"Duty-Free Purchases Available on Low-Cost Airlines Departing from Regional Airports"
[Asia Economy (Daejeon) Reporter Jeong Il-woong] Duty-free purchases will become possible even on low-cost carriers departing from regional airports.
The Korea Customs Service announced on the 5th that it will implement the revised "Notice on the Management of Aircraft Supplies, etc." containing this content starting from the 9th.
The revision of the notice is part of regulatory innovation reflecting the aviation industry's suggestions discovered during meetings with airlines and aircraft supply companies. It aims to help the recovery of the aviation industry, which has been stagnant due to COVID-19, and to improve passenger services.
The main revisions include allowing duty-free sales inside non-designated international flights, permitting in-flight meal provision to repatriated foreigners, adding aircraft as bonded transportation means for aircraft supply providers, and including general importers as eligible transferees of aircraft supplies.
First, reflecting the industry's concerns that low-cost carriers without bonded warehouses at regional airports find it difficult to load and sell duty-free goods and bonded foreign products on international flights, the notice was revised (effective from March) to allow pre-loading of aircraft supplies onto domestic flights at Incheon and Gimpo airports, where bonded warehouses exist, and transporting them to regional airports. This enables the same goods to be loaded and exported overseas from regional airports, providing duty-free sales and other services.
Previously, in-flight meals could only be provided to general departing passengers or transfer passengers waiting in the departure hall during flight delays caused by bad weather. This has been improved to allow in-flight meal provision to repatriated foreigners as well, strengthening the protection of foreign human rights through meal provision to repatriated foreigners.
Additionally, the current notice, which restricts bonded transportation by aircraft supply providers to their own transportation means and prohibits using transportation means belonging to other companies, has been revised to expand transportation means to include aircraft of airlines registered as bonded transporters. This will reduce bonded transportation time and costs.
Furthermore, the Korea Customs Service has revised the notice to allow aircraft supplies, which could previously only be transferred to other aircraft supply providers, to be transferred to general importers and others, thereby improving inventory management efficiency.
Transfer to general importers and others is possible when aircraft demand sharply decreases due to infectious disease outbreaks, causing aircraft supplies not to be sold or used.
Due to reduced aircraft operations, airlines that have accumulated aircraft supply inventory can transfer these supplies to general importers to manage inventory, and general importers can import and clear these goods through customs and sell them domestically, according to the revised notice.
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Seong Yong-wook, Director of the Customs Border Surveillance Division at the Korea Customs Service, said, "We hope that the revision of the notice will help the recovery of the aviation industry, which has been stagnant due to COVID-19, improve traveler services, and revitalize regional airports. The Korea Customs Service will continue to actively listen to and reflect the industry's voices to ensure that field-tailored regulatory innovations continue."
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