Korea Certified Customs Attorney SJ

Pursuant to Article 38 (2) of the CUSTOMS ACT ( 관세법 ), in general cases, the amount of duty by self-assessment shall be reviewed by Customs after an import declaration is accepted. So, if incorrect HS Code was used in importing a product and the declared tariff rate is lower than that of correct HS Code, Customs can collect the difference of customs duties with additional tax as penalty.   Then, how long does the risk of incorrect declaration of HS Code exist? Generally speaking, it is 5 years. Because it is stipulated in Article 21 (1) of the Act that no customs duty may be assessed after the lapse of five years from the date on which the relevant customs duties were due to be assessed. Although it is 10 years in the cases where customs duties were evaded or a refund, reduction, or exemption of customs duties was claimed by improper means, as technical issues are involved in HS Code determination, 10-year limitation period for assessing customs duties rarely applies to HS Code...

  Korean government chose to include the cost of transport of the imported goods to the port of importation in the customs value, which is stipulated in Article 30 (1) 6 of the CUSTOMS ACT ( 관세법 ).   According to Article 20 (5) of the ENFORCMENET DECREE OF THE CUSTOMS ACT ( 관세법시행령 ), the cost is defined as the cost incurred until the arrival of a vessel loaded with the imported goods at the port of entry, ready for the unloading work of such goods.   The time when the unloading work of imported goods is ready had been construed as the time when the vessel comes alongside the pier. Additional cost like demurrage which can be incurred when port congestion happens, as a vessel that arrives in Korea has to wait long for its turn to come alongside the pier, had been subject to taxation.   There had been some tax tribunal cases regarding taxation of demurrage. Until recently, the same construal had applied.   The port congestion caused by COVID-19 made...