Korea Certified Customs Attorney SJ

  In transactions between related parties, post-adjustment is commonly made based on the difference between the target margin and the actual margin calculated after the sale of imported goods. Since ‘the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller’ is an additional element of customs valuation under the transaction value method, it is natural for Customs authorities to focus on the periodic payments made between the related parties. It used to be a common practice for importers to correct the customs value of imported goods when paying the difference, considering it as part of the proceeds from the imported goods, and not to correct the customs value of imported goods when receiving the difference, treating it as an adjustment of profit. It was absurd to apply a double standard when the reason for the post-adjustment remained the same. Importers appealed Customs’ decision, filed ...

  Under Article 36 (1) of the ACT ON SPECIAL CASES OF THE CUSTOMS ACT FOR THE IMPLEMENTATION OF FREE TRADE AGREEMENTS (hereinafter referred to as ‘FTA Customs Act’), when the application of the FTA tariff rate is denied, and deficient duties (calculated as customs value x (MFN tariff rate - FTA tariff rate)) are collected, the following amounts are also collected as additional duties: 1. 10% of the deficient duties (40% if the relevant shortfall results from an importer’s request for the application of conventional tariffs through unjust means, such as forgery and alteration of a certificate of origin) 2. The amount computed by multiplying the underpaid duties or deficient duties by the number of days specified 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 (in the case of the ex post facto application of conventional tariffs, referring to the day when the customs duties are refunded...