If I declare it as a 'Temporary Import Item with Re-export Condition', can I avoid paying taxes? I'm curious about the exact declaration procedure, required documents, and whether an extension is possible. Released

What is conditional temporary importation for re-export, and in what cases does it apply?

The "conditional temporary importation for re-export" you inquired about is a system that exempts taxes for personal items, personal adornments (including gift watches), and professional items brought into Korea temporarily by individuals residing abroad, under the condition that they will be re-exported out of Korea within one year of entry. This applies when you promise to take the items back without consuming or selling them in Korea.

This system aims to facilitate travel convenience by deferring taxes on travelers' belongings and to promote international exchange. The key is the 're-export' condition, so you must take the items back out within the specified period.

If I declare a gift watch as conditional temporary importation for re-export, do I really not have to pay taxes?

Yes, that's correct. In your case, since you plan to stay in Korea for about a week with a gift watch purchased in the United States and then depart for China, you can declare the watch as "conditional temporary importation for re-export" to customs and be exempted from customs duties and value-added tax. However, it is crucial that you take the watch with you when you depart. If you leave the watch in Korea or fail to re-export it within the deadline, you will have to pay the taxes that were exempted.

What are the exact declaration procedures and required documents?

The declaration procedure for conditional temporary importation for re-export is as follows.

1. Customs declaration upon entry: You must voluntarily declare to customs upon entering Korea. You should list the item (gift watch) on the customs declaration form and clearly state that you are applying for "conditional temporary importation for re-export." Customs officers can provide friendly guidance if you inquire.

2. Required documents: Generally, the following documents are needed.

   • Passport (proof of foreign residence)
   • Air ticket (verification of entry and exit records)
   • Customs declaration form
   • Watch purchase receipt (or materials that can prove the watch's price)
   • Re-export pledge (available at customs)

   Customs may require additional documents, so it is advisable to inquire with the relevant customs office in advance.

3. Re-export confirmation upon departure: When departing for China, you must declare again to customs and obtain confirmation that the watch has been re-exported. At this time, you should submit the customs declaration form you completed upon entry.

Note: When declaring to customs, accurately list the watch's model name and serial number to facilitate verification upon re-export. Also, if you do not obtain re-export confirmation upon departure, it may be considered a failure to fulfill the re-export obligation, and taxes may be imposed.

Is it possible to extend the re-export period? If so, how?

In principle, the re-export period is limited to within one year, but if the customs officer recognizes "unavoidable reasons," an extension within the one-year range is possible. Unavoidable reasons may include situations such as being unable to depart due to illness or an unexpected business issue extending the stay.

If you wish to extend the period, you must apply for an extension to the relevant customs office before the re-export deadline expires. The following documents should be prepared for the extension application.

1. Re-export period extension application form

2. Copy of passport

3. Copy of conditional temporary importation declaration form (document received from customs upon entry)

4. Documents proving the reason for the required extension (e.g., medical certificate, business contract, etc.)

Customs will review the submitted documents to decide on the extension. If the extension is approved, a new re-export deadline will be set. If the extension application is denied, you must re-export the watch within the original deadline or pay the taxes.

In your case, since your stay in Korea is short, an extension may not be necessary, but it is good to be informed of the related information just in case.