Methods of Determining Customs Value of Goods Produced in a Bonded Factory
To utilize foreign goods as raw materials without completing customs clearance, the manufacturing factory must be licensed as a bonded factory by Customs. To import goods produced in a bonded factory, it is necessary to file an import declaration. The customs value of the goods must be determined and declared in accordance with the procedures stipulated in the CUSTOMS ACT ( 관세법 ). The relevant provisions regarding customs valuation of goods produced in a bonded factory can be found in Article 188 and 189 of the CUSTOMS ACT. CUSTOMS ACT Article 188 (Assessment of Customs Duties on Manufactured Goods) Where the work is done using foreign goods or using foreign goods and domestic goods as raw materials or materials, any goods therefrom shall be deemed goods which arrive in Korea from a foreign country: Provided, That if both foreign goods and domestic goods are used as raw materials or materials to manufacture new goods upon approval of the head...