)
The head of a customs office may simplify procedures or take other necessary measures for any of the following matters, as prescribed by the Commissioner of the Korea Customs Service, pursuant to Article 146 (2) of the Act:
1. A port entry report prescribed in Article 135 (1) of the Act;
2. Application for departure permission under Article 136 (1) of the Act;
3. Other matters necessary for customs clearance and surveillance of the tourists coming from and going to foreign countries on board an aircraft navigating domestically for transfer only under Article 146 (1) 2 of the Act and the goods prescribed in Article 241 (2) 1 of the Act.
[This Article Newly Inserted on Feb. 2, 2012]
[Title Amended on Feb. 17, 2021]
SECTION 3 Vehicle
 Article 169 (Reporting on Arrival of Border-Crossing Vehicle)
(1) An arrival report under Article 149 (1) of the Act shall state the following matters:
1. The name of the company, nationality, type, registration mark, number, the number of total cargo cars and the number of total passenger cars of the vehicle;
2. The first place of departure, the place of transit, the final place of departure, the date and time of arrival, the scheduled date of departure and the place of destination of the vehicle;
3. Contents, number and weight of laden goods;
4. The number of passengers and crew as well as transit passengers.
(2) The provisions of Article 157 (2) through (5) shall apply mutatis mutandis to the list of vehicle supplies, the list of passengers, the list of crew and the list of crew' personal effects under Article 149 (1) of the Act.
(3) "Goods prescribed by Presidential Decree" in the main clause of Article 149 (3) of the Act means anything falling under any one of the following subparagraphs: <Newly Inserted on Apr. 5, 2007; Apr. 1, 2011>
1. Aggregates, such as sand and gravel;
2. Minerals, such as coal and graphite.
 Article 170 (Reporting on Departure of Vehicle Running across National Border)
(1) A departure report under Article 150 (1) of the Act shall state the following matters:
1. The name of the company, type, registration mark, identification number, the number of total cargo cars, and the number of total passenger cars of the vehicle;
2. The place of departure, the place of transit, the place of destination, the date and time of departure, and the date and time of arrival of the vehicle;
3. Contents, number and weight of laden goods;
4. The number of passengers and crew as well as transit passengers.
(2) The list of goods under Article 150 (2) of the Act shall be submitted to the head of the relevant customs office as prescribed by the Commissioner of the Korea Customs Service.
(3) "Goods prescribed by Presidential Decree" in the main clause of Article 150 (3) of the Act means anything falling under any one of the following subparagraphs: <Newly Inserted on Apr. 5, 2007; Apr. 1, 2011>
1. Aggregates, such as sand and gravel;
2. Minerals, such as coal and graphite.
 Article 171 (Reporting on Loading and Unloading of Goods)
Any person who intends to load or unload goods under Article 151 (1) of the Act shall file a report stating the following matters with the head of the relevant customs office and produce a report completion certificate to customs officials on the spot:
1. The number of vehicle;
2. The name, number and weight of goods;
3. The classification of work and a scheduled work period.
 Article 172 (Loading, Unloading, or Transshipping Vehicle Supplies)
The provisions of Article 166 shall apply mutatis mutandis to vehicle supplies and goods sold in any vehicle running across the national border under Article 151 (2) of the Act.
 Article 173 (Application for Delivery of Certificate with Respect to Road Vehicles)
Any person who intends to have a document certifying a road vehicle which may cross the border under Article 152 (1) of the Act shall file a written application stating the following matters with the head of the relevant customs office:
1. Type of vehicle and vehicle registration number;
2. Loadage or the number of passengers aboard;
3. Purposes, periods, and routes of operation.
[This Article Wholly Amended on Apr. 5, 2007]
CHAPTER VII BONDED AREA
SECTION 1 Common Provisions
 Article 174 (Restrictions on Goods Stored in Bonded Area, etc.)
(1) Any inflammable or explosive goods shall not be stored in any bonded area (hereinafter referred to as "bonded area") as prescribed in Article 154 of the Act.
(2) Any goods which are feared to be decomposed, living animals or plants shall not be stored in any bonded area.
(3) The provisions of paragraphs (1) and (2) shall not apply to any bonded area complete with special facilities and equipment installed to store such goods.
 Article 175 (Application for Permission for Storage of Goods outside Bonded Areas)
Each person, who intends to obtain permission under Article 156 (1) of the Act, shall file an application stating the following matters with respect to the relevant goods with the head of the relevant customs office, appended by the invoice, the bill of lading and the airway bill or other documents substituted for such documents: <Amended on Feb. 6, 2015>
1. The place where the relevant goods are stored and reasons for storing such goods;
2. In cases of imported goods, the name, registration mark, and the scheduled date of entry of the vessel or aircraft which transports the relevant goods into Korea from a foreign country, the number of bill of lading, and the number of airway bill;
3. The classification of the relevant goods by domestic and foreign goods, the name, standard, quantity and price of such goods;
4. The type, identification number, and number of packages of the relevant goods.
[This Article Wholly Amended on Feb. 6, 2015]
 Article 176 (Reporting on Shipment of Goods into or out of Bonded Area)
(1) A report on the shipment of goods into a bonded area under Article 157 (1) of the Act shall be filed in writing stating the following matters: <Amended on Feb. 12, 2019>
1. In cases of foreign goods (excluding goods on which export declaration has been accepted):
(a) The name, the date of port entry, the port customs office, and the loading port of vessel or aircraft which transports the relevant goods into Korea from a foreign nation;
(b) The date on which the relevant goods are shipped into a bonded area, the number of the bill of lading, or the number of the airway bill and the number of cargo management;
(c) The name of goods, the kind of packages, the number of goods shipped into a bonded area, and the location where such goods are stored;
2. In cases of domestic goods (including goods on which an export declaration is accepted):
(a) The date on which goods are shipped into a bonded area;
(b) The name of goods, the kind of packages, the number of goods shipped into a bonded area, the location where the goods are stored, and the period during which such goods are stored.
(2) A report on the outbound shipment of goods, on which a report has been filed on their inbound shipment into a bonded area under paragraph (1), shall be by an application stating the following matters:
1. The report number, date, types of, and basis number for outbound shipment;
2. Freight serial number;
3. The quantities and weight of outbound shipment.
(3) In any of the following subparagraphs, the head of the relevant customs office may allow the submission of the report required by paragraphs (1) and (2) to be exempted or allow the omission of part of the matters to be recorded: <Amended on Feb. 12, 2019; Feb. 17, 2021>
1. Where goods are shipped into or out of a bonded area after submitting the document falling under each of the following items:
(a) The cargo manifest;
(b) The copy of the report on the bonded transportation or an export declaration completion certificate;
(c) The report on the storage of domestic goods under Article 197 (1);
2. Where a person who has gotten his/her self-managed bonded area designated under Article 164 of the Act keeps the book on the goods of paragraph (1) 2 (excluding goods on which import declaration has been accepted) and records and controls the matters relating to the shipment of goods into or out of his/her self-managed bonded area.
(4) In monitoring the shipment of goods into or out of a bonded area under Article 157 (2) of the Act, the head of the relevant customs office may require the submission of documents, including the report on the shipment of goods into a bonded area and the invoice, necessary to monitor such shipment.
 Article 176-2 (Application Filed for Extending Period of Shipping Goods out of Bonded Area)
Any person who intends to obtain the approval provided for in the proviso of Article 157-2 of the Act shall file an application stating the matters falling under each of the following subparagraphs with the head of the relevant customs office:
1. Matters provided for in subparagraph 2 of Article 175;
2. The place where the goods are stored;
3. Reasons for application.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 177 (Application for Approving Maintenance or Supplementary Work)
(1) Each person, who intends to obtain approval pursuant to Article 158 (2) of the Act, shall file an application stating the following matters with the head of the relevant customs office: <Amended on Feb. 6, 2015>
1. The matters of each subparagraph of Article 175;
2. The name, standard, quantity and price of materials to be used;
3. The objectives, methods, and scheduled period of the maintenance and supplementary work;
4. The place where goods are stored;
5. Other reference matters.
(2) If any person who has obtained approval pursuant to Article 158 (2) of the Act completes the maintenance and supplementary work, he/she shall file a report stating the following matters with the head of the relevant customs office and obtain a confirmation thereof from him/her: <Amended on Feb. 6, 2015>
1. The name, standard, quantity and price of the relevant goods;
2. The kind, notation, identification number and number of packages;
3. The name, standard, quantity, and price of materials used;
4. The name, standard, quantity and price of remainders;
5. The date of work completion.
 Article 178 (Dismantling and Cutting Work, etc.)
(1) Any person who intends to obtain approval for the work of dismantling and cutting goods under Article 159 (2) of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. The name, standard, quantity, and price of the relevant goods;
2. The objective, method, and scheduled period of the work;
3. Other reference matters.
(2) When the work of paragraph (1) is completed, a report stating the following matters shall be filed with and confirmed by the head of the relevant customs office:
1. The name, standard, quantity, and price of goods after the work;
2. The date on which the work commences and is completed;
3. A certificate issued by an inspection institution with respect to the progress of the work (limited to any case specially designated by the head of the relevant customs office);
4. Other matters of reference.
 Article 179 (Application for Approving Disposal of Stored Goods)
(1) Any person who intends to obtain approval under Article 160 of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. The matters of each subparagraph of Article 175;
2. The place where the goods are stored;
3. The scheduled date on which the goods are disposed of, the method of disposing of such goods, and reasons for disposing of such goods.
(2) Any person who obtains the approval referred to in paragraph (2) shall report the name, standard, quantity and price of remainders when the disposal work is completed to the head of the relevant customs office.
 Article 180 (Reporting on Stored Goods Destroyed or Lost)
(1) When foreign goods stored in a bonded area or other area than a bonded area under the proviso to Article 155 (1) of the Act are destroyed or lost, a report stating the following matters shall be filed with and confirmed by the head of the relevant customs office:
1. The matters of each subparagraph of Article 175;
2. The place where the goods are stored;
3. The date on which the goods are destroyed or lost and reasons therefor.
(2) The report referred to in paragraph (1), in cases of the goods stored in a licensed bonded area, shall be filed in the name of the operator thereof and in cases of the goods stored in a non-licensed bonded area, in the name of the custodian thereof.
 Article 181 (Reporting on Stolen or Lost Goods)
(1) When any goods stored in a bonded area or in a non-bonded area under the proviso to Article 155 (1) of the Act are stolen or lost, a report stating the following matters shall be filed with the head of the relevant customs office:
1. The matters of each subparagraph of Article 175;
2. The place where the goods are stored;
3. The date on which the goods are stolen or lost and reasons therefor.
(2) Article 180 (2) shall apply mutatis mutandis to reports filed under paragraph (1).
 Article 182 (Reporting on Goods in Abnormality)
(1) When the goods stored in a bonded area or in a non-bonded area under the proviso to Article 155 (1) of the Act are in abnormality, a report stating the following matters shall be filed with the head of the relevant customs office: <Amended on Dec. 31, 2001>
1. The matters of each subparagraph of Article 175;
2. The place where the goods are stored;
3. The date on which their abnormality is found;
4. Reasons for the abnormality and the state of such abnormality.
(2) Article 180 (2) shall apply mutatis mutandis to reports filed under paragraph (1).
 Article 183 (Application for Permission to Ship Goods out of Bonded Area as Samples)
Any person who intends to obtain permission under Article 161 (1) of the Act shall file an application stating the following with the head of the relevant customs office:
1. The matters of each subparagraph of Article 175;
2. The place where the goods are stored;
3. The objective of shipping the goods out of a bonded area and the shipment period.
[Title Amended on Feb. 17, 2021]
 Article 184 (Designation, etc. of Self-Managed Bonded Area)
(1) Any person who intends to have his/her bonded area designated as a self-managed bonded area under Article 164 (2) of the Act shall file an application stating the following, accompanied by the registration certificate of a bonded goods caretaker referred to in Article 164 (3) of the Act (hereinafter referred to as "bonded goods caretaker") employed by him/her and documents prescribed by the Commissioner of the Korea Customs Service, with the head of the relevant customs office for designation: <Amended on Feb. 13, 2018>
1. The kind, name, location, structure, the number of buildings, and size of the bonded area;
2. The kind of goods stored therein and the storage capacity of the bonded area.
(2) "Where a person ... fails to fulfill his/her obligations prescribed in this Act or where any cause prescribed by Presidential Decree such as a cause deemed an impediment to customs monitoring occurs" in Article 164 (6) of the Act means any of the following cases: <Newly Inserted on Feb. 13, 2018>
1. Cases falling under any subparagraph of Article 178 (1) of the Act;
2. Where the operator of a self-managed bonded area requires a person who is not a bonded goods caretaker to perform the duties of a bonded goods caretaker;
3. Any other case deemed an impediment to customs monitoring, which falls under any ground determined and publicly notified by the Commissioner of the Korea Customs Service.
(3) Matters necessary for the operation of self-managed bonded areas shall be determined by the Commissioner of the Korea Customs Service. <Amended on Feb. 13, 2018>
 Article 185 (Duties of Bonded Goods Caretakers)
(1) The duties of bonded goods caretakers shall be as follows: <Amended on Feb. 2, 2012; Feb. 5, 2016; Feb. 13, 2018; Dec. 29, 2020; Feb. 17, 2021>
1. To monitor and confirm bonded cargos or domestic goods shipped into or out of a bonded area;
2. To monitor and confirm the management and handling of goods stored in a bonded area;
3. To open and close the gateway of a bonded area and to supervise the management of keys;
4. To supervise the control of persons having access to a bonded area;
5. To ship samples out of a bonded area and to collect them back into the bonded area;
6. To perform duties prescribed by the Commissioner of the Korea Customs Service, which are necessary to manage the bonded goods.
(2) Any person who intends to be registered as a bonded goods caretaker under Article 165 (3) of the Act, shall file an application for registration with the head of the relevant customs office. <Amended on Feb. 22, 2008; Feb. 11, 2020>
(3) Where the head of the relevant customs office find that an applicant referred to in paragraph (2) meets the requirements prescribed in Article 165 (1) of the Act, he/she shall issue a registration certificate of bonded goods caretaker to the applicant.
(4) Each bonded goods caretaker shall undergo education necessary for carrying out his/her duties, as prescribed by the Commissioner of the Korea Customs Service.
(5) The subjects of an examination on the management of bonded goods under Article 165 (1) 2 of the Act shall be as follows; and the successful candidates for the relevant examination shall be those who score at least 40 points for each subject and an average of 60 points for all subjects based on a perfect score of 100 points for each subject: <Newly Inserted on Feb. 12, 2019; Feb. 11, 2020>
1. Procedures for import and export customs clearance;
2. Management of bonded areas;
3. Management of cargos;
4. Management of import and export safety and security;
5. Self-management and penalty provisions concerning customs duties.
(6) “Subjects prescribed by Presidential Decree” in the main clause, with the exception of the subparagraphs, of Article 165 (2) of the Act means any of the following: <Newly Inserted on Feb. 11, 2020>
1. Procedures for import and export customs clearance;
2. Management of bonded areas;
(7) For the purposes of Article 165 (2) of the Act, the base date for career calculation shall be the closing date for receipt of applications for the relevant examination. <Newly Inserted on Feb. 11, 2020>
(8) Where the Commissioner of the Korea Customs Service conducts a test in the management of bonded goods under Article 165 (1) of the Act, he/she shall publicly announce the date and time, place, and method of the test, and other necessary matters by at least 90 days before the test date. <Newly Inserted on May 1, 2012; Feb. 12, 2019; Feb. 11, 2020>
(9) The Commissioner of the Korea Customs Service may entrust the affairs related to examinations for bonded goods caretakers referred to in Article 165 (7) of the Act to a corporation or organization determined by the Commissioner of the Korea Customs Service. <Newly Inserted on Feb. 11, 2020>
 Article 185-2 (Request for Resolution to Take Disciplinary Actions on Bonded Goods Caretakers)
Where a bonded goods caretaker falls under Article 165 (5) 3 of the Act, the head of a customs office shall, without delay, request the disciplinary committee for bonded goods caretakers established under Article 165-5 of the Act (hereinafter referred to as "disciplinary committee for bonded goods caretakers") to adopt a resolution to take an disciplinary action against the bonded goods caretaker. <Amended on Feb. 11, 2020; Feb. 17, 2021>
[This Article Newly Inserted on Feb. 12, 2019]
 Article 185-3 (Composition of Disciplinary Committee for Bonded Goods Caretakers)
(1) Pursuant to Article 165-5 of the Act, there shall be established a disciplinary committee for bonded goods caretakers in each customs office to deliberate and adopt resolutions on matters concerning disciplinary actions against bonded goods caretakers. <Amended on Feb. 17, 2021>
(2) Each disciplinary committee for bonded goods caretakers shall be comprised of members of not less than five but not more than ten persons, including one chairperson.
(3) The head of the relevant customs office or a person designated by the head of the customs office as a public official of Grade IV or higher belonging to the relevant customs office shall be the chairperson of the disciplinary committee for bonded goods caretakers: and the members thereof shall be appointed or commissioned by the head of the relevant customs office from among the following persons:
1. Customs officers belonging to the relevant customs office;
2. Executive officers of corporations designated and publicly notified by the Commissioner of the Korea Customs Service pursuant to Article 288 (7);
3. Experts in customs duties or logistics, recommended by the representatives of the corporations referred to in subparagraph 2.
(4) The term of office of members falling under paragraph (3) 2 and 3 shall be two years, and may be renewed only once: Provided, That a member appointed to fill a vacancy occurring before the expiration of the term for which his/her predecessor was appointed, shall serve for the remainder of such term.
(5) Where any member of a disciplinary committee for bonded goods caretakers falls under any of the following cases, the head of the relevant customs office may remove or dismiss such member:
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where the member is deemed unsuitable as a member due to neglecting duties, demeaning behavior, or on other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties;
5. Where the member fails to abstain from participating in deliberation and resolution, in spite of falling under any subparagraph of paragraph (6).
(6) Any member of a disciplinary committee for bonded goods caretakers who falls under any of the following cases shall be excluded from deliberation and resolution by the disciplinary committee for bonded goods caretakers:
1. Where the member himself/herself is the bonded goods caretaker subject to a resolution on a disciplinary action;
2. Where the member is in monetary relations, such as claims and obligations, with the bonded goods caretaker subject to a resolution on a disciplinary action;
3. Where the member is or was a relative (referring to the spouse (including a person who is in a common law marriage) of the bonded goods caretaker subject to a resolution on a disciplinary action, or his/her blood relative within the sixth degree of consanguinity, or relative by marriage within the fourth degree of affinity; hereafter the same shall apply in this subparagraph);
4. Where the member is in a direct business relationship with the bonded goods caretaker subject to a resolution on a disciplinary action.
(7) If any member of a disciplinary committee for bonded goods caretakers falls under any subparagraph of paragraph (6), he/she shall abstain from the deliberation and resolution on the relevant agenda.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 185-4 (Operation of Disciplinary Committee for Bonded Goods Caretakers)
(1) The chairperson of a disciplinary committee for bonded goods caretakers shall represent the disciplinary committee for bonded goods caretakers and exercise the overall control of its affairs.
(2) A disciplinary committee for bonded goods caretakers shall adopt a resolution on a disciplinary action within 30 days from the date a request therefor is received pursuant to Article 185-2.
(3) The chairperson of a disciplinary committee for bonded goods caretakers shall convene and preside over meetings of the committee: Provided, That if the chairperson is unable to perform duties due to extenuating grounds, a member designated by the chairperson shall act on behalf thereof.
(4) Where the chairperson of a disciplinary committee for bonded goods caretakers intends to convene a meeting of the disciplinary committee for bonded goods caretakers, he/she shall notify each member and the relevant bonded goods caretaker of the convocation of the meeting in writing by at least seven days prior to the scheduled meeting date.
(5) At least two thirds of all incumbent members including the chairperson shall constitute a quorum for a meeting of a disciplinary committee for bonded goods caretakers; and any decision thereof shall require the concurring vote of at least a majority of those present.
(6) Where deemed necessary to examine a disciplinary case, a disciplinary committee for bonded goods caretakers may request the suspect to be disciplined or a related person to be present at its meetings, be interrogated on the details suspected, or to submit materials for examination.
(7) Members who are not public officials and attend a meeting of a disciplinary committee for bonded goods caretakers may be paid allowances within budgetary limits.
(8) Except as provided in paragraphs (1) through (7), detailed matters necessary for the operation of a disciplinary committee for bonded goods caretakers may be determined by the Commissioner of the Korea Customs Service.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 185-5 (Notification and Execution of Resolutions on Disciplinary Actions)
(1) Where a disciplinary committee for bonded goods caretakers adopts a resolution on a disciplinary action, it shall immediately notify such fact to the head of the competent customs office in a written resolution specifying the reason therefor.
(2) The head of a customs office in receipt of a notification under paragraph (1) shall take a disciplinary action against the relevant bonded goods caretaker, and notify such fact to the principal, and the corporation referred to in Article 185-3 (3) 2, appending a written resolution on a disciplinary action.
[This Article Newly Inserted on Feb. 12, 2019]
SECTION 2 Designated Bonded Area
 Article 186 Deleted. <Mar. 29, 2004>
 Article 187 (Designation of Cargo Manager)
(1) A person who can be designated as a cargo manager under Article 172 (2) of the Act shall be any person who falls under any of the following subparagraphs:
1. The heads of State agencies, who are in charge of directly managing goods;
2. Nonprofit corporations involved in the customs administration or the management of bonded goods;
3. Any person whose designation is requested by the owner or manager of relevant facilities (limited to cases where a cargo manager is designated in accordance with the proviso to Article 172 (2) of the Act).
(2) The head of a customs office shall designate a cargo manager by the following classifications:
1. A person who falls under paragraph (1) 1: The head of a customs office shall designate a cargo manager where a person falls under paragraph (1) 1 accepts the request of the head of a customs office;
2. A person who falls under paragraph (1) 2 and 3: The head of a customs office shall designate a cargo manager after examining an application for designation from a person who falls under paragraph (1) 2 and 3. In such cases, a person who falls under paragraph (1) 2 and 3 shall submit such application through an owner or manager of the relevant facilities.
(3) When the head of a customs office shall designate a cargo manager pursuant to paragraph (2) 2, the head of a customs office shall reflect the result of evaluation of the following matters according to the standards for examination determined by the Commissioner of the Korea Customs Service:
1. Experience of handling the bonded cargoes and fulfillment of cargo management system;
2. Matters in relation to securing licensed managers of bonded goods;
3. Matters on financial soundness such as capital, ratio of liabilities and credit rating;
4. Other matters prescribed by Ordinance of the Ministry of Economy and Finance.
(4) The period of validity of designation of a cargo manager shall be up to five years.
(5) Any person who intends to be re-designated as a cargo manager shall file an application for re-designation to the head of a customs office at least one month prior to the expiration of the period of validity under paragraph (4). In such cases, paragraphs (1) through (4) shall apply mutatis mutandis to standards and procedures for such re-designation. <Amended on Feb. 2, 2012>
(6) The head of a customs office shall inform, in advance, each person who has obtained designation under paragraph (2) of the fact that he/she shall file an application for re-designation by no later than one month prior to the expiration of the first designation to obtain re-designation and procedures for re-designation by no later than two months prior to the expiration of the first designation by text messaging the same to his/her mobile phone, or through e-mail, facsimile, telephone, or by a document, etc. <Newly Inserted on Feb. 2, 2012>
(7) Detailed matters necessary for standards for examinations and procedures for designation or re-designation of cargo managers, etc. under paragraphs (2) through (6) shall be prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Feb. 2, 2012>
[This Article Wholly Amended on Apr. 1, 2011]
 Article 187-2 (Revocation of Designation of Cargo Manager)
(1) Where any reason falling under any of the following subparagraphs occurs, the head of a customs office may revoke the designation of a cargo manager. In such cases, when the head of a customs office revokes the designation of a person falling under paragraph (1) 3, he/she shall notify the owner or manager of the relevant facilities of such fact in advance:
1. Where the designation has been obtained by fraud or other improper means;
2. Where a cargo manager falls under any of subparagraphs of Article 175 of the Act;
3. Where a cargo manager violates a contract concerning cargo management business entered into with the head of a customs office or the owner or manager of the relevant facilities and causes material hindrance to maintenance of order at the relevant designated place where the goods are stored and safe management of cargoes;
4. Where a cargo manager requests revocation of designation of the relevant designation.
(2) Where the head of a customs office intends to revoke the designation of cargo manager under the provisions of paragraphs (1) 1 through 3, he/she shall hold a hearing.
[This Article Newly Inserted on Apr. 1, 2011]
 Article 187-3 (Cargo Manager's Responsibility to Keep Goods in Custody)
Responsibility for keeping goods in custody referred to in the main clause of Article 172 (2) of the Act means the responsibility of a custodian under Article 160 (2) of the Act and also the responsibility for loading and unloading, repackaging and policing with respect to the custody of the relevant goods.
[This Article Newly Inserted on Apr. 1, 2011]
 Article 187-4 (Goods for Which Inspection Costs to Be Subsidized)
(1) "The goods prescribed by Presidential Decree, which are containers of a small and medium enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises or of a middle-standing enterprise defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises and do not violate this Act or statutes related to the export and import of goods including the Foreign Trade Act" in the proviso to Article 173 (3) of the Act " means the goods that satisfy the requirements of the following: <Amended on Feb. 17, 2021>
1. The owner of goods shall be either a small and medium business as defined in Article 2 of the Framework Act on Small and Medium Enterprises, or a middle-standing enterprise as defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises;
2. Goods shall be items transported by container, which are subject to inspection by moving to a separate inspection place determined by the Commissioner of the Korea Customs Service;
3. The owner of goods shall not be subject to being notified or accused due to a violation of any of the statues and regulations as a result of inspection;
4. Reported data on goods (excluding cargo manifest) submitted as a result of inspection shall be identical with the actual goods;
5. Goods shall meet standards determined by the Commissioner of the Korea Customs Service within budgetary limits.
(2) The statutes and regulations under paragraph (1) 3 include the Act, the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements, the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export, the Foreign Trade Act, the Trademark Act, and other statutes and regulations related to the exportation and importation of goods which are prescribed by Ordinance of the Ministry of Economy and Finance.
[This Article Newly Inserted on Feb. 11, 2020]
SECTION 3 Licensed Bonded Area
 Article 188 (Application for License for Establishing and Operating Licensed Bonded Area)
(1) Any person who intends to obtain a license under Article 174 (1) of the Act for establishing and operating a licensed bonded area under Article 154 of the Act (hereinafter referred to as "licensed bonded area") shall file an application stating the following matters, appended by documents prescribed by Ordinance of the Ministry of Economy and Finance, with the head of the relevant customs office: <Amended on Feb. 29, 2008>
1. The kind, name, location, structure, the number of buildings, area and storage capacity of the licensed bonded area;
2. The kinds of goods stored therein;
3. The period during which the licensed bonded area is established and operated.
(2) Notwithstanding paragraph (1), anyone who intends to obtain a license for building and operating a bonded factory in any licensed bonded area shall file an application stating the following matters, accompanied by his/her business plan and a drawing that shows the area and the adjacent area, with the head of the relevant customs office. In such cases, the head of the relevant customs office shall verify the corporation register certificate through the administrative data sharing system provided in Article 36 (1) of the Electronic Government Act: <Amended on Dec. 31, 2001; Jun. 12, 2006; May 4, 2010; Nov. 2, 2010>
1. The name, location, structure, the number of buildings and area of the factory;
2. The work facilities and equipment as well as the work capacity of the factory;
3. The kind of work that can be performed in the factory;
4. Raw materials and kinds of manufactured goods;
5. The period during which the factory is established and operated.
(3) Any person who intends to renew the license granted under paragraph (1) shall file an application stating the following matters, accompanied by documents prescribed by Ordinance of the Ministry of Economy and Finance, with the head of the relevant customs office by one month prior to the expiration of the license period: <Amended on Feb. 29, 2008; Feb. 2, 2012>
1. Grounds for renewal;
2. Period for renewal.
(4) The head of the relevant customs office shall inform, in advance, each person who has obtained a license pursuant to paragraph (1) of the fact that he/she shall file an application for renewal of his/her license by no later than one month prior to the expiration of the license if he/she intends to renew it and the procedure for renewal by no later than two months prior to the expiration of the license by text messaging the same to his/her mobile phone, or through e-mail, facsimile, telephone, or by a document, etc. <Newly Inserted on Feb. 2, 2012>
 Article 189 (Standards for License for Establishing and Operating Licensed Bonded Area)
Requirements for a person to satisfy to obtain a license for establishing and operating a licensed bonded area shall be as follows:
1. He/she shall not have any customs duties or internal taxes in arrears;
2. He/she shall not fall any ground for disqualification prescribed in the subparagraphs of Article 175 of the Act;
3. He/she shall obtain permission, approval, etc. from the head of the relevant administrative agency according to the kind if he/she stores, manufactures, displays or sells hazardous goods;
4. He/she shall meet the requirements for capital, the size of export and import, purchase demand, storage area, etc. necessary to keep, sell and manage bonded goods, as prescribed by the Commissioner of the Korea Customs Service.
 Article 189-2 (Determination, etc. of Number of New Licenses for Bonded Stores)
(1) The Minister of Economy and Finance may determine the number of new licenses for bonded stores to be installed at places other than bonded areas in airports and harbors (hereinafter referred to as "downtown bonded stores") after deliberation and resolution by the Committee for Operation of Bonded Store System established under Article 176-4 of the Act (hereinafter referred to as the "Committee for Operation of Bonded Store System").
(2) In any of the following subparagraphs, the Committee for Operation of Bonded Store System may deliberate and adopt resolution on the number of new licenses for downtown bonded stores that can be granted to persons other than small or medium enterprises under Article 176-2 (1) of the Act (hereinafter referred to as "small or medium enterprises, etc.") to be opened in the Special Metropolitan City, Metropolitan Cities, Special Self-Governing City, Dos, and Special Self-Governing Province (hereinafter referred to as "metropolitan municipalities"). In such cases, the Committee for Operation of Bonded Store System shall conduct deliberation and adopt a resolution, taking into account market conditions, such as the number of licenses for existing bonded stores and trends of foreign tourists during recent three years:
1. Where the amount of sales generated by downtown bonded stores by metropolitan municipality has increased by at least 200 billion won, compared to that of the preceding year;
2. Where the number of foreign tourists by metropolitan municipality has increased by at least 200,000, compared to that of the preceding year.
(3) In any of the following subparagraphs, the Committee for Operation of Bonded Store System may deliberate and adopt resolution on the number of new licenses for downtown bonded stores to be installed in the relevant metropolitan municipality. In such cases, the Committee for Operation of Bonded Store System shall deliberate and adopt resolution, taking into account the number of licenses for existing bonded stores, the trend of an increase in foreign tourists, etc., but the requirements prescribed in subparagraphs of paragraph (2) shall not apply:
1. Where it is intended to establish downtown bonded stores that sell goods to persons eligible for exemption of customs duties under Article 88 (1) 1 through 4 of the Act;
2. Where it is necessary to establish downtown bonded stores nearby an event hall, sport stadium, or athletes' village for a temporary period to promote the convenience of the executive officers, employees, athletes, members, and tourists participating in large-scale international events, such as the Olympic Games, the World Championship in Athletics, and any exhibitions prescribed in subparagraph 1 of Article 2 of the Enforcement Decree of the Act on the Development of Exhibition Industry;
3. Where the head of a metropolitan municipality which has no downtown bonded store requests the establishment of a downtown bonded store, intending to allow a person other than small or medium enterprise, etc. to establish a downtown bonded store;
4. Where a medium or small enterprise, etc. intends to establish a downtown bonded store in a metropolitan municipality.
(4) The Minister of Economy and Finance shall notify the Commissioner of the Korea Customs Service of the result of deliberation and resolution by the Committee for Operation of Bonded Store System.
(5) Article 192-5 shall apply mutatis mutandis to licensing procedures concerning the establishment and operation of downtown bonded stores under paragraphs (2) and (3).
(6) Except as provided in paragraphs (1) through (5), detailed matters necessary for determining the number of new licenses for downtown bonded stores shall be determined and publicly notified by the Commissioner of the Korea Customs Service.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 190 (Change of Details of Business)
(1) When the operator of any licensed bonded area intends to change the kinds of stored goods, the kinds of licensed work or the raw materials for work, he/she shall file an application stating grounds therefor with the head of the relevant customs office to obtain approval therefor.
(2) The operator of a licensed bonded area, if he/she is a corporation, shall, when he/she alters registered matters, file without delay a notice stating a summary thereof with the head of the relevant customs office.
 Article 191 (Alteration including Increase or Decrease in Storage Capacity)
(1) The operator of any licensed bonded area shall, when he/she intends to increase or decrease the capacity of storing goods and to do the work of enlarging and repairing operational facilities and equipment, which will bring a change to the capacity of the licensed work, file an application stating reasons therefor, appended by details of the work and a related drawing, with the head of the relevant customs office to obtain approval therefor from him/her: Provided, That where the storage capacity or the licensed work capacity is altered within the scope of the licensed area, the report thereof shall be deemed approval therefor. <Amended on Dec. 31, 2001>
(2) The operator of the licensed bonded area shall, when the work referred to in paragraph (1) is completed, notify the head of the relevant customs office of the fact.
 Article 192 (License Period)
The license period for any licensed bonded area (excluding any bonded exhibition, bonded construction work site and bonded store) shall be a period requested by any applicant within the limit of ten years: Provided, That where the Commissioner of the Korea Customs Service deems it necessary to reasonably manage bonded areas, he/she may set the license period of his/her own notwithstanding the license period set upon the request of any applicant. <Amended on Nov. 5, 2013>
 Article 192-2 (Percentage, etc. of License for Bonded Stores)
(1) As prescribed by Article 176-2 (1) of the Act, the head of a customs office shall grant at least 30 percent of the total number of license for bonded stores (at least 20% of the total number of license for bonded stores until December 31, 2017) to small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises and middle-standing enterprises under subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises (hereinafter referred to as "middle-standing enterprises") that fulfill all the following qualification requirements for obtaining a license under Article 174 (3) of the Act: <Amended on Mar. 5, 2014; on Jul. 21, 2014; Sept. 24, 2019; Feb. 17, 2021>
1. The average amount of sales of an enterprise during the three business years immediately preceding the publication date prescribed in Article 192-5 (1) (referring to the sales amount on the profit and loss statement prepared in accordance with the business accounting standards; in case of a new establishment, split-off or merger, referring to the amount obtained by converting the sales amount of the business year to which belongs the date following the registration thereof or the date of establishment into an annual sales amount; and in case of a business year which is less than one year, referring to the sales amount converted into that of one year) shall be less than 500 billion won;
2. Total amount of assets of an enterprise (referring to the total amount of assets on the statement of financial position as of the end of the business year immediately preceding the publication date under Article 192-5 (1)) shall be less than one trillion won;
3. A corporation total amount of assets of which is not less than one trillion won (including foreign corporations) shall not be the largest investor which directly or indirectly owns not less than 30/100 of the stocks or equity shares. In such cases, Article 2 (3) of the Enforcement Decree of the Adjustment of International Taxes Act shall apply mutatis mutandis to the ratio of indirect ownership, and the latter part of Article 9-3 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises shall apply mutatis mutandis to the largest investor.
(2) As prescribed in Article 176-2 (1) of the Act, the head of a customs office shall not grant 60/100 or more of the total number of license for bonded stores to enterprises belonging to enterprise groups subject to the limitations on mutual investment under Article 14 (1) of the Monopoly Regulation and Fair Trade Act.
(3) The time to determine whether the percentage of license prescribed in paragraphs (1) or (2) is met, shall be based on the time a license for establishing and operating a bonded store is granted.
(4) When the head of a customs office determines whether a percentage of license is met under paragraph (3), where a change in the percentage of license exists due to any unexpected cause, such as return, etc. of exiting licenses on or after the date of publication under Article 192-5 (1), such change in the percentage of license shall not be applicable.
(5) "Cases prescribed by Presidential Decree, such as cases where the existing license expires but an application for a new license under paragraph (3) is not filed" in Article 176-2 (2) of the Act refers to cases where the license for establishing and operating a bonded store is granted due to the expiration of the period of an existing license or the revocation, return, etc. thereof, which falls under all of the following subparagraphs: <Amended on Mar. 5, 2014>
1. Where it fails to meet the requirements for the percentage of license prescribed in paragraph (1) or (2) if a license is granted to a person who is not a small or medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises or a middle-standing enterprise;
2. Where there is no small or medium enterprise under Article 2 of the Framework Act on Small and Medium Enterprises or middle-standing enterprise that fulfills the qualification requirements for application for the license prescribed in Article 192-3 (1).
[This Article Newly Inserted on Nov. 5, 2013]
 Article 192-3 (Qualification Requirements for Application for Bonded Stores and Evaluation Criteria for Examination Thereof)
(1) "Person who meets the specified qualification requirements is examined according to evaluation criteria prescribed by Presidential Decree" in Article 176-2 (2) of the Act means a person that meets the qualification requirements for obtaining a license for establishing and operating a licensed bonded area under Article 189.
(2) "Evaluation criteria prescribed by Presidential Decree" in Article 176-2 (3) of the Act means evaluation criteria prescribed by the Commissioner of the Korea Customs Service taking the following evaluation factors into consideration: <Amended on Mar. 5, 2014>
1. Whether the applicant fulfills the requirements for the license prescribed in Article 189;
2. Whether any obligation, order, etc. under any statute related to customs duties is violated;
3. Management ability of the operator of the bonded store, including financial soundness;
4. Contribution to economic and social development, such as the actual sales record of products of small and medium enterprises;
5. Tourism infrastructure and other surrounding environmental factors;
6. Return of profit of the enterprise to society;
7. Efforts for win-win cooperation among enterprises belonging to enterprise groups subject to the limitations on mutual investment under Article 14 (1) of the Monopoly Regulation and Fair Trade Act, small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises and middle-standing enterprises.
[This Article Newly Inserted on Nov. 5, 2013]
 Article 192-4
[Former Article 192-4 Moved to Article 192-7. <Feb. 6, 2015>]
 Article 192-5 (Procedures for Licensing of Bonded Stores)
(1) Where it is necessary to grant a license for establishing and operating a bonded store under Article 176-2 of the Act due to the expiration of the period of an existing license or the revocation, return, etc. thereof, the Commissioner of the Korea Customs Service shall publish the following matters on the website of the Korea Customs Service, etc.: <Amended on Nov. 28, 2017>
1. Matters concerning the procedures for application for the license, such as the period, place for application;
2. Qualification requirements for the license;
3. Place and period of license;
4. Evaluation criteria prescribed by the Commissioner of the Korea Customs Service pursuant to Article 192-3 (2) (including detailed evaluation items and distribution of marks);
5. Other necessary matters concerning the application for establishing and operating the bonded store.
(2) A person that intends to obtain a license for establishing and operating a bonded store under Article 176-2 of the Act (hereinafter referred to as "applicant for the license of a bonded store") shall submit an application to the head of a customs office prescribed in Article 188 (1) during the period for application published under paragraph (1). <Amended on Nov. 28, 2017>
(3) The head of a customs office in receipt of an application under paragraph (2) shall submit the following documents or data to the Committee for Deliberation on Licensing of Bonded Stores established under Article 176-3 of the Act (hereinafter referred to as the "License Deliberative Committee") through the Commissioner of the Korea Customs Service: <Amended on Nov. 28, 2017>
1. An application referred to in paragraph (2);
2. Examination opinion of the head of the customs office on whether the applicant for the license of a bonded store fulfills the requirements prescribed in Article 192-3 (1);
3. Data determined by the Commissioner of the Korea Customs Service in regard to Article 192-3 (2) 1 and 2.
(4) After examining the appropriateness of the documents or data received pursuant to paragraph (3), the License Deliberative Committee shall evaluate the applicant for the license of a bonded store in accordance with the evaluation criteria prescribed in Article 192-3 (2) and notify the Commissioner of the Korea Customs Service and the head of the relevant customs office, of the result thereof. <Newly Inserted on Nov. 28, 2017>
(5) The head of a customs office in receipt of the results under paragraph (4) shall grant a license to the selected applicant for the license of a bonded store, and shall notify each applicant for the license of a bonded store, of the results of the evaluation of the relevant applicant and as to whether the applicant is selected as a person to be granted a license for a bonded store, etc., as publicly notified by the Commissioner of the Korea Customs Service. <Newly Inserted on Nov. 28, 2017>
(6) After deliberation is completed by the License Deliberative Committee pursuant to paragraph (4), the Commissioner of the Korea Customs Service shall disclose the following matters through the website of the Korea Customs Service, etc., as determined by the Commissioner of the Korea Customs Service: Provided, That the results of evaluation of an applicant for the license of a bonded store not selected as a person to be granted a license of a bonded store may be disclosed only with the consent of the relevant applicant: <Newly Inserted on Nov. 28, 2017>
1. Results of evaluation of the applicant for the license of a bonded store;
2. List of the members of the License Deliberative Committee who have participated in the deliberation.
(7) In order to enhance the transparency and fairness of the process for performing affairs related to the licensing of a bonded store, an integrity ombudsman system under which it is allowed to detect any misconduct, etc. related thereto, demand the correction thereof, or request an audit, etc. by witnessing the process, such as the selection of the members participating in the meetings and deliberations of the Deliberative Committee. In such cases, the Commissioner of the Korea Customs Service shall take appropriate measures to prevent the leak of the list of the members who have participated in the deliberation of the License Deliberative Committee before it is disclosed under paragraph (6). <Newly Inserted on Nov. 28, 2017>
(8) Except as provided in paragraphs (1) through (7), detailed procedures for granting a license for establishing and operating a bonded store shall be determined and publicly notified by the Commissioner of the Korea Customs Service. <Amended on Nov. 28, 2017>
[This Article Newly Inserted on Nov. 5, 2013]
 Article 192-6 (Renewal of License for Bonded Store)
(1) The head of a customs office shall notify, in advance, a person who has obtained a license for a bonded store of the fact that he/she should apply for the renewal of the license by at least six months prior to the expiration date of the licensed period if he/she intends to renew the license pursuant to Article 176-2 (6) of the Act and of the renewal procedures by at least seven months prior to the expiration date of the licensed period, by text messages via mobile phone or by e-mail, facsimile, telephone, or documentation, etc.
(2) Each person who intends to renew a license for a bonded store pursuant to Article 176-2 (6) of the Act shall submit an application stating the following matters to the head of a customs office by at least six months prior to the expiration of the term of validity, along with the documents prescribed by Ordinance of the Ministry of Economy and Finance:
1. Grounds for renewal;
2. Period for renewal.
(3) The head of a customs office in receipt of an application referred to in paragraph (2) shall submit the following documents or data to the License Deliberative Committee through the Commissioner of the Korea Customs Service:
1. An application referred to in paragraph (2) and documents attached thereto;
2. Opinions reviewed by the head of the customs office on whether the person who has applied for the renewal under paragraph (2) (hereafter referred to as "applicant for renewal" in this Article) meets the requirements prescribed in Article 189 and whether he/she has violated any obligation, order, etc. under any statutes related to customs duties.
(4) After reviewing the adequacy of the documents or data submitted pursuant to paragraph (3), the License Deliberative Committee shall deliberate on whether renewal of the license for the bonded store should be granted by evaluating the applicant for renewal in accordance with the evaluation criteria set forth in Article 192-3 (2), and notify the result of the deliberation to the Commissioner of the Korea Customs Service and the head of the relevant customs office.
(5) After completing deliberation by the License Deliberative Committee under paragraph (4), the Commissioner of the Korea Customs Service shall disclose the following information on the website, etc. of the Korea Customs Service, as determined by the Commissioner of the Korea Customs Service: Provided, That, if no renewal of license for the bonded store is granted, matters prescribed in subparagraph 1 may be disclosed only with the consent of the applicant for renewal:
1. Result of evaluation on the applicant for renewal;
2. List of the members of the License Deliberative Committee who have participated in the deliberation.
(6) The head of a customs office shall grant renewal of a license in accordance with the result of the deliberation received pursuant to paragraph (4), and shall notify the applicant of the result of the evaluation and whether renewal of the license for the bonded store is granted.
(7) Except as provided in paragraphs (1) through (6), detailed matters concerning the renewal of licenses for bonded stores shall be determined and publicly notified by the Commissioner of the Korea Customs Service.
[This Article Wholly Amended on Feb. 12, 2019]
 Article 192-7 (Reporting on Sales of Bonded Stores)
The Commissioner of the Korea Customs Service shall report the sales of each bonded store of the whole country by not later than the end of February after closing each fiscal year to the Minister of Economy and Finance for his/her report to the competent standing committee of the National Assembly under Article 176-2 (7) of the Act. <Amended on Feb. 6, 2015>
[This Article Newly Inserted on Nov. 5, 2013]
[Moved from Article 192-4] <Feb. 6, 2015>
 Article 192-8 (Composition and Organization of Committee for Deliberation on Licensing of Bonded Stores)
(1) The License Deliberative Committee shall be comprised of not more than 100 members having due regard to their genders, including one chairperson. <Amended on Nov. 28, 2017>
(2) Members of the License Deliberative Committee shall be commissioned for each field determined by the Commissioner of the Korea Customs Service (hereinafter referred to as "evaluation field”) in consideration of the evaluation criteria prescribed in Article 192-3 (2) from among any of the following persons, and the chairperson shall be elected by and from among the members: <Amended on Nov. 28, 2017>
1. Persons qualified as attorneys-at-law, certified public accountants, certified tax accountants, or licensed customs agents;
2. Persons who serve, or have served, as associate or higher professors teaching laws, accounting, etc. in schools referred to in subparagraph 1 or 3 of Article 2 of the Higher Education Act;
3. Persons with extensive knowledge of and experience in the fields of laws, business administration, economics, tourism, etc.
(3) The term of office of a member of the License Deliberative Committee shall be one year and may be renewed only once. <Amended on Nov. 28, 2017>
(4) Where a member of the License Deliberative Committee falls under any of the following cases, the Commissioner of the Korea Customs Service may dismiss such member from his/her office: <Amended on Nov. 28, 2017>
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where he/she is deemed unfit to serve as a member of the Committee due to neglect of the duties, injury to dignity, or other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties;
5. Where the member fails to refrain from participating in deliberation and resolution, in spite of falling under Article 192-9 (3).
(5) The Commissioner of the Korea Customs Service shall disclose the list of the members commissioned pursuant to paragraph (2) on the website of the Korea Customs Service, etc. <Newly Inserted on Nov. 28, 2017>
(6) Except as provided in paragraphs (1) through (5), matters necessary for the composition and operation of the License Deliberative Committee shall be determined by the Commissioner of the Korea Customs Service. <Amended on Nov. 28, 2017>
[This Article Newly Inserted on Feb. 5, 2016]
 Article 192-9 (Meetings of Committee for Deliberation on Licensing of Bonded Stores)
(1) The chairperson of the License Deliberative Committee shall convene and preside over the meetings thereof: Provided, That where the chairperson of the License Deliberative Committee is unable to perform his/her duties in any extenuating circumstances, a member pre-designated by the chairperson shall act on behalf thereof.
(2) A meeting of the License Deliberative Committee shall be comprised of not more than 25 members selected by the random extraction method in each evaluation field at each meeting.
(3) None of the following persons shall be allowed to participate in the relevant meeting:
1. A party to the relevant agenda (where a party to the agenda is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this paragraph) or a person directly interested in the relevant agenda;
2. A person whose spouse, blood relative within the fourth degree of consanguinity, or relative by marriage within the second degree of affinity is a party to the relevant agenda or has direct interest in the relevant agenda;
3. A person who is or was the representative of a party to the relevant agenda;
4. A person who currently belongs, or has belonged within recent three years, to a corporation, organization, etc. which is or was the representative of a party to the relevant agenda;
5. A person who has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved in the business of a party to the relevant agency in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.;
6. A person who currently belongs, or has belonged within recent three years, to a corporation, organization, etc. which has provided counselling or advisory services at the request of a party to the relevant agenda or has directly involved in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.
(4) If any member participating in a meeting of the License Deliberative Committee falls under any subparagraph of paragraph (3), he/she shall voluntarily refrain from the deliberation and resolution on the relevant meeting.
(5) The resolution of a meeting of the License Deliberative Committee shall require the attendance of a majority of all members selected pursuant to paragraph (2) and the consent of a majority of those present.
(6) Notwithstanding paragraph (5), where a deliberation on evaluation and selection of applicants for licenses of bonded stores under Article 176-3 (1) 1 of the Act or on renewal of a license under subparagraph 1-2 of the same paragraph is conducted, each committee member, except for the chairperson, shall conduct evaluation in his/her field of evaluation; the scores of all members evaluated by field shall be aggregated; and an applicant for the license of a bonded store who has obtained the highest aggregate score shall be determined as the person to be granted a license of a bonded store. <Amended on Feb. 12, 2019>
(7) Where necessary for deliberation, the License Deliberative Committee may request the heads of relevant administrative agencies to submit data, opinions, etc., and may require relevant public officials or experts to appear and hear their opinions.
(8) Except as provided in paragraphs (1) through (7), necessary matters concerning meetings of the License Deliberative Committee shall be determined by the Commissioner of the Korea Customs Service.
[This Article Newly Inserted on Nov. 28, 2017]
 Article 192-10 (Composition of Committee for Operation of Bonded Store System)
(1) The Committee for Operation of Bonded Store System shall be comprised of members of not less than 17 but not more than 20 persons, including one chairperson.
(2) A person designated by the Minister of Economy and Finance from among the vice ministers of Economy and Finance shall be the chairperson; and members shall be appointed or commissioned by the Minister of Economy and Finance from among the following persons:
1. Public officials of Grade III or public officials in general service belonging to the Senior Executive Service of the Ministry of Economy and Finance;
2. Each one public official in general service belonging to the Senior Executive Service, respectively, in the Ministry of Culture, Sports and Tourism, the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, the Ministry of SMEs and Startups, the Fair Trade Commission, and the Korea Customs Service who are involved in the relevant duties;
3. Persons commissioned by the Minister of Economy and Finance from among persons with substantial knowledge and experience in such fields as customs duties, trade, law, business management, economy, tourism, etc.
(3) The term of office of members falling under paragraph (2) 3 shall be two years, and may be renewed only once: Provided, That a member appointed to fill a vacancy occurring before the expiration of the term for which his/her predecessor was appointed, shall serve for the remainder of such term.
(4) Where any member of the Committee for Operation of Bonded Store System falls under any of the following cases, the Minister of Economy and Finance may remove or dismiss such member:
1. Where he/she becomes unable to perform the duties due to mental or physical disability;
2. Where he/she has committed any irregularity related to the duties;
3. Where the member is deemed unsuitable as a member due to neglecting duties, demeaning behavior, or on other reasons;
4. Where a member expresses his/her intention that it is impractical for him/her to perform the duties.
5. Where the member fails to abstain from participating in deliberation and resolution, in spite of falling under any subparagraph of Article 192-12 (4).
(5) Except as provided in paragraphs (1) through (4), detailed matters necessary for the composition and operation of the Committee for Operation of Bonded Store System shall be determined by the Commissioner of the Korea Customs Service.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 192-11 (Duties of Chairperson of Committee for Operation of Bonded Store System)
(1) The chairperson of the Committee for Operation of Bonded Store System shall represent the relevant Committee and exercise the overall control over its affairs.
(2) If the chairperson of the Committee for Operation of Bonded Store System is unable to perform duties due to any extenuating circumstances, a member designated by the chairperson shall act on behalf thereof.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 192-12 (Meetings of Committee for Operation of Bonded Store System)
(1) The chairperson of the Committee for Operation of Bonded Store System shall convene and preside over the meetings thereof.
(2) Each meeting of the Committee for Operation of Bonded Store System shall be comprised of the chairperson and at least a majority of all incumbent members designated by the chairperson for each meeting; and at least one half of the designated members shall be the persons referred to in Article 192-10 (2) 3.
(3) Where any public official as a member of the Committee for Operation of Bonded Store System, is unable to attend a meeting of the Committee for Operation of Bonded Store System due to extenuating circumstances, any other public official working for an institution to which the member belongs may attend the meeting to act on behalf of such member.
(4) Any member of the Committee for Operation of Bonded Store System who falls under any of the following cases shall be excluded from the deliberation and resolution:
1. Where the member is a party to the relevant agenda (where a party to the relevant agenda is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this paragraph) or a person directly interested in the relevant agenda;
2. Where the member's spouse, relative within the fourth degree of consanguinity, or relative within the second degree of affinity within the second degree is a party to the relevant agenda or has direct interest in the relevant agenda;
3. Where the member is or was the representative of a party to the relevant agenda within recent five years;
4. Where the member belongs or has belonged within recent five years to a corporation, organization, etc. which is or was the representative of a party to the relevant agenda;
5. Where the member has provided counseling or advisory services at the request of a party to the relevant agenda or has directly involved within recent five years in the business of a party to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.;
6. Where the member has provided counseling or advisory services at the request of a party to the relevant agenda or the member currently belongs to or has belonged within recent five years to a corporation, organization, etc. which has been directly involved in the business of the person to the relevant agenda in partnership or in any other form with a party to the relevant agenda in performing research, service, etc.
(5) If any member of the Committee for Operation of Bonded Store System falls under any subparagraph of paragraph (4), he/she shall abstain from the deliberation to be conducted and resolution to adopted in a meeting.
(6) At least a majority of the members who are designated for each meeting of the Committee for Operation of Bonded Store System shall constitute a quorum for such meeting, and any decision thereof shall require the concurring vote of at least a majority of those present.
(7) Where necessary to facilitate operation, the Committee for Operation of Bonded Store System may request the head of any relevant administrative agency to submit data, opinion, etc., and may hear opinions of the related public officials, interested persons, etc.
(8) Members other than public officials who attend meetings of the Committee for Operation of Bonded Store System, may be paid allowances within budgetary limits.
(9) Except as provided in paragraphs (1) through (8), detailed matters necessary for meetings of the Committee for Operation of Bonded Store System shall be determined by its chairperson after resolution by the relevant Committee.
[This Article Newly Inserted on Feb. 12, 2019]
 Article 193 (Notice of Suspension and Closure of Licensed Bonded Area)
(1) The operator of any licensed bonded area shall, when he/she discontinues the operation of the relevant licensed bonded area, serve a notice stating the following matters on the head of the relevant customs office:
1. The kind, name and location of the licensed bonded area;
2. Reasons for discontinuing the operation of such licensed bonded area and the date and time of the discontinuation;
3. Details of goods stored therein;
4. Scheduled date on which the shipment of stored goods out of the licensed bonded area is completed.
(2) The operator of any licensed bonded area shall, when he/she intends to continuously suspend the operation of such licensed bonded area for not less than 30 days, serve a notice stating the following matters on the head of the relevant customs office and if he/she intends to resume the operation of the licensed bonded area, he/she shall notify the head of the relevant customs office of the fact:
1. The kind, name and location of the licensed bonded area;
2. Reasons for the suspension thereof and the suspension period.
 Article 193-2 (Criteria, etc. for Imposition of Penalty Surcharges on Operators of Licensed Bonded Areas)
"Reasons prescribed by Presidential Decree" in Article 178 (1) 4 of the Act means any of the following cases:
1. Where the management of the required quantity of raw materials is not appropriate as a result of inventory checked under Article 207;
2. Where no goods are shipped into or out of a bonded area for one year or any bonded work is not conducted for six months or more;
3. Where any ground prescribed by the Commissioner of the Korea Customs Service exists, such as a case where the operator has violated any procedure, etc. prescribed by the Act within the last one year.
[This Article Newly Inserted on Feb. 21, 2014]
[Previous Article 193-2 moved to Article 193-3 <Feb.11, 2020>]
 Article 193-3 (Criteria, etc. for Imposition of Penalty Surcharges on Operators of Licensed Bonded Areas)
(1) The amount of a penalty surcharge to be imposed under Article 178 (3) of the Act shall be calculated by multiplying the amount set forth in subparagraph 2 by the period set forth in subparagraph 1:
1. Period: Number of days of suspension of shipping the goods into a licensed bonded area calculated under Article 178 (1) of the Act (one month shall be based on 30 days);
2. The amount of a penalty surcharge per day: 1/6,000 of the annual sales accrued from the operation of the relevant licensed bonded area.
(2) The annual sales referred to in paragraph (1) 2 shall be computed as classified below:
1. Where the operator of a licensed bonded area has commenced the operation of the licensed bonded area before the beginning of the relevant business year: The average sales of the immediately preceding three business years (if the period from the commencement date of the operation to the end date of the immediately preceding business year is less than three years, the annual sales shall be the amount calculated by converting the sales accrued from the aforementioned commencement date until the end date thereof, into the annual average sales);
2. Where the operator of a licensed bonded area has commenced the operation of the licensed bonded area during the relevant business year: The amount calculated by converting the sales accrued from the aforementioned commencement until the date of occurrence of the grounds for disposition, such as suspension of shipping the goods into the licensed bonded area, into the annual sales.
(3) The head of a customs office may aggravate or reduce the amount of penalty surcharge by up to 1/4 of the amount of the penalty surcharges referred to in paragraph (1) in consideration of the business scale, the severity and frequency of violations, etc.: Provided, That if the penalty surcharge is aggravated, the total amount of the relevant penalty surcharge shall not exceed 3/100 of the annual sales calculated under paragraph (2).
(4) Article 285-7 shall apply mutatis mutandis to the imposition and payment of the penalty surcharge under paragraph (1). In such cases, "the Commissioner of the Korea Customs Service" shall be deemed "the head of a customs office."
[This Article Newly Inserted on Apr. 1, 2011]
[This Article Wholly Amended on Feb. 6, 2015]
[Moved from Article 63-18 <Feb. 11, 2020>]
 Article 194 (Reporting on Succession of License)
(1) Any successor or a successor corporation that intends to continue the operation of a licensed bonded area under Article 179 (3) of the Act shall file a report on the succession of the licensed bonded area with the statement describing the kind, name and location of the licensed bonded area, appended by documents falling under each of the following subparagraphs, with the head of the relevant customs office:
1. A document that makes it possible to confirm the successor or the successor corporation;
2. A document, prescribed by the Commissioner of the Korea Customs Service, which makes it possible to confirm whether the license requirements under Article 174 (3) of the Act are met.
(2) The head of the relevant customs office shall, upon receiving the report referred to in paragraph (1), examine the report and notify the reporter of the results thereof within five days from the day on which the report is filed.
 Article 195 (Management of Licensed Bonded Area)
(1) The head of the relevant customs office shall, when he/she deems it necessary to manage a licensed bonded area, order the operator of such licensed bonded area to report names of persons working for the licensed bonded area and other personnel matters.
(2) The gateway of any licensed bonded area shall be opened and closed and goods shall be handled in such licensed bonded area with customs officers monitoring such actions: Provided, That the same shall not apply where the head of the relevant customs office deems them unnecessary.
(3) The gateway of any licensed bonded area shall be locked. In such cases, the head of the relevant customs office may, when deemed necessary, get a place locked double and one of the two keys kept by a customs officer.
(4) The manager of a designated bonded area or the operator of a licensed bonded area shall stringently control his/her employees' access to the bonded areas.
 Article 196 Deleted. <Mar. 26, 2010>
 Article 197 (Reporting on Storage of Domestic Goods, etc.)
(1) Any person who intends to file a report under Article 183 of the Act shall file a report stating the matters falling under each of the following subparagraphs with the head of the relevant customs office:
1. The matters of Article 176 (1) 2;
2. Reasons for storing goods in a bonded warehouse;
3. The place where goods are produced or manufactured.
(2) Any person who intends to obtain approval under Article 183 (3) of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. The matters of subparagraph 2 of Article 175;
2. The place where goods are stored and the period for which goods are stored;
3. The place where goods are produced or manufactured;
4. Reasons for the application;
5. The scheduled date on which the stored foreign goods are shipped out of a bonded warehouse.
(3) With respect to any goods stored upon approval obtained under paragraph (2), the head of the relevant customs office may allow omitting a report on the shipment of goods into or out of a bonded warehouse under Article 176.
 Article 198 (Obligation of Bonded Warehouse Operator to Keep Books)
The operator of any bonded warehouse shall keep a book on the stored goods and enter the following matters in the book: Provided, That in cases of goods as prescribed in Article 177 (1) 1 (c) of the Act, the keeping of a book and matters entered in such book may be omitted or simplified in part as prescribed by the Commissioner of the Korea Customs Service:
1. The name, quantity and price of goods shipped into or out of a bonded warehouse, the classification of such goods into domestic and foreign goods and the kind, notation, identification number and number of packages;
2. The date on which goods are shipped into or out of a bonded warehouse and report number;
3. Goods for which maintenance or supplementary work is done, the classification of materials used for such work into domestic and foreign materials, the name, quantity and price of such goods and materials, and the kind, notation, identification number and number of packages;
4. The kind of maintenance or supplementary work, the date on which such work is done and the approval number;
5. The date on which the inspection of maintenance or supplementary work is completed.
 Article 199 (Scope, etc. of Raw Materials at Bonded Factory)
(1) Raw materials or other materials shipped into any bonded factory (hereinafter referred to as "raw materials used in bonded factory") to perform the bonded work therein under Article 185 of the Act means each of the following goods: Provided, That goods that are indirectly put in and consumed for the production, repair, assembly, inspection, packing of products, such as fuel and lubricant, and similar work for the operation and maintenance of machinery, apparatus, etc. shall be excluded herefrom: <Amended on Feb. 15, 2013; Mar. 27, 2017>
1. Goods that are physically and chemically combined to produce manufactured goods in the relevant bonded factory;
2. Goods that are put in and consumed in the process of manufacturing or processing goods produced in the relevant bonded factory or in the process similar thereto;
3. Goods that are directly put in for repair, assembly, inspection, packing, and similar work in the relevant bonded factory.
(2) The raw materials used in a bonded factory shall be goods whose quantity required to produce manufactured goods in the relevant bonded factory (hereinafter referred to as "required quantity of raw materials") can be objectively calculated.
(3) The head of the relevant customs office may, when he/she deems it necessary to oversee any bonded factory in light of the nature of goods and the kind of bonded work therein, get the operator of such bonded factory to submit documents showing the calculation of the quantity of raw materials required to produce manufactured goods through the bonded work.
(4) Matters necessary for the preparation of documents required to be submitted under paragraph (3) shall be prescribed by the Commissioner of the Korea Customs Service.
[This Article Wholly Amended on Dec. 31, 2001]
 Article 200 (Permission for Work Done Using Only Domestic Goods as Raw Materials)
(1) Any person who intends to obtain permission provided for in Article 185 (2) of the Act shall file an application stating the following matters with the head of the relevant customs office. In such cases, the relevant work shall be done separately from any work done using foreign goods:
1. Kind of work;
2. Names and quantity of raw materials, the place of production or the place of manufacture;
3. Work period.
(2) The provisions of Article 176 shall apply mutatis mutandis to the shipment of domestic goods used for the work referred to in paragraph (1) into any bonded factory: Provided, That the head of the relevant customs office may allow the operator of the relevant bonded factory to report in the block names and quantity of goods expected to be required during the work period prior to the commencement of the work instead of making such report every time that such goods are shipped into the relevant bonded factory, taking into account the actual operation of the relevant bonded factory, the nature of the work and the period, etc. The head of the relevant customs office may, when deemed necessary in light of the nature of business and the kinds of goods, get part of matters required to be entered in the report omitted.
[This Article Wholly Amended on Dec. 31, 2001]
 Article 201 (Restrictions on Shipment of Foreign Goods into Bonded Factory)
When deemed necessary in light of the domestic supply situation, the Commissioner of the Korea Customs Service may restrict the shipment of foreign goods into the bonded factory referred to in Article 185 (5) of the Act. <Amended on Feb. 12, 2019>
 Article 202 (Reporting on Use of Goods Shipped into Bonded Factory)
Any person who intends to file a report on the use of goods shipped into a bonded factory under Article 186 (1) of the Act shall file a report stating the following matters before such goods are used with the head of the relevant customs office:
1. The matters of each subparagraph of Article 246 (1);
2. The name, standard, quantity and price of such goods;
3. The place where such goods are stored.
 Article 203 (Application for Approving Work to be Done Outside Bonded Factory)
(1) Any person who intends to obtain approval for the work to be done outside a bonded factory under Article 187 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. Deleted; <Mar. 29, 2004>
2. The kind, period and place of bonded work;
3. Reasons for application;
4. The name, standard and quantity of goods produced through the relevant work.
(2) The head of the relevant customs office may, it is deemed necessary due to a calamity and other unavoidable grounds, alter the period or place of bonded work to be done outside a bonded factory upon an application.
(3) Deleted. <Feb. 22, 2008>
 Article 204 (Approval for Mixed Use of Domestic and Foreign Goods)
(1) Any person who intends to obtain the approval under the proviso to Article 188 of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. The notation, number, name, quantity by standard and mortality of foreign and domestic goods intended for mixed use;
2. The period of bonded work for which approval is sought and reasons therefor.
(2) The approval referred to in paragraph (1) shall be granted only when the name, standard, quantity and mortality of foreign and domestic goods used for the relevant work are confirmed based on the nature and process, etc. of such work and the duty base as prescribed in paragraph (4) can be determined.
(3) Where the name and standard of foreign and domestic goods intended to be used altogether are identical and the goods of the same kind with the same mortality are used altogether from among the matters approved under paragraph (1), the head of the relevant customs office may get application for a new approval thereof omitted.
(4) When foreign and domestic goods are used altogether in accordance with the proviso to Article 188 of the Act, the portion equivalent to the ratio of the price (referring to the quantity in cases of goods subject to specific duties) of foreign goods from among goods manufactured using such foreign and domestic goods as raw materials and materials shall be deemed goods arriving in Korea from a foreign country.
 Article 205 (Methods, etc. of Applying for Assessment of Customs Duties on Raw Materials)
(1) Any person who intends to file the application under Article 189 of the Act shall file an application with the head of the relevant customs office, stating the following matters: <Amended on Feb. 22, 2008>
1. The matter referred to in each subparagraph of Article 175;
2. The standard of foreign goods used as raw materials and the place where such foreign goods are produced or manufactured;
3. Reasons for application;
4. Intended period of assessment of custom duties on raw materials.
(2) The application referred to in paragraph (1) shall be appended by documents falling under each of the following subparagraphs: Provided, That the same shall apply to cases where the head of the relevant customs office deems the existence of unavoidable grounds:
1. The evidential document as prescribed in Article 186 (2) of the Act;
2. The invoice of the relevant goods or any document that may be substituted for such invoice.
(3) "Standards prescribed by Presidential Decree" in Article 189 (2) of the Act means as follows: <Newly Inserted on Feb. 22, 2008>
1. The ratio of the amount of exported goods out of total goods produced and sold in the latest two years shall be 50/100 or larger;
2. Standards, which are determined and publicly announced of the Commissioner of the Korea Customs Service, on good-faith and methods of management for raw materials shall be fulfilled.
 Article 206 (Obligation of Operator of Bonded Factory to Enter Matters in Book)
(1) The operator of any bonded factory shall keep a book on goods and enter the following matters in such book:
1. The classification of goods shipped into or out of the bonded factory into domestic and foreign goods, the name, standard and quantity of the goods, and the kind, notation, identification number and number of packages, the date on which goods are shipped into or out of the bonded factory and report numbers;
2. The classification of goods used for the work into domestic and foreign goods, the name, standard and quantity of the goods, the kind, notation, identification number and number of packages, and date on which goods are used;
3. The notation, number, name, standard, quantity of goods produced through the bonded work, and the date of inspection;
4. Where approval is obtained for the mixed use of foreign and domestic goods, the matters falling under each of the following items:
(a) The date of approval;
(b) The notation, number, name, standard and quantity of goods used altogether and goods produced thereby, the classification of domestic and foreign goods and the date of production;
5. Where goods are shipped out of a bonded factory upon permission for the work outside a bonded factory, the matters falling under each of the following items:
(a) The date of permission and the permission period;
(b) The place into which the goods are shipped out of the bonded factory;
(c) The name, standard, quantity and price of the relevant goods.
(2) The head of the relevant customs office may allow to omit in the book matters deemed unnecessary from among the matters described in each subparagraph of paragraph (1), taking into account of the nature of the goods, the kind of bonded work and other circumstances.
 Article 207 (Check of Inventory)
The head of the relevant customs office may, if deemed necessary, check the inventory of any bonded factory to confirm whether the document submitted under Article 199 (3) to show the calculation of quantities of raw materials required is appropriate and whether the obligation to enter matters in the book under Article 206 is sincerely met. <Amended on Mar. 29, 2004>
 Article 208 (Use of Goods in Bonded Exhibition)
The use of the foreign goods for operating an exposition, etc. under Article 190 of the Act shall be deemed to include the act falling under each of the following subparagraphs:
1. The act of altering the nature and form of the relevant foreign goods;
2. The act of consuming goods by the sponsors, exhibitors and visitors in the bonded exhibition.
 Article 209 (Limit of Goods Stored in Bonded Exhibition)
(1) The head of the relevant customs office may, when deemed necessary, limit the place where goods are stored in a bonded exhibition, check the use of goods therein and get the operator of such bonded exhibition to make necessary reports.
(2) Any foreign goods stored for sale in a bonded exhibition shall not be used before an import declaration thereon is accepted.
(3) Where foreign goods stored for exhibition in a bonded exhibition are sold, such goods shall not be delivered before an import declaration thereon is accepted.
 Article 210 (Scope of Goods Shipped into Bonded Construction Work Site)
The goods which are permitted to be shipped into any bonded construction work site shall be limited to foreign goods as prescribed in Article 191 of the Act and other similar goods, which are deemed by the head of the relevant customs office necessary for the construction of the relevant industrial facilities.
 Article 211 (Reporting on Completion of Bonded Construction Work)
The operator of any bonded construction work site shall, when the construction work done using goods on which an import declaration is filed under Article 192 of the Act is completed, file a report thereon, without delay, with the head of the relevant customs office.
 Article 212 (Application for Permitting Bonded Construction Work in Non-Bonded Construction Work Site)
(1) Any person who intends to obtain permission under Article 195 (1) of the Act shall file an application stating the following matters with the head of the relevant customs office:
1. The matters of each subparagraph of Article 175;
2. The period in which the bonded work is completed and the place where the bonded work is done;
3. Reasons for application;
4. The name, standard and quantity of goods to be produced in the bonded work.
(2) The head of the relevant customs office may, when deemed necessary due to a calamity or unavoidable grounds, alter the period and place of the bonded work outside a bonded construction work site upon a request filed by the operator of a bonded construction work site. <Amended on Dec. 31, 2001>
 Article 213 (Management of Bonded Stores, etc.)
(1) Where any bonded store operator sells goods in his/her bonded store, he/she shall record matters of sale, personal matters of purchasers and other necessary matters, and keep such records, as prescribed by the Commissioner of the Korea Customs Service.
(2) The Commissioner of the Korea Customs Service may prescribe the method of selling goods and the method of delivering goods to the purchasers, etc. in every bonded store.
(3) Deleted. <Feb. 12, 2019>
(4) The head of the relevant customs office may check any bonded store to ascertain the quantity of bonded goods shipped into or out of such bonded store, the quantity of bonded goods sold therein, the quantity of goods shipped out of Korea and inventory, etc. at least twice a year.
(5) The Commissioner of the Korea Customs Service may prescribe procedures for shipping goods into or out of bonded stores and other necessary matters to prevent any goods from being illegally shipped out of bonded stores.
 Article 213-2 (Establishment and Operation of Delivery Points at Arrivals Hall)
(1) Where a bonded store sells goods pursuant to the proviso to Article 196 (1) 1 of the Act, it shall deliver such goods at a place for delivering them installed in the arrival hall of an airport, harbor, etc. (hereinafter referred to as "delivery point at the arrivals hall").
(2) A person who intends to install and operate conduct a delivery point at the arrivals hall referred to in paragraph (1) shall obtain approval from the head of the competent customs office.
(3) An institution intending to obtain approval under paragraph (2) shall file an application therefor with the head of the competent customs office after meeting all of the following requirements:
1. The person shall meet the requirements specified in subparagraphs 1 and 2 of Article 189.
2. There shall be a space available for properly managing and delivering The person shall secure space to properly manage and deliver goods at the arrivals hall of an airport, harbor, etc.;
3. The person shall furnish the computer system or other system prescribed by the Commissioner of the Korea Customs Service which can verify the details of goods delivered at a delivery point in the arrivals hall and inform the head of the relevant customs office of the proper customs clearance of personal effects of travelers specified in Article 96 of the Act: Provided, That if there is any bonded store under Article 196 (2) of the Act (hereinafter referred to as "duty-free shop in the arrivals hall") at the arrivals hall of the relevant airport, harbor, etc., the person shall furnish the computer system or other system prescribed by the Commissioner of the Korea Customs Service which can integrate and verify the details of goods delivered at the delivery point at the arrivals hall and other goods sold at the duty-free shops thereat;
4. The person shall obtain consent from the central administrative agency, local government, or corporation that manages facilities in the arrivals hall of an airport, harbor, etc. in which delivery points are installed.
(4) Where a person who has established and operates a delivery point at the arrivals hall after obtaining approval thereof under paragraph (2) falls under any of the following subparagraphs, the head of the competent customs office may cancel the approval:
1. Where he/she has obtained approval by fraud or other improper means;
2. Where the person who has established a delivery point at the arrivals hall requests the cancellation of such approval;
3. Where the person fails to comply with the requirements specified in paragraph (3).
(5) The types and limit of goods which are allowed to be delivered at the place of delivery where a person is to enter a place of entry under the proviso to Article 196 (1) 1 of the Act, shall be prescribed by Ordinance of the Ministry of Economy and Finance.
(6) Except as provided in paragraphs (1) through (5), details necessary for the establishment and operation of delivery points at the arrivals hall, means of delivery, and the like shall be determined by the Commissioner of the Korea Customs Service.
[This Article Newly Inserted on Feb. 21, 2014]
 Article 213-3 (Method, etc. of Identification by Finance Company)
(1) Where a downtown bonded store referred to in Article 196-2 (1) of the Act (hereinafter referred to as "downtown bonded store") intends to deliver goods to a foreigner at the store, the operator of the downtown bonded store shall check the data that confirm reservation details regarding departure of the Republic of Korea such as the passport and airline ticket of the purchaser.
(2) “Information or data prescribed by Presidential Decree, such as immigration control records, etc., of the purchaser of goods” in the former part of Article 196-2 (2) of the Act means:
1. Records of immigration control for foreigners who purchase goods;
2. Other information or data deemed necessary by the Commissioner of the Korea Customs Service to check whether goods delivered in downtown bonded stores are shipped into foreign countries.
(3) "Persons specified by Presidential Decree" in Article 196 (2) 3 of the Act means persons determined by the Commissioner of the Korea Customs Service, taking into consideration of the following:
1. Details of purchase in downtown bonded stores;
2. Details of the reservation and cancellation of airline tickets, etc.;
3. Other reasons that the Commissioner of the Korea Customs Service deems necessary for the restriction on delivering goods on-site.
(7) Except as provided in paragraphs (1) through (3), details necessary for means of delivery in downtown bonded stores and the like shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Feb. 21, 2014]
SECTION 4 General Bonded Area
 Article 214 (Designation of General Bonded Area, etc.)
((1) A general bonded area (hereinafter referred to as "general bonded area") under Article 197 of the Act shall be an area falling under any one of the following subparagraphs which is subject to designation as it is deemed by the Commissioner of the Korea Customs Service an area necessary to be designated as a general bonded area: <Amended on Jun. 30, 2003; May 22, 2006; Apr. 5, 2007; Apr. 1, 2011>
1. An investment area for foreigners under the Foreign Investment Promotion Act;
2. The industrial complex under the Industrial Sites and Development Act;
3. Deleted; <Apr. 5, 2007>
4. The joint collection and delivery center under the Distribution Industry Development Act;
6. Other area, if designated as a general bonded area, expected to have the effect of inducing foreign investments, boosting exports or promoting physical distribution, etc.
(2) Any person who intends to request the designation of a general bonded area under Article 197 (1) of the Act (hereinafter referred to as "person who requests the designation of a general bonded area") shall file a designation application stating the following matters, accompanied by a drawing of the relevant area, with the Commissioner of the Korea Customs Service: <Amended on Mar. 29, 2004>
1. The location and area of the relevant area;
2. Current facilities inside the area and plans to install facilities;
3. The business plan.
(3) The Commissioner of the Korea Customs Service shall, when he/she intends to designate a general bonded area ex officio, consult with the head of the central administrative agency concerned or the head of the local government.
 Article 214-2 (Designation of Area Scheduled to be Developed into General Bonded Area)
(1) The Commissioner of the Korea Customs Service may, upon receiving a request from the person who asks for the designation of a general bonded area, designate an area scheduled to function as a general bonded area as an area scheduled to be developed into a general bonded area (hereinafter referred as "area scheduled to be developed into a general bonded area").
(2) The designation period of the area scheduled to be developed into a general bonded area shall be not more than three years: Provided, That the Commissioner of the Korea Customs Service may, when it is deemed inevitable to extend the designation period on the grounds of a change, etc. in the development plan for the relevant area, extend the designation period within the period of three years.
(3) The provisions of Article 214 shall apply mutatis mutandis to the designation of any area scheduled to be developed into a general bonded area referred to in paragraph (1).
(4) The Commissioner of the Korea Customs Service may, upon receiving a request from the person who asks for the designation of a general bonded area under Article 214, designate the general bonded area after the development of such area is completed.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 215 (Reporting on Establishment and Operation of General Bonded Business Place, etc.)
(1) The provisions of Article 198 shall apply mutatis mutandis to the procedures for filing a report on the establishment and operation of a general bonded business place under Article 198 (1) of the Act: Provided, That the Commissioner of the Korea Customs Service may simplify the procedures for filing a report on the establishment and operation of any general bonded business place, including omitting part of the appended documents, taking into account the size and function, etc. of a general bonded business place.
(2) Any person who intends to file a report on altering the general bonded function under Article 198 (3) of the Act shall file a report stating the contents of such alteration with the head of the relevant customs office.
 Article 216 (Procedures for Shipping Goods into or out of General Bonded Area, etc.)
The provisions of Article 176 shall apply mutatis mutandis to the report on the shipment of goods into or out of any general bonded area under Article 199 (1) of the Act.
 Article 216-2 (Scope of Foreign Tourists, etc.)
"Persons prescribed by Presidential Decree, such as foreign tourists, etc." in Article 199-2 (1) of the Act means non-residents provided for in Article 3 of the Foreign Exchange Transactions Act (hereinafter referred to as "foreign tourists, etc."): Provided, That any of the following persons shall be excluded herefrom: <Amended on May 22, 2006; Apr. 1, 2011>
1. Any Corporation;
2. Any foreign diplomat (including any foreign mission staff member corresponding to such foreign diplomat) who resides in Korea;
3. Any military person belonging to the UN forces and U.S. forces that are stationed in Korea.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 216-3 (Sales of Goods in General Bonded Area)
(1) Any person who sells goods to foreign tourists, etc. in a general bonded area (hereinafter referred to as "seller") in accordance with Article 199-2 of the Act shall file an import declaration thereon and pay customs duties by self-assessment of the goods that he/she sells as prescribed by the Commissioner of the Korea Customs Service.
(2) Every seller shall, if his/her import declaration filed under paragraph (1) is accepted, deliver the relevant goods to purchasers and if he/she sells goods to foreign tourists, etc. who purchase such goods for the purpose of shipping them out of Korea, he/she shall deliver a written confirmation of sales of goods (hereinafter referred to as "written sales confirmation") to each of the foreign tourists, etc. who purchase such goods.
(3) The Commissioner of the Korea Customs Service may limit the kinds and quantity, etc. of goods sold taking into account the location and size, etc. of the relevant general bonded area.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 216-4 (Refund of Customs Duties, etc. to Foreign Tourists, etc.)
(1) Where any foreign tourist, etc. intends to have customs duties, etc. he/she pays refunded or remitted when he/she purchases goods in any general bonded area, such foreign tourist, etc. shall put forward a written sales confirmation and present goods he/she purchases to the head of the relevant customs office having jurisdiction over the departure airport and port (hereinafter referred to as the "head of the relevant customs office having jurisdiction over the departure airport and port") when he/she departs Korea to have them confirmed.
(2) The head of the relevant customs office having jurisdiction over the departure airport and port shall affix a confirmation seal to the written sales confirmation after confirming the consistency of goods that are presented by any foreign tourist, etc. under paragraph (1) with matters that are entered in the written sales confirmation and deliver such confirmation seal to the foreign tourist, etc. or send it to the seller.
(3) When any foreign tourist, etc. who takes the delivery of the written sales confirmation under paragraph (2), he/she may put forward such written sales confirmation to the operator of refund service center provided for in Article 216-6 in order to get his/her paid customs duties refunded or remitted: Provided, That where any seller takes the delivery of the written sales confirmation under paragraph (2), he/she shall remit the customs duties that the relevant foreign tourist, etc. pays in the general bonded area when the latter purchases goods to such foreign tourist, etc. within 20 days from the date on which the former takes the delivery of such written sales confirmation.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 216-5 (Refund of Customs Duties, etc. by Seller)
(1) Any seller may, in cases falling under each of the following subparagraphs after he/she sells goods at a price that includes customs duties and internal taxes, etc. (hereinafter referred to as "customs duties, etc.") in a general bonded area under Article 199-2 of the Act, have such customs duties, etc. refunded:
1. Where it is confirmed that any foreign tourist, etc. ships goods out of Korea within three months from the date on which he/she purchases such goods;
2. Where it is confirmed that the seller refunds or remits the relevant customs duties, etc. through the operator of refund service center in accordance with the main clause of Article 216-4 (3) or he/she remits the relevant customs duties to the relevant foreign tourist, etc. in accordance with the provisions of the proviso to the same paragraph.
(2) The seller shall, if he/she intends to get customs duties, etc, refunded in accordance with paragraph (1), file an application stating the following matters, accompanied by a written sales confirmation that are confirmed by the head of the relevant customs office under Article 216-4 and an import declaration completion certificate, a document attesting the payment of customs duties and a document attesting the fact of refund or remittance referred to in paragraph (1) 2, with the head of the relevant customs office having jurisdiction over the relevant general bonded area. In such cases, the provisions of Articles 54 and 55 shall apply mutatis mutandis to the refund of the customs duties, etc.:
1. The name and specification of the relevant goods;
2. The sale date and sale confirmation number of the relevant goods;
3. The import declaration date and import declaration number of the relevant goods;
4. The amount that he/she intends to get refunded.
(3) The seller who is paid the refund under paragraphs (1) and (2) shall keep evidential documents related to the fact of refunding and remitting customs duties, etc. to foreign tourists, etc. for five years.
[This Article Newly Inserted on Mar. 29, 2004]
 Article 216-6 (Operator of Refund Service Center)
(1) The Commissioner of the Korea Customs Service may designate any person who runs the business of refunding and remitting customs duties, etc. that are paid by foreign tourists, etc. in any general bonded area (hereinafter referred to as "operator of the refund service center") on behalf of the seller.
(2) The provisions of Articles 5-2 (2) through (5), 10-2, 10-3 and 14(2) of the Special Case Provisions governing the Value-Added Tax and the Individual Consumption Tax for Foreign Tourists, etc. (hereinafter referred to as the "Special Case Provisions") shall apply mutatis mutandis to every operator of the refund service center referred to in paragraph (1). In such cases, the "head of competent regional tax office" in Article 5-2 (2) through (5) of the Special Case Provisions shall be deemed the "Commissioner of the Korea Customs Service", the "national tax or the local tax" in Article 5 (4) 3 of the Special Case Provisions that is applied mutatis mutandis by Article 5-2 (5) 1 of the Special Case Provisions shall be deemed "customs duties", the "foreign tourists" in Article 10-2 of the Special Case Provisions shall be deemed "foreign tourists, etc.", "duty-free goods" shall be deemed "goods", the "amount corresponding to the amount of tax" shall be deemed "customs duties, etc.", the "seller of duty-free goods" shall be deemed the "seller", the "Commissioner of the National Tax Service" shall be deemed the "Commissioner of the Korea Customs Service", "foreign tourists" in Article 10-3 of the Special Case Provisions shall be deemed "foreign tourists, etc.", the "amount corresponding to the custom duties" shall be deemed the "customs duties, etc.", the "seller of duty-free goods" shall be the "seller", the "Commissioner of the National Tax Service, the head of competent regional tax office or the head of competent tax office" in Article 14 (2) of the Special Case Provisions shall be deemed the "Commissioner of the Korea Customs Service or the head of jurisdictional customs office" and the "foreign tourists" shall be deemed the "foreign tourists, etc.", respectively. <Amended on May 22, 2006; Dec. 31, 2007>
[This Article Newly Inserted on Mar. 29, 2004]
 Article 217 (Obligation to Maintain Facilities and Equipment, etc.)
(1) The facilities and equipment which the operator of any general bonded area is obliged to maintain under Article 202 (1) of the Act shall be as follows:
1. Machinery, facilities and appliances necessary for manufacturing, processing, displaying, selling, constructing and storing goods, and doing other bonded work;
2. The data-processing facilities and equipment necessary for the control of the shipment of goods into or out of the general bonded area and business inspection by the relevant customs office;
3. Facilities and equipment prescribed by statutes governing the fire fighting, electricity and the control of hazardous materials, etc.;
4. Facilities necessary for preventing bonded goods from being stolen and lost.
(2) Where the facilities and equipment referred to in paragraph (1) temporally fall short of the standards due to a natural calamity or other unavoidable grounds, the operator of the relevant general bonded area shall make such facilities and equipment meet the standards within a period fixed by the Commissioner of the Korea Customs Service.
(3) The provisions of Articles 177 and 203 shall apply mutatis mutandis to the report on the maintenance or supplementary work or the bonded work under Article 202 (2) of the Act.
 Article 218 (Grounds for Revocation of Designation of General Bonded Areas)
(1) "Other grounds prescribed by Presidential Decree" in Article 204 (1) of the Act means any of the following cases: <Amended on Apr. 1, 2011>
1. Where a person who has requested the designation of his/her general bonded area requests the revocation of such designation;
2. Where the requirements for designating a general bonded area are extinguished.
(2) Deleted. <Feb. 12, 2019>
[Title Amended on Feb. 12, 2019]
SECTION 5 Custody and Disposal
 Article 219 (Custody and Deposit of Goods, and Cancellation Thereof)
(1) “Cases prescribed by Presidential Decree” under Article 206 (1) 2 (d) of the Act means the following: <Amended on Feb. 17, 2021>
1. Where the relevant goods are notified by the head of a related institution including the Ministry of Food and Drug Safety as unsuitable or subject to calls for restricted customs clearance;
2. Where the relevant goods of which ingredients or standard are unclear and in need of verification by the head of a related institution including the Ministry of Food and Drug Safety or analysis referred to in Article 265-2 of the Act;
3. Where custody is deemed by the head of a customs office as being needed for the safety of society or public health such as in the case of foods or drug with harmful ingredients contained therein;
(2) When the head of a customs office keeps goods in custody or deposit pursuant to Article 206 of the Act, he or she shall deliver a custody certificate or the deposit certificate: <Amended on Feb. 17, 2021>
1. The kind, number, name, standard and quantity of the packages of the relevant goods;
2. Reasons for custody or deposit;
3. The place where the relevant goods are kept in custody.
(3) Any person who intends to get the custody rescinded and the deposited goods returned shall submit the custody certificate or the deposit certificate delivered under paragraph (2) to the head of the relevant customs office. <Amended on Feb. 17, 2021>
 Article 220 (Sale Agent)
Any institution that is permitted to act on behalf of the head of the relevant customs office in selling overly-long-stored goods prescribed in Article 208 (4) of the Act (hereinafter referred to as "sale agent") shall be any institution, any corporation or any organization des