Duty Exemption on Reimported Aircraft Parts for Repair in Singapore

Temporary Exemption in 2022 for Supporting the Aviation Industry

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] When aircraft parts repaired in Singapore are re-imported into Korea, customs duties will be exempted for one year starting next year.

The Ministry of Economy and Finance announced the legislative notice on the 12th for the amendment of the "Enforcement Decree and Enforcement Rules of the Act on Special Cases Concerning Customs Duties for the Implementation of Free Trade Agreements (FTA)."

The amendment to the enforcement rules includes exemption of customs duties on aircraft parts temporarily exported to Singapore for repair or modification and then re-imported. This measure is intended to support the aviation industry, which has been struggling due to the prolonged COVID-19 pandemic. Under the Korea-Singapore FTA, customs duty exemption for temporarily exported and imported goods is possible through domestic laws. Utilizing this, the customs duties will be temporarily exempted for one year starting next year.

Separately, the documents required when applying for a certificate of origin will also be simplified. For items recognized as domestic origin solely based on domestic manufacturing, the submission of a certificate of origin explanation will be omitted to enhance convenience for companies.

The amendments are scheduled to take effect from January 1 of next year.

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