“From Customs Clearance to Litigation: Growing Collaboration Between Law Firms and Customs Corporations”

Major law firms are strengthening their collaboration with customs corporations as customs and foreign exchange risks increase due to changes in the external trade environment. Recently, a customs corporation received a request for collaboration from a major domestic law firm. The intent was to move beyond simple case-by-case consultation and to establish a joint response model.

An official from one of the leading domestic customs corporations that received the request explained, "Recently, there has been a noticeable increase in law firms seeking cooperation with customs corporations." This trend is analyzed as a result of recent U.S. trade pressure and the global restructuring of supply chains, which have caused customs issues to escalate from simple tax disputes to criminal cases. The goal is to prepare for both legal and customs responses from the initial investigation stage.

Yoon Seondeok, advisor and customs broker at Hwawoo Customs Corporation, stated, "In the past, the main issues in customs investigations and foreign exchange inspections by the Korea Customs Service were tax collection or the imposition of fines. However, there is now a tendency to give equal attention to related risk issues under the Foreign Exchange Transactions Act, the Foreign Trade Act, and other relevant regulations."

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Hwang Inwook (Judicial Research and Training Institute, 42nd class), attorney at Daeryook & AJU LLC, explained, "Recently, due to the impact of U.S.-China trade disputes, there has been an increasing trend of illegal activities such as origin laundering. Cases subject to criminal penalties are on the rise, and there are also a significant number of instances where administrative litigation is initiated against customs imposition decisions."

Some law firms have already established collaborative systems with their affiliated customs corporations. Hwawoo Customs Corporation, established in 2013, employs nine customs brokers and one specialist. Key personnel, including Chief Customs Broker Kim Cheolsoo, who served as the head of the Seoul Customs and director of the Foreign Exchange Investigation Bureau at Incheon Customs, have more than ten years of experience in customs and foreign exchange-related work. They cooperate with Hwawoo LLC to prepare for cases that may be referred to the prosecution.

Sang Seunghyeok, customs broker at Hwawoo Customs Corporation, explained, "At the stage when customs officers act as special judicial police, we respond mainly with customs brokers who are familiar with the practical work and culture of customs offices, while also incorporating the opinions of attorneys in anticipation of potential prosecution investigations." He added, "Through this approach, there are many cases resolved with non-indictment, suspension of indictment, or fines. This allows for a consistent response tailored to the dual structure involving customs special judicial police and the prosecution."

Daeryook & AJU LLC also collaborates with Daeryook & AJU Customs Corporation, with which it shares the same brand. Key personnel include customs broker Chun Honguk, former Commissioner of the Korea Customs Service (28th term), and customs broker Jeong Giseop, former Director of the Audit Bureau at Incheon Customs.

Attorney Hwang noted, "Since the introduction of Attorney-Client Privilege (ACP), companies are increasingly turning to attorneys for advice on sensitive matters. As ACP does not apply to communications with customs brokers or customs corporations, the need for collaboration with law firms is also growing from a legal protection standpoint."

Kim Jihyun, The Law Times Reporter

Seo Hayoun, The Law Times Reporter

※This article is based on content supplied by Law Times.

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