Korea Customs Service Allows Additional Refunds for Raw Materials Used in Petrochemical Exports

Additional refunds will now be permitted for raw materials that are used and consumed over the long term in the production of petrochemical export products.

The Korea Customs Service announced on the 28th that it has revised and implemented the "Notice on the Processing of Refunds of Customs Duties, etc. for Raw Materials Used for Export" to enhance the convenience of customs duty refunds for export companies.

Provided by Korea Customs Service

The purpose of this revision is to support domestic export companies, including those in the petrochemical industry, which are facing difficulties due to global oversupply and sluggish demand.

For example, raw materials such as catalysts that are used and consumed over an extended period in the production of petrochemical export goods could not have their consumption amounts calculated at the time the product was completed, making it difficult to apply for export refunds in the past.

However, going forward, a procedure will be established that allows companies to apply for additional refunds at the point when the consumption amount is finalized, making export refund applications possible.

The export refund system allows companies to reclaim customs duties and other taxes paid at the time of importing raw materials, provided the materials are used in the manufacturing or processing of goods that are subsequently exported.

Previously, the principle was to apply for refunds for all raw materials at once, which imposed restrictions on receiving additional export refunds. The revision of the notice is expected to resolve these limitations for export companies.

With this revision, civil petitions that previously required the submission of paper documents can now be filed electronically. Until now, certain requests, such as corrections to refund applications, required the mandatory submission of paper documents to customs offices.

However, the Korea Customs Service explained that it will now permit electronic submissions through the system, reducing the need for in-person visits. Civil petitions eligible for electronic submission include requests for correction or withdrawal of certificates and correction or withdrawal of confirmation documents for the entry (loading) of export goods eligible for refunds.

Oh Hyunjin, Director of the Tax Audit Division at the Korea Customs Service, stated, "We expect that the revision of the notice will enable faster processing of refunds and enhance the price competitiveness of export companies," adding, "The Korea Customs Service will continue to strengthen support for export companies through ongoing improvements to the system that reflect feedback from the field."

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