South Korea Customs Guide

Duty and Tax Threshold Imports are not assessed duty and tax when CIF* value is <KRW 150,000

Minimum Tresholds & Duty rules

Duty Calculation Duty is calculated CIF value

Most Commonly Imported

Items with Duty Rates

• Clothing - 45%• Natural health products - 8%• Cosmetics - 8%• Wallets/handbags - 8%• CD & DVDs - 8%

• Auto parts - 8%• Footwear - 13%• Jewelry (imitation) - 8%• Vitamins - 8%• Costumes/festive goods - 8%

Free Trade Agreements

• ASEAN-[Republic of] Korea Comprehensive Economic Cooperation Agreement

• India-[Republic of] Korea Comprehensive Economic Partnership Agreement• [Republic of] Korea-Canada Free Trade Agreement• [Republic of] Korea-Chile Free Trade Agreement• [Republic of] Korea-European Free Trade Association Free Trade Agreement• [Republic of] Korea-European Union Free Trade Agreement• [ [Republic of] Korea-Singapore Free Trade Agreement• [ [Republic of] Korea-United States Free Trade Agreement Closer Economic

Partnership Agreement

*CIF (Cost, Insurance, Freight: The import duty and taxes payable are calculated on the complete shipping value,

which includes the cost of the imported goods, the cost of freight, and the cost of insurance.

Tax Rules, Import Restrictions & Drawback

Tax Calculation • Tax is calculated on the CIF value plus applicable duties

Types of Tax • VAT

Tax Rates • Standard rate is 10%

Common Import

restrictions• More information on Import Restrictions can be found at

http://www.customs.go.kr/kcshome/site/index.do?layoutSiteId=english

Returns &

Drawback• No current drawback solution

Examples

Examples to South Korea

Ex am p l e 1

Sw e a t e r o f 15 000 0 KRW

Ex am pl e 2

Sw ea t e r o f 1 60 00 0 KRW

Va l u e o f t h e go od 150000 KRW 160000 KRW

Du t y a pp l i edNot applicable since

<$150000 KRW=

$0 KRW

Clothing 45% (150000*,45)=

72000 KRW

Tax ap p l i e d

Tax 0,10% - Not applicable since <$150000 KRW

= 0 KRW

Tax 0,10%(160000+72000)*0,10

=23200 KRW

To t a l co s t o f go od s , d u t y & t a x pa i d b y a c l i e n t ( ex c l

sh i p p i ng c os t s )

150000 KRW=

1500000+0+0

255200 KRW=

160000+72000+23200