Criteria and Required Documents for Additional Customs Duty Refund Applications Due to Omitted Raw Materials Released

Under Article 18(3) of the Enforcement Decree of the Act on Special Cases Concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export (hereinafter referred to as the "Act on Special Cases of Customs Refund"), the fundamental principle for duty refunds is to collectively apply for all raw materials used in the production of export goods. This rule aims to ensure administrative efficiency and prevent duplicate or excessive refunds. However, in practice, situations arise where raw materials are omitted or usage rates are miscalculated during the initial filing.

Grounds for Additional Refund Requests

Article 22 of the Refund Notification acknowledges these practical challenges and specifies exceptional circumstances under which an additional refund application is permissible. Key justifiable reasons include:

• Cases where the details of the Export Declaration Certificate or documents confirming export performance have been corrected with the approval of the Head of the Customs Office.
• Cases where errors in the usage rate (consumption quantity) calculation method or calculation itself are discovered post-filing and require correction.
• Cases where it can be objectively proven that documents eligible for refund, such as Import Declaration Certificates for raw materials, were inadvertently omitted at the time of the initial application.

Required Documentation

To proceed with an additional refund application, the applicant must prepare specific documentation to substantiate the claim. The required documents are categorized as follows:

• Refund Application Form: The standard Form No. 3 as prescribed in the Refund Notification.
• Copy of the Original Refund Application: A copy of the initial application is required to allow the competent Customs Office to cross-reference existing records and verify the link between the original and new claims.
• Statement of Reason for Additional Refund: This is a critical document. It must clearly and logically explain why the raw materials were omitted initially and how the request aligns with the allowable reasons under the Refund Notification. It is advisable to detail specific contexts, such as system errors or technical limitations in calculating usage rates, rather than citing a simple mistake.
• Proof of Duty Payment: Documents proving the payment of customs duties for the additional raw materials, such as the Import Declaration Certificate, Certificate of Tax Payment for Basic Raw Materials, or Certificate of Division.
• Supporting Data for Usage Rate (if applicable): If the application is due to a correction in usage rates, basis data for the recalculated quantity and production process charts may be required.

Please note that the statute of limitations for refund applications is two years from the date the goods were exported. Additional refund rights expire after this period, so strict adherence to this deadline is essential.