Issue an order, where an operator of a general bonded workplace reports on the establishment or operation of his/her workplace in a fraudulent or improper manner, where he/she is disqualified for his/her position as the operator or where he/she violates the prohibition of lending names, etc., of closing the relevant workpalce; and prescribe a penal provision for failing to comply with such order.

(1) Reasons for Proposal

This Amendment aims to i) expand the scope of matters subject to prior examination of dutiable value of goods being traded between persons in non-special relationship to the overall methods for determining dutiable value, to ii) mitigate the requirements for postponing a disposition taken for recovery of arrears, in consideration of the characteristics of customs duties arearages, thereby strengthening the protection of rights of a person liable for duty payment, to iii) allow a license for operating a bonded store to be renewed, to iv) introduce a bonded store system operation committee, etc., to v) add to the grounds for imposing adjusted duties the values of the General Agreement and Tariffs and Trade (GATT) such as international peace and security, and to vi) raise the effectiveness of imposing the adjusted duties by changing the order of applying tariff rates for adjusted duties under the relevant grounds from third to first, etc., thereby resolving some inadequecies arising from the process of operating the current system.

(2) Major Provisions

A. Expand the scope of matters subject to prior examination of methods, etc., for determining dutiable value (newly insert Article 37, paragraph 1 and Article 37, paragraphs 5 and 6)

Expand the scope of matters subject to prior examination of dutiable value from goods being traded between persons in non-special relationship to the overall methods for determining dutiable value, and to provide grounds for the follow-up management of prior examination of methods for determining dutiable value

B. Clarify methods, etc., for determining dutiable value where data related to persons in special relationship is not submitted (newly insert Article 37-4, paragraph 4 and Article 37-4, paragraph 5)

Impose tariffs as referred to in Articles 31 through 35 where data required by the head of a customs office are not submitted, and obligate the head of a custom office to consult with, and give an opportunity to express opinions to, a person liable for duty payment before determining dutiable value

C. Reduce the increased surcharge rates (Article 41, paragraph 2)

Reduce the increased surcharge rates imposed every month since the date on which the specified time limit expires from the current 12/1,000 to 75/10,000 in consideration of an decrease in overdue interests imposed by banks

D. Provide grounds for postponing a disposition taken for recovery of arrears (newly insert Article 44)

Introduce a system for suspending a disposition taken for recovery of arrears which reflects the characteristics of customs duties in arrears in such a way that where a person who is qualified for temporary suspension of disposition taken for recovery of arrears fails to pay customs duties as referred to in a customs duties payment plan for reasons deemed justifiable by the head of a customs office, the suspended disposition taken for recovery of arrears shall not be revoked

E. Expand grounds for imposing adjusted duties and adjust the order of applying tariff rates (Article 50, paragraph 2, subparagraphs 1 and 3, and Article 69, subparagraph 2)

Allow the imposition of adjusted duties on imported goods to strengthen the protection of social values such as security and safety, and partially adjust the order of applying tariff rates to raise the effectiveness of imposing relevant adjusted duties

F. Abolish simplified tariff rates applied to vessels repaired overseas (Article 81, paragraph 3 and abolish paragraph 1, subparagraph 3 and paragraph 2 of Article 81)

Consistent with the fact that there is nearly no report of imported vessels repaired overseas subject to simplified tariff rates, and it is possible to file the import declaration thereon applying tariff rates applicable to the relevant vessels (5% or 8%), abolish the simplified tariff rates applied to vessels repaired overseas to raise the consistency and effectiveness of the customs duties system

G. Provide grounds for the revocation of designation of open ports and requests for the improvement of facilities (newly insert Article 133, paragraph 3)

Provide grounds for the revocation of designation of open ports, thereby enabling the issuance of a correction order or the revocation of designation of open ports if designated open ports may not meet the designation requirements afterwards

H. Newly insert provisions of deemed permits (newly insert Article 134, paragraphs 3 and 4, newly insert Article 136, paragraphs 3 and 4, newly insert Article 140, paragraphs 2 and 3, newly insert Article 142, paragraphs 3 and 4, newly insert Article 143, paragraphs 6 and 7, newly insert Article 158, paragraphs 6 and 7, newly insert Article 159, paragraphs 4 and 5, newly insert Article 161, paragraphs 2 and 3, newly insert Article 185, paragraphs 3 and 4, newly insert Article 187, paragraphs 2 and 3, and newly insert Article 195, paragraphs 3 and 4)

Require a customs office to notify the applicant of whether a permit is issued, as for the 11 categories of work such as issuance of a permit of entry into and departure from ports other than open ports, (un)loading of vessel (aircraft) supplies, transshipment and maintenance work outside bonded areas, etc., within ten (10) days from the date on which an application for the permit is filed, and deem the permit is issued if the applicant is not notified of whether the permit is issued or processing period is extended within the given period

I. Rationalize grounds for revocation of licenses obtained by bonded area operators (Article 178, paragraph 2, newly insert the proviso of Article 175)

Remove the irrationality of laws as in cases where the revocation of a part of the licenses a bonded area operator holds causes the revocation of all licenses that he/she holds

J. Allow a license to operate a bonded store to be renewed (Article 176-2, paragraph 6)

Allow the renewal of a license to operate a bonded store only once (twice for small and medium enterprises and middle-standing enterprises)

K. Newly establish a bonded store system operation committee (newly insert Article 176-4)

Establish a bonded store system operation committee in the Ministry of Strategy and Finance to deliberate major policies related to the bonded store system

L. Newly insert provisions of requesting sales of goods stored in general bonded areas for long term (newly insert Article 201, paragraphs 5 and 6)

Raise the effectiveness of managing goods in general bonded areas by providing procedures for selling goods stored in the general bonded areas for six (6) months or more due to unknown locations of shippers and refusal to accept goods by insolvency, bankruptcy, etc.

M. Organize administrative restrictions on operators of general bonded workplaces (Article 204, paragraph 2, Article 205 and Article 276, paragraph 2, subparagraph 2, newly insert Article 328, subparagraph 8)

Require the head of a customs office to issue an order of closing a general bonded workplace where the operator thereof files a report on the establishment and operation of the place thereof by fraudulent or improper means, is disqualified for his/her position as the operator, or commits a flawed act of violating the prohibition of lending names, etc.; and to impose a penalty of up to twenty million won for a violation of such order

N. Provide grounds for examining origins for the items subject to non-preferential tariffs (Article 233, paragraph 3)

Require the head of a custom office to examine origins of export goods whose certificates are not issued for requesting preferential tariffs, where an authorized agency such as a customs office of a trade partner country requests to verify the origins of the goods

O. Newly insert a preferential case for import declaration of the means of transportation (Article 241, paragraph 2, subparagraph 5, and newly insert 241-2)

Newly insert a preferential case for the import declaration of the means of transportation, where a foreign trade vessel (aircraft) can be exempted from the import declaration, in principle, and repaired or replaced part of the vessels repaired overseas can only be declared as a dutiable import value

P. Clarify grounds for analyzing ingredients of export and import goods (newly insert Article 246-4)

Clarify grounds for conducting a physical and chemical analysis of export and import goods to prevent the illegal export and import of goods that may be harmful to national health and security
Q. Improve the notification disposition system against a customs offender (newly insert Article 311, paragraphs 5 through 7)

Allow a customs offender to pay the amount of disposition by notification with a credit card or debit card

R. Mitigate grounds for disqualifying persons entrusted with tariff administration (newly insert the proviso of Article 327-2, paragraphs 2, subparagraph 2 and the proviso of Article 327-3, paragraph 2, subparagraph 2)

Allow persons who were designated to be entrusted with tariff administration and the designation of whom is revoked due to the fact that he/she is a person under adult guardianship and a person under limited guardianship, or is declared to be bankrupt to be so re-designated immediately after the cause for the revocation is resolved