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The price an importer must pay when importing without confirming in advance whether the country of origin marking on imported goods is appropriate. Released

2026-01-04 06:19
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During the import customs clearance process, country of origin marking is an important procedure that clearly identifies a product's nationality.
Country of origin labeling is applied based on various characteristics such as product material and set composition, with the basic principle being to affix it to the most visible part of the actual product for the end-consumer.
It is most important to display the country of origin in a way that prevents misidentification, arbitrary removal, or damage by the end-consumer, and
cases where country of origin labeling is exempt align with this principle, being recognized only when the origin labeling at the time of import is meaningless to the end-consumer, such as when the product will not be exposed to the end-consumer in its imported state, or when the end-consumer is the importer themselves.
 
In any case, during the inspection of imported goods, the presence of country of origin labeling is one of the most critically reviewed aspects.
Failure to properly recognize this can lead to significant disadvantages for import companies.
 
 
1. General Methods of Country of Origin Marking
  • Sticker attachment: Easy to use, but may have low durability.
  • Label attachment: More durable than stickers and applicable to various materials.
  • Sewing for textiles/fabrics: The safest and most reliable method for textile products such as clothing and bags.
 
 
2. Disadvantages of Violating Country of Origin Marking Regulations
Failure to affix country of origin marking or improper affixation leads to the following disadvantages:
  • Incurrence of repair work costs:
    • Repair work must be carried out in a bonded warehouse as per the customs' corrective order.
    • Repair work costs vary depending on the volume and difficulty of the work and are calculated based on labor costs.
    • In case of recurrence, in addition to repair work costs, an additional penalty of 10% to 50% of the product value may be imposed.
  • Disadvantages for import companies:
    • Import companies are placed on the customs' blacklist, leading to continuous inspections for future imports.
    • This results in customs clearance delays and increased costs due to additional inspections.
  • Product quality degradation:
    • Repair work carried out forcibly by customs can damage the product's appearance.
    • Especially for textile products, crude stitching can degrade the marketability of the product.
 
 
3. Precautions and Recommendations
  • Country of origin marking must be accurately performed according to the product's material and characteristics.
  • Attempts at improper country of origin marking for cost savings can lead to greater economic losses.
  • If a country of origin marking violation is detected for the first time, one must consider the disadvantages that will arise from future additional detections.
    • For individual business owners, establishing a new company to import products can also be considered.
  • Records of country of origin marking violations are maintained for 2 years, requiring special caution during this period.
  • Import companies must be familiar with country of origin marking regulations and prevent unnecessary expenses and disadvantages through accurate marking.
 
In the import process, country of origin marking is not merely a simple procedure but an important factor reflecting product reliability and corporate credibility. 
Once detected, not only are there repair costs, but also potential frequent delays in the customs clearance stage for subsequent imported goods, making it crucial to ensure country of origin marking is free of issues.
For these reasons, it is very important to confirm the detailed working methods and results of country of origin marking from the manufacturer during the product manufacturing stage.
Regarding the country of origin, it should be meticulously reviewed from the purchase contract stage, even in relation to FTA matters.


[This content regarding export and import clearance regulations and their interpretations is based on the customs and trade laws of the Republic of Korea.]

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JJ Goh
Representative Customs Broker
NPU Customs Consulting
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