Requirements and Procedures for Re-export Duty Exemption on Exhibition Goods in South Korea Released

When foreign-made products are brought into Korea for promotion or display at domestic exhibitions or events and are subsequently re-exported within a specified period, duties may be exempted under Article 97 of the Customs Act (Re-export Exemption). This system is designed to facilitate international cultural and technical exchange and promote trade by easing the customs burden on goods staying in the country temporarily. Below are the detailed requirements and procedures for re-export exemption for exhibition materials.

1. Eligibility and Definition of 'Exhibition'

Not all imported goods intended for display are eligible for duty exemption. According to Article 50, Paragraph 1, Item 6 of the Enforcement Rules of the Customs Act, the goods must be imported by the organizer or a participant for use in exhibitions, fairs, competitions, or similar events. The benefit is granted only when the Head of the Customs House recognizes the event as valid, considering its nature and scale.

Under Korea Customs Service guidelines, an 'Exhibition' refers to an event hosted by the state, local governments, or public institutions, or an event where products from two or more manufacturers are compared and displayed in a public place. Consequently, private launch shows or small-scale promotional activities held within an individual company’s office are likely to be excluded. You should first verify whether the event is organized by a reputable institution or held for a public purpose.

2. Required Documents and Evidence for Application

To apply for re-export exemption, you must objectively prove that the goods are being imported for exhibition purposes at the time of filing the import declaration. The following documents must be submitted:

• Exhibition Pamphlet and Event Plan: Official documents specifying the purpose, duration, location, and organizer of the event.
• Booth Assignment Confirmation: A participation confirmation or contract issued by the exhibition organizer.
• Application for Re-export Exemption: A document detailing the items for which exemption is sought and the scheduled re-export date.
• Commercial Invoice and Packing List: Standard documents to verify the value and specifications of the imported goods.

Based on these documents, Customs will review whether the quantity of goods is appropriate for the scale of the exhibition and whether they are suitable for actual display before deciding on the exemption.

3. Post-Management and Re-export Obligations

Since re-export exemption is granted on the premise that the goods will be sent back out of the country, strict post-management follows after importation. Key considerations include:

• Compliance with the Re-export Period: In principle, the goods must be re-exported within one year (or a period designated by the Head of the Customs House) from the date the import declaration was accepted. Failure to export within this period will result in the collection of the exempted duty plus an additional penalty tax.
• Prohibition of Use for Other Purposes: Exempted goods must not be used for purposes other than the exhibition, such as sale, lease, or transfer. If the goods must be sold domestically due to unavoidable circumstances, prior approval from Customs must be obtained and the duties paid immediately.
• Provision of Security (Collateral): Customs may require security equivalent to the amount of the exempted duty to ensure tax claims. This is typically handled by submitting a guarantee insurance policy through a licensed customs broker.
• Export Reporting: When re-exporting, the export declaration must be processed in accordance with the re-export conditions assigned at the time of import. The process is officially completed only after the post-management ledger is cleared.

We recommend managing your schedule closely so that the goods can be packed and declared for export promptly after the exhibition ends. If re-exporting within the deadline is difficult due to force majeure, you must apply for a deadline extension in advance to avoid penalties.