Gwangju Main Customs Office Moves to Ease Burden on Local Export Companies

Changes in Issuance Process for Refund Certificates
Eased Fixed Refund Rate Regulations and Reduced Administrative Burden
Operation of the Middle East Situation Rapid Response Support Center

As the global trade environment continues to deteriorate and instability persists in the Middle East, local export companies are experiencing increased financial pressure. In response, the Gwangju Main Customs Office is accelerating efforts to ensure the smooth implementation of the revised customs duty refund system at the field level.

On April 9, the Gwangju Main Customs Office announced that it will strengthen guidance focused on the core aspects of the system. This is to reduce cases in which companies are unable to utilize available benefits due to a lack of sufficient information despite changes in the system.

This measure aims to improve companies' understanding by moving away from complicated legal explanations and instead presenting key items, timelines, and applicable regulations in a clear and consolidated format.

The guidance includes changes in the issuance process for refund-related certificates. Certificates such as the Average Tax Amount Certificate, Basic Raw Material Tax Payment Certificate, and Import Tax Apportionment Certificate can now be issued directly by exporters or suppliers of raw materials for export designated by the customs head. This revised system will take effect from July 1.

The regulations on the application of the Fixed Refund Rate Table have also been eased. The maximum two-year restriction previously applied when changing the application of the table has been reduced to one year. Furthermore, if a company switches to non-application after approval, the restriction is eliminated altogether.

In addition, the process for verifying whether a company qualifies as a small or medium-sized enterprise (SME) has been automated through inter-agency data linkage, replacing the previous requirement for document submission with an electronic verification process. This is expected to reduce the administrative burden on companies.

When the refund amount is excessive, the interest rate for additional charges applied to reports and payments made within three months has been raised from the previous annual rate of 1.2% to 3.1%. If imported goods are directly returned before the customs duty payment deadline and the tax has not yet been paid, the imposition itself can be canceled prior to collection.

The customs office will post relevant materials on its website at all times and also provide them via email and other company-preferred channels. Tailored guidance for local import and export companies will also be offered. In addition, a 'Middle East Situation Rapid Response Support Center' is currently in operation to respond to changing conditions in the Middle East.

Taeil Kang, head of the Gwangju Main Customs Office, stated, "We hope that this guidance will enable local import and export companies to receive tangible refund benefits and help them stabilize their business operations."

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