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Guide to Customs Administration

Bonded transportation

컨텐츠서비스메뉴

What is bonded transportation?

Bonded transportation means transporting cargos imported from a foreign country into another bonded area in the original form of foreign goods after filing a declaration with or obtaining approval from the head of the relevant customs office without clearing them through customs in the port of entry. Such bonded transportation is accompanied by constraints because goods are transported under the condition of deferment of payment of customs duties.
For example, an owner of goods who has a factory in Seoul has two methods to clear goods which have arrived in Busan through customs. One is to transport such goods to Seoul after clearing them through customs in Busan, and the other method is to file a bonded transportation declaration or apply for approval, carry out bonded transportation from Busan to Seoul, and then clear the goods through customs.

Bonded transportation declaration and approval

Bonded transportation declaration and approval
Bonded transportation declarant / approval applicant Owner of the goods, a licensed customs broker, a bonded transportation operator
Declaration on bonded transportation (in principle) Any person who intends to carry out bonded transportation shall file a declaration thereon with the head of a customs office, as determined by the Commissioner of the Korea Customs Service.
Approval of bonded transportation Approval from the head of a customs office shall be obtained in any of the following cases where such approval is deemed necessary for monitoring goods, etc.: Provided, That with respect to goods whose bonded transportation is not deemed an impediment to the control of cargoes and the prevention of illegal export and import by the Commissioner of the Korea Customs Service even if they are not subjected to approval, from among the goods described below, such goods may be transported in a bonded manner upon a report:
 1) Goods intended to be again transported in a bonded manner into other bonded area from among goods which are transported in a bonded manner
 2) Goods subject to quarantine provided for in the Quarantine Act, the Plant Protection Act and the Act on the Prevention of Livestock Epidemics
 3) Dangerous substances provided for in the Safety Control of Dangerous Substances Act, and toxic chemicals provided for in the Toxic Chemicals Control Act
 4) Non-metallic elements
 5) Goods for which 30 days have elapsed from the day on which they were shipped into a bonded area for the first time after arriving in Korea
 6) Goods whose customs clearance is withheld or whose import declaration cannot be accepted
 7) Goods which are under transportation into a non-bonded area upon approval for storing them therein under Article 156 of the Customs Act
 8) Non-bulky and high-priced goods such as rare stones, semi-rare stones, precious metals, oriental medicines, medicines and perfumes, etc.
 9) Goods which the owner or the title holder of the cargo directly transports in a bonded manner
 10) Goods whose place for customs clearance is limited under Article 236 of the Customs Act
 11) Goods which are transported in a bonded manner by dividing up the goods on the basis of the bill of lading of the same owner on the cargo manifest
 12) Goods designated by the head of the relevant customs office for the purpose of preventing illegal export and import
 13) Goods transported by the operator of a bonded transportation business who is under investigation or is waiting for a final judgment after being charged with violating the Act or any order given by the head of a customs office in accordance with the Act

Carried-in declaration

Moving such goods from Busan to Seoul through bonded transportation and then clearing them through customs just as in the case mentioned above provides some conveniences for the owner of the goods, but it is necessary for him/her to file a declaration on the goods subject to bonded transportation (an application for approval) with the relevant customs office, carry out bonded transportation of them, ship them into the bonded area, etc. of the customs office in charge of the destination, and then submit a report of arrival to the head of the customs office having jurisdiction over them.

Bonded transportation declaration

In principle, a bonded transportation declaration or an application for approval should be filed after a cargo manifest of imported goods is submitted and the goods is shipped into the place of unloading, but it can be filed even before the vessel or the aircraft arrives at the port (airport).
In principle, all the foreign goods can be transported only by bonded transportation in Korea. However, the bonded transportation procedure is not required in the case of goods which are transported under the control of a postal service office in accordance with the Postal Service Act, goods subject to quarantine which are transported to the mooring or quarantine facility of the quarantine station after being taken over by a quarantine service office in accordance with the Quarantine Act, and the seized goods which are transported by a national agency.

Means of bonded transportation

Any bonded transportation operator who intends to carry out bonded transportation of imported goods may use his/her own means of transportation or another bonded transportation operator’s means of transportation. Any owner of goods can also use not only his/her own vehicle but also any other means of transportation without limitation if he/she carries out bonded transportation of his/her cargos directly. In this case, the owner of goods can perform the bonded transportation to the bonded area of the destination under his/her own responsibility after offering security equivalent to the relevant customs duties.

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