Cases where export license of strategic goods can be exempted

In principle, exporters shall obtain export license before filing an export declaration of strategic goods. However, cases prescribed in Article 26 (1) of the PUBLIC NOTICE ON TRADE OF STRATEGIC ITEMS (전략물자 수출입고시) are exempt from export license unless the strategic goods are exported to, transited or trans-shipped in one of the Zone Na-2 countries (Central African Republic, North Korea, Democratic Republic of the Congo, Iraq, Lebanon, Libya, Somalia, South Sudan, Sudan, Syria, and Yemen)

 

The special cases are:

-        Supplying ship or aircraft equipment for its own use of a foreign ship or aircraft in South Korea

-        Exporting machinery, equipment, or components used for urgent repairs, free of charge, for the safe operation of a ship or aircraft

-        Exporting public goods for delivery to diplomatic offices (including overseas trade offices of the KOTRA (Korea Trade Investment Promotion Agency)), Korean military dispatched overseas, or diplomatic envoys

-        Exporting goods exempt from export license under treaties or international agreements concluded by the Korean government to international organizations

-        Returning imported strategic goods to the manufacturer or original exporter. If the person who returns the imported strategic goods is different from the original consignee, documentary evidence is required to prove the transaction between the two. If the place receiving the returning strategic goods is located in the country other than the original country of exportation, documentary evidence is required to prove that the place is under the control and supervision of the original exporter.

-        Re-exporting repaired or replaced strategic goods that have been re-imported for the reason of repair, sub-par performance, or replacement after exportation with export license to the same end user in the export license (including the case of urgently exporting the same strategic goods as specified in the export license to the same end user and re-importing the originally exported strategic goods within 6 months from the date of export declaration of the same strategic goods)

-        Exporting strategic goods falling under the dual-use items of the Wassenaar Arrangement (excluding sensitive items, highly sensitive items, software, and items controlled under other international export control regimes) total export value of which is USD 8,000 or less However, cases where strategic goods have been exported exceeding USD 30,000 one year before the final export declaration date to the same purchaser and cases where strategic goods are likely to be dedicated to weapons of mass destruction or other similar purposes are excluded.

-        Exporting strategic goods under the condition of re-importation or destruction at site within 1 year after exhibiting at exhibitions, trade shows, fairs, etc. However, the sensitive items and highly sensitive items of the Wassenaar Arrangement's dual-use items, the CAT1 of the Missile Technology Control Regime’s dual-use items, the nuclear materials, facilities, and equipment, the munitions and dual-use items used for military purpose, the items controlled by the Australia Group, and the items controlled under the CWC (Convention on the Prohibition of the Development Production Stockpiling and Use of Chemical Weapons and on Their Destruction) are excluded.

-        Exporting encryption items (Control No.: 5A002.a.1 - 5A002.a.4, 5B002, 5D002) for the purpose of constructing and operating a private company’s internal system, or developing and producing a private company’s civilian products, if the final destination is a party to the Wassenaar Arrangement or a private end user whose head office is located in Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg,    Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, UK, USA, or South Korea

-        Exporting encryption items (Control No.: 5A002.a.1 - 5A002.a.4, 5B002, 5D002) which are classified as strategic goods due to encryption functions specific to system management (SNMP, SSH). However, the goods classified in other control number are excluded.

-        Exporting problem-solving programs (patch programs) to the same ultimate consignee or end user in order to extend software usage period or to solve software program problems (bugs). However, the cases where a new function is added are excluded.

-        Exporting strategic goods after obtaining re-export license in one of the Zone Ga-1 countries (Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, Ukraine, UK, USA (including 4 US territories: Guam, Northern Mariana Islands, US Virgin Islands, and Puerto Rico)) with confirmation by the end user. However, the nuclear materials, facilities, and equipment are excluded.

-        In the course of transit trade or exportation with shipment from foreign country to foreign country, exporting strategic goods after obtaining re-export license in one of the Zone Ga-1 countries (Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, Ukraine, UK, USA (including 4 US territories: Guam, Northern Mariana Islands, US Virgin Islands, and Puerto Rico)) with confirmation by the end user. However, the nuclear materials, facilities, and equipment are excluded.

-        Exporting dual-use goods of Category 1 to 9 for the purpose of inspection, test, calibration, or repair under the condition of re-importation or destruction at site within 1 year after exportation. However, the sensitive items and highly sensitive items of the Wassenaar Arrangement's dual-use items, the CAT1 of the Missile Technology Control Regime’s dual-use items, the nuclear materials, facilities, and equipment, the munitions and dual-use items used for military purpose, the items controlled by the Australia Group, and the items controlled under the CWC (Convention on the Prohibition of the Development Production Stockpiling and Use of Chemical Weapons and on Their Destruction) are excluded.

 

If the exporter intends to apply the export license exemption, prior report shall be filed prior to filing an export declaration or export transaction report shall be filed within 7 days after exportation (for AA/AAA-grade self-compliance trader, included in the semi-annual/annual report) with the export licensing authority. In the report, grounds for export license exemption, export transaction details (order number, model number, relevant control number, HS Code, importing country, shipping date, quantity, export amount, etc.), B/L number, export declaration number, information about purchaser, ultimate consignee, and end user shall be indicated.

 

Failing to file the prior report or export transaction report means illegitimate exportation of strategic goods.  So, whether export license exemption applies or not, strategic goods shall be strictly managed.