As a Japanese business selling and shipping food directly to Korean customers on open markets like Auction/Gmarket, do we need to register for imported food internet purchasing agency business and file import declarations? Released

As a Japanese business operator selling and shipping food directly to Korean customers through a Korean open market, this does not fall under "Online Purchasing Agency Business for Imported Food, etc." according to the "Special Act on Imported Food Safety Management." In principle, it is also judged not to be subject to general commercial import declaration. Detailed explanations and additional information are provided below.

1. Detailed Explanation of Non-applicability to "Online Purchasing Agency Business for Imported Food, etc."

Article 2, Paragraph 3 of the "Enforcement Decree of the Special Act on Imported Food Safety Management" clearly defines "Online Purchasing Agency Business for Imported Food, etc." as "the business of importing food, etc., by acting as an agent for the purchase from a cyber mall, etc., of an overseas seller at the request of a domestic consumer." The key lies in the act of "acting as an agent for the purchase."

Your business model involves a Japanese business directly selling and shipping food to Korean customers as an overseas seller. This is not a purchasing agency business that "purchases on behalf" of a consumer from an overseas seller upon request; rather, it is considered a form of "direct sale" by the Japanese business. In other words, since you are acting as the seller yourself and not as a purchasing agent, it does not fall under the "Online Purchasing Agency Business for Imported Food, etc." defined by the relevant decree.

2. Detailed Explanation of Non-applicability to General Commercial "Import Declaration"

Under the Korean Customs Act, when an individual purchases and brings in a small quantity of goods from overseas for personal use, the items are cleared through simplified procedures (personal clearance or small-sum goods for personal use) without going through general commercial import declaration procedures (appointing a customs broker, submitting documents, Customs Service review, etc.). This mainly takes the form of list clearance or simplified declaration.

The method of direct shipment to customers through Korean open markets can be considered similar to an individual customer purchasing goods directly from an overseas seller and importing them for personal use. Therefore, in this case, the seller (you) does not have an obligation to file an "import declaration" directly with Korean Customs. Any customs duties and value-added tax (VAT) resulting from the import are to be paid by the recipient (the Korean customer).

3. Important Additional Interpretations and Considerations (Blog Column Format)

A. Meaning and Potential Misunderstandings of "Exemption from Import Declaration"

The phrase "exempt from import declaration" does not mean being free from all customs clearance procedures and regulations. It means being exempt from the complex procedures required when a formal importer imports goods for commercial purposes; however, the goods are still subject to relevant Korean laws (Customs Act, Special Act on Imported Food Safety Management, etc.).

B. Importance of Compliance with Food Safety Regulations

Even if the business is not classified as "Online Purchasing Agency Business" and is exempt from formal import declaration, all food entering Korea must comply with food safety regulations under the "Food Sanitation Act" and the "Special Act on Imported Food Safety Management." The following points should be carefully reviewed:

• Ingredient Restrictions and Prohibited Substances: Food containing ingredients prohibited or restricted by the Korean Ministry of Food and Drug Safety (MFDS) cannot clear customs and may be discarded or returned. Particular caution is needed for products that could be mistaken for functional health foods or those containing specific medicinal ingredients.
• Items Subject to Quarantine: Meat, dairy products, and certain agricultural/fishery products must undergo strict quarantine procedures according to the "Act on the Prevention of Contagious Animal Diseases" and the "Plant Protection Act." Importing these through personal clearance is practically impossible or very limited. Care should be taken to ensure such items are not sold.
• Personal Use Standards: The Korea Customs Service provides standards for food recognized for personal use (e.g., within 5kg per item, within 10kg total, below a certain amount, etc.). If these standards are exceeded or if the purpose is clearly for resale, a formal import declaration may be required, and clearance may be delayed or impossible.
• Labeling and Information: Although there is no obligation to provide Korean labeling for commercial distribution, it is important to provide accurate key information such as ingredients, expiration dates, and allergens to protect consumers.

C. Possibility of Customs Duty and Value-Added Tax (VAT)

The current tax exemption limit for personal clearance is USD 150 (USD 200 for goods from the US). This amount is based on the total taxable price, which combines "product price + international shipping cost + insurance." If this limit is exceeded, customs duty and VAT will be charged on the excess. Since these taxes are typically billed to the recipient (the Korean customer), it is important to sufficiently notify the customer of this at the time of sale.

D. Compliance with Open Market Policies and Consumer Protection

Each open market platform may have its own regulations for overseas sellers (e.g., prohibited items, customer service, return/exchange policies, etc.). Additionally, since the sales target Korean consumers, the potential applicability of domestic consumer protection laws, such as the "Act on the Consumer Protection in Electronic Commerce, etc.," must also be considered.

E. Changes in Case of Business Expansion

If you plan to expand your business by bringing goods into Korea in bulk for distribution and sale, rather than the current direct shipment model, this clearly constitutes "commercial import." You must then register as an "Import Business for Imported Food, etc." under the "Special Act on Imported Food Safety Management," comply with all food-related regulations, and go through formal import declaration procedures. In this case, it is essential to seek help from a professional customs broker or a legal expert specializing in imported food.

In conclusion, your business method does not fall under the "Online Purchasing Agency Business for Imported Food, etc." under current law, and there is no general commercial import declaration obligation for small-quantity direct shipments for personal use. However, it is crucial to comply with Korean food safety regulations and personal use standards under the Customs Act and to clearly notify customers of relevant information (possibility of customs duty/VAT, ingredient information, etc.) to prevent unnecessary disputes.