What is the Automatic Simplified Refund System? Released

If a company wishing to use the simplified fixed refund system indicates that it wants to receive an automatic simplified fixed refund at the time of export declaration (indicated as 'AD' in item 26 of the export declaration), and if the HS code and FOB amount on the export declaration match the simplified fixed refund rate table and the registration status of the eligible party in the customs system, the system automatically calculates the simplified fixed refund amount and pays the refund.

As long as you are eligible for a simplified fixed refund, there is no problem in applying for a fixed refund manually, but it would be better to have it paid automatically rather than increasing the workload by making a separate simplified fixed declaration after export. 

The requirements for designation as an automatic simplified fixed refund eligible company are as follows.

 1. A company subject to the application of the simplified fixed refund rate table

 2. A company that has not been punished for violating the Customs Act in the last 2 years

 3. A company with export performance of over 1 million dollars in the previous year

 4. A company that owns manufacturing facilities and manufactures export items

Please note that an export performance of approximately 1.3 billion won is required based on an exchange rate of 1,300 won per 1 million dollars, so a certain level of export performance is necessary.

The preparation documents for designation are as follows.

1) Two copies of the application form

2) One copy of the factory registration certificate (issued within the last 3 months) or a subcontracting contract, etc.

3) One copy of the export product description by HS 10-digit unit

4) One copy of SME verification documents such as SME confirmation