Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Act on Special Cases concerning the Refund of Customs Duties Levied on Raw Materials for Export, and matters necessary for the enforcement thereof. <Amended on Feb. 9, 2006; Feb. 21, 2014>
Article 2(Lump-sum payment period for customs duties) #
(1) The lump-sum payment period provided for in the former part of Article 6(1), with the exception of its subparagraphs, of the Act on Special Cases concerning the Refund of Customs Duties Levied on Raw Materials for Export (hereinafter referred to as the "act") shall be one month, two months or three months; provided, where it is deemed necessary to efficiently perform the settlement of account work provided for in Article 7 of the Act and where it is prescribed by Decree of the Ministry of Economy and Finance, the lump-sum payment period may be set otherwise within six months. <Amended on Feb. 29, 2008; Feb. 21, 2014; Feb. 12, 2019; Dec. 30, 2025>
(2) Anyone who intends to file an application for the lump-sum payment of his or her customs duties pursuant to the former part of Article 6(1), with the exception of its subparagraphs, of the Act shall choose any of the lump-sum payment periods referred to in the provisions of paragraph (1). <Amended on Feb. 12, 2019>
(3) The lump-sum payment periods referred to in the provisions of paragraph (1) shall be reckoned from the first day of the month in which the date of filing an application for the lump-sum payment of custom duties falls.
(4) The lump-sum payment period chosen pursuant to the provisions of paragraph (2) shall not be changed before one year elapses from the first day of the month in which the date of filing an application for the lump-sum payment of customs duties falls.
[This Article Wholly Amended on Feb. 9, 2006]
Article 3(Types of collateral and procedures for providing collateral) #
(1) The types of collateral which the head of a customs office may require a person who intends to be designated as an enterprise for lump-sum payment of customs duties to provide under the latter part of Article 6(1), with the exception of the subparagraphs, of the Act shall be as follows: <Amended on Dec. 5, 2002; Aug. 21, 2003; Feb. 9, 2006; May 31, 2016; Feb. 12, 2019>
1. Cash;
2. Bonds or securities issued by the State or local governments;
3. Banks' guarantee for payment;
4. Guarantee insurance policies for the payment of taxes;
5. Credit guarantee provided for in the Credit Guarantee Fund Act or the Regional Credit Guarantee Foundation Act;
6. Technology guarantee and credit guarantee provided for in the Korea Technology Finance Corporation Act.
(2) Any person who intends to provide collateral for the payment of customs duties on raw materials for export pursuant to the latter part of Article 6(1), with the exception of its subparagraphs, of the Act shall submit an offer sheet for collateral in which the type, quantity, amount of collateral are stated to the head of a customs office. <Amended on Feb. 12, 2019>
(3) Any person who intends to provide collateral pursuant to paragraph (2) shall provide collateral equivalent to the tax amount to be paid in a lump-sum once and for all, to the head of a customs office having jurisdiction over his or her factory (referring to the head of a customs office having jurisdiction over a principal office, if the principal office primarily deals with the process of refund; hereinafter referred to as "head of the competent customs office"), before the import declaration.
(4) Notwithstanding paragraph (3), any person may provide collateral to the head of a customs office having jurisdiction over the place of clearance whenever he or she files an import declaration.
(5) "Case it is difficult for the head of a customs office to secure claims for customs duties prescribed by Presidential Decree" in Article 6(1)5 of the Act means any of the following cases: <Added on Feb. 12, 2019>
1. Where a person has imported nothing at all for the last two years;
2. Where bankruptcy, liquidation, or individual rehabilitation procedures are being under way;
Article 4 #
Deleted. <Feb. 12, 2019>
Article 5 #
Deleted. <Feb. 12, 2019>
Article 6(Notification of settlement of account) #
(1) The head of a customs office shall notify every enterprise for lump-sum payment of customs duties of the results of the settlement of account as provided in Article 7(1) of the Act, which includes the following matters: <Amended on Feb. 12, 2019>
1. The details of the customs duties to be paid in a lump sum pursuant to Article 6(1) of the Act;
2. The details of the refund amount whose payment is withheld pursuant to Article 16(3) of the Act;
3. The amount of the custom duties to be paid or the refund amount that has to be as a result of the settlement of account.
(2) "Day prescribed by Presidential Decree" in Article 7(1) of the Act means the first day of the month following the month during which the lump-sum payment period expires pursuant to the provisions of Article 2(1).
(3) The customs duties paid by an enterprise for lump sum payment for customs duties pursuant to Article 7(3) of the Act shall be made the amount of annual revenue of the head of a customs office who notifies the result of the settlement of account of such customs duties
[This Article Wholly Amended on Apr. 5, 2007]
Article 7(Ex officio settlement of accounts) #
(1) "Grounds prescribed by Presidential Decree" in Article 8(1) of the Act means grounds that constitute any of the following: <Amended on Dec. 31, 1998; Dec. 29, 2000; Feb. 9, 2006; Apr. 5, 2007; Feb. 29, 2008; Feb. 21, 2014; Feb. 12, 2019; Dec. 30, 2025>
1. Deleted; <Apr. 5, 2007>
2. Where an enterprise has been punished for violation of Article 23 of the Act or Articles 268-2,269,270,270-2,271,274,275-2,275-3, and 276 of the Customs Act;
3. Where default of customs duties has occurred; provided, cases where voluntary payment is made within the urged period shall be excluded;
4. Where an assurance on recovery of claims for customs duties is necessary due to a declaration of bankruptcy, dishonoring bills;
5. Cases as otherwise provided by Decree of the Ministry of Economy and Finance as it is deemed necessary to secure claims for customs duties.
(2) Where the head of a customs office intends to immediately settle customs duties whose payment deadline under Article 6(3) of the Act is yet to come and refunds whose payment has been withheld pursuant to Article 16(3) of the Act by right of office (hereinafter referred to as "ex officio settlement") in order to secure claims for customs duties, because any ground referred to in the subparagraphs of paragraph (1) has occurred, he or she shall notify the relevant enterprise of such adjustment. <Amended on Feb. 21, 2014; Feb. 12, 2019>
Article 8 #
Deleted. <Feb. 12, 2019>
Article 9(Base date of export commitment period) #
(1) "Date prescribed by Presidential Decree" in the main clause of Article 9(1) of the Act means the last day of the month in which any of the following dates falls: <Amended on Feb. 5, 2016>
1. For any export provided for in subparagraph 1 of Article 4 of the Act, the date an export declaration is accepted;
2. For any export provided for in subparagraphs 2 through 4 of Article 4 of the Act, the date an export, sale, construction project or supply is completed.
(2) Where an import declaration for raw materials for export is accepted; shipment of raw materials for export is approved; an immediate release report of raw materials for export is submitted; and transactions on raw materials for export are performed as follows within two years retroactive to the base date of an export commitment period referred to in paragraph (1), customs duties on such raw materials may be refundable pursuant to Article 9(1) of the Act: <Amended on Oct. 23, 2000; Dec. 29, 2000; Feb. 9, 2006; Feb. 5, 2016; Feb. 13, 2018>
1. Acceptance of an import declaration under Article 248 of the Customs Act;
2. Approval of shipment prior to the acceptance of an import declaration under Article 252 of the Customs Act;
3. Immediate shipment declaration prior to an import declaration under Article 253 of the Customs Act;
4. Final transaction of the raw materials for export transacted by a local letter of credit under Article 5(3) of the Act (hereinafter referred to as "local letter of credit").
Article 9-2(Goods for which export commitment period is extended) #
(1) "Goods prescribed by Presidential Decree" in the proviso of Article 9(1) of the Act means goods offered for plant export referred to in Article 32(1) of the Foreign Trade Act.
(2) "Unforeseen circumstances prescribed by Presidential Decree" in the proviso of Article 9(1) of the Act means where the Commissioner of the Korea Customs Service deems that it is inevitable to delay export on grounds of war, upheaval, natural disasters or grave political or economic crisis of a trading partner country.
[This Article Added on Feb. 5, 2016]
Article 10(Period of transactions by local letters of credits) #
"Period prescribed by Presidential Decree" in the main clause of Article 9(2) of the Act means one year; provided, if such period is extended by up to six months upon approval of the head of the competent customs office due to the characteristics of goods or extenuating circumstances in transactions, as prescribed by the Commissioner of the Korea Customs Service, it means the total period so extended. <Amended on Feb. 7, 2017>
[This Article Wholly Amended on Apr. 5, 2007]
Article 11(Calculation of required amount) #
(1) A person seeking to prepare a statement of accounts for the amount required (hereinafter referred to as an "enterprise preparing a statement of accounts for the amount required") in accordance with the provisions of Article 10(1) of the Act shall report the following matters to the head of the competent customs office and calculate the required amount according to the reported matters:
1. The name of export goods;
2. The method of assessing the required amount;
3. The period being the standard for assessing the required amount and applicable periods;
4. The manufacturing process of export goods and an explanation of the process;
5. Other matters related to the calculation of the required amount, which are prescribed by the Commissioner of the Korea Customs Service.
(2) Where an enterprise preparing a statement of accounts for the amount required intends to modify the contents stipulated in the subparagraphs of paragraph (1) of this Article, it shall report those contents without delay to the head of the competent customs office.
(3) Where a person applying for a refund as provided in Article 14(1) of the Act is different from the producer of export goods, the person applying for refund shall prepare the statement of accounts for the amount required based on the required amount which has been assessed by the person who has produced the relevant export goods; provided, in case of applying a standard required amount pursuant to Article 10(2) of the Act, this shall not apply.
(4) Matters necessary for the calculation of a required amount, management standards and the process thereof shall be prescribed by the Commissioner of the Korea Customs Service.
Article 11-2(Application for advance examination on required amount) #
(1) A person who intends to apply for advance examination on the required amount under Article 10-2(1) of the Act or for re-examination under Article 10-2(3) of the Act shall submit to the head of the competent customs office an application for advance examination on the required amount or an application for re-examination stating the ground therefor, accompanied by data concerning the matters referred to in each subparagraph of Article 11(1).
(2) "The period prescribed by Presidential Decree" in the main clause of Article 10-2(2) of the Act means 30 days from the date an application is submitted under paragraph (1) (50 days if an on-site verification is conducted pursuant to the proviso of paragraph (4)). In such cases, the period required for correcting incomplete data under paragraph (3) shall not be included in calculating the 30 days.
(3) The head of the competent customs office may request the applicant to correct the application and related data submitted under paragraph (1) for a specified period of up to 20 days, pursuant to the proviso of Article 10-2(2) of the Act.
(4) The head of the competent customs office shall conduct an advance examination on the required amount by reviewing the application and related data submitted under paragraph (1), in principle; provided, where necessary to verify the manufacturing process to review the application and related data, the head of the competent customs office may concurrently conduct an on-site verification upon consent by the applicant.
(5) In any of the following cases, the head of the competent customs office may reject an advance examination:
1. Where the application and related data corrected upon request pursuant to paragraph (3) are not submitted by the deadline;
2. Where investigations of violations, investigations of customs duties, or procedures for dissatisfaction application, such as raising of an objection, a petition for examination or adjudication, filing of a lawsuit, are pending with respect to a case involving the same subject matter as addressed in the application for an advance examination.
(6) "Where any event prescribed by Presidential Decree occurs, such as a change in facts or circumstances on which the advance examination on the required amount is based" in the proviso of Article 10-2(5) of the Act means any of the following cases:
1. Where the basis for calculating the required amount is altered due to a change in facts or product process;
Article 12(Certificate of average tax amount) #
(1) A person seeking to receive a certificate of the average tax amount pursuant to the provisions of Article 11(1) of the Act shall have goods designated as those subject to certification of the average tax amount by the head of the competent customs office. In this case, the goods, which the Commissioner of the Korea Customs Service determines after recognizing that it is impracticable to fix the average tax amount thereof, including any case in which the item code number of the item classification table of both customs duties on and statistics of raw materials for export (hereinafter referred to as the "item code number") or the required amount thereof is changed, shall not be designated as those subject to the issuance of a certificate of the average tax amount. <Amended on Dec. 31, 1998>
(2) A person seeking to receive a certificate of the average tax amount with regard to goods designated pursuant to the provisions of paragraph (1) shall attach documentary evidence prescribed by the Commissioner of the Korea Customs Service to an application stating the following matters and submit it to the head of the competent customs office after the first day of the month following the month in which the date of importing raw materials for export or the date of purchasing such raw materials by local letters of credit falls:
1. The tax amount of customs duties and import amount classified by designated goods;
2. The tax amount of customs duties and purchase amount by the local letter of credit classified by designated goods;
3. Other matters related to certification of the average tax amount, which are prescribed by the Commissioner of the Korea Customs Service.
(3) When the matters provided in the subparagraphs of paragraph (2) are modified in whole or in part after the issuance of a certificate of the average tax amount, the head of a customs office shall issue a certificate of the average tax amount as prescribed by Decree of the Ministry of Economy and Finance. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
(4) A certificate of the average tax amount shall be applied for collectively in respect to the whole quantity of raw materials for export which have been purchased pursuant to a local letter of credit or have been imported monthly on the basis of the item code number; provided, this shall not apply to any such case as prescribed by Decree of the Ministry of Economy and Finance. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
(5) With respect to designated goods pursuant to the provisions of paragraph (1) of this Article, the issuance of a certificate of the average tax amount shall continuously be applied for.
Article 13(Certificate of tax payment on basic raw materials and certificate of divided import tax amount) #
(1) A person who intends to acquire a certificate of tax payment on basic raw materials or a certificate of the divided import tax amount (hereinafter referred to as the "certificate of tax payment on basic raw materials") under Article 12(1) of the Act shall file an application for the issuance of a certificate in which the following matters are entered, to the head of the competent customs office: <Added on Dec. 31, 1998; Apr. 5, 2007>
1. Transferor and transferee;
2. Transfer date;
3. Names and standards of the relevant items;
4. Quantity and tax amount of the transferred items;
5. Other matters necessary for the issuance of a certificate of tax payment on basic raw materials, which are determined by the Commissioner of the Korea Customs Service.
(2) With respect to goods restricted from a refund of customs duties pursuant to Article 17 of the Act, the head of a customs office shall deduct the tax amount restricted by the refund and issue a certificate of tax payment on basic raw materials <Amended on Apr. 5, 2007>
(3) Where goods are transacted by one local letter of credit on two or more installments of supply, the certificate of tax payment on basic raw materials shall be issued on the presumption that the raw materials for export in question have been wholly transacted on the day when the first goods of installment were supplied; provided, where the person supplying the raw materials for export by a local letter of credit does not desire to do so, this shall not apply. <Amended on Apr. 5, 2007>
(4) Where it is deemed necessary to efficiently perform the duties related to the issuance of a certificate of tax payment on basic raw materials, the Commissioner of the Korea Customs Service may separately designate the head of a customs office in charge of issuing such certificate. <Amended on Apr. 5, 2007>
[Title Amended on Apr. 5, 2007]
Article 14(Standards for fixed refund) #
(1) The fixed refund rates table provided for in Article 13(1) of the Act shall be determined based on the code numbers of export goods, and may be determined by product type or by specification of export goods, if necessary.
(2) When the fixed refund rates table is determined pursuant to paragraph (1), the fixed rate may be adjusted proportionately for a reasonable refund taking into consideration fluctuations in the customs duty rate, exchange rate <Amended on Jan. 5, 2021>
(3) Where export goods or goods transacted by local letters of credit are included in the fixed refund rates table under Article 13(1) of the Act, customs duties on such goods shall be refunded or a certificate of tax payment on basic raw materials for such goods shall be issued in accordance with the fixed refund rates table in effect on the date such goods are used for export or transacted by local letters of credit; provided, this shall not apply where any person obtains approval for non-application of the fixed refund rates table, as determined by the Commissioner of the Korea Customs Service (hereinafter referred to as "approval for non-application"). <Amended on Feb. 28, 2023>
(4) No goods to which the fixed refund rates table referred to in Article 15 applies shall be subject to the fixed refund rates table referred to in Article 16.
(5) With respect to each and every export goods (including goods transacted by local letters of credit) of a person who has obtained approval for non-application pursuant to the proviso of paragraph (3), the fixed refund rates table shall not apply. <Amended on Feb. 28, 2023>
(6) Where a person who has obtained approval for non-application of the fixed refund rates table under the proviso of paragraph (3) applies for application as determined by the Commissioner of the Korea Customs Service, or a person who has obtained approval for application of the fixed refund rates table applies for non-application, he or she shall not file an application therefor within two years from the date of obtaining approval for application or non-application; provided, in any of the following cases, an application therefor may be filed within two years, as determined by the Commissioner of the Korea Customs Service: <Amended on Oct. 23, 2000; Feb. 28, 2023>
1. Where it is impracticable to prepare a statement of accounts for the amount required due to any change in production process;
2. Where the amount refunded under a fixed refund rates table is less than 70% of the amount calculated under Article 10 of the Act;
Article 15(Fixed amount refund of special process items) #
(1) When the Commissioner of the Korea Customs Service determines a fixed amount refund rates table of items for export having an extraordinary production process pursuant to the provisions of Article 13(1) of the Act (hereinafter referred to as a "fixed amount refund rates table for special process items"), he shall make it on the basis of the average refund amount of or the average amount of tax payment of customs duties on the raw materials purchased pursuant to import or a local letter of credit during the period of the last six months or more.
(2) In order to determine a fixed amount refund rates table for special process items or to make an adjustment on such tables which have been publicly notified, the Commissioner of the Korea Customs Service may request the submission of relevant materials from the producer of the relevant items, if necessary.
(3) A person who has received the application of a fixed amount refund rates table for special process items shall report matters related to amount of tax payment of customs duties and changes in the production process concerning raw materials for export, by items for export, to the Commissioner of the Korea Customs Service. In this case, the Commissioner of the Korea Customs Service may adjust the fixed amount refund rates table for special process items on the basis of the reported data and give notice of such.
Article 16(Simplified fixed amount refund) #
(1) When the Commissioner of the Korea Customs Service determines the fixed amount refund rates table (hereinafter referred to as "simplified fixed amount refund rates table") applicable to items for export by a small and medium enterprise pursuant to the provisions of Article 13(1) of the Act, he or she shall determine a reasonable refund amount or the average amount of tax payment by code number of items for export during the latest period of six months or more; provided, where it is unreasonable to set the amount of refund on the simplified fixed amount refund rates table based on the amount of average refund by the item code number of the relevant goods or the amount of average customs duties paid on the grounds of the lack or the insignificance of the refund record (excluding the record of the simplified fixed amount refund) by the code number of items for export for the last six months or longer, a proper amount of refund may be set based on the amount of refund on the latest simplified fixed amount refund rates table. <Amended on Aug. 21, 2003>
(2) The simplified fixed amount refund rates table as provided in paragraph (1) shall apply only to items for export produced by persons as prescribed by Decree of the Ministry of Economy and Finance. In this case, the same shall apply only to the refund of customs duties as directly requested by a producer of items for export, if the exporter and the producer of the items for export are different. <Amended on Dec. 31, 1998; Oct. 23, 2000; Feb. 29, 2008; Dec. 30, 2025>
Article 17(Request for public notice of fixed amount refund rates table) #
(1) A person who intends to request the public notice of a fixed amount refund rates table pursuant to the provisions of Article 13(3) of the Act shall submit an application therefor accompanied with the following materials to the Commissioner of the Korea Customs Service:
1. A document stipulating the reasons for the request for public notice;
2. Particulars of the required raw materials for each item code number of export goods;
3. Particulars of payments of customs duties during the last one year for each raw material;
4. Other materials prescribed by the Commissioner of the Korea Customs Service such as materials which demonstrate the need for a request for public notice of a fixed amount refund rates table.
(2) Where the Commissioner of the Korea Customs Service receives the request for public notice of a fixed amount refund rates table pursuant to the provisions of paragraph (1), he or she shall publicly notify such table based on the submitted documents and the past refund records; provided, where it is deemed that the items are not suitable to be subject to the fixed amount refund for fear of a remarkably large or small refund because of their peculiarity in transaction of the relevant items, he or she may not publicly notify Appendix.
Article 18(Application for refund) #
(1) An application for the refund of customs duties under Article 14(1) of the Act shall be filed by any of the following persons: <Amended on Dec. 31, 1998; Aug. 21, 2003; Feb. 7, 2017>
1. In cases of export provided for in subparagraph 1 of Article 4 of the Act, an exporter (referring to a contract giver if a contract for export is entrusted) or a manufacturer of export goods who is entered as an applicant for refund in a certificate for export declaration;
2. In cases falling under subparagraphs 2 through 4 of Article 4 of the Act, a person who is entered as an exporter, seller or supplier of, or project operator for, the relevant goods in the documents the Commissioner of the Korea Customs Service prescribes to verify whether such goods are used for export;
3. Where any corporation referred to in subparagraph 1 or 2 is merged, a corporation surviving such merger or a corporation newly incorporated after such merger;
4. Where an heir inherits from any person referred to in subparagraph 1 or 2, the heir (referring to heirs provided for in articles 1000, 1001, 1003 and 1004 of the civil act; and including legatees provided for in subparagraph 5 of Article 2 of the inheritance tax and gift tax act) or an administrator of the inherited property provided for in Article 1053 of the Civil Act.
(2) A person who seeks to receive refund of customs duties pursuant to the provisions of Article 14(1) of the Act shall submit an application for refund of customs duties as prescribed by the Commissioner of the Korea Customs Service together with the following documents to the head of the competent customs office; provided, with respect to export goods to which a fixed amount refund rates table is applied, the documents stipulated in subparagraphs 2 and 3 shall not be attached: <Amended on Dec. 31, 1998>
1. Documents confirming that goods are provided for export under each subparagraph of paragraph (1);
2. Statement of accounts for the amount required;
3. Documents confirming the tax payment amount for the required raw materials;
4. Other documents related to the confirmation of refund money, which are determined by the Commissioner of the Korea Customs Service
(3) An application for refund of customs duties shall be a blanket application in regard to raw materials used for the production of export goods; provided, in cases as prescribed separately by the Commissioner of the Korea Customs Service because a blanket application is deemed unreasonable, this shall not apply.
Article 19(Designation of customs office for applications for refund) #
Where it is deemed necessary for the efficient execution of business affairs related to the refund of customs duties, the Commissioner of the Korea Customs Service may designate a customs office for filing the application for refund of customs duties or may modify that designation, at the request of the applicant for refund or ex officio.
Article 20(Ex post facto review of refund) #
(1) Where it is necessary to review as to whether the amount of refunds is correct pursuant to Article 14(2) of the Act, the head of a customs office shall review the correctness, through the application for refund and attached documents thereto, or the materials submitted pursuant to Article 20(3) of the Act, or a field investigation. <Amended on Feb. 21, 2014>
(2) A review under paragraph (1) shall be completed within 5 years from the date of the application for refund; provided, where the Commissioner of the Korea Customs Service separately determines the examination period, this shall not apply. <Amended on Feb. 21, 2014>
(3) Procedures and methods for review under paragraph (1), and other necessary matters shall be determined by the Commissioner of the Korea Customs Service. <Amended on Feb. 21, 2014>
Article 21(Transfer and payment of refund) #
(1) The refund provided for in Article 16(1) of the Act shall be paid by means of depositing it on the account, of which the relevant applicant for refund notifies in accordance with Article 18(6).
(2) The head of a customs office, who intends to pay the refund in accordance with paragraph (1), shall ask the Bank of Korea to deposit such refund on the account set up by the relevant applicant for refund.
(3) The Bank of Korea shall, upon receiving a request for the payment of refund under paragraph (2), immediately transfer the refund from the revenue account of the head of a customs office asked for payment during the relevant year to the account of the applicant for refund and then notify the relevant head of a customs office of details of the transfer and deposit.
(4) The refund shall be deemed paid at the time when the refund is deposited on the account of the applicant under paragraph (3).
[This Article Wholly Amended on Aug. 21, 2003]
Article 22(Adjustment of tax revenue accounts between heads of customs offices) #
(1) Where funds in a revenue account are insufficient or deemed insufficient for the payment of refund money, the head of the competent customs office may request the Commissioner of the Korea Customs Service to have him or her receive a transfer of necessary funds.
(2) The Commissioner of the Korea Customs Service in receipt of a request under paragraph (1) shall order the head of a customs office which can afford to transfer funds from the revenue account under his or her control (Hereafter referred to in this article as "head of a customs office which transfers funds") to request the Bank of Korea to transfer necessary funds to the head of a customs office which requests a transfer of funds (Hereafter referred to in this article as "head of a customs office which receives a transfer of funds"); and shall notify the head of a customs office which receives the transfer of funds.
(3) The head of a customs office in receipt of an order under paragraph (2) shall request the Bank of Korea to transfer funds from the revenue account under his or her control to the revenue account under the control of the head of a customs office which receives the transfer of funds.
(4) Upon receipt of a request under paragraph (3), the Bank of Korea shall transfer funds without delay; and notify both the head of a customs office which transfers such funds and the head of a customs office which receives the transfer of such funds.
Article 23(Disposal of unpaid funds) #
(1) Where the Bank of Korea fails to transfer refund money requested under Article 21(2) to the account of an applicant, it shall immediately notify the head of the competent customs office of such fact. <Amended on Aug. 21, 2003>
(2) The head of a customs office notified under paragraph (1) shall immediately verify the account of an applicant for refund to transfer refund money to such account, and shall appropriate refund money, which is not paid for one year from the date such refund is determined, in the revenue budget for the fiscal year in which that period ended.
(3) Where an applicant for refund intends to receive refund money which has been appropriated in the revenue budget of the head of a customs office pursuant to paragraph (2), he or she shall submit an application stating the following matters to the head of the competent customs office. In such cases, the head of the customs office shall examine and verify such fact and take necessary measure to pay such refund money:
1. The amount of customs duties of which he or she intends to receive a refund;
2. The grounds that he or she fails to receive a refund within one year from the date such refund is determined.
Article 24(Deferment of payment of refund money and notification of appropriation for default) #
When deferring payment of refund money or when appropriating refund money for delinquent customs duties, additional charges, additional taxes, and expenses for disposition on delinquency pursuant to the provisions of Article 16(3) and (4) of the Act, the head of a customs office shall notify such facts to the relevant applicant for refund; provided, where it is appropriated pursuant to a request from an applicant for refund, such notification may not be given.
Article 25(Limit on refund) #
(1) The head of a relevant administrative agency or interested parties shall submit the following materials to the Minister of Economy and Finance and may request that the refund be restricted as provided in Article 17(1) of the Act: <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
1. The name, standard, and use of the relevant items;
2. Rate for limiting the refund and the reasons thereof;
3. Domestic demand, production results, and production capacity of the relevant items for the relevant year and previous year;
4. Monthly import price, import quantity, and total gross import amount for the latest one year period;
5. Monthly factory price and factory performance for each main domestic manufacturing firm for the latest one year period;
6. Outlook for domestic production and demand for the relevant items for the upcoming one year period.
(2) Where it is deemed necessary to investigate matters which are requested to limit the refund of customs duties, the Minister of Economy and Finance, upon receipt of a request for a limit on refund under paragraph (1), may request a related administrative agency, exporter, importer, other interested parties to submit relevant materials and to provide other necessary cooperation. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
(3) Deleted. <Feb. 21, 2014>
Article 26(Application for consent to use, besides already specified uses) #
A person seeking to receive consent to use, besides already specified uses, or destroy with respect to items which have received refund of customs duties pursuant to the provisions of Article 18(1) of the Act shall submit an application form accompanied by the matters stipulated in the following subparagraphs to the head of a customs office exercising jurisdiction over the location of the relevant items:
1. The names, the standards and the amount of materials of the relevant items;
2. The reasons for the application for consent to use, besides already specified uses, or destroy;
3. The supplier of the relevant items;
4. Other matters prescribed by the Commissioner of the Korea Customs Service such as personal matters of the applicant.
Article 27(Tax rate reduction of customs duties in place of refund) #
(1) The head of a relevant administrative agency or interested parties shall submit the following materials regarding the relevant items to the Minister of Economy and Finance and may request a tax rate reduction of customs duties as provided in Article 19(1) of the Act: <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
1. The name, standard, and use of the relevant items;
2. The amount of production and production capacity for both export and domestic consumption, during the latest one year period, of domestic main production enterprises;
3. The monthly import amounts and import amounts of money for both export and domestic consumption during the latest one year period;
4. The consumption results of main domestic demand enterprises during the latest one year period;
5. Outlook for domestic production and demand for the relevant items for the upcoming one year period.
(2) Where it is deemed necessary to examine necessary matters with respect to tax rate reduction of customs duties in place of refund, the Minister of Economy and Finance may request a related administrative agency, exporter, importer, other interested parties, etc. to submit relevant materials and to provide other necessary cooperation. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
(3) The head of a relevant administrative agency may prescribe the import admission rate or approval rate for both export and domestic consumption in accordance with the export and domestic consumption rate which has become the basis of the tax rate reduction of customs duties, as prescribed by the related statutes with respect to items where the tax rate of customs duties has been reduced (hereinafter referred to as "items of tax rate reduction of customs duties") pursuant to the provisions of Article 19 of the Act.
(4) When the head of a relevant administrative agency intends to modify the import admission rate or approval rate for both export and domestic consumption as provided in paragraph (3) and other important matters which have become the basis of the tax rate reduction of customs duties with respect to items of tax rate reduction of customs duties, he or she shall, in advance, consult with the Minister of Economy and Finance. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
(5) The Commissioner of the Korea Customs Service and the head of an administrative agency who has permitted or approved import concerning items of tax rate reduction of customs duties shall report, every quarter, each of the import results and import admission results or approval results for both export and domestic consumption related to items of tax rate reduction of customs duties to the Minister of Economy and Finance and the head of a relevant administrative agency. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
Article 28(Custody and submission of documents) #
(1) The documents to be kept under Article 20(1) of the Act and the custody period shall be as follows: <Amended on Oct. 23, 2000; Feb. 9, 2006; Jan. 5, 2021>
1. Five years from the date of application for refund of basic documents for the calculation of required amounts of raw materials by each item for export and documents relative to calculation particulars; provided, the custody period of those supply and receipt books of raw materials or items for export which are to be kept by a small and medium enterprise owner under Article 2(1) of the Framework Act on Small and Medium Enterprises shall be three years;
2. Three years from the issuance date of the certificate of tax payment on basic raw materials of documents related to transactions of raw materials for export, such as local letters of credit;
3. Three years from the application date for refund documents that may verify the export facts which are prescribed in Article 4 of the Act, such as a certificate of complete declaration of exports;
4. Three years from the date on which the documents, which may verify the tax amount payment for raw materials, such as a certificate of complete declaration of imports, are used for the application for refund; and
5. Three years from the date on which other documents, as prescribed by the Commissioner of the Korea Customs Service, are used for the application for refund.
(2) When requesting submittal of related documents and data in accordance with the provisions of Article 20(3) of the Act, the Commissioner of the Korea Customs Service and the head of a customs office shall do so in writing.
Article 29(Reporting of matters concerning determination and payment of refund money) #
(1) The head of a customs office shall report matters concerning the determination of refund money and matters concerning the payment of refund money as provided in Article 14(2) of the Act every month to the Commissioner of the Korea Customs Service, and the Commissioner of the Korea Customs Service shall integrate this and submit it to the Minister of Economy and Finance. <Amended on Dec. 31, 1998; Feb. 29, 2008; Dec. 30, 2025>
(2) The head of a customs office shall submit the documents for the calculation of the determined amount of refund money together with its documentary evidence to the Board of Audit and Inspection in accordance with the provisions of Article 25 of the Board of Audit and Inspection Act. <Amended on Feb. 9, 2006>
Article 30(Additional amount) #
(1) The interest rate of the amount to be added to any of the following amounts pursuant to the main clause of Article 21(2) of the Act and Article 22(2) of the Act shall be 39/100,000 per day: <Amended on Feb. 21, 2014>
1. An amount of refund or an amount of overpaid refund (hereinafter referred to as "overpaid refund") collected by the head of a customs office pursuant to Article 21(1) of the Act;
2. Underpaid refund paid by the head of a customs office pursuant to Article 22(1) of the Act.
(2) Where overpaid refund is voluntarily reported and the relevant customs duties are paid pursuant to Article 21(5) of the Act, the interest rate of the amount added to the overpaid refund shall be 10/100,000 per day during a period from the date following the date of refund (referring to the date the head of a customs office notifies the application of conventional tariffs pursuant to the latter part of Article 9(5) of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements, if the refund overpaid due to the application of conventional tariffs after import declaration pursuant to Article 9 of that Act is voluntarily reported and the relevant customs duties are paid; hereafter in this paragraph the same shall apply) to the date of self-return; provided, where the overpaid refund is voluntarily reported within three months from the date of refund, the interest rate of the amount to be added shall be prescribed by Decree of the Ministry of Economy and Finance in consideration of the average interest rate of one-year fixed term deposits to which any bank incorporated with approval under the Banking Act and headquartered in Seoul Special Metropolitan City applies. <Amended on Feb. 9, 2006; Apr. 5, 2007; Feb. 5, 2016; Feb. 7, 2017; Feb. 28, 2023; Dec. 30, 2025>
(3) Notwithstanding paragraph (2), where overpaid refund is voluntarily reported for any of the following reasons, the interest rate of the amount to be added to the overpaid refund for the period under the main clause of paragraph (2) shall be 39/100,000 per day: <Added on Feb. 28, 2023>
1. Where the details of collection of the overpaid refund under Article 21(3) of the Act are notified in writing;
2. Where an investigation is notified under the main clause of Article 114(1) of the Customs Act;
3. Where an investigation is commenced without notice of the investigation under the proviso of Article 114(1) of the Customs Act.
[Title Amended on Feb. 21, 2014]
Article 31(Voluntary reporting on overpaid refund) #
(1) A person who intends to make a voluntary report on overpaid refund or a deficiently settled amount pursuant to Article 21(4) of the Act shall submit a report stating the following matters to the head of a customs office who has made refund or notification of settlement: <Amended on Apr. 5, 2007; Feb. 21, 2014; Feb. 28, 2023>
1. The particulars of applications for refund related to refund, overpaid refund or deficient settlement;
2. The particulars of the calculation of the tax amount which was refunded, excessively refunded or deficiently adjusted;
3. Reasons for refund, overpaid refund or deficient adjustment;
4. Other matters prescribed by the Commissioner of the Korea Customs Service such as personal matters of the person reporting.
(2) A period for voluntary reporting under paragraph (1) shall be from the date based on the following classification to the date the period under Article 21(1) of the Customs Act expires: <Added on Feb. 21, 2014>
1. Where settlement under Article 7(1) of the Act is made deficiently: The date of notification of the results of the relevant settlement;
2. Where a refund falls under Article 21(1)1,3 or 4 of the Act: The date of receiving the relevant refund;
3. Where a refund falls under Article 21(1)2: The issuing date of the relevant certificate of duty payment on basic raw materials.
(3) The amount of customs duties voluntarily reported pursuant to paragraph (1) shall be paid within 15 days from the date of reporting. <Amended on Feb. 21, 2014>
[Title Amended on Feb. 21, 2014]
Article 32(Insufficient refund subjected to additional payment) #
Cases where insufficient refund is made as provided in Article 22(1) of the Act shall be regarded as a case of such deficient reimbursement which was made on account of a cause for which the head of a customs office is responsible.
Article 33(Form) #
The application form, notification form, directives, and other forms as provided in this Decree shall be prescribed by the Commissioner of the Korea Customs Service.
Article 34(Management of personally identifiable information) #
Where it is inevitable for performance of affairs concerning review and determination of applications for refund under Article 14 of the Act and payment of refunds under Article 16 of the Act, the head of a customs office may manage data containing the resident registration numbers or alien registration numbers specified in subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act.
[This Article Added on Jan. 6, 2012]