Please provide the specific conditions under which an exemption is possible for imported goods that are subject to country of origin labeling requirements, even for specific purposes (e.g., research, personal use) or situations (e.g., re-export). Released

The indication of origin is an important system to guarantee consumers' right to know and establish a fair trade order. The obligation to indicate the origin of imported goods is generally applied to all target goods, but in certain purposes or situations, this obligation may be exceptionally exempted. These exemption regulations are applied when they enhance administrative efficiency, align with the original purpose of the goods, and have little concern about disrupting the domestic market. From the perspective of a customs broker, I will explain these exemption conditions in detail.

According to the Enforcement Decree of the Foreign Trade Act, the goods exempted from the obligation to indicate the origin are as follows.

1. Goods imported as foreign currency-earning raw materials and facility equipment according to Article 2, Item 6 and Item 7 of the Enforcement Decree of the Foreign Trade Act
This item pertains to raw materials or production facilities for goods processed or manufactured domestically and exported. In other words, even if imported into the country, they ultimately become part of products re-exported overseas or used in producing such products. Since these goods are not directly sold to domestic consumers, there is little need to protect consumers' right to know through origin indication. Imposing the obligation to indicate the origin could hinder export competitiveness, so it is exempted.

2. Consignment goods, separate shipment goods, or traveler’s personal effects sent free of charge to individuals
These are goods intended for personal use, not commercial purposes. For example, goods received as gifts from overseas relatives, moving goods, or personal items carried directly by travelers. These goods are not for sale, and their impact on the domestic market in terms of quantity or value is negligible, so the obligation to indicate the origin is exempted for administrative convenience.

3. Parts and raw materials directly imported by end-users for manufacturing processes that cause substantial transformation after import (including cases where import is conducted on behalf of end-users)
This exemption regulation is very important. 'Substantial transformation' refers to the process where imported parts or raw materials are processed domestically into products with new names, characteristics, or uses. For example, if fabric imported from China is made into clothing domestically, the origin indication of the fabric itself becomes meaningless. The origin of the final product becomes the country where the substantial transformation occurred (in this case, Korea). This regulation applies only when end-users directly import or import on their behalf, and does not apply to distributors importing for the purpose of selling as finished products.

4. Goods not provided for sale or rental purposes directly imported by end-users. However, manufacturing facilities and equipment (including parts and spare parts) among these goods can be recognized even when imported on behalf of end-users.
This item applies when the commercial distribution of goods is not premised. In other words, goods intended for direct use in the importer’s business or activities, not for sale or rental purposes. Especially for manufacturing facilities and equipment, which are essential for building a company’s production facilities, their impact on the domestic distribution market is minimal, and exemption is allowed to promote corporate investment. Import on behalf is also recognized to provide convenience in corporate import procedures.

5. Goods for research and development imported by end-users (including cases where import is conducted on behalf of end-users)
These are goods used for research and development activities for new technology development, product improvement, etc. Such goods are imported in small quantities for special purposes and are not sold to general consumers. To encourage research activities and reduce unnecessary administrative burdens, the obligation to indicate the origin is exempted. Both direct import by end-users and import on behalf are recognized.

6. Samples (limited to those not for display or sale) and goods for defect repair of imported goods (limited to cases where they are directly imported to repair defects due to the inherent defect of imported goods)
Samples are goods imported for sample or exhibition purposes, and should not be for sale. Since consumers cannot purchase these goods, the meaning of origin indication fades. Goods for defect repair are parts imported to repair or replace defects when defects occur in already imported and sold products. This is not a new commercial transaction but aims to restore the function of existing products, so exemption is allowed. However, the defect must be due to the inherent defect of the imported goods.

7. Transit cargo simply passing through our country by bonded transportation, transshipment, etc.
These goods only pass through our country’s territory and are not brought into the domestic market for consumption. 'Transit' or 'Transshipment' means that the final destination of the goods is not Korea, so there is no need to apply domestic origin indication regulations.

8. Temporarily imported goods such as duty-free goods under re-export conditions
These are goods temporarily imported for specific purposes such as exhibition, testing, research, processing, and re-export, and are scheduled to be re-exported within a certain period. These goods are also not intended for domestic consumption, so the obligation to indicate the origin is exempted. It is operated in connection with the duty-free system under re-export conditions under the Customs Act.

9. Goods re-imported after being exported from our country
These are goods produced domestically and exported, then re-imported into the country. For example, goods brought back after repair overseas or returned after being exhibited at overseas exhibitions. Since they are already produced domestically and the origin is clear, there is no need to indicate the origin again upon re-import, or the original origin information can be considered maintained.

10. Duty-free goods for diplomats
These are goods imported for use by diplomats and their families, exempt from customs duties and taxes according to international conventions and agreements. Goods with such special status are also exempt from the obligation to indicate the origin.

11. Goods imported for personal consumption that the customs officer deems appropriate
This provision provides flexibility for small quantities of personal consumption goods. If recognized as purely for personal consumption, not for commercial purposes, the customs officer can allow exemption from the obligation to indicate the origin, considering the nature, quantity, etc., of the goods. This is to facilitate the convenience of individual importers and avoid excessive regulation on small quantities of goods.

12. Other goods deemed appropriate by the Commissioner of the Korea Customs Service in consultation with the Minister of Trade, Industry, and Energy
This is a comprehensive exemption provision, applied when there is a need to exempt the obligation to indicate the origin in newly arising or special situations outside the specific cases listed above. It is a provision to flexibly respond to rapidly changing trade environments or industrial conditions.

As such, while the obligation to indicate the origin is widely applied, various exemption regulations are prepared by comprehensively considering the characteristics and uses of goods, and their impact on the domestic market. These exemption provisions aim to balance reducing unnecessary administrative burdens while not undermining the original purpose of the origin indication system.

Determining whether a particular item is exempt from the obligation to indicate the origin requires a precise understanding of the specific import purpose, use, quantity of the item, and related laws. If there are unclear matters, it is important to consult with experts such as customs brokers for accurate judgment and appropriate procedures.