Importers Caught Disguising Chinese Goods as Korean Products Amid U.S. Trade Restrictions

A number of companies have been caught by customs authorities for importing goods from third countries such as China, which have faced export restrictions due to the United States' strengthened trade policies, and disguising and distributing them as domestic products.

The Korea Customs Service announced on the 24th that it had established a dedicated response team and conducted a "comprehensive inspection of country of origin marking violations" from March to June. As a result, 23 companies were found to have violated country of origin labeling regulations. The value of goods involved in these violations amounts to approximately 67.1 billion won.

Provided by Korea Customs Service

The comprehensive inspection was carried out to prevent goods from third countries from being disguised and distributed as domestic products, thereby harming domestic industries.

During the inspection period, the Korea Customs Service selected 1,567 import and export companies dealing in items subject to high tariffs by the United States, such as steel products and automobile parts. It then analyzed customs clearance data, domestic purchase and sales records, and customs inspection details to identify companies with a high risk of country of origin marking violations.

Subsequently, using information from related organizations such as the Korea Iron & Steel Association and public reports, the agency narrowed down the list to 67 companies as targets for inspection and examined their country of origin marking practices.

As a result, violations were uncovered, including failure to indicate country of origin, damaged country of origin markings, false country of origin markings, and misleading country of origin markings by company.

Company A was found to have imported lifting bands from China, repackaged them domestically, and erased the country of origin marking (Made In China) before illegally distributing and selling goods worth approximately 1.3 billion won in the domestic market.

Company B is suspected of distributing and selling goods worth about 9.5 billion won in the domestic market without indicating the country of origin on Chinese hot-rolled coils, which are subject to country of origin labeling requirements.

The Korea Customs Service stated that for minor violations such as failure to indicate country of origin or improper labeling, it will impose administrative sanctions and provide guidance. For serious violations, such as intentionally damaging or altering country of origin markings or making false markings, it plans to conduct formal investigations and take measures such as imposing fines and pursuing criminal charges.

Separately, the Korea Customs Service launched the Trade Security Special Investigation Team (hereinafter referred to as the Special Investigation Team) in April to strengthen crackdowns and prevent illegal circumvention exports in response to U.S. trade policies.

Illegal circumvention exports refer to cases where goods from countries with higher tariffs than Korea are disguised as Korean products while passing through Korea and then exported to the United States or other regions.

The crackdown aims to prevent circumvention exports that exploit differences in country-specific U.S. tariff rates. The main targets are goods subject to high tariffs, such as those under U.S. anti-dumping and countervailing duties, and import-regulated items. The Korea Customs Service is focusing on blocking illegal activities (such as country of origin disguise) intended to evade tariffs and import regulations on these goods, including relabeling and document forgery.

Lee Myunggu, Commissioner of the Korea Customs Service, stated, "Disguising foreign goods as domestic products and distributing them in Korea is a serious crime that threatens the foundation of our domestic industry. The Korea Customs Service will continue to monitor and crack down on country of origin marking violations and illegal circumvention exports."

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