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Reduction and Exemption from Customs Duties on Diplomatic Goods, etc.
2019-03-18

[Reduction and Exemption from Customs Duties on Diplomatic Goods, etc.]

Reduction rate

100%

Legal Base

Article 88 of the Customs Act

Article 108 of the Enforcement Ordinance of the Customs Act

Article 34 of the Enforcement Regulation of the Customs Act

Terms

Unconditional Reductions- Not applicable to Post-Management

Provided, where transfer-restricted goods are transferred to others for other purpose than relevant purpose within 3 years from the date of acceptance of import declaration, reduced or exempted customs duties shall be collected.

 

 

Outline

 

Exemption of diplomatic goods, etc. is a tax exemption granted by the Customs Act in the international customs of diplomats

Exemption from customs duties on diplomatic business goods and personal items imported by diplomats and their family members. Goods required for carrying out business contracts concluded with the government and products used by advisers dispatched by international organizations, etc. are exempted from customs duties in accordance with diplomats.

But, in order to suppress the abuse of diplomatic privilege to the indiscriminate circulation of duty-free goods amounts are limited for certain items.

 

 

Applicable Goods to Reductions, etc.

(Hereinafter reduction and exemption referred to as "reductions")

 

Applicable goods to reductions

Reduction Rate

VAT

Rural DEP Tax

Post

Management

1. Official supplies of agencies such as foreign embassies, legations and other similar entities which preside in Korea

100%

Tax-Free

 

Tax-Free

X

2. Goods used by foreign ambassadors, legation staffs, other similar foreign delegations and their families which preside in Korea

Tax-Free

3. Official supplies of foreign consulate and other similar entities which preside in Korea

Tax-Free

4. Goods used by foreign embassies, legations, consulates, staffs of other similar foreign entities and their families which preside in Korea

1) Counselor of the embassy or the public office, the first secretary, second secretary, third secretary and a probationary diplomat.

2) Consulate General or Consul General Consul, Consul, vice-consul (Exclude Honorary Consul General and Honorary Consul)

3) Embassies, legation, General consulates or public officials who work in consulates does not include in the first and second

Tax-Free

5. Business supplies imported by foreign contractors by contract terms to carry out business contracts with government

Tax-Free

6. Goods used by delegates and engineers from international organizations or foreign countries to Korea government, the person who is equivalent in a diplomat by agreements related to duty-free, and confirmed by the head of central administrative organizations controlling relevant business.

Tax-Free

 

 

The Procedures of Application of Reductions

 

The due date of application of reductions

 

The person who intends to obtain reductions of customs duties is required to submit relevant application before the import notification of the goods to the head of a customs house within following period. and if this period is exceeded, it will not be able to receive the reduction of customs duties. One way is to supplement the missing requirements after the application.

 

However, if it has any of the following reasons, it may submit a reduction application by the due date.

When the customs officer finds out that the amount already collected by application error of the taxation standard, tax rate, reduction of customs duty, etc. is misapplied or other reasons, the deficiency is collected : within 5 days from the date of receipt of the payment notice

 

In addition, if it can not submit the application for exemption before the receipt of the import declaration : within 15 days from the date of receipt of the relevant import declaration (Only if the goods are not exported from the bonded area.)

 

Method of Application

 

To obtain reductions, it's required to apply for reductions by attaching documentations proving the satisfaction of relevant requirements.

 

 

Restricted Goods of Transfer and Post-Management

 

Outline

 

Principally, unconditional reductions are applied, but exceptionally, post-management may be applied for following transfer-restricted goods.

 

Transfer-Restricted Goods

 

Automobiles(including motor tricycles and two-wheeled vehicles)

Vessels

Piano

Electronic organs and pipe organs

Hunting rifles

 

Post-Management

 

The above restricted goods that are exempted from tariffs can not be transferred for use in other uses a period of three years from the date of receipt of the import declaration. However, any person who qualifies as a position equivalent to or equivalent to any of the following can be transferred with the approval of the Minister of Internal Affairs and Communications

 

1) Embassy or legationary councilor, the first secretary, second secretary, third secretary and a probationary diplomat

2) Consulate General or Consul General Consul, Consul, vice-consul (Exclude Honorary Consul General and Honorary Consul)

3) Embassies, legation, General consulates or public officials who work in consulates does not include in the first and second

 

With the transfer to other purposes than relevant purpose, exempted customs duties are collected from the transferee of such relevant goods.

 

 

Notes

 

Above contents contain sketchy knowledge of requirements for applicable goods to reductions of customs duties. Any inquiries related to basic questions on reductions will be okay in this section. But, more detailed research and compliance of procedures are required to deal with reduction and exemption of customs duties, given that reductions on custom duties and other internal taxes are significant exception of nation's taxation right.