InvestKorea | What Investors Need to Know | Operational Issues | Customs Clearance/Tariff Reduction, Exemption & Refund

Customs Clearance/Tariff Reduction, Exemption & Refund

Customs clearance refers to customs declaration and inspection procedures undertaken when
goods are imported from abroad.

Customs clearance

Import Clearance Procedure

Customs Clearance Process for Capital Goods

Notification of foreign investment
(report to a foreign exchange
bank or KOTRA)
Confirmation of specifications of
imported capital goods
(report to a foreign exchange
bank or KOTRA)
Import clearance
Confirmation of completion of
in-kind investment
(report to KCS officer dispatched
to KOTRA)
Registration of incorporation
(report to district courthouse registration
department or registry office)
Registration of foreign-invested company
(report to a foreign exchange bank
or KOTRA)

Load/Depart
Enter Port &
Unload
Enter Bonded
Area
- Before leaving port
- Before entering port
- Before entering bonded area
- After entering bonded area
Import
Declaration
Inspect
Goods
Inspection
Cargo Selectivity
skip
inspection
Customs
Clearance
Requirements
Inspection
Post-
payment
Pre-payment
Pay All Taxes
Accept Import
Declaration
Carry Out/
Receive Cargo

Tariff reduction, exemption & refund

Tariff reduction and exemption

There are two types of tariff reduction: unconditional reduction of and/or exemption from taxes based on specific facts, and conditional tariff reduction and exemption in which tariffs are reduced or exempted on condition of specific usage.

Unconditional reduction & exemption
Conditional reduction & exemption

Tariff refund

Tariffs paid or to be paid when importing raw materials for export are drawn back to the exporter or the manufacturer of the exported goods upon export, notwithstanding the Customs Act, etc.