Cases where the Report on Import of Toxic Substances is not required

If a chemical subject to the CHEMICAL SUBSTANCES CONTROL ACT (화학물질관리법) contains a toxic substance (regarding how to verify chemical substances, please refer to my previous post: https://koreacertifiedcustomsattorneysj.blogspot.com/2022/04/detailed-statement-of-verification-on.html), pursuant to Article 20 (2) of the Act, a person who intends to import it shall submit a report on import in Form 23 attached to the ENFORCEMENT RULE OF THE CHEMICAL SUBSTANCES CONTROL ACT (화학물질관리법 시행규칙) to the head of a local environmental agency, together with a document proving the ingredients of the toxic substance.

 

In Form 23, product name, country of export, use, annual import volume estimate, HS Code of Korea, product model number and specification, name, number (or CAS No.), and content (%) of toxic substance, etc. shall be input. The report can be filed electronically through the website, CSCA Petition 24 (https://icis.me.go.kr/cdms/). In case the reported matters are changed (in the case of annual import volume estimate, 50% or more increase), a Report on Changes in Form 25 shall be submitted.

 

Nonetheless, it is easy to overlook the obligation because the Report on Import of Toxic Substances is not required in importing a small amount of toxic substances pursuant to Article 20 (3) of the Act. In Article 10 of the ENFORCEMENT DECREE OF THE CHEMICAL SUBSTANCES CONTROL ACT (화학물질관리법 시행령), following cases are prescribed as exempt from reporting on import of toxic substances :

-      Importing reagents for experimental, research, or testing purposes (including standard gas to be used for correction or measurement of measuring instruments) to use them for such purposes;

-      Importing toxic substances not exceeding 100 kilograms per year;

-      Importing toxic substances for which Permission to Import Restricted Substances has been granted.

 

The regulation shall be carefully interpreted. In importing reagents for experimental, research, or testing purposes to sell them, the first exemption doesn’t apply.

The 100 kilograms threshold shall be calculated on the basis of whole product volume. For example, in the case below, the Report on Import of Toxic Substances shall be submitted prior to the third import (importing Product C).



In addition to the Report on Import of Toxic Substances, a person who intends to import toxic substances shall consider the permission to conduct hazardous chemical business (Hazardous chemical substances include toxic substances). Under the CHEMICAL SUBSTANCES CONTROL ACT, hazardous chemical business is classified as follows and requires permission to conduct:

-      Hazardous chemical manufacturing business: Businesses that manufacture hazardous chemical substances for sale other than substances subject to permission and prohibited substances;

-      Hazardous chemical sales business: Businesses that commercially sell hazardous chemical substances other than substances subject to permission and prohibited substances;

-      Hazardous chemical keeping or storage business: Businesses that keep or store hazardous chemical substances, other than substances subject to permission and prohibited substances, in a certain facility for the purposes of manufacturing, use, sale, and transport;

-      Hazardous chemical transport business: Business of transporting (excluding transport by air, ship, or train) hazardous chemical substances other than substances subject to permission and prohibited substances;

-      Hazardous chemical using business: Businesses that use hazardous chemical substances, other than substances subject to permission and prohibited substances, in the course of their work, such as manufacturing, cleaning, or painting products.

 

Pursuant to Article 29 of the Act, permission to conduct hazardous chemical business doesn’t apply to a person who conducts the business of selling, keeping, storing, transporting, or using reagents intended for use in experiments, research, or testing, which fall under hazardous chemical substances, for their intended purposes. Instead, according to Article 29-3 of the Act, a person who intends to conduct a business of selling reagents for use in experiments, research, or testing that fall under hazardous chemical substances for their intended purpose shall file a report thereon with the head of a local environmental agency.

 

With respect to reagents intended for use in experiments, research, or testing, it is true that loosened control applies. However, the Report on Import of Toxic Substances is exempted only in the cases where they are imported by a person who will use them for their intended purposes.

 

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