The Anti-Corruption and Civil Rights Commission: "Even if Imported Goods Differ from Origin Labeling Principles, It Is Legal If Buyers Can Identify"

Cheonan Customs Imposes Fine for US 'Harp' Origin Labeling Violation
Anti-Corruption Commission Cancels Fine, Stating Buyers Can Identify Origin

[Asia Economy Reporter Moon Chaeseok] The Anti-Corruption and Civil Rights Commission (ACRC) has ruled that even if the country of origin labeling method differs from the examples given in the Foreign Trade Management Regulations, it is lawful as long as the final purchaser can recognize it.

The Central Administrative Appeals Commission under the ACRC announced on the 3rd that it canceled the disposition by the Cheonan Customs Office, which imposed a fine on Company A, a comprehensive musical instrument retailer, for failing to label the country of origin in accordance with the Foreign Trade Management Regulations.

According to the Central Administrative Appeals Commission, Company A declared the import of three American-made harps worth a total of 100 million won to Cheonan Customs last December.

Cheonan Customs imposed a fine, stating that the country of origin labeling on the declaration was indicated as 'Manufacturer name, Makers (manufacturer), region, country name,' which does not comply with the Foreign Trade Management Regulations.

The regulations stipulate that the country of origin labeling should be ▲ 'Country of origin: country name' or 'country name san (産)' ▲ 'Made in country name' or 'Product of country name' ▲ 'Made by the company name, address, country name of the product manufacturer.'

Company A claimed that the harps have been handcrafted by artisans since around 1880, and changing the country of origin labeling method could cause sound quality distortion of the instruments, thus filed an administrative appeal to cancel the fine.

Company A also argued that the current labeling method, which shows 'region, country name' more clearly than the examples in the regulations, leaves no room for purchasers to misunderstand the country of origin.

The Central Administrative Appeals Commission accepted Company A’s argument and judged that the fine imposed by Cheonan Customs was illegal and unjust.

The commission explained that even if the country of origin labeling method slightly differs from the examples given in the regulations, the font is large and clear, and the country of origin is separately indicated. It also found it unlikely to affect fair trade order and consumer protection.

Kim Myungseop, Director of the Administrative Appeals Bureau at the ACRC, said, "This administrative appeal decision is meaningful in resolving public inconvenience caused by administrative dispositions bound by regulations," adding, "In a rapidly changing administrative environment where discrepancies with laws and systems are increasing across society, we hope this will be an opportunity to boldly improve unreasonable regulations, procedures, and practices."

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