Explain the Monthly Payment System for Customs Duties Released

The information related to the monthly payment system guided by the Customs Service is as follows.

- Businesses wishing to make monthly payments must meet the following requirements.

1. An importer/exporter who has not been criminally punished for legal violations in the past 2 years

2. A person who has no arrears of customs duties, etc., in the past 2 years

3. A person who has import and tax payment records in the past 3 years(‘or’ 2 years for small and medium-sized enterprises according to Article 2 of the Small and Medium Enterprise Basic Act) or is exempt from providing collateral

- A business that meets the requirements for designation as a monthly payment company must pay the tax amount belonging to the same month by the end of the month(hereinafter referred to as “monthly payment”) by submitting a monthly payment company approval application form(‘Monthly

Payment Operation Notice’ Appendix Form No. 1) with a copy of the business registration certificate to the head of the competent customs office.

- If a monthly payment company intends to make monthly payments for imported goods, it must indicate the monthly payment code(43) in the collection method field of the import declaration form when filing a tax return.

- The taxpayer must pay the tax amount reported as subject to monthly payment by the end of the month using the monthly payment form(Appendix Form No. 9) to the National Treasury Bank or post office.

Imported goods are generally not allowed to be removed from the declared bonded area until the confirmed tax amount is fully paid in the import declaration approval status.

This means that the import declaration is processed only when the tax amount is paid. 

However, the monthly payment system provides businesses with the ability to bring imported goods into on-hand inventory without paying customs duties.

In other words, it offers the advantage of being able to sell goods without the burden of customs duties and pay the duties after recovering the investment and profit.

Therefore, from the perspective of importers, it provides an opportunity to circulate funds more smoothly, and if they build a good tax payment record and operate their business without legal violations, they can seek financial benefits through the monthly payment system in the future.