Understanding the Difference Between List Clearance and General Import Declaration for Personal Imports Released

When purchasing goods from overseas, one of the most confusing aspects is the difference between 'List Clearance' and 'General Import Declaration.' These are the two primary methods used when goods enter South Korea. The specific method applied depends on what you bought, the purpose of the purchase, and the total value, which directly impacts both the processing time and whether you will be charged customs duties and taxes.

1. What is Simplified 'List Clearance'?

List Clearance is a simplified procedure where customs clearance is granted based solely on the shipping manifest provided by the courier, rather than a formal import filing.

• Price Threshold: It applies to goods with a value of $150 USD or less. However, for goods dispatched from the United States, the limit is $200 USD.
• Purpose: This is strictly limited to goods for personal use only.
• Procedure: Clearance proceeds using only the waybill information, which includes the recipient's name, Personal Customs Management Code (PCCC), contact information, address, item description, price, and weight.
• Key Advantages: Since the formal import declaration is waived, Customs Duty and Value Added Tax (VAT) are exempted. Additionally, because no separate import approval is required, the process is significantly faster.

2. What is 'General Import Declaration'?

Any item that does not qualify for List Clearance must undergo a General Import Declaration, which is the standard customs procedure.

• Price Threshold: Generally, if the value exceeds $150 USD, the item is subject to a formal declaration, and duties/VAT will be levied.
• Exceptions: Even if the value is under $150 USD, items categorized as 'Excluded from List Clearance' (explained below) must undergo a General Import Declaration. In such cases, if it is for personal use and under $150, it may still be tax-exempt, but the formal filing process remains mandatory.
• Procedure: A formal import declaration form must be filed. This involves more paperwork and potential inspection by customs officers, which may lead to longer delivery times.

3. Essential List: Items Excluded from List Clearance

Even if the price is within the threshold, certain items are prohibited from List Clearance and must be cleared via General Import Declaration due to safety, health, or regulatory reasons:

• Medicines and Oriental Herbs: Strictly managed for safety.
• Wildlife Products: Items regulated by CITES, such as ivory, crocodile skin, or snakeskin products.
• Quarantine-Subject Items: Agricultural, forestry, animal, and fishery products requiring plant or animal quarantine.
• Health Supplements, Food, Liquor, and Tobacco: Items directly related to public health or subject to specific excise taxes.
• Electronics: Under revised regulations, most broadcasting and communication equipment (subject to the Radio Waves Act) now require formal declaration.
• Specific Cosmetics: Functional cosmetics (whitening, anti-wrinkle, sunscreen), products containing placenta or steroids, and items with unknown or hazardous ingredients.
• Others: Goods suspected of Intellectual Property Rights (IPR) infringement, items with inaccurate manifest information, or any items deemed inappropriate for simplified clearance by the Head of Customs.

4. Criteria for Calculating the Final 'Item Value'

It is crucial to understand how the value is calculated to determine the clearance method:

• For List Clearance: The value is calculated as the Product Price + Local Sales Tax + Local Shipping Costs within the country of export. This total must be $150 USD or less ($200 for the USA).
• For General Import Declaration: If the sum of the product price, local tax, and local shipping exceeds $150 USD, International Freight Charges are added to calculate the taxable base for duties and VAT.

Note: A critical rule to remember is that if a single shipment contains multiple items and even one item is subject to General Import Declaration, the entire shipment will be processed under the General Import Declaration protocol.

Therefore, before purchasing, always verify if your items are on the exclusion list and ensure the total value does not unexpectedly exceed the tax-free thresholds.