Act On Special Cases Concerning The Refund Of Customs Duties , Etc. Levied On Raw Materials For Export


Published: 2011-07-14

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 Article 1 (Purpose)   print
The purpose of this Act is to stipulate special provisions for the Customs Act, the Provisional Import Surtax Act, the Individual Consumption Tax Act, the Liquor Tax Act, the Traffic, Energy and Environment Tax Act, the Act on Special Rural Development Tax, the Education Tax Act, the Framework Act on National Taxes and the National Tax Collection Act, thereby contributing to efficient support for export activities and balanced industrial development through proper implementation of refund of taxes paid on raw materials for export such as customs duties, provisional import surtax, individual consumption tax, liquor tax, traffic, energy and environment tax, agricultural and fishing villages special tax and education tax.
[This Article Wholly Amended by Act 10817, Jul. 14, 2011]
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 Article 2 (Definitions)   print
The definitions of the terms used in this Act shall be as follows:
1. The term "customs duties, etc." means customs tax, provisional import surtax, individual consumption tax, liquor tax, traffic, energy and environment tax, agricultural and fishing village special tax and education tax;
2. The term "export, etc." means those as provided in each subparagraph of Article 4, notwithstanding the provisions of the Customs Act, the Provisional Import Surtax Act, the Individual Consumption Tax Act, the Liquor Tax Act, the Traffic, Energy and Environment Tax Act, the Act on Special Rural Development Tax and the Education Tax Act (hereinafter referred to as the "Customs Act, etc.");
3. The term "export goods" means goods offered for the purpose of export, etc.;
4. The term "required amount" means the amount of raw materials required in the production of goods for export (including the processing, assembling, repair, recycling, or remodeling of export goods; hereinafter the same shall apply) including the amount of normal loss and wear from production processing;
5. The term "refund" means the refund, to the exporter or the producer of export goods, of the customs duties, etc. which has been paid at the time of import of raw materials for export or assessed to be paid later according to Article 3 of this Act, notwithstanding the Customs Act, etc.;
6. The term "settlement of accounts" means offsetting the customs duties, etc., which are to be paid each period in a lump sum pursuant to Article 5 (2) on raw materials for export under Article 3, against the refund amount suspended pursuant to Article 16 (3).
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 3 (Raw Materials Subject to Refund)   print
(1) Raw materials for which customs duties, etc. may be refundable (hereinafter referred to as the "raw materials for export") shall be as follows:
1. Where goods are produced and then exported, any of the following:
(a) Materials physically or chemically combined with relevant export goods;
(b) Materials expended for the production of relevant export goods: Provided, That materials expended indirectly for the production of export goods, such as those for the operation and maintenance of production machinery, apparatus, etc. shall be excluded;
(c) Packing materials of relevant export goods;
2. Where goods are imported and then exported without any change made, such export goods.
(2) If domestically produced raw materials and imported raw materials have the same quality and characteristics and are used interchangeably in the production process of export goods, they shall be deemed raw materials for export.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 4 (Export, etc. Subject to Refund)   print
Export, etc. for which customs duties, etc. levied on raw materials for export may be refundable shall be any of the following:
1. Export for which an export report has been accepted according to the Customs Act: Provided, That those exported free of charge shall be limited to such exports as prescribed by Ordinance of the Ministry of Strategy and Finance;
2. Of the sales or construction works which acquire foreign currency in the Republic of Korea, those prescribed by Ordinance of the Ministry of Strategy and Finance;
3. Supplies to enterprises residing in districts, which shall be specified by the Ordinance of the Ministry of Strategy and Finance from among the bonded areas under the Customs Act, or in free trade zones under the Act on Designation and Management of Free Trade Zones;
4. Others recognized as exports which are prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 5 (Collection of Customs Duties, etc. on Raw Materials for Export)   print
(1) The head of the customs office shall collect customs duties, etc. on imported raw materials for export at the time of import, notwithstanding the provisions of the Customs Act, etc.
(2) Notwithstanding the provisions of the Customs Act, etc., where a person who imports raw materials for export files an application, the head of the customs office may have the person pay customs duties, etc. on the relevant raw materials in a lump sum by a period not exceeding 6 months, which shall be specified by Presidential Decree (hereinafter referred to as the "lump-sum payment period"). In such cases, the due date of the payment of customs duties, etc. shall be the 15th of the month following the day on which relevant lump-sum payment period expires.
(3) Where the Commissioner of the Korea Customs Service deems that it is possible to apply the lump-sum payment of customs duties, etc. under paragraph (2) and the settlement of accounts under Article 7 to trade of raw materials for export by means of local letters of credit or other similar documents as prescribed by Ordinance of the Ministry of Strategy and Finance (hereinafter referred to as the "local letters of credit, etc."), the supply of raw materials for export by local letters of credit, etc. may be regarded as export and the receipt of such materials may be regarded as import, notwithstanding the provisions of the Customs Act, etc.
(4) The Commissioner of the Korea Customs Service may provide the standards and procedures necessary for the lump-sum payment of the customs duties, etc. pursuant to paragraph (2).
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 6 (Provision of Collateral)   print
(1) A person who intends to pay en bloc the customs duties, etc. in a lump sum pursuant to Article 5 (2) (hereinafter referred to as "enterprise for lump-sum payment") shall provide collateral the value of which shall be equivalent to the tax amount to be paid in a lump sum, as prescribed by Presidential Decree.
(2) Notwithstanding paragraph (1), the head of the customs office may allow Credit-Backed Enterprises (referring to persons recognized and designated as presenting no obstacle to the securement of claims for customs duties, as prescribed by Presidential Decree) not to provide collateral. In such cases, the head of a customhouse shall set the limit of the tax amount that is payable in a lump sum without the provision of collateral.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 7 (Settlement of Accounts of Customs Duties, etc. and Refund Amount on Raw Materials for Export)   print
(1) The head of the customs office shall settle the accounts of the customs duties, etc. to be paid in a lump sum by an enterprise for lump-sum payment of customs duties, etc. pursuant to Article 5 (2) and the refund money, the payment of which is suspended under Article 16 (3), and shall notify the enterprise for lump-sum payment of customs duties, etc. of the results of such settlement (hereinafter referred to as "notification of settlement of accounts") by the day prescribed by Presidential Decree.
(2) If any customs duties, etc. are found uncollected upon the settlement of accounts under paragraph (1), the head of the customs office shall deliver a duty payment notice pursuant to Article 39 (3) of the Customs Act. within the period of notification under paragraph (1).
(3) The enterprise for lump-sum payment of customs duties, etc. which has received the duty payment notice under paragraph (2) shall pay the customs duties, etc. by the 15th of the month following the month in which the lump-sum payment period expires.
(4) If any refund money is found upon the settlement of accounts under paragraph (1), the head of the customs office shall immediately pay the relevant amount pursuant to Article 16 (1) and (4).
(5) When the head of the customs office becomes aware of any excess or deficiency in the amount resulted from the settlement of accounts after the notification, he/she may rectify it.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 8 (Ex Officio Settlement of Accounts)   print
(1) If any of the grounds prescribed by Presidential Decree occurs, the head of the customs office shall immediately settle the accounts of customs duties, etc. (hereinafter referred to as "ex officio settlement of accounts"), in order to ensure the collection of customs duties, which are not due until the date under the latter part of Article 5 (2) and the refund money, the payment of which is suspended pursuant to Article 16 (3). In such cases, lump-sum payment of the customs duties, etc. under Article 5 (2) may be restricted, as prescribed by Presidential Decree.
(2) If the head of the customs office finds refund money payable as a result of the ex officio settlement of accounts, he/she shall immediately pay such refund money according to Article 16.
(3) If the head of the customs office finds customs duties, etc., to be collected as a result of the ex officio settlement of accounts, he/she shall deliver a duty payment notice pursuant to Article 39 of the Customs Act. In such cases, the person who receives the duty payment notice shall pay the tax amount to the head of a customhouse within 10 days from the date when he/she receives such notice.
(4) If an enterprise for lump-sum payment of the customs duties who has provided collateral fails to pay customs duties, etc., after receiving the duty payment notice under paragraph (3), the head of the customs office shall use the collateral to offset the customs duties, etc. concerned.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 9 (Refund of Customs Duties, etc.)   print
(1) When goods are used for export, etc., the head of the customs office shall refund the customs duties, etc. paid on the raw materials for export, which are used for such goods and imported within two years retroactively from the date prescribed by Presidential Decree.
(2) If raw materials for export are traded by local letter of credit, etc. and such trade occurs, within the period prescribed by Presidential Decree from the date of the immediately preceding trade by local letter of credit, etc. (if there is no immediately preceeding trade by local letter of credit, etc., it refers to the import), the period from the date of import of the raw materials for export to the date of the final trade by local letter of credit, etc. shall not be included in counting the period under paragraph (1): Provided, That if the raw materials for export are traded in the same condition as imported, the same shall not apply.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 10 (Calculation of Refund Money, etc.)   print
(1) An applicant for refund shall prepare a document in which the amounts of raw materials expended for export goods are calculated (hereinafter referred to as "statement of accounts for the amount required"), as prescribed by Presidential Decree, and shall calculate the refund money on the basis of such statement of accounts for the amount required.
(2) Notwithstanding paragraph (1), if deemed necessary to simplify the process of calculating the amount required, the Commissioner of the Korea Customs Service shall determine and publicly announce the standard amount required on the basis of the average amount required for each export goods, and may allow the applicant for refund to apply it as an option.
(3) Where two or more different types of goods are produced by using one kind of raw material for export, the customs duties, etc. shall be refunded on the basis of the price of goods produced, as prescribed by the Commissioner of the Korea Customs Service.
(4) If it is likely that the refund amount of customs duties, etc. is significantly excessive or deficient compared to the paid customs duties at the time of the import of raw materials for export, due to changes in the rates of customs duties, etc., the Commissioner of the Korea Customs Service may shorten the validity period of the certificate of import declaration under Article 9 (1), which enables a refund, or set the quantity of raw materials for export allowed to be used for the refund based on the inventory of raw materials for export and export ratio of each enterprise, as prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 11 (Certificate of Average Tax Amount)   print
(1) Where deemed necessary to simplify the refunding business of customs duties, etc. on raw materials for export, the head of the customs office may issue a document certifying the quantity of each item and the average tax amount per unit of the raw materials for export which have been imported each month by a person, at the request of the person who imports raw materials for export (including purchases by local letters of credit, etc; hereinafter the same shall apply in this Article and Article 12), as prescribed by Presidential Decree (hereinafter referred to as the "certificate of average tax amount"). In such cases, the relevant raw materials for export shall be deemed to have been imported on the first day of the month in which the date of import falls, with regard to applying this Act.
(2) Notwithstanding paragraph (1), the head of the customs office may have any of the following persons, who shall meet the standards determined by the Commissioner the Korea Customs Service, issue a certificate of average tax amount, as prescribed by Presidential Decree:
1. A person who has imported raw materials for export;
2. A licensed customs broker (limited to a person who has been entrusted by a person falling under subparagraph 1).
(3) If a person, who has received a certificate of average tax amount from the head of the customs office or a customs broker pursuant to paragraph (1) or (2) 2, or a person, who has issued a certificate of average tax amount pursuant to paragraph (2) 1, has imported goods for purposes other than export, such goods having the same commodity description of ten digits on the schedules of tariff rates under Article 50 (1) of the Customs Act as the raw materials for export described in the certificate of average tax amount, the customs duties, etc. may be refunded only when the customs duties, etc. on the raw materials for export described in the certificate of average tax amount have been refunded. In such cases, the refund amount for each item may not exceed the average tax amount of the raw materials for export described in the certificate of average tax amount for the month in which the goods concerned are imported (if, in the month of import, there is no raw materials for export in the certificate of average tax amount, the average tax amount shall refer to the average tax amount of the raw materials for export described in the certificate of average tax amount for the month in which raw materials for export having the same item name as the relevant goods are imported for the first time retroactively from the month in which the goods concerned are imported).
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 12 (Certificate of Tax Payment on Basic Raw Materials, etc.)   print
(1) Where raw materials for export have been traded by local letters of credit, etc. (excluding any case to which Article 5 (3) applies), the head of the customs office may issue a document certifying the tax amount paid with respect to the raw materials for export traded after being manufactured or processed (hereinafter referred to as the "certificate of tax payment on basic raw materials"), or a document certifying tax amount paid with respect to the raw materials for export which have been traded in the same condition as they are imported (hereinafter referred to as the "certificate of divided import tax amount"), as prescribed by Presidential Decree, for the purpose of more effective performance of the refunding business of customs duties, etc.
(2) Notwithstanding paragraph (1), the head of the customs office may have the following persons, who shall meet the standards determined by the Commissioner of the Korea Customs Service, issue a certificate of tax payment on basic raw materials or a certificate of divided import tax amount:
1. A person who has supplied goods by means of local letters of credit, etc.;
2. A licensed customs broker (limited to a person who has been entrusted by a person falling under subparagraph 1).
(3) Tax amount certified at the time when a certificate of tax payment on basic raw materials, etc. is issued pursuant to paragraph (1) or (2) shall be based on the calculation method of refund money pursuant to Article 10, and Article 14 (2) and (3) shall apply mutatis mutandis to the examination of the correctness of the tax amount certified.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 13 (Fixed Amount Refund Rates Table)   print
(1) If deemed necessary to simplify the refund procedure on the customs duties, etc. on export goods under extraordinary production process such as when two or more products are simultaneously produced from one raw material for export and on export goods produced by small and medium enterprises, the Commissioner of the Korea Customs Service may determine and put on public notice a fixed amount refund rates table by each item of the export goods on the basis of the average refund money of the customs duties, etc. or the average paid tax amount on the raw materials for export.
(2) The amount provided in the fixed amount refund rates table pursuant to paragraph (1), shall be regarded as customs duties, etc. paid when the raw materials for export needed for producing the goods concerned were imported, and thus be refunded.
(3) A person who may be eligible for the application of the fixed amount refund rates table under paragraph (1) may ask the Commissioner of the Korea Customs Service to determine and put on public notice the fixed amount refund rates table, as prescribed by Presidential Decree.
(4) If it is deemed inappropriate to apply the fixed amount refund rates table because the refund money in the fixed amount refund rates table is larger or smaller due to changes in the export structure, the import structure of raw materials, tariff rates, and exchange rates, the Commissioner of the Korea Customs Service may suspend the application of the fixed amount refund rates table or may make proper adjustments to all or part of the fixed amount refund rates table and notify the public thereof.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 14 (Application for Refund)   print
(1) A person who intends to have customs duties, etc. refunded shall apply for the refund to the customhouse designated by the Commissioner of the Korea Customs Service within 2 years from the date on which the goods are offered to export, etc. as prescribed by Presidential Decree: Provided, That where the tax amount of the raw materials for export offered to export, etc. has been revised under Article 38-2 of the Customs Act, or corrected or rectified under Article 38-3 of the same Act, the application for a refund may be filed within 2 years from the date thereof.
(2) Upon receiving the application for refund pursuant to paragraph (1), the head of the customs office shall examine the items described in the written application for refund and the matters to be verified under this Act and shall determine the refund money, the correctness of which may be verified after the refund as prescribed by Presidential Decree.
(3) Notwithstanding paragraph (2), the head of the customs office shall examine the correctness of the refund money before the refund, in cases determined by Ordinance of the Ministry of Strategy and Finance where it is deemed inappropriate to conduct the examination after the refund because of a risk of an excessive refund.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 15 (Use of Computer Processing System)   print
(1) The head of the customs office may order a report, payment, application, etc. under this Act (hereinafter referred to as the "electronic report, etc.") or notify, deliver a tax payment notice, deliver, issue, designate, approve, etc. (hereinafter referred to as the "electronic delivery") by using a computer processing system as determined by the Commissioner of the Korea Customs Service.
(2) When an electronic report, etc. is made pursuant to paragraph (1), the head of a customhouse may have relevant documents submitted by using the computer processing system, as determined by the Commissioner of the Korea Customs Service, and may have such submission omitted or made in a simple way.
(3) An electronic report, etc. made pursuant to paragraph (1) shall be regarded as having been received by the customhouse at the time when it is entered in the computer processing system designated by the Commissioner of the Korea Customs Service, and an electronic delivery shall be considered to have reached the person requiring the delivery at the time when it is entered in the computer designated in advance by the person requiring such delivery or in the computer processing system which is designated by the Commissioner of the Korea Customs Service upon an application of the person requiring the delivery.
(4) Article 327 (6) through (8) of the Customs Act shall apply mutatis mutandis to an electronic delivery under paragraph (1).
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 16 (Payment of Refund Money)   print
(1) Notwithstanding Article 17 of the State Finance Act, the refund money of customs duties, etc. under this Act shall be paid by the Bank of Korea under the Bank of Korea Act (hereinafter referred to as "Bank of Korea") from the revenue account under the control of the head of the customs office who determines the payment of refund money. In such cases, procedures for payment shall be prescribed by Presidential Decree.
(2) If the balance of the revenue account under the control of the head of the customs office under paragraph (1) is insufficient, the Commissioner of the Korea Customs Service may ask the Bank of Korea to make an adjustment between the revenue accounts under the control of the head of the customs office as prescribed by Presidential Decree.
(3) Notwithstanding paragraph (1), the head of the customs office shall defer the payment of the refund money which has been determined upon an application for a refund by an enterprise for lump-sum payment of customs duties, etc. until the date when a settlement of accounts pursuant to Article 7 (1) is made for each lump-sum payment term to which the relevant refund money determination date belongs.
(4) If the head of the customs office finds that an applicant for refund is in default on any customs duties, etc. including additional dues, additional tax or disposition fee in arrears, which is to be paid to the customhouse, he/ she may use the determined refund of the customs duties, etc. preferentially to pay such defaulted additional dues, additional tax and disposition fee in arrears, in which case the remainder after the payment shall be given to the applicant concerned.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 17 (Restriction on Refund)   print
(1) Notwithstanding Article 9, if deemed necessary to promote the use of domestically produced raw materials for the production of export goods, the refund may be restricted as prescribed by Presidential Decree.
(2) Goods subject to restrictions pursuant to paragraph (1), and the rate of restriction shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 18 (Collection of Customs Duties, etc. where Goods Are Used for Any Purpose other than That Specified)   print
(1) Where the goods for which the customs duties, etc. are refunded are found to have been used for any purpose other than that described in subparagraph 2 of Article 4 within the period determined by the Commissioner of the Korea Customs Service, which shall not exceed three years after the date on which the goods are offered for the concerned purpose, the head of the customs office shall immediately collect the refunded customs duties, etc. from the person who has used the goods for any purpose other than such purpose: Provided, That when the goods are destroyed due to unavoidable circumstances such as a disaster, etc. or are destroyed with the prior approval by the head of the customs office, the same shall not apply.
(2) Any goods which are offered for the purpose described in subparagraph 3 of Article 4 and for which the customs duties, etc. are refunded shall be considered as foreign goods in application of the Customs Act, etc.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 19 (Reduction in Tax Rates of Customs Duties, etc. in place of Refund)   print
(1) With respect to goods imported for use chiefly in the production of goods offered for export, etc., tax rates of customs duties, etc. may be reduced taking the ratio offered for such export into consideration.
(2) The goods subject to a reduction in tax rates of customs duties, etc. and the tax rates thereof under paragraph (1) shall be prescribed by Presidential Decree.
(3) With respect to goods for which tax rates of customs duties, etc. are reduced pursuant to paragraph (1), the lump-sum payment and refund of the customs duties, etc. under this Act shall not be granted.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011.7.14]
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 Article 20 (Custody and Submission of Documents, etc.)   print
(1) All documents designated by the Presidential Decree from among the documents concerning the refund of the customs duties, etc. under this Act shall be kept for a period designated by the Presidential Decree, which shall not exceed five years after the date of the application for the refund, etc.
(2) The documents under paragraph (1) may be kept in the form of microfilm, optical disks or other media for preservation of data, as determined by the Commissioner of the Korea Customs Service.
(3) If deemed necessary for the examination as to the appropriateness of refund money pursuant to Article 14, the Commissioner of the Korea Customs Service or the head of the customs office may ask a person who receives the refund, a person who imports raw materials for export, a person who offers such raw materials for export by local letters of credit, etc. and other related persons to submit the documents under paragraph (1) and other related data.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 21 (Collection of Excess Refund Money, etc.)   print
(1) The head of the customs office shall, where the refund money paid pursuant to Article 16 falls under any one of the following subparagraphs, collect the relevant refund money or excess refund money from the person who has received the refund of customs duties, etc. pursuant to Article 47 (1) of the Customs Act (including any person who has been issued a certificate of duty payment on basic raw materials, etc.; hereinafter the same shall apply in this Article):
1. Where the excess refund was made in comparison with the amount which should have been refunded pursuant to the provisions of this Act;
2. Where the excess customs duties, etc. is certified on the certificate of duty payment on basic raw materials, etc. under the Article 12, and the relevant certificate of duty payment on basic raw materials, etc. has been used for the refund, etc., thereby making it impossible to correct or reissue it;
3. Where the customs duties, etc. have already been refunded without loading onto a ship or an aircraft: Provided, That where the loading onto a ship or an aircraft was done before the collection of the amount in question, the same shall not apply;
4. Where the refund is received according to the fixed amount refund rates table with respect to the goods to which the fixed amount refund rates table under Article 13 (1) does not apply.
(2) When the refund money or excess refund money pursuant to paragraph (1) is collected, the amount calculated according to the interest rate prescribed by the Presidential Decree shall be added to the excess refund money for the period from the day following the day of refund to the day when the collection is determined.
(3) When the refund money or excess refund money and the amount added thereto pursuant to paragraphs (1) and (2) are intended to collect, the details thereof shall be notified in advance by a letter to the person who has received the refund of customs duties, etc. In such cases, Article 118 of the Customs Act shall apply mutatis mutandis.
(4) When a person who has received a refund of customs duties, etc. or a person who has received a notification of settlement of accounts pursuant to Article 7 (1) becomes aware that he/she falls under any of the subparagraphs of paragraph (1) or that a miscalculation in the settlement of accounts has resulted in a shortage of customs duties payable after the notification of the settlement of accounts, he/she may voluntarily report such facts to the head of the customs office as prescribed by the Presidential Decree and pay the refund money, the excess refund money, or the customs duties, etc.: Provided, That any of the following cases shall be excluded:
1. Where the head of the customs office has notified in writing the details of the collection of the refund money or the excess refund money pursuant to paragraph (3);
2. Where an investigation of customs duties under Article 114 (1) of the Customs Act has been notified;
3. Where an investigation falling under any of the subparagraphs of Article 110 (2) of the Customs Act has been started without notification of the investigation under the proviso of Article 114 (1) of the same Act.
(5) When the refund money, excess refund money or customs duties, etc. under the main sentence of Article 4 is paid, an amount calculated in accordance with the period, interest rate, etc. prescribed by the Presidential Decree shall be added thereto and paid.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 22 (Payment of Shortage of Refund Money)   print
(1) The head of the customs office shall pay the shortage of refund money concerned without delay when he/she learns the fact that the refund money paid pursuant to Article 16 is significantly less than the amount payable pursuant to the provisions of this Act.
(2) When the shortage of refund money pursuant to paragraph (1) is paid, the amount calculated according to the interest rate prescribed by the Presidential Decree pursuant to Article 21 (2) shall be added to the shortage of the refund money for the period from the day following the day of the refund to the day when the decision to make up for the shortage is made.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 23 (Penal Provisions)   print
(1) A person who has received the refund of the customs duties, etc. by fraud and other wrongful means shall be punished by imprisonment of not more than three years, or by a fine of not more than five times the amount of the tax refunded.
(2) Any of the following persons shall be punished by imprisonment of not more than three years, or by a fine of not more than 20 million:
1. A person who has drawn up a statement of accounts for the amount required referred to in Article 10 (1);
2. A person who has the head of the customs office or a licensed customs broker issue a certificate of duty payment on basic raw materials under Article 12 (1) or (2) by fraud and other wrongful means;
3. A person who is in charge of issuance of a certificate of duty payment on basic raw materials under Article 12 (2) and has issued a certificate of duty payment on basic raw materials by fraud.
(3) A person who violates Article 20 (1) without reasonable grounds shall be punished with a fine of not more than 20 million won.
(4) A person who fails to submit documents and other data required by the Commissioner of the Korea Customs Service or the head of the customs office pursuant to Article 20 (3) without reasonable grounds, shall be punished with a fine of not more than 10 million won.
(5) In the cases of paragraphs (1) and (2), the head of the customs office shall immediately collect the customs duties, etc. refunded.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
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 Article 24 (Examination and Disposition)   print
The provisions of Articles 283 through 319 of the Customs Act shall apply to any person falling under Article 23 (1) through (4) of this Act.
[This Article Wholly Amended by Act No. 10817, Jul. 14, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1997.
Article 2 (General Transitional Measures)
Matters in force pursuant to the previous provisions before this Act enters into force, shall be governed by the previous provisions.
Article 3 (Examples of Application Subject to Lump-Sum Payment of Customs, etc.)
Lump-sum payment of the customs duties, etc. pursuant to Article 5 (2) shall apply to the raw materials for export, the import declaration of which is made on July 1, 1997.
Article 4 (Examples of Application to Refund of Customs Duties, etc.)
The calculation period on the raw materials for export pursuant to Article 9 (1) shall apply to the raw materials for export, the import declaration of which is made on July 1, 1997.
Article 5 (Transitional Measures concerning Drawing Up of Statement of Accounts of Amount Required)
Drawing up of the statement of accounts for the amount required pursuant to Article 10 (1) shall be regarded as if the export declaration is received or offered by a local letter of credit after July 1, 1997 (where a transaction by a local letter of credit is executed more than twice, the first day offered shall be the standard): Provided, That in a case where an applicant for refund fails to calculate the required amount by June 30, 1998, the statement of accounts for the amount required, etc. pursuant to the previous provisions before this Act enter into force may be used.
Article 6 (Examples of Application to Payment Suspension of Refund Money)
The payment suspension of the refund money pursuant to Article 16 (3) shall apply to the submitted application for the refund of customs duties, etc. by the lump-sum enterprise of the customs duties, etc., on July 1, 1997.
Article 7 (Examples of Application to Collection where Goods Are Used for Any Purpose other than That Specified)
The provisions of Article 18 (1) shall apply to the purpose as prescribed in subparagraph 2 of Article 4 after July 1, 1997.
Article 8 (Examples of Application to Custody of Documents)
The provisions of Article 20 (1) and (2) shall apply to the refund-related documents after July 1, 1997.
Article 9 (Examples of Application to Collection of Excess Refund Money, etc. and Payment of Shortage of Refund Money)
The provisions of Articles 21 and 22 shall apply to applications for refund after July 1, 1997.
ADDENDA <Act No. 6305, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2001.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 7210, Mar. 22, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 16 Omitted.
ADDENDA <Act No. 8050, Oct. 4, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8233, Jan. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2007.
Article 2 (Application Examples regarding Raw Materials Subject to Refund)
The amended provisions of Article 3 (1) 1 shall apply starting with raw materials for export which is declared for import first after this Act enters into force or traded within the Republic of Korea by means of a local letter of credit, etc. after this Act enters into force.
Article 3 (Application Examples regarding Export, etc. Subject to Refund)
The amended provisions of subparagraph 2 of Article 4 shall apply starting with a sales contract or construction contract concluded first after this Act enters into force.
Article 4 (Application Examples regarding Lump-Sum Payment Period and Notification of Settlement of Accounts of Customs Duties, etc.)
The amended provisions of the latter part of Articles 5 (2), 7 and 16 (3) shall apply starting with the lump-sum payment period which is terminated first after this Act enters into force.
Article 5 (Application Examples regarding Period for Application for Refund)
The amended provisions of the proviso of Article 14 (1) shall apply starting with the revision, correction or rectification made first after this Act enters into force, with respect to the tax amount of customs duties, etc. with regard to raw materials for export.
Article 6 (Application Examples regarding Collection of Excess Refund Money, etc.)
The amended provisions of Article 21 (3) and (5) shall apply starting with the cases of collection of excess refund money, etc. collected first after this Act enters into force.
ADDENDA <Act No. 8829, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 10817, Jul. 14, 2011>
This Act shall enter into force on the date of its promulgation.