Reasons for Proposal
This Act aims to reasonably improve disqualification grounds for the termination of occupancy contracts in free trade zones and encourage the transparent and quick handling of civil petitions by frontline administrative agencies by clearly defining in laws the civil petition handling procedure, which is closely related to people’s lives and business activities.
It also aims to improve and supplement some shortcomings in the current operation of the system by applying provisions under the Customs Act to procedures and special cases required for customs clearance in free trade zones, reducing and exempting rent for those who occupy free trade zones to do business in a new industry in addition to foreign-invested enterprises to attract outstanding Korean companies and strengthen competitiveness in free trade zones, and allowing occupant enterprises to split or merge goods to manage inventory in an effort to promote e-commerce.
Details
A. Apply procedural provisions under the Customs Act to free trade zones (Articles 3 (1) 2 and 3 newly inserted)
While the Customs Act does not apply to free trade zones in principle, clarify that entry/departure and loading/unloading procedures required for customs clearance under the Customs Act, which have been applied in conventional practice, apply and that provisions under the Customs Act favorable to occupant enterprises apply only to the customs clearance of goods.
B. Rationalize disqualification grounds for persons under adult guardianship (Article 12, subparagraph 8)
While persons under adult guardianship were not previously allowed to sign any occupancy contract in free trade zones until 2 years after the termination of any occupancy contract because they are under adult guardianship, allow such persons to sign any occupancy contract as soon as such disqualification grounds are resolved.
C. Clarification of the civil petition handling procedure (Articles 14 (5), 29 (2), 30 (2), 35 (4), and 38 (4) newly inserted)
Specify that reporting the commencement of business other than manufacturing in free trade zones, the shipping of goods into free trade zones, the shipping of foreign goods abroad from free trade zones, the disposal of waste arising from work outside the zones, and the destruction/loss of foreign goods is subject to acceptance.
D. Expand those subject to rent reduction and exemption in free trade zones (Articles 20 (3) and (4) newly inserted)
Allow the administrative authority or the head of the relevant local government to reduce and exempt rent for those who occupy free trade zones to do business in the airport/port logistic industry or new industry.
E. Prepare a basis to simplify cargo inventory management (Article 38 (6) newly inserted)
If any occupant enterprise that has a goods inventory management system under the criteria set forth by the Commissioner of the Korea Customs Service, goods imported into or exported from free trade zones, goods produced in free trade areas, etc. can be split and merged in individual purchase units, not stored and used in cargo units.
F. Decrease the upper limit for administrative fines for any violation of the loading period (Article 70 (2) 7 deleted and Article 70 (3) 2-2 newly inserted)
Decrease the upper limit for administrative fines for those loading foreign goods longer than the loading period after such goods are declared to be shipped out of the country from 2 million won to 1 million, considering the punishment for violation.
