New Method for Gathering Import/Export Declaration Data

 

Since customs duties can be assessed for up to 5 years in general cases under Article 21 of the CUSTOMS ACT (관세법), importers who wish to manage their customs compliance appropriately obtain and analyze import declaration data regularly. They try to identify and correct any errors and issues before receiving a notice from Customs. Even if companies do not actively manage regulatory compliance, they may still need import declaration data when using provisional value declarations or the ACVA regime under the CUSTOMS ACT. Additionally, import/export declaration data may be required to prepare reports or submissions under other laws, such as the FOREIGN TRADE ACT (대외무역법), the ACT ON THE PROMOTION OF SAVING AND RECYCLING OF RESOURCES (자원의 절약과 재활용촉진에 관한 법률), and the CHEMICAL SUSTANCES CONTROL ACT (화학물질관리법).

 

The most cost-effective method of obtaining the import/export declaration data is to ask the customs broker who provided the import/export declaration service. All the data indicated in the import/export declaration certificate are transmitted to the customs clearance management program used by the customs broker who lodged the declaration. This program provides the function to download all the data for a specified period. You may ask the customs broker to provide the raw import/export declaration data file. However, the provided data file may not be complete as it does not include import/export declaration data filed by other customs brokers. Additionally, if an import/export declaration is amended in the program after the declaration has been accepted by Customs, the data may differ from the data stored in the Korea Customs Comprehensive Information System (UNIPASS).

 

Importers and exporters can obtain their import/export declaration data stored in UNIPASS by requesting it from the Korea Trade Statistics Promotion Institute (KTSPI), which was designated by the Korea Customs Service as a trade statistics compilation and distribution agency under Article 322 of the CUSTOMS ACT. Import/export performance data can be requested through its website (www.bandtrass.or.kr). To fully use the website, an electronic ID certificate is required. However, through the ‘Offline Data Delivery Request,’ import/export performance data can also be requested without the electronic ID certificate.

 

One drawback of this service is that the service fee, calculated as follows, is levied:

-          Basic Fee: KRW 28,000 (for a company whose previous year’s import/export performance was 0.5 million dollars or less, KRW 2,000)

-          Additional Fee: Number of declarations x Number of items x KRW 5

Therefore, it is essential to select only the necessary items wisely. If all the items included in the raw data file received from a customs broker are requested, the service fee may exceed millions of won.

 

The right to request the transmission of tax information about the taxpayer was established in the CUSTOMS ACT through an amendment made on December 31, 2023. Specifically, Article 116-6 was newly inserted and came into force on July 1, 2024, as stipulated in Article 1 of the Addenda.

CUSTOMS ACT Article 116-6 (Request for Transmission of Tax Information by the Taxpayer) (1)   A taxpayer may request the Commissioner of the Korea Customs Service to transmit their tax information, as specified in Article 116, to themselves or to any of the following entities designated by the taxpayer who intends to handle business using the taxpayer’s information: 1.       The taxpayer themselves; 2.       A customs broker registered under Article 7 of the Licensed Customs Broker Act, a customs service corporation registered under Article 17-2 of the same Act, or a customs clearance handling corporation registered under Article 19 of the same Act; 3.       A tax accountant registered under Article 6 of the Certified Tax Accountant Act or a tax service corporation registered under Article 16-4 of the same Act; 4.       A certified public accountant or attorney authorized to perform tax services under the Certified Tax Accountant Act; 5.       A person prescribed by Presidential Decree as a telecommunications business operator under Article 2 (8) of the Telecommunication Business Act. (2)   Upon receiving a request for transmission as outlined in paragraph 1, the Commissioner of the Korea Customs Service shall transmit the information in a processable format using information processing devices such as computers, within the scope defined by Presidential Decree. (3)   The taxpayer may withdraw their request for transmission as specified in paragraph 1. (4)   Notwithstanding paragraph 2, the Commissioner of the Korea Customs Service may refuse a request for transmission or suspend transmission if the taxpayer's identity cannot be verified or under other conditions specified by Presidential Decree. In this case, the Commissioner of the Korea Customs Service shall notify the taxpayer of the relevant fact without delay. (5)   When making a transmission request to any of the entities listed in paragraph 1, the taxpayer shall specify the following details using electronic documents or other secure and reliable methods: 1.       Tax information of the taxpayer requesting transmission; 2.       The recipient of the taxpayer's tax information; 3.       Whether regular transmissions are requested and, if so, the frequency; 4.       Other details similar to those specified in subparagraphs 1 to 3 as defined by the Commissioner of the Korea Customs Service. (6)   The taxpayer shall not infringe on the rights or legitimate interests of others when making a transmission request under paragraph 1. (7)   In addition to the matters stipulated in paragraphs 1 through 6, necessary details such as the method of requesting transmission, the deadline, frequency and method of transmission, and the method of withdrawing the request for transmission shall be determined by Presidential Decree. (8)   The Commissioner of the Korea Customs Service may have an agency under Article 322 (5) carry out the task of transmitting taxation information under this Article. In this case, the Commissioner of the Korea Customs Service shall provide basic data to the agency for the purpose of transmitting the tax information. (9)    A person falling under each subparagraph of paragraph 1 (excluding subparagraph 1) who becomes aware of the tax information transmitted pursuant to paragraph 2, or a person who acts as an agent for transmitting the tax information pursuant to paragraph 8, shall take measures to ensure the security of the tax information, such as implementing systems to prevent data leakage, as specified by Presidential Decree. (10)   A person falling under each subparagraph of paragraph 1 (excluding subparagraph 1) who becomes aware of the tax information transmitted pursuant to paragraph 2, or a person who acts as an agent for transmitting the tax information pursuant to paragraph 8, shall not provide or disclose the tax information to others or use it for purposes other than those intended. (11)   Any person who wishes to request the transmission of taxation information under paragraph 1 shall pay a fee to the Commissioner of the Korea Customs Service, as prescribed by Ordinance of the Ministry of Economy and Finance. However, if an agency handles the task under paragraph 8, the fee shall be paid to that agency. [Newly Inserted on December 31, 2023]

 

In practice, a new website has been launched where taxpayers can request tax information, including import/export declaration data:

-          TRADE MY DATA (www.tmydata.or.kr)

Since the website is also managed by the KTSPI, the data received through it is the same as that obtained through the Trade Statistics Service (TRASS) website. However, by using the ‘MyTransQ’ menu, taxpayers can more effectively manage the transmission of their import/export declaration data to the entities listed in the subparagraphs of Article 116-6 (1) of the CUSTOMS ACT and set up regular transmissions. 

Recently, there has been an increase in the number of companies pursuing more efficient and improved customs compliance by distinguishing between customs brokers who handle export and import declarations and those who conduct internal audits (self-audits). By designating a company to perform internal audits, periodically review customs clearance performance, and manage it, you can benefit from this change.