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Korea Customs Services designates Comprehensive Bonded Areas in Ulsan and Yeosu

(DAEJEON=NEWSIS) Korea Customs Service said June 18 that it designated Sung Un Tank Terminal in Ulsan and SY Tank Terminal in Yeosu as comprehensive bonded area.

A comprehensive bonded area is the system where the existing functions of the patent bond area (storage, maintenance, manufacturing, processing, display, construction and sale) can be performed comprehensively in the same place and it was introduced to promote the facilitation of the foreign investments.

These oil tank terminals have 26 storage tanks that can store about 460,000 ㎘ of petroleum products. A total of 12 oil tank terminals in Ulsan and Yeosu were designated as comprehensive bond area.

The comprehensive bond area serves beyond mere storage tank. Within the area, petroleum products can be freely mixed, enabling the export of customized petroleum products that meet petroleum quality standards.

Korea Customs Service expects to see KRW80 billion worth of exports in the next five years, along with employing 100 workers.

It is expected that the area would serve as the supply base for vessel fuel, which is mostly being supplied by Singapore. This could be an ideal start for the Northeast Asia Oil Hub Project.

Korea Customs Service also intends to file a patent application for oil companies as bonded factories, which will greatly simplify taxation and tax return procedures and lead to cost saving.

Also, pipelines will be installed to transport petroleum products produced in these oil companies to the oil tank terminal.

“We will expand the comprehensive bonded area, along with filing patent application for oil companies and install pipelines that lead to the comprehensive bond area. We will provide our best support for the government’s Northeast Asia Oil Hub Project, and make sure that the area creates added value,” said an official.

Source Text

Source: Newsis (June. 18, 2014)

** This article was translated from the Korean.