Can our corporate research institute receive duty exemption for academic research supplies when importing reagents, parts, etc., for industrial technology R&D? Released

Yes, if your corporate research institute imports reagents, parts, etc., necessary for industrial technology research and development, you may be eligible for customs duty exemption for academic research articles under the Customs Act.

Basis and Scope of Customs Duty Exemption Application

This exemption applies to articles imported by persons specified by Presidential Decree of the Ministry of Economy and Finance for use in industrial technology research and development, as specified by Presidential Decree of the Ministry of Economy and Finance, pursuant to Article 90, Paragraph 1, Subparagraph 4 of the Customs Act. The specific application requirements are as follows:

1. Eligible Enterprises for Exemption (Article 37, Paragraph 3 of the Enforcement Rule of the Customs Act)

For your corporate research institute to receive exemption for academic research articles, it must satisfy one of the following requirements:

• It must be an enterprise that has established a corporate research institute or a research and development dedicated department, or has filed a report for establishment. In particular, it is limited to cases where the Minister of Science and ICT confirms that it is in accordance with Article 14, Paragraph 1, Subparagraph 2 of the "Act on the Promotion of Basic Science and Technology Research and Development Support".
• (Note) Industrial technology research cooperatives may also be eligible for exemption if they meet certain requirements (joint research facilities for technology development, securing 3 or more full-time research personnel, confirmation by the Minister of Science and ICT).

2. Eligible Articles for Exemption (Article 37, Paragraph 4 of the Enforcement Rule of the Customs Act)

The imported articles must fall under one of the following categories. 'Reagents' and 'parts' mentioned in your question are clearly included in the scope of exemption.

• Articles listed in [Annex 1-2] imported for use in industrial technology research and development
• Reagents and samples
• Parts and raw materials used for manufacturing or repairing articles subject to research and development
• Parts imported for the purpose of repairing articles referred to in item 1 above

Key Considerations and Precautions

To be eligible for the exemption, you must consider the following:

• Confirmation by the Minister of Science and ICT: It must be officially confirmed that the corporate research institute or R&D dedicated department has been established in accordance with the "Act on the Promotion of Basic Science and Technology Research and Development Support." This is the most basic prerequisite for applying for the exemption.
• Clarity of Use Purpose: It must be objectively verifiable that the imported reagents, parts, etc., are used for the specific purpose of 'industrial technology research and development'. It is crucial to thoroughly prepare relevant evidentiary materials such as the type, quantity of imported goods, and research plan.
• Post-Management Obligation: Articles that have received customs duty exemption cannot be used for purposes other than the exempted purpose or transferred. A post-management obligation arises regarding whether the articles are used in accordance with the exempted purpose, so caution is required.

Therefore, if your corporate research institute meets the eligibility requirements for exemption as an enterprise specified above, and the reagents and parts you intend to import meet the eligibility requirements for exemption as articles (for industrial technology research and development), you may apply for customs duty exemption.

The exact application procedure for exemption and required documents may vary depending on the timing of import of the relevant articles and the competent customs office. Therefore, it is strongly recommended that you consult with a professional customs broker before proceeding with the import.