The submission of tax data by corporations importing products or materials from abroad will be simplified. There are observations that this will reduce the burden on import corporations.
The Korea Customs Service announced on the 26th a revised plan regarding the "customs valuation operation" in an administrative notice. The revised plan includes the "system for lump-sum submission of taxable price declaration data."
This system simplifies the existing obligation for "all import corporations to submit extensive tax data for all import transactions" so that only corporations involved in eight relevant fields of import transactions will need to submit at least one piece of tax data for the first time annually.
For the Authorized Economic Operator (AEO·ACVA) program corporations that periodically review taxable prices and small import corporations with last year's tax performance of less than 500 million won, the submission of tax data will be omitted.
In cases of repeated imports from the same seller under the same conditions, tax data should only be submitted for the first declaration each year.
If there are delays in preparing tax data, a "certificate of reason for delayed submission of tax data" should be submitted to facilitate rapid customs clearance.
The Korea Customs Service plans to exclude corporations that faithfully execute price declarations and submit tax data from tax audits and tariff investigations, and if necessary, conduct post-payment audits in a simplified and easier manner.
Son Seong-su, head of the audit department at the Korea Customs Service, noted, "This system revision will allow us to correct reporting errors as quickly as possible through the submitted data, protecting corporations from high penalties."