Duty Payer's Rights
Prohibition on the abuse of the Authority to conduct customs duty investigation (Article 111(1) of the Customs Act)
- Customs duty investigation should be carried out to the minimum extent necessary to realize fair and reasonable taxation and ensure legality in clearance.
- It is not allowed to abuse the authority to conduct the audit for other purposes.
Prohibition of reinvestigating the same person on the relevant case (Article 111(2) of the Customs Act)
- Customs officers are prohibited from reinvestigating the same person who has been investigated in connection with the relevant case except in any of the following cases:
- 1 Where there exists explicit evidence corroborating a suspicion of a duty evasion, etc.
- 2 Where it is necessary to investigate a trading partner of a person who has been investigated;
- 3 If re-investigation is done according to the decision for re-examination following the request for review of legality before taxation, formal objection and application for screening
- 4 If the taxpayer offers money or valuables or recommends offering of money or valuables concerning to the duties of a customs official
- 5 If it is directed by the presidential order to investigate all those who are suspected of evading taxes, etc.
Right to obtain assistance in customs duty investigations (Article 112 of the Customs Act)
Where a duty payer is under an investigation that is conducted by a customs officer, the duty payer may have an attorney or licensed customs broker participate in the investigation and present opinions at the investigation.
Assumption of Duty Payer's Good Faith (Article 113 of the Customs Act)
Customs officials should assume that duty payers would be acting in good faith and submit a declaration completed with sincerity, except in cases where the duty payer has failed to fulfill his/her obligation, including the obligation to make declarations, or where there is explicit evidence the duty evasion.
Rights to get a prior notice on customs duty investigation (Article 114 (1) of the Customs Act)
- Prior to a customs duty investigation, a notice with details on the investigation, including the matters to be investigated, grounds for the investigation and other matters should be sent to the duty payer (including his/her agent) 15 days before the investigation commences.
- 1 Where an investigation is conducted on an offense;
- 2 Where it is impracticable to achieve the objectives of an investigation due to the destruction of evidence, etc., if prior notice is given.
Application for deferral of customs duty investigation (Article 114(2) of the Customs Act)
- A taxpayer can apply for deferral of tax investigation if it is difficult to be investigated for the following reasons:
- 1 If there is a serious problem with the business due to fire or other disasters
- 2 If it is judged that customs investigation cannot be performed normally due to illness, long-term business trip, etc. of the taxpayer or his/her delegatee
- 3 If the ledger and evidentiary documents are confiscated or detained by an authorized agency
- 4 Other reasons similar to the regulations in Items 1 through 3
Rights to get notice on the findings of customs duty investigations
If the customs investigation is finished, the taxpayer shall be notified in writing of the results of the investigation within 20 days of the end of the investigation. Exceptions can be made in any of the following cases, however: if the disposition of notification is sent to the taxpayer a case of violation of regulations is charged the company goes out of business the address and residence of the taxpayer are unclear and it is difficult to send the notification due to other reasons.
Confidentiality of customs duty investigation information (Article 116 of the Customs Act)
No customs officer shall provide or disclose to any third person any data provided by a duty payer to fulfill his/her liability to pay customs duties, or other data, etc., or use them for any purpose, other than the purpose of carrying out his/her official business.
Rights to get Customs information (Article 117 of the Customs Act)
When duty payers request information they need to exercise their rights, customs officials should immediately provide such information, and other related information deemed necessary for the duty payers as well.
For more information
Korea Customs Service, Audit Policy Division 042-481-7973