CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to efficient implementation of free trade agreements and to development of the national economy by providing for special cases of the Customs Act, such as the imposition and collection of customs duties, the reduction of or exemption from customs duties, the customs clearance of exported or imported goods, etc., as may be necessary for the Republic of Korea to implement free trade agreements entered into with other countries, and matters necessary for cooperation in customs administration with other countries as stipulated in free trade agreements.
| (1) | The terms used in this Act are defined as follows: |
| 1. | The term "free trade agreement" means an international convention signed by the Republic of Korea with other Contracting States on liberalization of trade, including the removal of tariffs and progressive annual reduction of tariff rates, in compliance with Article XXIV of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"), and any similar treaty and agreement on the removal or reduction of tariffs; |
| 2. | The term "Contracting State" means a nation (including a confederation of states, an economic community, and an independent customs territory; hereinafter the same shall apply) that has entered into a free trade agreement (hereinafter referred to as "agreement") with the Republic of Korea; |
| 3. | The term "customs authority of a Contracting State" means an authority of any Contracting State which has control over the enforcement of Acts and subordinate statutes and agreements governing customs affairs (limited to customs affairs); |
| 4. | The term "origin" means a country in which it is deemed that goods have been produced, processed, manufactured, in accordance with the standards stipulated in an agreement, for purposes of the imposition and collection of customs duties, the reduction of or exemption from customs duties, the customs clearance of exported or imported goods, etc.; |
| 5. | The term "document evidencing origin" means a document that proves the origin of exported or imported goods (hereinafter referred to as "certificate of origin") between the Republic of Korea and the Contracting State, and other documents, information, etc. necessary to confirm the origin; |
| 6. | The term "conventional tariff” means a tariff to be eliminated or lowered progressively year after year for imported goods originating from any Contracting State as stipulated in the relevant agreement. |
| (2) | Except as otherwise provided in this Act, terms not specified in paragraph (1) shall be defined in accordance with Article 2 of the Customs Act. |
| Article 3 (Relationship to other Statutes) |
| (1) | This Act takes precedence over the Customs Act: Provided, That matters not prescribed in this Act shall be governed by the Customs Act. |
| (2) | If this Act or the Customs Act conflicts with any agreement, such agreement takes precedence in application. |
CHAPTER II APPLICATION OF CONVENTIONAL TARIFFS
| Article 4 (Conventional Tariffs) |
| (1) | The rates, applicable periods, applicable quota, etc. of conventional tariffs by year shall be prescribed by Presidential Decree, in accordance with the guidelines for the rate of elimination of tariffs, the rate of reduction, quota, etc. as stipulated in the relevant agreement. |
| Article 5 (Priority in Application of Tariff Rates) |
| (1) | If a conventional tariff rate is equal to or higher than the corresponding applicable tariff rate prescribed in Article 50 of the Customs Act, the applicable tariff rate prescribed in Article 50 of the Customs Act shall take precedence in application: Provided, That if a conventional tariff rate is equal to the applicable rate under Article 50 of the Customs Act, the conventional tariff rate may apply at the request of an importer for the application of a conventional tariff under Article 8 (1). <Amended on Dec. 31, 2019> |
| (2) | Notwithstanding paragraph (1), tariff rates prescribed in Articles 51, 57, 63, 65, 67-2, and 68 and subparagraph 2 of Article 69 of the Customs Act shall take precedence in application over the corresponding conventional tariff rate. <Amended on Dec. 31, 2019> |
| Article 6 (Requirements for Application of Conventional Tariffs) |
Conventional tariffs shall apply to imported goods that meet all the following requirements:
| 1. | The relevant imported goods shall be subject to conventional tariffs under the relevant agreement; |
| 2. | The origin of the relevant imported goods determined under Article 7 shall be the relevant Contracting State; |
| 3. | A request for the application of a conventional tariff shall be filed for the relevant imported goods in accordance with Article 8 or 9. |
| Article 7 (Criteria for Determining Origins) |
| (1) | In determining the origin of any goods for the application of conventional tariffs under the relevant agreement and this Act and the customs clearance of exported and imported goods, any of the following countries is deemed the origin: |
| 1. | A country in which the relevant goods have been produced, processed, or manufactured in whole; |
| 2. | Any of the following countries if the relevant goods have been produced, processed, or manufactured in two or more countries: |
| (a) | A country in which the relevant goods have been finally produced, processed, or manufactured, if the HS Code (referring to the Harmonized System Code under the International Convention on Harmonized Commodity Description and Coding System; hereinafter the same shall apply) applicable to the relevant goods is different, in at least a certain number of digits from the HS Codes of materials or components that have been used in producing, processing, or manufacturing the goods; |
| (b) | A country in which a certain amount of value has been added to the relevant goods; |
| (c) | A country in which the main process for producing, processing, or manufacturing the relevant goods has been conducted; |
| 3. | Any other country in which the relevant goods satisfy the requirements for the recognition of origin as stipulated in the relevant agreement. |
| (2) | If any goods for which the origin was determined pursuant to paragraph (1) has been transported through any country other than such origin or was shipped in any country other than that origin after the goods were produced, processed, or manufactured, such goods shall not be recognized as originating from the country initially determined: Provided, That the same shall not apply if it is deemed that the relevant goods were transshipped or temporarily stored for transportation in a bonded area in any country other than the origin. |
| (3) | Notwithstanding paragraph (2), where the relevant agreement has separately prescribed the requirements for direct consignment, etc., the corresponding provisions of the relevant agreement shall apply. |
| (4) | The scope of goods relevant to the criteria for determining the origin prescribed in paragraphs (1) through (3), application method, criteria for determining an origin by item, and other necessary matters shall be prescribed by Ordinance of the Ministry of Economy and Finance. |
| Article 8 (Requests for Application of Conventional Tariffs) |
| (1) | Any person who intends to become eligible for the application of a conventional tariff (hereinafter referred to as "importer") shall file a request for the application of a conventional tariff with the head of the competent customs house, as prescribed by Presidential Decree, before the relevant import declaration is accepted. |
| (2) | When filing a request for the application of a conventional tariff under paragraph (1), an importer shall have a document evidencing origin, and submit it to the head of the competent customs house, if so demanded: Provided, That the head of the competent customs house shall not demand the submission of a document evidencing origin regarding items determined by Presidential Decree, unless evasion of customs duties is likely. <Amended on Dec. 31, 2019> |
| (3) | Where an importer fails to submit a document evidencing origin demanded pursuant to the main clause of paragraph (2) or it is impracticable to determine the origin of goods only with the document evidencing origin submitted by the importer, the head of the competent customs house need not apply a conventional tariff pursuant to Article 35. |
| (4) | Where the head of a customs house receives a request for the application of a conventional tariff referred to in paragraph (1), he or she shall examine it after accepting the relevant import declaration: Provided, That such examination may be conducted before an import declaration is accepted for certain goods prescribed by Ordinance of the Ministry of Economy and Finance, on the grounds that it is impracticable to secure the claim for customs duties or that it is deemed improper to examine, after the import declaration is received, whether the statement on origin is correct and whether the application of a conventional tariff is appropriate. |
| Article 9 (Requests for Ex Post Facto Application of Conventional Tariffs) |
| (1) | Any importer, who has failed to file a request for the application of a conventional tariff referred to in Article 8 before the relevant import declaration is accepted, may file a request for the application of a conventional tariff within one year from the acceptance date of the import declaration for the relevant goods, as prescribed by Presidential Decree. |
| (2) | Where the head of the competent customs house collects tariffs under Article 38-3 (6) or 39 (2) of the Customs Act based on a HS code different from the HS code declared by an importer, the importer (excluding an importer who has filed a request for the application of a conventional tariff under Article 8 and paragraph (1) of this Article) may file a request for an ex post facto application of a conventional tariff within a period prescribed by Presidential Decree but not exceeding three months from the day of receiving the payment notice. <Newly Inserted on Dec. 31, 2019; Dec. 22, 2020> |
| (3) | When making a request under paragraph (1) or (2), an importer shall submit a document evidencing origin. <Amended on Dec. 31, 2019> |
| (4) | Any importer who has filed a request for the application of a conventional tariff under paragraph (1) or (2) may file an application for modification or a request for rectification, with respect to the amount of duties already paid for the relevant goods, as prescribed by Presidential Decree. In such cases, in receipt of an application for modification or a request for rectification, the head of the competent customs house shall notify the applicant or the requesting person of whether to apply a conventional tariff and whether to correct or rectify the amount of duties, within two months from the date he or she receives the application or request.. <Amended on Dec. 31, 2019> |
| (5) | Where the head of a customs house deems that an application or request is reasonable, according to the results of examination on the application for modification or the request for rectification of the amount of duties pursuant to paragraph (4), he or she shall modify or rectify the amount of duties and refund the difference between the duty amount payable and the duty amount already paid. <Amended on Dec. 31, 2019> |
CHAPTER III VERIFICATION OF ORIGINS
| Article 10 (Verification of Origins) |
| (1) | An importer shall verify the origin of imported goods to which he or she wishes a conventional tariff will be applied, in accordance with the relevant agreement and this Act. |
| (2) | An exporter or producer shall, regarding exported goods to which he or she wishes a conventional tariff of a Contracting State will be applied, prepare or be issued with a certificate of origin in accordance with the relevant agreement and this Act. |
| Article 11 (Preparation and Issuance of Certificates of Origin) |
| (1) | A certificate of origin shall be prepared and issued according to any of the following: |
| 1. | An agency prescribed by Ordinance of the Ministry of Economy and Finance shall verify the origin of the relevant goods, and issue a certificate of origin in accordance with the methods and procedures stipulated in the agreement; |
| 2. | An exporter, producer or importer shall autonomously verify the origin of the relevant goods, and prepare and sign a certificate of origin in accordance with the methods and procedures stipulated in the agreement. |
| (2) | Any person who intends to be issued with a certificate of origin referred to in paragraph (1) 1 shall pay a fee in accordance with the amount, method, etc. prescribed by Ordinance of the Ministry of Economy and Finance. |
| (3) | Where it is deemed necessary for the purpose of examining the appropriateness of issuance of a certificate of origin or an effective management thereof, the Commissioner of the Korea Customs Services may request an agency that issues a certificate of origin pursuant to paragraph (1) 1 to submit documents or provide guidance and supervision to such agency (including training for its employees in charge of the issuance of certificates of origin), as prescribed by Ordinance of the Ministry of Economy and Finance. |
| (4) | Items to be described in a certificate of origin, the methods for description, the period of validity, and other necessary matters shall be prescribed by Presidential Decree. |
| Article 12 (Certification of Approved Exporters) |
| (1) | The Commissioner of the Korea Customs Service or the head of a customs house may certify a person who meets the requirements prescribed by Presidential Decree, such as the ability to prove the origin of exported goods, etc., as an approved exporter. |
| (2) | An exporter certified under paragraph (1) (hereinafter referred to as “approved exporter”) may autonomously prove the origin of the relevant goods, as prescribed in Article 11 (1) 2, to the scope stipulated in the relevant agreement, and may be eligible for the application of the simplified procedures for proving origins as prescribed by Ordinance of the Ministry of Economy and Finance. |
| (3) | Where an approved exporter fails to meet the requirements referred to in paragraph (1), the Commissioner of the Korea Customs Service or the head of a customs house may revoke his or her certification as an approved exporter. |
| (4) | The certification of an approved exporter, procedures for revoking such certification, validity period of certification, and other necessary matters shall be prescribed by Ordinance of the Ministry of Economy and Finance. |
| Article 13 (Support for Verification of Origins by Small and Medium Enterprises) |
The Commissioner of the Korea Customs Service may conduct the following support projects for exporters, producers, or suppliers of materials used for export goods or the production of export goods, which meet the definition of a small and medium enterprise in Article 2 of the Framework Act on Small and Medium Enterprises: | 1. | Consultation and training on the criteria for determining the origin; |
| 2. | Consultation and training on the procedures for verifying the origin, including the preparation, issuance, etc. of a certificate of origin; |
| 3. | Other matters prescribed by the Presidential Decree as necessary for supporting the verification of the origin. |
| Article 14 (Notification of Revisions to Documents Evidencing Origin) |
| (1) | Any exporter or producer that discovers that there is an error in details regarding the origin of a good after he or she has completed and submitted a document evidencing origin for the purpose of benefiting from the application of a conventional tariff of any Contracting State, shall notify the discovered facts to the head of the competent customs house and the importer of the Contracting State who has received the document evidencing origin, respectively, within the period prescribed by Ordinance of the Ministry of Economy and Finance, as stipulated in the relevant agreement. In such cases, the head of the customs house shall notify the customs authority of the Contracting State of such facts, as determined by the Commissioner of the Korea Customs Service. |
| (2) | Where an importer receives a notice from a person who prepares the document evidencing origin for any goods from any Contracting State or the head of the customs house who accepts an import declaration for the relevant goods, notifying that there is an error in the document evidencing origin and discovers that there is a deficiency in the amount of duties declared or voluntarily paid because of such error, the importer shall file an application for correction or modification of the amount of duties, a revised declaration, or a request for rectification with the head of the competent customs house within the period prescribed by Ordinance of the Ministry of Economy and Finance. <Amended on Dec. 31, 2019> |
| (3) | Where an importer is notified of an error in the details of a document evidencing origin on the goods of the Contracting State by the head of the customs house who has received the relevant report on the importation of the goods, and where the importer becomes aware that the amount of tax reported, or the amount of tax paid by the report is excessive due to such error, he or she shall request the head of the customs office to correct or rectify the amount of tax. <Newly Inserted on Dec. 31, 2019> |
| Article 15 (Retention of Documents Evidencing Origin) |
Any importer, exporter, or producer shall retain the documents prescribed by Presidential Decree as necessary for verifying origins, applying conventional tariffs, etc. pursuant to the relevant agreement and this Act, such as documents evidencing origin, during the period prescribed by Presidential Decree up to five years (or during the period specified in the relevant agreement, if the period specified in the agreement exceeds five years).
| Article 16 (Submission of Documents Evidencing Origin) |
| (1) | Where it is deemed necessary to examine origins, the application of conventional tariffs, or any other relevant matters to the scope stipulated in the relevant agreement, the Commissioner of the Korea Customs Service or the head of a customs house may request any of the following persons to submit the documents prescribed in Article 15: |
| 2. | An exporter or a producer (including an exporter or a producer who resides in any Contracting State); |
| 3. | Other persons prescribed by Ordinance of the Ministry of Economy and Finance as necessary to verify the correctness of the indication of the origin, the appropriateness of the application of conventional tariffs, etc. |
| (2) | Any person requested to submit documents under paragraph (1) shall submit them within the period determined by Ordinance of the Ministry of Economy and Finance, being at least 20 days. |
CHAPTER IV INVESTIGATIONS OF ORIGINS
| Article 17 (Investigations of Origins) |
| (1) | Where it is deemed necessary for verifying whether the origin of exported or imported goods is correct, whether the application of conventional tariffs is appropriate, and so forth, the Commissioner of the Korea Customs Service or the head of a customs house may conduct a documentary or on-site investigation as necessary regarding any of the following persons to the scope stipulated in the relevant agreement, as prescribed by Presidential Decree: |
| 2. | An exporter or a producer (including an exporter or a producer who resides in any Contracting State); |
| 3. | An institution that issues the document evidencing origin; |
| (2) | Where the Commissioner of the Korea Customs Service or the head of a customs house conducts an on-site investigation on an exporter or producer who resides in any Contracting State or a person who resides in any Contracting State among those specified in paragraph (1) 4 (hereafter in this Article referred to as “person subject to investigation in any Contracting State”) pursuant to paragraph (1), he or she shall obtain consent from the person subject to investigation in the Contracting State by notifying such person of the reasons for the investigation, scheduled period of the investigation, and other relevant matters prior to the investigation. |
| (3) | Upon receiving a notice referred to in paragraph (2), any person subject to investigation in any Contracting State may file an application for postponement of the investigation with the Commissioner of the Korea Customs Service or the head of a customs house, or anyone who has given the notice, as prescribed by Presidential Decree, if it is impracticable for him or her to undergo the investigation during the scheduled period of the investigation notified by the Commissioner of the Korea Customs Service or the head of a customs house. |
| (4) | The Commissioner of the Korea Customs Service or the head of a customs house shall not conduct an on-site investigation, if a person subject to investigation in any Contracting State to whom notice referred to in paragraph (2) has been given fails to notify whether he or she consents to the investigation or does not consent to the investigation, within the period prescribed by Ordinance of the Ministry of Economy and Finance, being at least 20 days. |
| (5) | Where the Commissioner of the Korea Customs Service or the head of a customs house conducts a documentary or on-site investigation on a person subject to investigation in any Contracting State pursuant to paragraph (1), he or she shall notify such fact in writing to the relevant importer and the customs authority of the Contracting State. In such cases, a notice to the customs authority of the Contracting State shall be provided only if so specified in the relevant agreement. |
| (6) | Upon completion of a documentary or on-site investigation referred to in paragraph (1), the Commissioner of the Korea Customs Service or the head of a customs house shall notify the person subject to investigation (including anyone who imports the goods produced or exported by the person subject to the investigation in the Contracting State) and the customs authority of the Contracting State, in writing, of the results of the investigation and the details of a decision made with regard thereto, within the period determined by Ordinance of the Ministry of Economy and Finance. In such cases, a notice to the customs authority of the Contracting State shall be given only if so specified in the relevant agreement. |
| (7) | If any person subject to investigation (including a person who imports the goods produced or exported by the person subject to investigation in the Contracting State) has any objection to the details of a notice given pursuant to paragraph (6), he or she may file an objection with the Commissioner of the Korea Customs Service or the head of the competent customs house within 30 days from the date on which the results of the investigation have been notified, as prescribed by Presidential Decree. |
| (8) | Article 112 of the Customs Act shall apply mutatis mutandis to the right of a person subject to investigation who undergoes an investigation pursuant to paragraph (1) to receive assistance. |
| (9) | Where any customs official conducts an investigation prescribed in paragraph (1), he or she shall investigate to the minimum extent necessary and shall not abuse his or her investigation right for other purposes. |
| Article 18 (Investigations of Origins by Requests of Contracting States) |
| (1) | Where the Commissioner of the Korea Customs Service or the head of a customs house receives a request from the customs authority of any Contracting State to verify whether any document evidencing origin of any goods exported by the Republic of Korea is genuine and correct, he or she may conduct a documentary or on-site investigation on any of the following persons as necessary for verifying the origin of the exported goods to the scope stipulated in the relevant agreement, as prescribed by Presidential Decree: |
| 1. | An exporter or producer; |
| 2. | An institution that has issued the document evidencing origin; |
| (2) | Article 17 (6) through (9) shall apply mutatis mutandis to investigations prescribed in paragraph (1). |
| Article 19 (Requests for Investigations of Origin to Contracting States) |
| (1) | Where it is deemed necessary, with respect to goods imported from any Contracting State, to verify the correctness of the indication of the origin, the appropriateness of the application of conventional tariffs, etc. to the scope stipulated in the relevant agreement, the Commissioner of the Korea Customs Service or the head of a customs house may request the customs authority of the Contracting State to verify whether the relevant document evidencing origin is genuine and correct. |
| (2) | The Commissioner of the Korea Customs Service or the head of a customs house shall notify the relevant importer of the fact that the request for verification referred to in paragraph (1) has been made, and when he or she is notified of the results of verification from the customs authority of the Contracting State, he or she shall notify the importer of details of such reply and his or her decision made based on the reply. |
| (3) | The methods and procedures for a request for verifying origins prescribed in paragraphs (1) and (2) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 20 (Investigations of Origin by Contracting States) |
| (1) | Where the customs authority of any Contracting State conducts an on-site investigation on an exporter or producer as necessary to verify the origin of its exported goods to the scope stipulated in the relevant agreement, it shall obtain consent from the relevant person subject to investigation by notifying such person of the reasons for the investigation, scheduled period of the investigation, and other relevant matters prior to the investigation. |
| (2) | Article 112 of the Customs Act shall apply mutatis mutandis to the right of a person subject to investigation, who undergoes an investigation pursuant to paragraph (1) to receive assistance. |
| Article 21 (Suspension of Application of Conventional Tariffs during Periods of Investigations of Origins) |
| (1) | Where the head of a customs house investigates the origin under Article 17 or requests to verify the origin under Article 19, he or she may suspend the application of conventional tariffs on goods of the same kind and quality that a person subject to investigation additionally imports during the period prescribed by Ordinance of the Ministry of Economy and Finance, as prescribed by Presidential Decree. In such cases, goods subject to such suspension shall be limited to goods that the person subject to investigation imports from the same exporter or producer of goods subject to the relevant investigation. |
| (2) | Where it is verified, as a result of an investigation of the origin, that the details of a declaration made by an importer meet the criteria for determining the origin prescribed in Article 7, the head of a customs house shall rectify the amount of duties for the goods to which a conventional tariff has not been applied pursuant to paragraph (1), and refund the difference between the duty amount payable and the duty amount already paid. In such cases, Articles 38-3, 46, and 48 of the Customs Act shall apply mutatis mutandis to the rectification of the amount of duties and the refund of customs duties. |
| (3) | Where an importer requests the head of a customs house to lift the suspension of application of a conventional tariff prescribed in paragraph (1) by providing security, he or she may lift the suspension. |
| (4) | Matters necessary for the suspension of application of conventional tariffs and the procedures and methods for lifting such suspension, the provision of security, and other necessary matters under paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
CHAPTER V SAFEGUARD MEASURES FOR REDRESSING DAMAGE FROM TRADE
| Article 22 (Safeguard Measures) |
| (1) | Where it is found, as a result of an investigation prescribed by Presidential Decree, that an increase in importation of any specific goods originating from any Contracting State causes or threatens to cause serious injury to the domestic industry or disturb the domestic market that produces identical kinds of goods or any goods directly competing with such goods (hereinafter referred to as "serious injury, etc."), to the extent provided for by an agreement, the Minister of Economy and Finance may suspend the progressive annual reduction of the relevant conventional tariff or take measures, such as increasing the relevant tariff rate (hereinafter referred to as "safeguard measure") for such goods, as prescribed by Presidential Decree to the extent necessary for redressing such serious injury, etc. |
| (3) | With respect to any identical goods originating from any Contracting State, the Minister of Economy and Finance shall not simultaneously apply any safeguard measure prescribed in paragraph (1) and an emergency tariff referred to in Article 65 of the Customs Act, as prescribed in the relevant agreement. |
| (4) | Where the Minister of Economy and Finance applies any safeguard measure prescribed in paragraph (1) for more than one year, he or she shall take a measure aimed at its gradual mitigation at intervals of a fixed period of time: Provided, That exceptions may be recognized in cases of countries prescribed by Presidential Decree other than the Contracting States. |
| (5) | Goods subject to safeguard measures, tariff rates, applicable periods, applicable quantity, and other necessary matters for safeguard measures shall be prescribed by Ordinance of the Ministry of Economy and Finance to the scope stipulated in the relevant agreement. |
| Article 23 (Provisional Safeguard Measures) |
| (1) | With respect to any goods on which an investigation referred to in Article 22 (1) has commenced, where an injury that is difficult to recover from has been caused or is likely to be caused unless a countermeasure is taken to prevent serious injury, etc. that may be inflicted during the period of such investigation, the Minister of Economy and Finance may take provisional safeguard measures (hereinafter referred to as "provisional safeguard measure") for redressing or preventing such serious injury, etc. before the investigation is completed as prescribed by Presidential Decree to the scope stipulated in the relevant agreement. |
| (3) | Goods subject to provisional safeguard measures, tariff rates, applicable periods, applicable quantity, and other matters necessary for such provisional safeguard measures shall be prescribed by Ordinance of the Ministry of Economy and Finance to the scope stipulated in the relevant agreement. |
| Article 24 (Special Safeguard Measures concerning Specified Agriculture, Forestry or Livestock Products) |
| (1) | The Minister of Economy and Finance may, if the imported amount of specified agriculture, forestry or livestock products that are conceded under the agreement with any Contracting State exceeds a certain amount (hereafter referred to as "standard trigger level" in this Article), take a measure of imposing a tariff higher than the tax rate conceded, as prescribed by Presidential Decree, on the said specified agriculture, forestry or livestock products (hereinafter referred to as "special safeguard measure concerning specified agriculture, forestry or livestock products"). |
| (2) | Goods subject to special safeguard measures concerning specified agriculture, forestry or livestock products, standard trigger level, tariff rates, applicable periods, application methods, and other necessary matters shall be determined by Presidential Decree to the scope stipulated in the relevant agreement. |
| Article 25 (Special Cases concerning Imposition of Emergency Tariffs Prescribed in the Customs Act) |
| (1) | Where it is found, as a result of an investigation, that an increase in importation of any goods originating from Contracting States specified by Presidential Decree is not a substantive cause of or a threat to cause a serious injury to the domestic industry that produces identical kinds of goods or any goods directly competing with such goods, notwithstanding Article 65 (1) of the Customs Act, the Minister of Economy and Finance may, to the scope stipulated in the relevant agreement, exclude such goods from the list of the goods on which an emergency tariff referred to in Article 65 (1) of the Customs Act is to be imposed. |
| (2) | Notwithstanding Article 68 of the Customs Act, the Minister of Economy and Finance may, to the scope stipulated in the relevant agreement, exclude any agriculture, forestry or livestock product originating from Contracting States specified by Presidential Decree from the list of the goods on which a special emergency tariff referred to in Article 68 of the Customs Act is to be imposed. |
| Article 26 (Countermeasures against Measures Taken by Contracting States) |
| (1) | Where the government of any Contracting State takes any of the following measures (hereinafter referred to as "measures taken by a Contracting State") against specific goods originating from the Republic of Korea, the Government may consult with the government of the Contracting State on appropriate methods for compensation, etc. to be adopted by the Contracting State with respect to the measures it has taken: |
| 1. | Where it takes a safeguard measure or any measure equivalent to provisional emergency tariffs pursuant to the relevant agreement; |
| 2. | Where it fails to discharge the duty of the concession of tariff, such as tariff elimination or tariff reduction stipulated in the relevant agreement, or delays such duty. |
| (2) | Where a consultation is not held or an agreement is not reached within 30 days from the date a consultation begins, the Government may take, pursuant to the relevant agreement, any countermeasure the level of which shall be equivalent to the measure taken by the Contracting State, unless methods of compensation, etc. referred to in paragraph (1) are otherwise provided for in the agreement. |
| (3) | Countermeasures prescribed in paragraph (2) shall be limited to the extent as necessary to respond to the measure taken by the Contracting State, and necessary matters, such as the timing and other details thereof, shall be prescribed by Presidential Decree. |
| Article 27 (Consultations on Anti-Dumping Duties) |
| (1) | Upon receipt of a request for imposition of anti-dumping duties prescribed in Article 51 of the Customs Act on any goods imported from any Contracting State, the Government may notify such fact to the government of the Contracting State and consult with such government before investigating the relevant injury sustained by domestic industries. |
| (2) | Matters necessary for an investigation on injuries sustained by domestic industries, notification and consultation, and other related matters under paragraph (1) shall be prescribed by Presidential Decree to the scope stipulated in the relevant agreement. |
| Article 28 (Consultations on Countervailing Duties) |
| (1) | Upon receipt of a request for imposition of countervailing duties prescribed in Article 57 of the Customs Act on any goods imported from any Contracting State, the Government may notify such fact to the government of the Contracting State and consult with such government before investigating the relevant injury sustained by domestic industries. |
| (2) | Matters necessary for an investigation on injuries sustained by domestic industries, notification and consultation, and other related matters under paragraph (1) shall be prescribed by Presidential Decree to the scope stipulated in the relevant agreement. |
CHAPTER VI SPECIAL EXCEPTIONS TO CUSTOMS CLEARANCE AND RECIPROCAL COOPERATION ON CUSTOMS AFFAIRS
| Article 29 (Special Exceptions to Customs Clearance Procedures) |
The Commissioner of the Korea Customs Service may apply a more expeditious and simpler customs clearance procedure to goods imported from any Contracting State, as prescribed by Presidential Decree, to the scope stipulated in the relevant agreement.
| Article 30 (Exemption of Customs Duties for Temporarily Imported Goods) |
| (1) | Any of the following goods imported from any Contracting State may be exempted from customs duties, irrespective of their origin, to the scope stipulated in the relevant agreement: |
| 1. | Goods prescribed by Ordinance of the Ministry of Economy and Finance pursuant to the relevant agreement, which are imported temporarily to be re-exported within a period prescribed by Presidential Decree not exceeding two years from the acceptance date of the relevant import declaration; |
| 2. | Goods prescribed by Ordinance of the Ministry of Economy and Finance, which were exported to the Contracting State and are re-imported for the purpose of repairing, remodeling, etc.; |
| 3. | Goods prescribed by Ordinance of the Ministry of Economy and Finance, such as commercial samples and goods for advertising the price of which is not more than a specific amount of money. |
| (2) | Notwithstanding paragraph (1) 2, any of the following cases shall not be eligible for exemption from customs duties: |
| 1. | Where customs duties are refunded pursuant to the Customs Act or the Act on Special Cases concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export; |
| 2. | Where customs duties are not imposed on goods processed in bonded zone or overdue storage goods, which had been sold under the condition of re-exporting. |
| (3) | Article 97 (2) through (4) of the Customs Act shall apply mutatis mutandis to the restrictions on the use of goods exempted from customs duties pursuant to paragraph (1) 1 for any purpose other than the originally intended purposes. |
| (4) | The procedure for exemption from customs duties under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 31 (Advance Rulings on Origins) |
| (1) | Any person (including an exporter or producer in any Contracting State or an agent of either of them) who has questions and concerns about any of the matters prescribed by Presidential Decree as those on which the application of conventional tariffs is based, such as whether the criteria for determining origin prescribed in Article 7 are satisfied, may file an application for examination on such questions and concerns (hereinafter referred to as "advance ruling"), accompanied by the documents prescribed by Presidential Decree, with the Commissioner of the Korea Customs Service in advance before filing an import declaration for relevant goods: Provided, That the same shall not apply if the relevant agreement has no specific provision for the advance ruling. |
| (2) | Upon receiving an application for an advance ruling pursuant to the main clause of paragraph (1), the Commissioner of the Korea Customs Service shall examine the case within the period prescribed by Presidential Decree and notify the applicant of the results thereof in writing, describing the results (hereinafter referred to as "written advance ruling"): Provided, That if it is impracticable to make an advance ruling because the material submitted is incomplete, he or she shall notify the applicant of the reason therefor. |
| (3) | Upon receiving an application from an importer for the application of conventional tariffs in accordance with a written advance ruling, the head of a customs house shall apply the conventional tariffs to the relevant goods, if he or she concludes that the details of the goods for which an import declaration was filed are identical with the details of the written advance ruling, except in exceptional circumstances prescribed by Presidential Decree. |
| (4) | A person who files an application for an advance ruling shall pay the fee prescribed by Ordinance of the Ministry of Economy and Finance. |
| (5) | Any person who has an objection to the results of an advance ruling prescribed in paragraph (2) (including a person who has been notified of a modification of a written advance ruling pursuant to Article 32 (2)) may file an objection with the Commissioner of the Korea Customs Service within 30 days from the date on which the results were announced, as prescribed by Presidential Decree. |
| (6) | The procedures and methods for applying for an advance ruling, and other necessary matters, shall be prescribed by Ordinance of the Ministry of Economy and Finance. |
| Article 32 (Modifications of Written Advance Rulings) |
| (1) | The Commissioner of the Korea Customs Service may modify details of a written advance ruling in accordance with the relevant agreement when grounds prescribed by Presidential Decree arise, such as changes in facts or circumstances in which a written advance ruling was based. |
| (2) | Where the Commissioner of the Korea Customs Service intends to modify details of a written advance ruling prescribed in paragraph (1), he or she shall notify the applicant referred to in Article 31 (2) of the details of the modification. |
| (3) | Where details of a written advance ruling are modified pursuant to paragraph (1), the modified details shall be applicable to the goods for which an import declaration is filed after the date of such modification: Provided, That if the relevant agreement stipulates otherwise, whether and how the modified details are applicable shall be determined as prescribed by Presidential Decree, to the scope stipulated in the relevant agreement. |
| (4) | Notwithstanding paragraph (3), where details of a written advance ruling are modified due to an applicant's fault, such as omission to submit any material or submission of any false material, the modified details shall also apply retrospectively to the goods for which an import declaration was filed before the date of modification with respect to the relevant advance ruling. |
| Article 33 (Reciprocal Cooperation) |
| (1) | The Minister of Economy and Finance may establish and operate a consultative organization jointly with the government of any Contracting State, as prescribed by the relevant agreement, for consultation on matters concerning the implementation of such agreement (limited to the customs affairs). In such cases, the Minister of Economy and Finance shall consult in advance with the Minister of Trade, Industry and Energy. |
| (2) | The Commissioner of the Korea Customs Service may cooperate with the customs authority of any Contracting State, as prescribed by the relevant agreement, in the streamlining of customs clearance procedures necessary for uniform and efficient implementation of the agreement, the exchanges of information to the extent not violating any other Act, the technical support for customs affairs, and other matters prescribed by Presidential Decree. |
| (3) | The Commissioner of the Korea Customs Service may perform any of the following acts to the scope prescribed by the relevant agreement, if it is necessary for verifying whether the origin of goods imported from any Contracting State is correct or whether the application of conventional tariffs is appropriate: |
| 1. | Requesting the customs authority of any Contracting State to supply necessary materials; |
| 2. | Conducting an investigation of origin simultaneously with any Contracting State; |
| 3. | Dispatching customs officials to any Contracting State to assign them to conduct a direct investigation of origin or participate in an investigation of origin conducted by the Contracting State; |
| 4. | Accepting a request from the customs authority of any Contracting State for cooperation in an investigation of origin pursuant to the relevant agreement. |
| (4) | Where the Commissioner of the Korea Customs Service cooperates with the customs authority of any Contracting State or takes any necessary measure pursuant to paragraphs (2) and (3), he or she shall report the results thereof to the Minister of Economy and Finance within 30 days. |
| Article 34 (Applications for Reciprocal Consultations on Customs Duties) |
| (1) | Where the customs authority of any Contracting State has made or is likely to make a determination of origin or impose a tariff on any goods exported by an exporter or producer in contravention of the relevant agreement, the exporter or producer may file an application with the Minister of Economy and Finance for reciprocal consultation on customs duties with the customs authority of the Contracting State, as prescribed by Presidential Decree. |
| (2) | Upon receiving an application for reciprocal consultation on customs duties referred to in paragraph (1), the Minister of Economy and Finance shall request the customs authority of the Contracting State to have reciprocal consultation on customs duties, except in any of the following cases. In such cases, the Minister of Economy and Finance shall consult in advance with the Minister of Trade, Industry and Energy: |
| 1. | Where there is a final and conclusive judgment by a domestic or foreign court with respect to the determination of origin or the imposition of tariffs; |
| 2. | Where it is deemed that the applicant intends to use the procedures for reciprocal consultation on customs duties for the purpose of evading customs duties; |
| 3. | Where the application is filed three years after the date on which the determination of origin or the imposition of customs duties was made. |
| (3) | Where it is deemed necessary for prompt reciprocal consultations on customs duties, the Minister of Economy and Finance may make a request to hold a meeting of the consultative organization referred to in the former part of Article 33 (1), as prescribed by the relevant agreement. In such cases, the Minister of Economy and Finance shall consult in advance with the Minister of Trade, Industry and Energy. |
| (4) | Other matters necessary for reciprocal consultations on customs duties shall be prescribed by Presidential Decree. |
CHAPTER VII RESTRICTIONS ON APPLICATION OF CONVENTIONAL TARIFFS
| Article 35 (Restriction on Application of Conventional Tariffs) |
| (1) | The head of a customs house need not apply conventional tariffs for any of the following imported goods, except as otherwise provided for in the relevant agreement. In such cases, the head of a customs house shall levy and collect the duty amount payable or the difference between the duty amount payable and the duty amount already paid as prescribed in Articles 38-3 (6) and 39 (2) of the Customs Act: <Amended on Dec. 31, 2019> |
| 1. | Where an importer, or an exporter or producer of any Contracting State (hereafter referred to as "exporter, etc. of any Contracting State" in this Article and Article 37) fails to submit any material requested by the Commissioner of the Korea Customs Service or the head of a customs house within a period prescribed in Article 16 (2) without good cause or submits false or untruthful documents: Provided, That cases where an inadvertent error is made on matters stated in the document evidencing origin and the error does not have any actual effect on the determination of an origin shall be excluded; |
| 2. | Where an exporter, etc. of any Contracting State fails to reply to a documentary investigation conducted by the Commissioner of the Korea Customs Service or the head of a customs house pursuant to Article 17 (1) within a period prescribed by Ordinance of the Ministry of Economy and Finance; or where an exporter, etc. of any Contracting State fails to notify the Commissioner of the Korea Customs Service or the head of a customs house, within a period prescribed in Article 17 (4), of whether he or she consents to an on-site investigation upon receiving a request for consent from the Commissioner of the Korea Customs Service or the head of a customs house pursuant to Article 17 (2) or does not consent to such on-site investigation without any good reason; |
| 3. | Where an exporter, etc. of any Contracting State denies a customs official's access to account books or relevant materials necessary for verifying a document evidencing origin without any justifiable reason when the customs official conducts an on-site investigation referred to in Article 17 (1); or where an exporter, etc. of any Contracting State fails to keep any document evidencing origin prescribed by the relevant agreement; |
| 4. | Where it is verified that, as a result of a documentary or on-site investigation conducted pursuant to Article 17, the origin declared to the head of a customs house differs from the actual origin; or where the material submitted by an importer or an exporter, etc. of any Contracting State does not contain any information necessary for verifying the correctness of the indication of the origin pursuant to Article 7; |
| 5. | Where the customs authority of any Contracting State fails to reply, within a period prescribed by Ordinance of the Ministry of Economy and Finance, to a request to verify the origin made by the Commissioner of the Korea Customs Service or the head of a customs house under Article 19 (1); where it is found from a reply that the origin declared to the head of a customs house differs from the actual origin; or where a reply does not contain any information necessary for verifying the correctness of the indication of the origin pursuant to Article 7; |
| 6. | Where an importer who has filed an application for an advance ruling referred to in Article 31 (1) intentionally fails to submit any material that may affect the outcome of the advance ruling, submits false materials, or fails to perform any condition set forth in a written advance ruling; |
| 7. | Where any ground for refusing or restricting the application of a conventional tariff, as prescribed in the relevant agreement, has arisen; |
| 8. | In other cases falling under causes prescribed by Presidential Decree where the Commissioner of the Korea Customs Service or the head of a customs house is unable to verify the correctness of the indication of the origin. |
| (2) | A duty amount payable or the difference between the duty amount payable and the duty amount already paid prescribed in the latter part, with the exception of the subparagraphs, of paragraph (1) shall not be levied if five years have elapsed from the date prescribed by Presidential Decree. In such cases, where the imposition of tariffs falls under any subparagraph of Article 21 (2) of the Customs Act, necessary dispositions including rectification may be taken within each relevant period. |
| (3) | The procedures and methods for restricting the application of conventional tariffs and other necessary matters under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
| Article 36 (Additional Duties) |
| (1) | Where the head of a customs house collects customs duties unpaid by the time limit for payment under Article 9 of the Customs Act (hereinafter referred to as "statutory time limit for payment") or underpaid customs duties (hereinafter referred to as “shortage of customs duties”) pursuant to Article 38-3 (1) or (6) of the Customs Act with respect to goods to which a conventional tariff has been applied, the amount computed by aggregating the following amounts shall be collected as additional duties: <Amended on Dec. 31, 2019; Dec. 22, 2020> |
| 1. | 10/100 of the relevant shortage of customs duties: Provided, That when the relevant shortage of customs duties has resulted from a request for application of conventional tariffs filed by an importer by unjust means prescribed by Presidential Decree, such as forgery or alteration of a certificate of origin, etc., it shall refer to the amount equivalent to 40/100 of the relevant shortage of customs duties; |
| 2. | The amount computed by multiplying the underpaid customs duties or shortage of customs duties by the number of days prescribed in item (a) and the interest rate prescribed in item (b): |
| (a) | The number of days from the day following the statutory time limit for payment (referring to the day when the customs duties are refunded under Article 9 (5) where additional duties are to be collected from an importer who has requested the ex post facto application of conventional tariffs referred to in Article 9 (1) or (2)) to the payment date (excluding the period from the date on which a duty payment notice is served to the time limit for payment stipulated in the notice): |
| (i) | Deleted; <Dec. 31, 2019> |
| (ii) | Deleted; <Dec. 31, 2019> |
| (b) | The interest rate prescribed by Presidential Decree in consideration of the interest rates, etc. applied to loans in arrears by finance companies, etc.; |
| 3. | 3/100 of the amount of customs duties unpaid by the time limit for payment specified in the payment notice (limited to where the customs duties are not fully paid by the time limit for payment specified in the payment notice), out of the amount of customs duties payable by the statutory time limit for payment. |
| (2) | Notwithstanding paragraph (1), the following additional duties may not be collected partially or wholly in cases prescribed by Presidential Decree (excluding cases falling under the proviso of paragraph (1) 1), including when an importer files an application for a revised declaration referred to in Article 14 (2) before receiving a notice on investigation of origin referred to in Article 17 (1): <Amended on Dec. 31, 2019; Dec. 22, 2020> |
| 1. | An amount referred to in paragraph (1) 1: |
| 2. | An amount referred to in paragraph (1) 2 (excluding the amount corresponding to the period from the date immediately following the time limit for payment specified on the payment notice to the payment date). |
| (3) | Where additional duties are not to be collected partially or wholly as prescribed in paragraph (2), the ratio of and methods for non-collection of additional duties and the like shall be prescribed by the Presidential Decree. |
| Article 37 (Designation of Persons subject to Restrictions on Application of Conventional Tariffs and Revocation Thereof) |
| (1) | The head of a customs house may designate an exporter, etc. of any Contracting State who has made false or incorrect statements on essential details in a document evidencing origin at least twice consecutively during the recent five years as a person subject to restriction on application of conventional tariffs (hereafter referred to as “person subject to restriction on application” in this Article), as prescribed by Presidential Decree pursuant to the relevant agreement. |
| (2) | The head of a customs house need not apply conventional tariffs to all of the goods of the same kind and quality exported or produced by a person designated as a person subject to restriction on application under paragraph (1) for up to five years (or for a period of time prescribed by the relevant agreement, if such period of time exceeds five years), as prescribed by Presidential Decree. |
| (3) | Notwithstanding paragraph (2), the head of a customs house may examine whether the requirements for application of conventional tariffs, such as origin, are met for each item for which an import declaration is filed, and may apply the corresponding conventional tariffs if such requirements are met. |
| (4) | Where a person designated as a person subject to restriction on application under paragraph (1) proves that he or she has faithfully prepared the document evidencing origin as prescribed by Presidential Decree, the head of a customs house may revoke his or her designation as a person subject to restriction on application. |
| (5) | The procedures of and methods for designating a person subject to restriction on application and revoking such designation, and other necessary matters under paragraphs (1) through (4) shall be prescribed by Presidential Decree. |
CHAPTER VIII SUPPLEMENTARY PROVISIONS
| Article 38 (Duty of Confidentiality) |
| (1) | No customs official or issuer of a document evidencing origin who is specified by Presidential Decree shall supply or divulge to any third person (including the customs authority of any Contracting State) any material designated as confidential material (hereinafter referred to as "confidential material"), as prescribed by Presidential Decree, that an importer, an exporter, a producer (including an exporter or a producer who resides in the Contracting State and any other interested party), or an authorized agency of the Contracting State submitted for the determination of origin, the imposition or collection of customs duties, or customs clearance pursuant to the relevant agreement and this Act, nor use such material for any purpose other than originally intended purposes: Provided, That any confidential material may be supplied in any of the following cases only for the specific purpose: |
| 1. | Where a State agency demands any confidential material for the purpose of using it for a contentious case on customs duties or the prosecution of a customs offender; |
| 2. | Where submitting any confidential material is demanded by an order issued by a court or a writ issued by a judge; |
| 3. | Where customs officials supply one another with any confidential material as may be necessary for the imposition and collection of customs duties, customs clearance, interrogation, or inspection; |
| 4. | Where any confidential material is demanded under other statutes. |
| (2) | The retention period and the retention method of confidential material and the procedure for the supply and use of such confidential material shall be prescribed by Presidential Decree. |
| Article 39 (Filing Objections) |
Where an exporter or producer of any Contracting State prescribed by Presidential Decree suffers any infringement on his or her rights or interests because he or she was subject to an illegal or unfair disposition or unable to receive a necessary disposition with respect to the disposition related to any of the following, he or she may file a petition for examination or adjudication pursuant to Article 119 of the Customs Act: | 1. | Examination on the origin prescribed in Article 17; |
| 2. | Advance ruling on the origin, etc. prescribed in Article 31. |
| Article 40 (Submission of Documentary Evidence and Evidential Materials for Objections) |
| (1) | The adjudicating authority for a petition for examination or adjudication prescribed in Article 119 of the Customs Act (hereafter referred to as "adjudicating authority" in this Article) may, if deemed necessary for a review on the petition for examination or adjudication filed by a petitioner, require an exporter or producer of any Contracting State to submit documentary evidence or evidential materials directly to the authority. |
| (2) | The adjudicating authority shall not supply or divulge to any third person (including the customs authority of any Contracting State) any material that a petitioner or an exporter or producer of any Contracting State referred to in paragraph (1) requests to keep confidential when he or she submits the material, nor use such material for any purpose other than originally intended purposes. In such cases, Article 38 shall apply mutatis mutandis to the retention, provision, use, etc. of such material. |
| Article 41 (Requests for Submission of Relevant Materials) |
| (1) | The Minister of Economy and Finance may, if deemed necessary for an implementation of this Act and follow-up measures for an agreement, request a State agency, local government, major economic organization, association or cooperative by type of business, or any other interested party to submit data relevant to the imposition and collection of customs duties and customs clearance, statistics of foreign trade, materials concerning the current status of a related industry or other necessary materials. |
| (2) | The head of an agency, organization, association, or cooperative shall, upon receiving a request referred to in paragraph (1), cooperate as requested unless there is good cause, except as otherwise provided in other statutes or regulations. |
| Article 42 (Delegation of Authority) |
The Minister of Economy and Finance, the Commissioner of the Korea Customs Service, or the head of a customs house may partially delegate his or her authority granted pursuant to this Act to the Commissioner of the Korea Customs Service, the head of a customs house, or the head of any other affiliated agency, as prescribed by Presidential Decree.
| Article 43 (Implementation of Agreements) |
Matters necessary for implementing any agreement shall be prescribed by Presidential Decree.
CHAPTER IX PENALTY PROVISIONS
| Article 44 (Penalty Provisions) |
| (1) | Any person who supplies or divulges to a third person any confidential material, or uses any confidential material for any purpose other than originally intended purposes, in violation of Article 38 (including cases to which the aforesaid Article shall apply mutatis mutandis pursuant to Article 40 (2)) shall be punished by imprisonment for not more than three years or by a fine not exceeding 30 million won. |
| (2) | Any of the following persons shall be punished by a fine not exceeding 20 million won: Provided, That any person who falls under subparagraphs 2 and 3 by negligence shall be punished by a fine not exceeding three million won: |
| 1. | A person who applies for and obtains a document evidencing origin prescribed in any agreement or this Act by fraud or other improper means and or a person who prepares or issues a document evidencing origin by fraud or other improper means; |
| 2. | A person (excluding a person who falls under Article 46 (2) 2) who uses any goods eligible for the application of a specific use duty rate for any purpose other than originally intended purposes or transfers such goods, in violation of Article 83 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 4 (2); |
| 3. | A person who fails to retain relevant documents without good cause in violation of Article 15; |
| 4. | A person who submits a false document of the document that the Commissioner of the Korea Customs Service or the head of a customs house has requested under Article 16 (1); |
| 5. | A person (excluding a person who falls under Article 46 (2) 4) who uses any duty-free goods for any purpose other than originally intended purposes or transfers such goods, in violation of Article 97 (2) of the Customs Act which shall apply mutatis mutandis pursuant to Article 30 (3); |
| 6. | A person who submits any false materials, or who intentionally fails to submit any materials, which are required for an advance ruling referred to in Article 31; |
| 7. | A customs official, or issuer of a document evidencing origin prescribed by Presidential Decree, who issues a document evidencing origin referred to in any agreement or this Act by fraud or other improper means. |
| (3) | Any person who applies for and obtains or prepares and issues a document evidencing origin referred to in any agreement or this Act by negligent misrepresentation shall be punished by a fine not exceeding three million won: Provided, That the same shall not apply to any person who gave notice of a revision to such document evidencing origin in accordance with Article 14 (1). <Amended on Dec. 31, 2019> |
| Article 45 (Joint Penalty Provisions) |
If the representative of a legal entity or an agent, an executive, an employee, or a servant of a legal entity or a private individual commits any offense set forth in Article 44 (2) and (3) in the scope of the business of the legal entity or the private individual, such actor not only shall be subject to punishment accordingly, but the legal entity or the private individual shall also be subject to punishment by a fine prescribed in the aforesaid Article: Provided, That this shall not apply where the legal entity or the individual person has not been negligent to pay due attention and supervision concerning the business to prevent such violation.
| Article 46 (Administrative Fines) |
| (1) | Any of the following persons (excluding an exporter or producer of any Contracting State) shall be subject to an administrative fine not exceeding 10 million won: |
| 1. | A person who fails to submit required documents within the period prescribed in Article 16 (2) without good cause; |
| 2. | A person who rejects, obstructs, or evades a documentary or on-site investigation by the Commissioner of the Korea Customs Service or the head of a customs house pursuant to Articles 17 (1) and 18 (1). |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Dec. 31, 2019> |
| 1. | A person who uses any goods whose tariff rates are differently determined according to their purpose for qualifying for a lower tariff rate without gaining approval, in violation of Article 83 (1) of the Customs Act which shall apply mutatis mutandis pursuant to Article 4 (2); |
| 2. | A person who transfers any goods in violation of Article 83 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 4 (2), to another person who intends to use the goods for the same purpose as any purpose to which a lower tariff rate is applicable; |
| 3. | A person who fails to file an application for correction or modification of the amount of duties, or a revised declaration with the head of a customs house even after he or she is notified of an error in a document evidencing origin pursuant to Article 14 (2); |
| 4. | A person who transfers any goods in violation of Article 97 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 30 (3), to any person who is eligible for the reduction of or exemption from customs duties if the person imported the goods directly. |
| (3) | Administrative fines prescribed in paragraphs (1) and (2) shall be levied and collected by the head of a customs house, as prescribed by Presidential Decree. |
ADDENDA <Act No. 13625, Dec. 29, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2016.
Article 2 (Applicability to Notification of Revisions to Documents Evidencing Origin)
The amended provisions of Article 14 (1) shall begin to apply to cases where notification of revisions is made after this Act enters into force. Article 3 (Applicability to Rights of Persons subject to Investigations of Origins to Receive Assistance)
The amended provisions of Articles 17 (8) (including cases applied mutatis mutandis under Article 18 (2)) and 20 (2) shall also apply to investigations being conducted pursuant to the previous provisions of Articles 13 (2) and 13-2 (1) as at the time this Act enters into force. Article 4 (Applicability to Lifting of Suspension of Application of Conventional Tariffs)
The amended provisions of Article 21 (3) shall also apply to goods subject to suspension of application of conventional tariffs under the previous provisions of Article 17 (1) as at the time this Act enters into force. Article 5 (Applicability to Penalty Tax)
The amended provisions of Article 36 shall begin to apply to cases where an import declaration is made after this Act enters into force. Article 6 (Applicability to Provision of Confidential Materials)
The amended provisions of Article 38 (1) 4 shall apply starting with a case where the provision of confidential materials is demanded for the first time after this Act enters into force. Article 7 (General Transitional Measures)
Any disposition, procedure and other acts done or made pursuant to the previous provisions as at the time this Act enters into force shall be deemed done or made under the corresponding amended provisions of this Act.
Article 8 (Transitional Measures concerning Certification of Customs Approved Registered Exporters)
Any person who has been designated as a customs approved registered exporter or whose designation as a customs approved registered exporter has been revoked as at the time this Act enters into force shall be deemed a person who has been designated as a customs approved registered exporter or whose designation has been revoked under the amended provisions of Article 12. Article 9 (Transitional Measures concerning Designation of Persons subject to Restrictions on Application of Conventional Tariffs)
Any person subject to restrictions on application of conventional tariffs under the previous provisions of Article 16 (3) as at the time this Act enters into force shall be deemed to have been designated as a person subject to restrictions of application of conventional tariffs pursuant to the amended provisions of Article 37. Article 10 (Transitional Measures concerning Penalty Provisions)
In applying the penalty provisions to acts committed before the enforcement date of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements as amended by Act No. 9271, the previous penalty provisions (meaning the provisions applicable before the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements was amended by Act No. 9271) shall apply to such acts.
Article 11 (Relationship to Other Statutes and Regulations)
Where any of the previous provisions of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements are cited by any other statutes or regulations as at the time this Act enters into force, if this Act includes corresponding provisions, the corresponding provisions of this Act shall be deemed cited in lieu of the previous provisions.
ADDENDA <Act No. 16836, Dec. 31, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2020: Provided, That the amended provisions of Article 9 (excluding the parts related to Article 38-3 of the Customs Act in paragraph (6)) and the amended provisions of Article 36 (1) 2 (a) (limited to the parts related to Article 9) shall enter into force on April 1, 2020. Article 2 (General Applicability)
This Act shall begin to apply to goods for which an import or export declaration is filed after this Act enters into force.
Article 3 (Applicability to Demand for Submission of Documents Evidencing Origin)
The amended provision of Article 8 (2) shall begin to apply where the submission of a document evidencing origin is demanded after this Act enters into force. Article 4 (Applicability to Application for Ex Post Facto Application of Conventional Tariffs)
The amended provisions of Article 9 (2) shall begin to apply to a request for the ex post facto application of a conventional tariff made on or after April 1, 2020. Article 5 (Applicability to Penalty Tax)
The amended provisions of Article 36 shall begin to apply to goods for which a request is made for the application of a conventional tariff after this Act enters into force.
ADDENDA <Act No. 17649, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Articles 2 through 15 Omitted.