Strengthening Legal Stability of Customs Valuation... Expanded Exemptions for Emergency Changes in Transportation Methods

Legal Terminology to Be Simplified for Greater Clarity

[Image source=Yonhap News]

[Asia Economy, reporter Jang Sehee] It is expected to become easier to receive a customs exemption that allows the use of sea freight rates instead of air freight rates when importers urgently need to switch transportation methods from sea to air due to emergency circumstances.

The Ministry of Economy and Finance announced on June 30 that it has issued a legislative notice for the revision of the Enforcement Decree and Rules of the Customs Act. This measure aims to secure the legal stability of the customs valuation system and to reflect changes in the trade environment.

Although the customs valuation system is a crucial factor in determining the amount of customs duties that importing companies must pay, many of the detailed regulations have been operated through public notices issued by the Korea Customs Service, making it difficult to ensure their legal authority.

Previously, if goods were to be imported by ship but had to be transported by air due to unavoidable circumstances such as natural disasters, customs duties were calculated based on sea freight rates rather than air freight rates. The scope of this exemption, which was previously limited to automobile parts, will be expanded to include all goods.

In addition, legal terminology will be simplified. For example, "licensor" will be changed to "the person who permits the use of trademark rights or other rights," and "self-navigation" will be changed to "the transportation means operating from a foreign country to Korea."

The Ministry of Economy and Finance plans to collect public opinions on this revision until August 10 and implement it starting January 1 of next year.

Meanwhile, a ministry official stated, "Through this amendment, we will strengthen the legal stability of customs valuation decisions," and added, "We expect to establish a rational taxation system that can quickly respond to changes in the trade environment."

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