(1) Reasons for Proposal

The amendment aims to clarify legal grounds concerning the customs clearance procedure under the Customs Act within free trade zones and the application of special exceptions, etc.; increase the scope of eligibility for reduced rents to attract outstanding enterprises; allow to request the sale of goods not shipped out of any free trade zone for an extended period; and otherwise improve and complement a number of weaknesses that have emerged in the operation of the current system.

(2) Major Provisions

A. Apply the procedure provisions under the Customs Act to free trade zones (Article 3 (1) 2 and 3 newly inserted) 

Even though in principle, the Customs Act does not apply in free trade zones, prescribe that the provisions on essential procedures for customs clearance, such as arrivals/departures and loading/unloading procedures under the Customs Act, which has been applied in practice without an explicit legal basis, shall be applied. Also prescribe that the provisions of the Customs Act, which are advantageous for occupant enterprises, shall apply to the customs clearance of goods, such as import reporting procedures before entering a port.

B. Increase the scope of eligibility for reduced rents in free trade zones (Article 20 (3) and (4) newly inserted) 

As currently, only foreign-invested companies in free trade zones are eligible for rent reduction, amend to the effect that Act allows a rent reduction for any person who intends to be engaged in a new industry prescribed by Presidential Decree to advance the airport/port logistics industry or domestic industrial structure and strengthen international competitiveness, to promote the attraction of outstanding domestic enterprises by providing the incentive of a rent reduction.