Simplification of the Customs Valuation Data Submission System for Imported Goods Released

The Korea Customs Service (KCS) has amended and implemented the "Public Notice on the Operation of Customs Valuation" to alleviate the administrative burden on taxpayers and ensure the efficient acquisition of essential taxation data.

1. Major Highlights

• Introduction of the Bulk Submission System: The previous obligation to submit extensive documentation for every transaction has been significantly simplified. Eligible companies operating in eight specific fields are now required to submit at least one piece of valuation data per field only once a year during their first import declaration.
• Reduction of Taxpayer Burden: Compliant companies and small-scale importers are exempt from data submission requirements to minimize redundant filings. Furthermore, companies with a history of honest declarations will be excluded from tax audits and customs investigation selections.
• Strengthened Enforcement Measures: To ensure the effectiveness of the system, companies that fail to comply with data submission requests may face sanctions, including the revocation of "Monthly Payment" status and priority selection for customs audits.

2. Detailed Provisions

• Exemptions for Cooperation Programs and Small Importers: Submission requirements are waived for Taxpayer Cooperation Program participants (AEO, ACVA), whose valuation is periodically reviewed, and small-scale importers with an annual tax payment record of less than 500 million KRW.
  *(AEO: Authorized Economic Operator; ACVA: Advance Customs Valuation Arrangement)
• Procedures for Repeat Transactions: When importing repeatedly from the same seller under the same conditions, taxpayers only need to submit data for the first declaration of the year. For subsequent imports, they may simply reference the initial import declaration number.
• Specified Fields for Submission: For transactions involving eight key areas—①Royalties, ②Assists (Production Support), ③Commissions, ④Freight & Insurance, ⑤Container & Packing Costs, ⑥Subsequent Proceeds, ⑦Indirect Payments, and ⑧Related Party Transactions—taxpayers must submit at least one relevant document per field. If a transaction does not fall into these categories, a "Statement of Reason for Non-submission" may be filed to minimize the burden.
• Extension for Delayed Preparation: If data preparation is delayed, a "Statement of Reason for Delayed Submission" can be submitted to prevent delays in the customs clearance process.

3. Effective Dates

The amended Public Notice takes effect on July 1. However, the "Bulk Submission System for Customs Valuation Data" will be officially applied to import declarations filed from September 1, following a two-month grace period.

The KCS anticipates that these measures will enhance taxpayer convenience and protect businesses from unexpected high-value penalty taxes by identifying and correcting declaration errors at an early stage. Explanatory sessions will be held to ensure the smooth settlement of the new system.