As the United States imposes a 145% tariff on Chinese products, concerns arise that low-priced Chinese products may flow into South Korea. South Korea is currently imposing anti-dumping tariffs on some Chinese products, and the number of corporations trying to evade these is expected to increase.
According to the industry on the 19th, the Korea Customs Service has been conducting special inspections to prevent the evasion of anti-dumping tariffs from July 14 to July 22. A dedicated team of 38 members for anti-dumping planning and review selects target companies for tariff investigations among suspicious companies, followed by requesting materials and visiting for assessments. If violations are confirmed during the investigation, unpaid amounts will be collected.
South Korea currently imposes anti-dumping tariffs on a total of 15 countries and 22 items. Among the 22 items, 15 are from China. The items subject to provisional anti-dumping tariffs (tariffs imposed during the investigation period for industrial damage from dumping) include stainless steel cold-rolled products (Vietnam), petroleum resins (China, Taiwan), and Chinese stainless steel plates (China).
One of the sectors suffering the most from dumping is the steel industry. Chinese steel products are about 10% to 30% cheaper than domestic products. A representative from Hyundai Steel noted, "Since dumping occurs below production costs, it distorts prices and causes confusion in the market. I understand there are cases of evading tariffs by bringing in items that are not subject to anti-dumping tariffs."
Chinese H-beams, which are subject to a maximum anti-dumping tariff of 32.72%, are frequently targeted for tariff evasion attempts. Some corporations import at prices reflecting the tariffs and settle payments, then receive refunds on the difference. They also use methods to lower the declared import value of items like steel plates in the next import declaration. Last year, tax evasion was investigated in connection with stainless steel flat-rolled products and seamless copper tube items using a similar method.
Evasion of anti-dumping tariffs is typically a collusion between domestic importers and overseas exporters. They also use methods to deceive by reporting codes that are not subject to tariffs. The tariff rates applied to corporations increase proportionally to the supply price of the product, and it was reported that 21 corporations evaded 20 billion won by disguising themselves as companies with lower tariff rates. This process revealed that the manufacturer's official seal was forged.
A representative from the Korea Customs Service stated, "Since it takes at least several months to examine whether the HS code has been reported appropriately at the customs clearance stage, we operate on a 'pre-clearance and post-review' basis." Customs expert Song Gi-ho noted, "It is necessary to systematize the punishment for tariff evasion in line with the digitalization of customs administration and enforce it strictly."