Overview of Procedures for importing goods into South Korea
General processes and procedures for importing goods into South Korea could be found on the website of the Korea Customs Service at the following link:
https://www.customs.go.kr/english/cm/cntnts/cntntsView.do?mi=8055&cntntsId=2731
(It should be noted that this link is for reference only and may be changed. In any case, business can directly access the website of the Korean Customs Administration for the information).
Importing goods from foreign countries into South Korea is carried out according to the following basic steps:
Step 1: Determining the import category/import conditions of goods
Not all goods are allowed to be imported into South Korea, and not all goods imported into South Korea are subject to the same import mechanism. Similar to Vietnam and other countries in the world, South Korea also imposes import bans/restrictions, or special controls on certain goods. Therefore, before importing goods into the Korean market, importers need to determine the import category of their goods in order to determine the corresponding procedures.
Detail of Step 1 at: https://wtocenter.vn/rcep-market/24392-determining-the-import-categoryimport-conditions-of-goods-into-south-korea
Step 2: Determining the classification of goods
Determining the classification (HS) for a product is a very important step in determining the tariff applicable to that product. According to the World Customs Organization (WCO), member countries will impose the first 6 numbers of an HS code, subsequent numbers in the HS code are at the sole discretion of each country, so these numbers may be different between countries.
Vietnam is currently applying the 8-digit HS system according to the ASEAN Harmonized Tariff Nomenclature (AHTN), while South Korea applies the 10-digit HS code. Therefore, to import goods into South Korea, businesses should pay attention to determining the HS codes of the goods according to Korea's 10-digit HS system, instead of Vietnam's 8-digit HS code.
Accurately determining HS code of goods is very important, not only for import declaration but also for declaration on the certificate of origin (if any) in case imported goods want to enjoy preferential tariffs under FTAs between Vietnam and South Korea (AKFTA, VKFTA and RCEP).
Detail of Step 2 at: https://wtocenter.vn/rcep-market/24391-determining-the-classification-of-goods-imported-into-south-korea
Step 3: Determining tariffs, duties and fees
Import tariffs
After determining the HS code of a product according to Korea's HS system, the importer can identify the import tariff rate applicable to that product. Most tariffs are calculated based on a percentage of the customs value of the goods.
For Vietnamese goods imported into South Korea, there are 04 tariff options, each option corresponding to a certain tariff rate and conditions for enjoying it. Importers will base on the specific conditions of the goods to choose the most appropriate and beneficial tariff for themselves. Specifically:
• MFN tariff
• AKFTA tariff
• VKFTA tariff
• RCEP tariff
Other taxes and duties
In addition to import tariffs, goods imported into South Korea are also subject to other taxes, such as:
• Value added tax (VAT)
• Excise Tax
• Anti-dumping, anti-subsidy, and safeguard duties
Detail of Step 3 at: https://wtocenter.vn/rcep-market/24390-determining-tariffs-duties-and-fees-of-imported-goods-into-south-korea
Step 4: Import declaration, payment of tariffs, taxes and customs clearance
Import declration
All goods imported into South Korea must be notified to the Korean Customs authorities.
In principle, importers should declare the imported goods after they arrive at the port. However, in order to expedite the process of customs clearance, import declaration can be made before the arrival of goods.
The importer will conduct online import declaration and upload other required import documents on the UNI-PASS of the Korea Customs Service (https://unipass.customs.go.kr/csp/index.do).
Based on risk management techniques and cargo data analysis, the Customs Clearance System automatically decides whether goods are subject to (i) document-based inspection; (ii) physical inspection, or (iii) exemption from inspection (both document-based and physical).
Korean Customs will approve the import declaration if no problems/errors are detected in the results of inspection.
Payment of tariffs, taxes and Customs clearance
After approving the import declaration (there are no issues/problems after inspections), the importer should provide the customs with security for tax payment or pay taxes in advance to have the goods released.
Detail of Step 4 at: https://wtocenter.vn/rcep-market/24389-import-declaration-payment-of-tariffs-taxes-and-customs-clearance
Source: Center for WTO and International Trade
