Clearance and Introduction of Capital Goods
BUS I NE S S IN KO
R E A 2 0 20
2
Customs Clearance
Customs clearance refers to the import, export, or return of goods pursuant to the procedures prescribed by the Customs Act. Import clearance refers to a series of customs processes including import declaration to a customs director, acceptance of the declaration by the director with its lawfulness, issuance of the certificate of import declaration, and shipping of the imported goods. Meanwhile, export clearance refers to the process of declaring the export of goods to customs and accepting permission of export and loading cargo.
Return refers to the sending back of goods carried into Korea without import declaration to the country from where they were sent, with its processes called return clearance.
1. Customs Clearance Procedures
① Import Clearance
In order to export, import, or return goods, the name, standard, quantity, and price of such goods and other matters prescribed by the relevant regulations must be reported to the head of a customs office. The declaration of imports can only be made after the vessel (aircraft) loaded with the goods has arrived, but the import declaration can be made before arrival when the goods to be imported need to be cleared promptly. Goods that have been declared for import before arrival shall be deemed to have arrived in Korea.
※Import declaration period: Before the vessel departs, enters the port, and after the vessel enters the port and the goods arrive at the bonded area, and after they arrive at the bonded area, an import declaration is made to the head of the customs office.
② Documents for Import Declaration
The importer shall request an import declaration by submitting the invoice, bill of lading, packing list, certificate of origin, and documents confirming other import requirements. However, the requested declarant shall submit the documents when customs require the submission of documents for customs clearance, but otherwise, they shall be kept on their own.
※ The Korea Customs Service has established a system to transmit the required documents for import declaration to be submitted to customs in electronic form or via electronic images.
③ Import Declaration
Import declaration is undertaken according to the method of screening, document screening, and inspection of goods, etc. When the import declaration is made legally, the report is immediately accepted. However, if the items listed in the declaration are not sufficient, a supplemental import declaration or customs clearance may be requested.
④ Inspection of Imported Goods
This inspection refers to whether the goods declared for import conform to the import declaration and whether they violate any regulations set by ※ Relevant laws and regulations through in-kind inspection. The inspection ratio may be applied differentially in consideration of compliance with regulations of importing companies, inspection performance, origin, etc., while the inspection method may be extractive inspection, total inspection, or via analysis depending on the inspection object. The importer shall bear the cost of inspecting the imported goods.
⑤ Issuance of Certificate of Import Declaration
When the customs officer accepts the import declaration, a declaration certificate electronically stamped by the Customs Special Officer shall be issued to the declarant.
Documents for Import Declaration
① Invoice. A contract is acceptable when the invoice has not arrived. (The invoice must be submitted when a confirmed price is declared.)
② Price declaration report (only when required)
③ Copy of Bill of Lading (B/L) or Airway Bill (AWB) (excluded when electric submission is possible)
④ Packing list (The name or standard of goods and the quantity must be stated on each box. This is not necessary if a customs director deems it unnecessary or if the documents are submitted electronically.)
⑤ Certificate of origin (only for required goods)
⑥ Required documents for examination, quarantine, permission and recommendation (when checking via an electronic database is not possible)
⑦ Customs duty reduction (payment) / Application for specific use duty rate (only for applicable goods)
⑧ Agreement to apply tax rate
⑨ Local tax payment security certificate (applicable goods only)
⑩ Kimberly Process Certificate (limited to diamond ore) Required documents
Process of Import Clearance
Goods carried in (Bonded area)
Goods from abroad shall be carried into a bonded area upon arrival.
Preparation of requirements (Importing shipper)
The importing shipper must prepare and file for clearance requirements, tax rate recommendation, and tax exemption recommendation.
Import declaration (Declaring party)
The declaring party must prepare the import declaration application and send it through the clearance system.
Processing application (Customs)
Customs shall conduct an inspection of the goods and documents via screen and register them for approval.
Advance payment of customs duty, etc.
The importing shipper shall pay customs fees when post-payment
is not required.
Acceptance of declaration (Customs clearance system) Customs clearance shall be accepted automati cally when the payment and security is settled.
Customs shall notify the details of the acceptan ce to the declaring party and cargo system.
Delivery of goods (Bonded area) Goods can be delivered following confirmation of the acceptance
of the import declaration.
Acceptance of declaration (Customs clearance system) Customs clearance shall be accepted automati cally when the payment and security is settled.
Customs shall notify the details of the acceptan ce to the declaring party and cargo system.
Post-payment of customs duty, etc.
The importing shipper must pay tax duties within 15 days following the acceptance of the import declaration.
Delivery of goods (Bonded area) Goods can be delivered following confirmation of the acceptance
of the import declaration.
INFORMATION
How to Look up Specific Product Regulations and Tariff Rates (Product specific rule in FTAs) Korea Customs Service Total Solution Yes FTA http://www.customs.go.kr
→FTA→ Preference Criterion (PSR)→ Search HS code
(Tariff rate for HS code in FTAs) Korea Customs Service Total Solution Yes FTA http://www.customs.go.kr Information plaza
→ Preferential Tariff rate→ Search HS code
2. Internet Portal for Customs Clearance (UNI·PASS)
UNI·PASS is an online system that handles all customs clearance procedures such as customs declaration, payment of taxes, and application requirements needed by individuals and businesses when exporting or importing.
UNI·PASS : https://unipass.customs.go.kr
① Services
The primary services of UNI·PASS include electronic declaration, electronic payment, information check, and providing a unique personal customs code.
Service Contents Electronic
declaration Reports for import and export declaration or applying for a refund can be done online and checked afterwards. Customs documents can also be printed out.
Electronic
payment Following the import declaration, customs duties can be paid and processing details checked.
Information
check It is possible to check customs information, regulatory compliance, and customs codes required for administrative tasks related to customs.
Unique customs
clearance code It is possible to issue a unique customs clearance code used to report imports of personal goods and to inquire about it.
② Application Procedure
To use the UNI·PASS system, it is necessary to receive the approval of customs. The applicant must apply for and obtain a certificate from an accredited certification body and then join the system via the user registration menu. Then the officer in charge will approve the use of UNI·PASS after the confirmation of the application.
※ Related Law : Notification of the Use and Operation of Customs UNI·PASS (Notification No. 2018-25 of the Korea Customs Service, Jul. 2018)
INFORMATION
UNI·PASS Technical Support Center +82-1544-1285
Providing consulting and service guidance related to UNI·PASS data processing (including import and export clearance, cargo, refunds, etc.)
Customs administration matter
+82-125 (General consulting on customs duties: 20, foreigners: 40)
Providing consultation regarding customs processes, classification of items, and
④ How to Use
UNI·PASS provides two types of services regarding the declaration method:
application via a website; or application by PC and submitting to UNI·PASS all documents using the software to transmit several cases. The latter is useful when processing large amounts of data or when there are many applications.
Browsers : Internet Explorer, Chrome, Safari, FireFox
Work Processes through UNI·PASS
Login UNI·PASS https://unipass.customs.go.kr
Preparing the Declaration form :
• Electronic declaration > Declaration form
• After selecting the declaration form, log in using digital certification and complete the declaration.
Checking and Transmitting Declaration : Review and submit the declaration
Checking the Status of Processing :
Check the status of processing (receipts, errors, approval, and acceptance)
Checking Notification of Errors :
In the event of errors in the application, check, revise and resubmit.
Submitting Attachments :
• Submit additional or supplemental documents when required by Customs.
• Submit documents in person or use the [post-submission of attached documents]
menu.
Issuance of Certificate of Completion of Import Declaration:
Print the certificate of completion of approved import declaration Acceptance of Declaration :
Officer in charge shall examine the declaration and approve it.