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Investigate customs duty to check faithful tax report

Customs duty investigation ensures legality of clearance

It refers to examining whether the customs duty declared is correct and whether their overall export or import activities are legitimate, including relevant requirements, as prescribed in the Customs Act, the Foreign Trade Act and other laws.

The target of investigation and its method vary depending on trade volume and faitful tax report

  • Customs duty investigation is generally corporation investigation. Regular investigation is corporation investigation and nonregular investigation is planning investigation. Selection criteria is as follows.
    Customs post audit
    Corporation Audit(Article 110-3 (1) of the Customs Act) Planning Audit(Article 110-3(2) of the Customs Act)
    • Where it is deemed that exporters or importers have been suspicious of filing a negligent declaration according to the periodical analysis of sincerity of their declarations
    • Where the duty payers have not been subject to customs post audits for a long period of time (at least for the preceding four years or more) and
    • Where the head of a customs intends to conduct a sample survey on a random basis
    • Where duty payers fail to file a declaration accurately or perform any obligation to comply with payment of customs duties
    • Where there is a specific report on duty evasion against exporters and importers
    • Where the details of a declaration contain any data such as tax evasion or errors
  • AEO-certified companies are subject to comprehensive audit
    corporation audits
    Business Recognized as an AEO Business not Recognized as an AEO
    Comprehensive Audit Corporation Audit Planning Audit
    • Official recognition as an AEO after certification
    • A-comprehensive audit conducted for every 3 to 5 years since the AEO certification
    • Customs-private partnership
    • Businesses with at least USD 30 million in annual import volume over the past 2 years
    • Periodical audit conducted for every 4 to 5 years
    • Customs duties, foreign exchange and clearance requirements are subject to investigation
    • High-risk businesses
    • Frequent audit of specific issues
    • Joint audit by investigation divisions

Flow of Customs Duties Investigation

For more information

Korea Customs Service, Corporation Audit Division 042-481-7973, and the Planning and Audit Division 042-481-7883