Article 1(Purpose) #
The purpose of this Act is to provide for special cases for the Customs Act, Provisional Import Surtax Act, Value-Added Tax Act, Individual Consumption Tax Act, Liquor Tax Act, and Traffic, Energy and Environment Tax Act (hereinafter referred to as "the Customs Act, etc.") in order to implement the Agreement under Article IV of the Mutual Defense Treaty between the Republic of Korea and the United States of America regarding Facilities and Areas and the Status of the United States Armed Forces in the Republic of Korea (hereinafter referred to as the "Agreement"). <Amended by Act No. 2932, Dec. 22, 1976; Act No. 4280, Dec. 31, 1990; Act No. 4667, Dec. 31, 1993; Act No. 8138, Dec. 30, 2006; Act No. 8829, Dec. 31, 2007>
Article 1(Purpose) #
The purpose of this Act is to provide for special cases for the Customs Act, Provisional Import Surtax Act, Value-Added Tax Act, Individual Consumption Tax Act, and Liquor Tax Act in order to implement the Agreement under Article IV of the Mutual Defense Treaty between the Republic of Korea and the United States of America regarding Facilities and Areas and the Status of the United States Armed Forces in the Republic of Korea.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
<<Enforcement Date: Jan. 1, 2022>>
Article 2(Definitions) #
(1) The term "military vessel" in this Act means a ship operated for a public purpose pursuant to Article X of the Agreement under Article IV of the Mutual Defense Treaty between the Republic of Korea and the United States of America, regarding Facilities and Areas and the Status of United States Armed Forces in the Republic of Korea (hereinafter referred to as the "Agreement").
(2) The term "military aircraft" in this Act means an aircraft operated for a public purpose pursuant to Article X of the Agreement.
(3) The term "tax-exempt agencies" in this Act means the United States Armed Forces, their authorized procurement agencies, and non-appropriated fund organizations, exempt from customs duties and other penalty surcharges pursuant to Article IX of the Agreement.
(4) The term "tax-exempt person" in this Act means a member or a civilian of the United States Armed Forces under Article I of the Agreement, his/her family member, or an invited contractor under Article XV of the Agreement.
(5) The term "non-tax-exempt person" in this Act means any person other than tax-exempt agencies and tax-exempt persons.
(6) The term "military supplies" in this Act means goods provided by a person who is not a tax-exempt agency for the exclusive use of the United States Armed Forces or goods imported in order to incorporate them into goods or facilities used by the United States Armed Forces with certification issued by the appropriate authorities of the United States Armed Forces that the relevant goods are to be used for such purposes.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
Article 3(Collection of Fees for Entry into and Departure from Non-Open Port Areas) #
(1) When a military vessel carries goods not exempt from customs duties pursuant to the Agreement, an amount calculated by multiplying the amount equivalent to the fee for permission to enter and depart from an area other than an open port, which shall be calculated in accordance with Article 134 (2) of the Customs Act, by the ratio of the weight of such goods to the weight of all cargo loaded thereon shall be collected as the fee for permission to enter and depart from non-open port areas.
(2) Where a military aircraft travels to and from a foreign country without using an open port under Article 133 (1) of the Customs Act, paragraph (1) shall apply mutatis mutandis.
(3) To be eligible for the application of paragraph (1) or (2), the captain of a military vessel or aircraft shall prove to the customs office that the relevant vessel or aircraft is a military vessel or aircraft.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
Article 4 #
Deleted. <by Act No. 2932, Dec. 22, 1976>
Article 5(Procedures for Entry into and Departure from Ports) #
(1) Articles 135 through 137, Articles 140 through 144, and Article 321 of the Customs Act shall not apply to a military vessel or aircraft: Provided, That the foregoing shall not apply to the submission of a port entry report, a cargo manifest, a list of vessel or aircraft supplies, and a list of passengers under Article 135 of the said Act and the submission of an application for departure permission under Article 136 of the said Act.
(2) Where a military vessel or aircraft carries goods or passengers exempt from customs examination pursuant to Article IX of the Agreement, only such fact and the total weight of such goods or the number of passengers shall be described in a cargo manifest or a list of passengers under the proviso to paragraph (1).
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
Article 6(Additional Collection of Customs Duties, etc.) #
Where it is not certified by the appropriate authorities of the United States Armed Forces that military supplies exempted from customs duties, provisional import surtax, value-added tax, individual consumption tax, liquor tax, or traffic, energy and environment tax (hereinafter referred to as "customs duties, etc.") pursuant to Article IX of the Agreement have been delivered to the United States Armed Forces within the period specified by the head of the customs office or have been incorporated into facilities or goods used by the United States Armed Forces, the customs duties, etc. so exempted shall be collected immediately from the person who imported such supplies: Provided, That the foregoing shall not apply where the head of the customs office acknowledges that such supplies have been destroyed by a natural disaster or other force majeure. <Amended by Act No. 2932, Dec. 22, 1976; Act No. 4280, Dec. 31, 1990; Act No. 4667, Dec. 31, 1993; Act No. 8138, Dec. 30, 2006; Act No. 8829, Dec. 31, 2007>
Article 6(Additional Collection of Customs Duties) #
Where military supplies exempt from customs duties, provisional import surtax, value-added tax, individual consumption tax, or liquor tax (hereinafter referred to as "customs duties, etc.") pursuant to Article IX of the Agreement fall into any of the following cases, the customs duties, etc. so exempted shall be collected immediately from the person who imported such supplies: Provided, That the foregoing shall not apply where the head of the customs office acknowledges that such supplies have been destroyed by a natural disaster or other force majeure:
1. Where they have not been delivered to the United States Armed Forces within the period specified by the head of the customs office;
2. Where it is not certified by the appropriate authorities of the United States Armed Forces that they have been incorporated into facilities or goods used by the United States Armed Forces.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
<<Enforcement Date: Jan. 1, 2022>>
Article 7(Manufacturing of Goods Exempt from Customs Duties) #
(1) When any of the following works are performed before military supplies exempt from customs duties, etc. pursuant to Article IX of the Agreement are delivered to the United States Armed Forces or incorporated into facilities or goods to be used by the United States Armed Forces, such works shall be performed at a place approved by the head of the competent customs office during a period specified by him/her:
1. Repacking, assortment, division, and amalgamation of the relevant goods or other similar works;
2. Processing of the relevant goods or mixing them with other goods;
3. Manufacturing of other goods by using the relevant goods as raw materials.
(2) In order to inspect the bringing-in and taking-out of goods under paragraph (1), and works for, or the processing, mixing, or manufacturing of, such goods, the head of the customs office may require the importer of such goods to submit necessary documents or assign public officials under his/her control to inspect such goods.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
Article 8(Restrictions on Transfer of Goods Exempt from Customs Duties) #
(1) When a person who is or was exempt from taxes intends to transfer goods exempt from customs duties under the Agreement to a non-tax-exempt person within the territory of the Republic of Korea (including where such person intends to allow a person who is commissioned to transfer such goods or a person who intermediates such transfer possess the goods; the same shall apply hereinafter), he/she shall obtain approval therefor from the head of the customs office.
(2) If necessary for granting approval under paragraph (1), the head of the customs office may require the bringing-in of relevant goods to a bonded area (including a place permitted by the head of the customs office pursuant to Article 156 (1) of the Customs Act; the same shall apply hereinafter) or assign public officials under his/her control to inspect the relevant goods.
(3) The Comissioner of the Korea Customs Service shall, where deemed necessary, notify the public of the extent of restrictions on the approval for transfer under paragraph (1).
(4) A person who transfers goods without approval under paragraph (1) shall be deemed a person who imports the goods without filing a declaration under Article 241 of the Customs Act. In such cases, Articles 269 (2) and 271 (2) of the Customs Act shall apply.
(5) In the case of paragraph (1), Articles 283 through 319 of the Customs Act shall apply mutatis mutandis.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
Article 9(Acquisition of Goods Exempt from Taxes and Collection of Customs Duties, etc.) #
(1) Where a non-tax-exempt person acquires goods exempt from customs duties pursuant to the Agreement (including products manufactured by using such goods or by-products therefrom) through a transfer from a tax-exempt agency or a person who is or was exempt from taxes within the territories of the Republic of Korea (including where he/she is commissioned to transfer such goods or possesses the goods to intermediate such transfer; the same shall apply hereinafter), the transfer shall be deemed to be import and thus the Customs Act, Provisional Import Surtax Act, Value-Added Tax Act, Individual Consumption Tax Act, and Liquor Tax Act shall apply.
(2) Where a non-tax-exempt person acquires goods under paragraph (1) through a transfer before an import declaration is accepted (excluding where such goods have been confiscated or notice of payment in kind has been given pursuant to the Customs Act), the transferee shall be deemed a taxpayer liable for customs duties, etc. on the goods, and such customs duties, etc. shall be collected according to statutes and regulations applicable to the date of such transfer and the nature and quantity of the goods at that time: Provided, That where such goods are re-transferred before the payment of customs duties, etc. is completed, such customs duties, etc. shall be collected from the owner or possessor of the goods, only if it is impossible to collect them from the first transferee.
(3) The head of a customs office may order a transferee, a re-transferee, or a person who owns or possesses such goods under paragraph (2) to place the goods in a bonded area by the deadline specified by the head of the customs office. In such cases, if a person fails to place such goods in a bonded area, the head of the customs office may order public officials under his/her control to place the goods in a bonded area and may collect expenses of transporting and storing such goods from the person who has been ordered to place the goods in the bonded area.
(4) If goods placed in a bonded area pursuant to paragraph (3) are goods publicly notified pursuant to Article 8 (3), the head of the competent customs office shall give notice of payment of customs duties without delay and shall retain such goods in the place where have been stored.
(5) If the storage period for goods placed in a bonded area (including goods kept in custody pursuant to paragraph (4)) has elapsed, such goods shall be deemed goods under Article 210 of the Customs Act. In such cases, customs duties, etc. on the goods shall be collected according to statutes applicable to the date of sale and the nature and quantity of the goods available at that time.
Article 10(Taxable Price for Customs Duties and Provisional Import Surtax) #
(1) Notwithstanding the provisions of the Customs Act and the Provisional Import Surtax Act, the taxable price for goods acquired through a transfer under Article 9 (1), (2), or (5) shall be an amount calculated by subtracting customs duties, other penalty surcharges, and ordinary transaction expenses from the domestic wholesale price for the kind of goods identical or similar to the relevant goods traded at any of the following times:
1. When an import declaration is filed in cases falling under Article 9 (1);
2. When goods are acquired through a transfer in cases falling under Article 9 (2);
3. When goods are sold in cases falling under Article 9 (5).
(2) Where goods acquired through a transfer are owned by the United States Armed Forces and disposed of under an agreement between the Republic of Korea and a tax-exempt agency, the price of disposition shall be deemed the taxable price.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
Article 11 #
Deleted. <by Act No. 2932, Dec. 22, 1976>
Article 12(Taxable Base for Value-Added Tax, Individual Consumption Tax, Liquor Tax, and Traffic, Energy and Environment Tax) #
As to the tax base for value-added tax, special consumption tax, liquor tax, and traffic, energy and environment tax shall be governed by Article 13 of the Value-Added Tax Act, Article 8 of the Special Consumption Tax Act, Article 19 of the Liquor Tax Act, and Article 6 of the Traffic, Energy and Environment Tax Act. In such cases, Article 10 shall apply mutatis mutandis to the price appraised for the purpose of imposing customs duties.
[This Article Wholly Amended by Act No. 2932, Dec. 22, 1976]
Article 12(Taxable Base for Value-Added Tax, Individual Consumption Tax, and Liquor Tax) #
The tax base for value-added tax, individual consumption tax, and liquor tax to be collected under Article 9 shall be governed by Article 13 of the Value-Added Tax Act, Article 8 of the Individual Consumption Tax Act, and Article 21 of the Liquor Tax Act. In such cases, Article 10 shall apply mutatis mutandis to the taxable price appraised for the purpose of imposing customs duties.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
<<Enforcement Date: Jan. 1, 2022>>