Customs Service Introduces and Implements 'Collection Deferral' to Support Companies Facing Business Difficulties

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Korea Customs Service will introduce and implement the ‘deferment of collection’ system starting next month on the 1st to actively support companies whose management has deteriorated due to the novel coronavirus infection (COVID-19).

According to the Korea Customs Service on the 28th, deferment of collection is a system that temporarily suspends compulsory collection procedures such as reminders and seizures that begin when the tax payment deadline has passed, thereby delaying the tax payment schedule and exempting late payment penalties to support corporate rehabilitation.

The Korea Customs Service recently held a review by the Active Administrative Support Committee to determine whether the current Customs Act allows the introduction of the deferment of collection system, concluding that the system can be introduced and implemented immediately without amending related laws.

The committee judged that based on Article 26 of the Customs Act and the amended Kyoto Convention, the introduction and implementation of the deferment of collection system is possible through active interpretation.

The committee is composed of the Deputy Commissioner of the Korea Customs Service, six internal members, and eight external members according to the Active Administration Operation Regulations (Presidential Decree).

The Korea Customs Service plans to prepare detailed application standards for the introduction and implementation of the deferment of collection system, prioritize its implementation from the 1st of next month, and promptly complete the related public notice amendments.

Companies can use the deferment of collection system without providing collateral to customs after submitting and confirming COVID-19 damage at the ‘Import-Export Company Support Center’ of regional headquarters and directly controlled customs offices.

This content was produced with the assistance of AI translation services.