(1) Reasons for Proposal

In accordance with newly inserted provisions in the Customs Act concerning officials for taxpayer advocacy service and the taxpayer protection committee, state funding of container goods inspections, and arrival collection points, this Amendment prescribes matters delegated by the Act, improves the procedure for requesting the imposition of anti-dumping duties, and otherwise addresses and improves upon a number of weaknesses that have emerged from the operation of the current system.

(2) Major Provisions

A. Add goods subject to determination of dutiable value based on reasonable standards (Article 29, paragraph 3)

Add petroleum that is traded in a bonded area at a price calculated by adjusting international market prices to the scope of goods subject to determination of dutiable value based on reasonable standards.

B. Restrict the scope of use of information submitted for prior examination of dutiable value (Article 31, paragraph 8 newly inserted)

Newly insert provisions prescribing that any information, etc., that has been submitted by a person who intends to request prior examination on the methods of determining dutiable value, etc., shall not be used for any purpose other than the said prior examination and follow-up thereon.

C. Improve the procedure for requesting the imposition of anti-dumping duties (Article 59, paragraphs 2 and 3)

Enable the heads of the relevant central administrative agencies to actively request the imposition of anti-dumping duties by newly inserting procedures that allow dumping price data to be requested from the Commissioner of the Korea Customs Services, and that allow the Commissioner of the Korea Customs Service to notify the heads of the relevant central administrative agencies of potential dumping transactions.

D. Offer willful large-amount and habitually delinquent duty payers a chance to provide a statement before applying for detention (Article 141-7 newly inserted)

Prescribe details concerning the procedure in which the Commissioner of the Korea Customs Service notifies large-amount and habitually delinquent duty payers of their detention conditions, detention period, etc., before applying to the prosecutor for their detention, and the defaulters that have been notified to provide a statement to the customs information committee.

E. Specify the scope of persons subject to prohibition of departure and grounds for requesting the withdrawal of a prohibition of departure (Article 141-8 and Article 141-9 newly inserted)

Enhance the predictability of duty payers by clarifying the scope of persons subject to prohibition of departure and grounds for requesting the withdrawal of a prohibition of departure.

F. Prescribe the qualification, duties, and authority of officials for taxpayer advocacy service (Article 144-2 newly inserted)

Prescribe the qualification, duties, authority, and other details on officials for taxpayer advocacy service delegated by Presidential Decree in accordance with the introduction of the said officials to strengthen the protection of duty payers’ rights and interests.

G. Prescribe the composition of the taxpayer protection committee, reasons for member exclusion/evasion, etc. (Article 144-3 and Article 144-4 newly inserted)

Ensure fair and efficient operation of the taxpayer protection committee by prescribing that the committee shall consist of members who are subject matter experts, requiring any member who is associated with a person under customs duty investigation to be excluded from committee deliberations/votes, and prescribing other specific matters concerning the operation of the taxpayer protection committee.

H. Prescribe eligibility criteria for state funding of container goods inspections (Article 187-4 newly inserted)

Provide assistance to small and medium enterprises and middle-standing enterprises engaging in imports and exports by prescribing that container goods that are transferred to a separate inspection venue, that are not in breach of import and export-related laws, and that meet certain other criteria shall be eligible for funding.

I. Specify subjects that may be excluded from bonded goods caretaker tests for public officials with customs administration experience (Article 185)

Specify subjects that may be excluded from tests in accordance with amended provisions that abolish automatic qualification of public officials with customs administration experience as bonded goods caretakers and instead prescribe that certain test subjects may be excluded.

J. Prescribe provisions concerning arrivals collection points (Article 213-2 newly inserted)

Prescribe matters concerning arrivals collection point applications and approvals, types of and limits on goods that may be collected, etc., in accordance with the introduction of arrival collection points, through which goods are sold from duty free shops on the condition that the goods are handed over to persons arriving in Korea from abroad.

K. Conduct written surveys on open markets and publish survey results (Article 264-2 and 264-3 newly inserted)

Prescribe detailed provisions concerning survey frequency, scope, method, publication of results, etc., in accordance with the introduction of written surveys of mail order brokers conducted by the Commissioner of the Korea Customs Service.

L. Increase the base amount of notification dispositions (Article 270-2)

Improve the effectiveness of notification dispositions applicable to minor customs offenses by increasing the calculation factor of the “amount equivalent to a fine” to 30 percent of the maximum fine.