Act On Special Cases Of The Customs Act For The Implementation Of Free Trade Agreements


Published: 2011-12-02

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 Article 1 (Purpose)   print
The purpose of this Act is to contribute to the efficient implementation of free trade agreements and to the development of the national economy by providing for special cases of the Customs Act, such as the imposition, collection, abatement, and exemption of customs duties customs clearance of exported or imported goods, etc., as may be necessary for the Republic of Korea to implement free trade agreements entered into with other countries, and matters necessary for cooperation in customs administration with other countries as stipulated in free trade agreements.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 2 (Definitions)   print
(1) The terms used in this Act shall be defined as follows:
1. "Free trade agreements" means international conventions signed by the Republic of Korea on the removal of tariffs, progressive annual reduction of tariff rates, and the liberalization of trade in compliance with Article XXIV of the General Agreement on Tariffs and Trade 1994 ("GATT") and similar treaties and agreements entered into with other countries on the removal or reduction of tariffs;
2. "Other signatory nation" means a nation (including a commonwealth of nations, an economic community, and an independent customs territory; hereinafter the same shall apply) that has entered into a free trade agreement (hereinafter referred to as "agreement") with the Republic of Korea;
3. "Customs authority" refers to the Minister of Strategy and Finance, the Commissioner of the Korea Customs Service, the head of a customs house of the Republic of Korea and anauthority of any other signatory nation, which has control over the enforcement of Acts and their subordinate statutes or agreements governing customs affairs (limited to customs affairs);
4. "Origin" means a country in which it is deemed that goods have been produced, processed, manufactured, etc. in accordance with the standards stipulated in an agreement, for purposes of the imposition, collection, abatement, and exemption of customs duties and the customs clearance of exported or imported goods;
5. "Documentary evidence of origin" means a document that can prove the origin of certain goods exported or imported and that meets the requirements prescribed by Presidential Decree, such as a person who prepares it, mandatory descriptions, and effective period.
(2) Except as otherwise provided in this Act, terms not specified in paragraph (1) shall be defined in accordance with Article 2 of the Customs Act.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 3 (Relations to other Acts)   print
(1) This Act takes precedence over the Customs Act: Provided, That matters not provided in this Act shall be governed by the Customs Act.
(2) If this Act or the Customs Act conflicts with any agreement, such agreement takes precedence in application.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 4 (Conventional Tariffs)   print
(1) With regard to tariffs to be eliminated or tariff rates to be lowered progressively year after year for imported goods originating from any other signatory nation (hereinafter referred to as "conventional tariff"), the tariff rates, applicable period, quota, etc. for each year shall be prescribed by Presidential Decree, in accordance with the guidelines for the rate of elimination of tariffs, the rate of reduction, quota, etc. as stipulated in the relevant agreement.
(2) Articles 83 and 84 of the Customs Act shall apply mutatis mutandis to conventional tariffs.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 5 (Priority in Application of Tariff Rates)   print
If a conventional tariff rate under Article 4 (1) is higher than the corresponding applicable tariff rate under Article 50 of the Customs Act, the applicable tariff rate under Article 50 of the Customs Act shall take precedence in application: Provided, That a tariff rate under Articles 51, 57, 63, 65, and 68 of the Customs Act shall take precedence in application over the corresponding conventional tariff rate.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 5-2 (Consultations about Anti-Dumping or Countervailing Duties)   print
Upon receipt of a request for the imposition of anti-dumping duty under Article 51 of the Customs Act or the countervailing duties under Article 57 of the aforesaid Act on any goods imported from any other signatory nation, the Government may notify the government of the other signatory nation of the fact before investigating the injury sustained by domestic industries and consult with the government of the other signatory nation about the case, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 6 (Emergency Tariff Measures)   print
(1) If it is found, as a result of an investigation specified by Presidential Decree to the extent provided for by an agreement, that an increase in importation of any specific goods originating from any other signatory nation causes or threatens to cause a serious injury to the domestic industry or disturb the domestic market that produces identical kinds of goods or any goods directly competing with such goods (hereinafter referred to as "serious injury, etc."), the Minister of Strategy and Finance may suspend the progressive annual reduction of the relevant conventional tariff or take measures, such as increasing the relevant tariff rate (hereinafter referred to as "emergency tariff measure") for such goods, as prescribed by Presidential Decree to the extent necessary for redressing such serious injury, etc.
(2) Article 65 (2) through (4) and (7) and Article 67 of the Customs Act shall apply mutatis mutandis to emergency tariff measures.
(3) Goods subject to an emergency tariff measure, tariff rate, applicable period,applicable quantity, and other necessary matters for emergency tariff measures shall be prescribed by Ordinance of the Ministry of Strategy and Finance to the scope stipulated in the relevant agreement.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 6-2 (Countermeasures)   print
(1) Where the government of any other signatory nation takes measures against the specific goods whose origin is the Republic of Korea, such as emergency tariff measures or those equivalent to tentative tariff pursuant to the relevant agreement (hereinafter referred to as "measures taken by other signatory nation"), the Government may consult with the government of the other signatory nation on the matters, such as an appropriate method of compensation by the other signatory nation.
(2) Unless a method of compensation, etc. prescribed in paragraph (1) is otherwise provided for by an agreement, where the consultation with the government of the other signatory nation fails to reach a consent within 30 days after the date when the consultation starts, the Government may take, pursuant to the agreement, any countermeasures, the level of which is equivalent to that taken by the other signatory nation.
(3) Countermeasures pursuant to paragraph (2) shall be limited to the extent as necessary to respond to those taken by the other signatory nation, and the necessary matters, such as timing and details thereof shall be determined by Presidential Decree.
[This Article Newly Inserted by Act No. 9918, Jan. 1, 2010]
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 Article 7 (Tentative Emergency Customs Measures)   print
(1) If a hardly recoverable injury has been caused, or it is expected that hardly recoverable injury is likely to be caused, to any goods for which an investigation under Article 6 (1) has commenced to determine whether to take an emergency tariff measure while conducting such investigation, unless a countermeasure is taken to prevent serious injury, etc. that may be inflicted during the period of such investigation, the Minister of Strategy and Finance may take tentative emergency tariff measures (hereinafter referred to as "tentative tariff measure"), as prescribed by Presidential Decree, before the investigation is finished, to the scope stipulated in the relevant agreement for redressing or preventing such serious injury, etc.
(2) Article 65 (4) and (7) and Article 66 (2) and (3) of the Customs Act shall apply mutatis mutandis to tentative emergency tariff measures.
(3) Goods subject to tentative emergency tariff measures, tariff rates, applicable periods, applicablequantity, and other matters necessary for such tentative emergency tariff measure shall be prescribed by Ordinance of the Ministry of Strategy and Finance to the scope stipulated in the relevant agreement.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 7-2 (Special Cases concerning Imposition of Emergency Tariff under Article 65 of the Customs Act)   print
If it is found, as a result of an investigation, that an increase in importation of any goods originating from any other signatory nations specified by Presidential Decree is not the substantive cause of or threatens to cause serious injury to the domestic industry that produces identical kinds of goods or any goods directly competing with such goods, notwithstanding Article 65 (1) of the Customs Act, the Minister of Strategy and Finance may exclude to the scope stipulated in the relevant agreement such goods from the list of the goods on which the emergency tariff under Article 65 of the Customs Act is to be imposed.
[This Article Newly Inserted by Act No. 9918, Jan. 1, 2010]
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 Article 7-3 (Special Emergency Tariff Measure concerning Specified Agriculture, Forestry and Livestock Products)   print
(1) The Minister of Strategy and Finance may, if the imported quantity of the specified agriculture, forestry and livestock products that are conceded under the agreement with other signatory nation exceeds the certain quantity (hereafter referred to as "standard trigger level" in this Article), take a special measure of imposing higher tariff than the tax rate conceded, as prescribed by Presidential Decree, on the said specified agriculture, forestry and livestock products (hereinafter referred to as "Special Emergency Tariff Measure concerning Specified Agriculture, Forestry and Livestock Products").
(2) Matters such as goods subject to the Special Emergency Tariff Measure concerning Specified Agriculture, Forestry and Livestock Products, and the standard trigger level, tax rate, and period and method of application thereof shall be determined by Presidential Decree to the scope stipulated in the relevant agreement.
[This Article Newly Inserted by Act No. 10806, Jun. 30, 2011]
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 Article 7-4 (Special Cases on Imposition of Special Emergency Tariff on the Agriculture, Forestry and Livestock Products under Article 68 of the Customs Act)   print
The Minister of Strategy and Finance may, with respect to the agriculture, forestry and livestock products originated from the other signatory nation prescribed by Presidential Decree, exclude such products from those subject to the imposition of special emergency tariff on agriculture, forestry and livestock products pursuant to Article 68 of the Customs Act, notwithstanding Article 68 of the Customs Act, to the scope stipulated in the relevant the agreement.
[This Article Newly Inserted by Act No. 11107, Dec. 2, 2011]
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 Article 8 (Duty Exemption, etc. for Temporarily Imported Goods)   print
(1) Any goods, imported from any other signatory nation, which fall under any of the following subparagraphs may be exempted from customs duties, irrespective of their origin, to the scope stipulated in the relevant agreement:
1. Goods imported temporarily to be re-exported within a period prescribed by Presidential Decree, which shall not exceed two years from the acceptance date of the relevant import declaration, and that are specified by Ordinance of the Ministry of Strategy and Finance pursuant to the relevant agreement;
2. Goods imported again within a period prescribed by Presidential Decree, which shall not exceed two years, after having been temporarily exported, and shall be specified by Ordinance of the Ministry of Strategy and Finance pursuant to the relevant agreement.
(2) Notwithstanding paragraph (1) 2, any of the following cases shall not be eligible for exemption from customs duties:
1. Where the relevant goods or raw materials therefor are exempted from customs duties: Provided, That goods to be imported after being exported for the limited purpose of processing or repairing shall be excluded;
3. Where customs duties are not imposed on goods processed in bond or overdue storage goods, which had been sold under the condition to re-export.
(3) Article 97 (2) through (4) of the Customs Act shall apply mutatis mutandis to the restrictions on the use of goods exempted from customs duties pursuant to paragraph (1) 1 for any purpose other than originally intended purposes.
(4) The procedure for exemption from customs duties and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 9 (Criteria for Determination of Origin)   print
(1) In determining the origin of any goods for the application of conventional tariffs under the relevant agreement and this Act and the customs clearance of exported and imported goods, any of the following countries is deemed the origin:
1. A country in which the whole relevant goods have been produced, processed, or manufactured;
2. Any of the following countries if the relevant goods have been produced, processed, or manufactured in two or more countries:
(a) A country in which the relevant goods have been finally produced, processed, or manufactured, if the code of tariff classification (referring to a code of tariff classification of the International Convention on Harmonized Commodity Description and Coding System Nomenclature; hereinafter the same shall apply) applicable to the relevant goods is different in certain digits from the code of tariff classification of materials or components that have been used in producing, processing, or manufacturing the goods;
(b) A country in which a certain amount of value has been added to the relevant goods;
(c) A country in which the main process for producing, processing, or manufacturing the relevant goods has been carried out;
3. Any other country in which the relevant goods satisfy the requirements for the recognition of origin as stipulated in the relevant agreement.
(2) If any goods for which the origin was determined pursuant to paragraph (1) has been transported through any country other than such origin or was shipped in any country other than that origin after the goods were produced, processed, or manufactured, the goods shall not be recognized as originating from the country initially determined: Provided, That the same shall not apply to any of the following cases:
1. If the relevant agreement determines otherwise;
2. It is deemed that the relevant goods were transshipped or temporarily stored for transportation in a bonded area in any country other than the origin.
(3) The scope of goods relevant to the criteria for determination of origin under paragraphs (1) and (2), application method, criteria for the determination of origin by item, and other matters necessary for the implementation of an agreement shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 10 (Requests, etc. for Application of Conventional Tariffs)   print
(1) Any person who intends to be eligible for the application of a conventional tariff (hereinafter referred to as "importer") shall file a request for the application of a conventional tariff with the head of the competent customs house, as prescribed by Presidential Decree, before the relevant import declaration is accepted. In such cases, an importer shall have documentary evidence of origin when the request is filed and submit it to the head of the competent customs house, if so demanded.
(2) If an importer fails to submit any documentary evidence of origin as demanded pursuant to the last sentence of paragraph (1) or if it is difficult to determine the origin of goods only with the documentary evidence of origin submitted by the importer, the head of the competent customs house may deny the application of a conventional tariff pursuant to Article 16.
(3) Notwithstanding paragraph (1), any importer who fails to file a request for the application of a conventional tariff because he/she was unable to prepare documentary evidence of origin before the relevant import declaration is accepted, may file a request for the application of a conventional tariff within one year from the acceptance date of the import declaration for the relevant goods, as prescribed by Presidential Decree.
(4) Any importer who has filed a request for the application of a conventional tariff in accordance with paragraph (3) may file an application for modification, or a request for rectification, with respect to the amount of duties already paid for the relevant goods, as prescribed by Presidential Decree. In such cases, the head of the competent customs house shall, in receipt of an application for modification or a request for rectification, notify the applicant or the requesting person of whether to apply a conventional tariff and whether to correct or rectify the amount of duties, within two months from the filing date of the application or request.
(5) If the head of a customs house shall deems, as a result of his/her examination on an application for modification, or a request for rectification, of the amount of duties pursuant to paragraph (4), that the application or the request is reasonable, he/she shall correct or rectify the amount of duties and refund the customs duties, as prescribed by Presidential Decree.
(6) Article 38-2 (1) and (2), the latter part of Article 38-3 (2), and Articles 38-3 (3), 46, 47 and 48 of the Customs Act shall apply mutatis mutandis to the modification, rectification, and refund of amounts of duties under paragraphs (4) and (5).
(7) Where the head of a customs house receives an application for a conventional tariff pursuant to paragraph (1), he/she shall examine the application after accepting the import declaration: Provided, That such examination may be conducted before an import declaration is accepted for certain goods specified by Ordinance of the Ministry of Strategy and Finance, because it is difficult to secure the claim for customs duties, or because it is deemed improper to examine after the import declaration is received as to whether the statement on origin is correct and whether the application for a conventional tariff is appropriate.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 11 (Notice of Revision to Documentary Evidence of Origin)   print
(1) Any exporter or producer who discovers that there is an error in details relevant to the origin of goods after he/she has prepared and submitted the documentary evidence of origin for the purpose of benefiting from the application of a conventional tariff of any other signatory nation shall notify the head of the competent customs house (referring to the head of the customs house who accepts the export declaration for the relevant goods; hereafter the same shall apply in this paragraph) and importer of the other signatory nation who receives the documentary evidence respectively of origin of the discovered facts within the period prescribed by Ordinance of the Ministry of Strategy and Finance pursuant to the relevant agreement. In such cases, the head of the customs house shall notify the customs authority of the other signatory nation of such facts, as determined by the Commissioner of the Korea Customs Service.
(2) If an importer receives a notice, from a person who prepares the documentary evidence of origin for any goods from any other signatory nation or the head of the customs house who accepts an import declaration for the relevant goods, that there is an error in the documentary evidence of origin and discovers that there is an excess or deficiency in the amount of duties declared or voluntarily paid because of such error, the importer shall file an application for correction or modification of the amount of duties, a revised declaration, or a request for rectification within the period prescribed by Ordinance of the Ministry of Strategy and Finance. In such cases, Articles 38, 38-2, and 38-3 of the Customs Act shall apply mutatis mutandis to the correction or modification of the amount of duties, revised declaration, or rectification.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 12 (Preservation and Submission of Documentary Evidence of Origin, etc.)   print
(1) Any importer, exporter, or producer shall preserve the documents specified by Presidential Decree as necessary for the verification of origin and the application of conventional tariffs pursuant to the relevant agreement and this Act for the period prescribed by Presidential Decree within the limit of five years (or for the period specified in the relevant agreement, if the period specified in the agreement exceeds five years).
(2) If deemed necessary for examining on the verification of origin, the application of conventional tariffs, or any other relevant matters to the scope stipulated in the relevant agreement, the Commissioner of the Korea Customs Service or the head of a customs house may request any of the following persons to submit the documents under paragraph (1):
1. An importer;
2. An exporter or producer (including an exporter or producer who resides in any other signatory nation);
3. Other persons specified by Ordinance of the Ministry of Strategy and Finance as necessary to confirm whether the origin is correct or the application of conventional tariffs is appropriate.
(3) Any person whom the Commissioner of the Korea Customs Service or the head of a customs house has requested to submit documents pursuant to paragraph (2) shall submit those within the period prescribed by Ordinance of the Ministry of Strategy and Finance, which shall not be less than 20 days.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 13 (Investigations of Origin)   print
(1) If deemed necessary for confirming whether a statement as to origin is correct or whether the application of conventional tariffs is appropriate in conjunction with any goods imported from any other signatory nation, the Commissioner of the Korea Customs Service or the head of a customs house may request the customs authority of the other signatory nation, to the scope stipulated in the relevant agreement, to confirm whether the documentary evidence of origin submitted in accordance with Article 12 (2) and (3) is genuine and correct.
(2) If deems necessary or is requested by the customs authority of any other signatory nation to confirm whether any documentary evidence of origin is genuine and correct, the Commissioner of the Korea Customs Service or the head of a customs house may conduct documentary or field investigations of any of the following persons as necessary for confirming whether the origin of the exported or imported goods is correct or whether the application of conventional tariffs is appropriate to the scope stipulated in the relevant agreement:
1. An importer;
2. An exporter or a producer (including an exporter or a producer who resides in any other signatory nation);
3. An institution that issues the documentary evidence of origin;
4. A person specified by Ordinance of the Ministry of Strategy and Finance pursuant to Article 12 (2).
(3) Where the Commissioner of the Korea Customs Service or the head of a customs house conducts a field investigation of an exporter or a producer who resides in any other signatory nation pursuant to paragraph (2) or a person who resides in the other signatory nation (hereafter referred to as "exporter, etc." in this Article) among those specified in paragraph (2) 4 (2), he/she shall obtain consent from a person subject to investigation by notifying the person of the reasons for the investigation, scheduled period of the investigation, and other relevant matters prior to the investigation.
(4) Any person subject to investigation in any other signatory nation may, upon receiving a notice under paragraph (3), file an application for postponement of the investigation with the Commissioner of the Korea Customs Service or the head of a customs house, whoever gave the notice, as prescribed by Presidential Decree, if it is difficult for him/her to undergo the investigation during the scheduled period of the investigation notified by the Commissioner of the Korea Customs Service or the head of a customs house.
(5) The Commissioner of the Korea Customs Service or the head of a customs house shall not conduct a field investigation if a person subject to investigation in any other signatory nation, to whom a notice under paragraph (3) was given, does not notify whether he/she consents to the investigation, or does not consent to the investigation, within the period prescribed by Ordinance of the Ministry of Strategy and Finance, which shall not be less than 20 days.
(6) The Commissioner of the Korea Customs Service or the head of a customs house shall, whenever he/she conducts a documentary or field investigation of an exporter, etc. pursuant to paragraph (2), give a written notice to the importer involved and the customs authority of the other signatory nation to the relevant agreement.
(7) The Commissioner of the Korea Customs Service or the head of a customs house shall, upon completion of a documentary or field investigation pursuant to paragraph (2), notify a person subject to investigation (including a person who imports the goods produced or exported by the person subject to the investigation in the other signatory nation to the relevant agreement) and the customs authority of the other signatory nation to the relevant agreement, in writing, of the results thereof and the details of a decision made with regard thereto. In such cases, a notice to the customs authority of the other signatory nation to the relevant agreement shall be given only if the relevant agreement requires such.
(8) Any person subject to investigation (including a person who imports the goods produced or exported by the person subject to investigation in the other signatory nation to the relevant agreement) may, if he/she has any objection to the details of a notice given pursuant to paragraph (7), file an objection with the Commissioner of the Korea Customs Service or the head of the competent customs house within 30 days from the date on which the results of the investigation were notified, as prescribed by Presidential Decree.
(9) A person subject to investigation who receives a field investigation to confirm the origin pursuant to paragraph (2) may cause any of the following persons to witness the investigation or give his/her opinions:
1. A lawyer;
2. A customs broker.
(10) The method and procedure for investigations and other matters necessary for investigations shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 13-2 (Investigations of Origin by Other Signatory Nation)   print
(1) Where the customs authority of other signatory nation conducts an on-site examination necessary for confirmation of the origin of the exported goods, against the exporters and producers, to the scope stipulated in the relevant agreement, the authority shall notify an examinee of the reason of the examination, a scheduled period of the examination, etc. before initiating such examination, and obtain the consent of the examinee.
(2) Article 13 (9) shall apply mutatis mutandis to an examinee who is subject to the on-site examination pursuant to paragraph (1).
[This Article Newly Inserted by Act No. 9918, Jan. 1, 2010]
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 Article 14 (Preliminary Examination on Origin, etc.)   print
(1) Any person (including an exporter or a producer in any other signatory nation or an agent of either of them) who has doubt about any of the matters prescribed by Presidential Decree as those on which the application of conventional tariffs is based, such as whether the criteria for determining origin under Article 9 are satisfied, may file an application for examination on such doubt (hereinafter referred to as "preliminary examination"), accompanied by the documents prescribed by Presidential Decree, with the Commissioner of the Korea Customs Service in advance before filing an import declaration for relevant goods: Provided, That the same shall not apply if the relevant agreement has no specific provision for the preliminary examination.
(2) The Commissioner of the Korea Customs Service shall, upon receiving an application for preliminary examination pursuant to the main sentence of paragraph (1), examine the case within the period prescribed by Presidential Decree and notify the applicant of the results thereof in writing, describing the results (hereinafter referred to as "statement of preliminary examination"): Provided, That if it is difficult to conduct a preliminary examination because the document submitted is incomplete, he/she shall notify the applicant of the reason therefor.
(3) The head of a customs house shall, upon receiving an application from an importer for the application of conventional tariffs in accordance with a statement of preliminary examination, apply the conventional tariffs to the relevant goods, if he/she concludes that the goods for which an import declaration was filed are identical with the details of the statement of preliminary examination, unless there exists any exceptional ground specified by Presidential Decree.
(4) Any applicant who files an application for preliminary examination shall pay the fee prescribed by Ordinance of the Ministry of Strategy and Finance.
(5) Any person who has an objection to the results of a preliminary examination under paragraph (2) (including a person who has been notified of a revision to a statement of preliminary examination pursuant to Article 15 (2)) may file an objection with the Commissioner of the Korea Customs Service within 30 days from the date on which the results were notified, as prescribed by Presidential Decree.
(6) The procedure and method for preliminary examination and other necessary matters shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 15 (Revision to Details of Statement of Preliminary Examination)   print
(1) The Commissioner of the Korea Customs Service may, if any ground is prescribed by Presidential Decree, such as a change in facts or circumstances on which a statement of preliminary examination was based, revise the statement of preliminary examination in accordance with the relevant agreement.
(2) The Commissioner of the Korea Customs Service shall, when he/sheintends to revise the details of a statement of preliminary examination pursuant to paragraph (1), notify an applicant under Article 14 (2) of the details of the revision.
(3) Where the details of a statement of preliminary examination are revised pursuant to paragraph (1), the revised details shall be applicable to the goods for which an import declaration is filed after the date of revision: Provided, That if the relevant agreement stipulates otherwise, whether and how the revised details shall be applicable shall be determined, as prescribed by Presidential Decree, to the scope stipulated in the relevant agreement.
(4) Notwithstanding paragraph (3), where the details of a statement of preliminary examination are revised due to an applicant's fault, such as omission to submit any material or submission of any false material, the revised details shall also apply retrospectively to the goods for which an import declaration was filed before the date of revision in conjunction with the relevant preliminary examination.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 16 (Restriction on Application of Conventional Tariffs)   print
(1) The head of a customs house may deny the application of conventional tariffs for any imported goods that fall under any of the following subparagraphs, except as otherwise provided in the relevant agreement. In such cases, the head of a customs house shall levy and collect a duty amount payable or the difference between a duty amount payable and a duty amount already paid under Articles 38-3 (3) and 39 (2) of the Customs Act:
1. If an importer or an exporter or a producer who resides in any other signatory nation (hereinafter referred to as "exporter, etc. in any other signatory nation") fails to submit any relevant document requested by the Commissioner of the Korea Customs Service or the head of a customs house within a period under Article 12 (3) or submits a false document; Provided, That cases where an inadvertent error is made in any description of documentary evidence of origin, and the error does not actually affect the determination of origin shall be excluded:
2. If the customs authority of any other signatory nation does not reply, within a period prescribed by Ordinance of the Ministry of Strategy and Finance, to a request that the Commissioner of the Korea Customs Service or the head of a customs house made to the customs authority of the other signatory nation to verify the origin pursuant to Article 13 (1); if it is found from a reply that the origin declared to the head of a customs house differs from the real origin; or if a reply does not contain any information necessary for verifying the correctness of origin pursuant to Article 9;
3. If it is discovered, as a result of a documentary or field investigation conducted pursuant to Article 13 (2), that the origin declared to the Commissioner of the Korea Customs Service or the head of a customs house differs from the actual origin or the material submitted by an importer or an exporter in any other signatory nation does not contain any information necessary for verifying the correctness of origin pursuant to Article 9;
4. If an exporter in any other signatory nation does not reply, within a period prescribed by Ordinance of the Ministry of Strategy and Finance, to a documentary investigation conducted by the Commissioner of the Korea Customs Service or the head of a customs house pursuant to Article 13 (2) or if an exporter in any other signatory nation does not notify the Commissioner of the Korea Customs Service or the head of a customs house, within a period under Article 13 (5), of whether he/she consents to a field investigation in response to a request made by the Commissioner of the Korea Customs Service or the head of a customs house for consent pursuant to Article 13 (3) or does not consent to such field investigation without any particular reason;
5. If an exporter in any other signatory nation denies a customs official's access to account books or relevant material necessary for the verification of documentary evidence of origin without any justifiable reason when the customs official conducts a field investigation pursuant to Article 13 (2) or if an exporter in any other signatory nation fails to keep any documentary evidence of origin specified by the relevant agreement;
6. If an importer who filed an application for preliminary examination under Article 14 (1) intentionally does not submit any material that may affect the results of the preliminary examination, submits false material, or fails to perform any condition set forth in a statement of preliminary examination;
7. If there is any other cause specified by Presidential Decree as a cause due to which the Commissioner of the Korea Customs Service or the head of a customs house is unable to verify whether the origin is correct.
(2) The duty amount payable or the difference between the duty amount payable and the duty amount already paid under the last sentence of paragraph (1) shall not be levied if five years have elapsed since the day on which the relevant duty amount may be levied. The day on which the relevant duty amount may be levied, shall be prescribed by Presidential Decree.
(3) The head of a customs house may, if an exporter in any other signatory nation has made, or admits that he/she has made, false statements on any essential fact in documentary evidence of origin twice consecutively or more during the latest five years, may deny the application of conventional tariffs to goods of the same kind and with the same quality exported or produced by the exporter in the other signatory nation for not more than five years (or for the period of time stipulated by the relevant agreement, if such period of time exceeds five years), as prescribed by Presidential Decree.
(4) Notwithstanding paragraph (3), the head of a customs house may examine whether the requirements for an application of conventional tariffs, such as origin, are met for each item for which an import declaration is filed and may apply the corresponding conventional tariffs, if the requirements are met.
(5) The head of a customs house may lift restrictions on an application of conventional tariffs, if any exporter in any other signatory nation, who has been subjected to restrictions on the application of conventional tariff pursuant to paragraph (3), proved that he/she has prepared documentary evidence of origin in good faith.
(6) The procedure and method for placing and lifting restrictions on the application of conventional tariffs and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 17 (Suspension of Application of Conventional Tariffs)   print
(1) The head of a customs house may suspend the application of conventional tariffs, as prescribed by Presidential Decree, when an importer subject to investigation files an additional import declaration for goods of the same kind and with the same quality as the goods subject to investigation between the day on which the investigation into origin begins pursuant to Article 13 and the day on which the results of the investigation are notified pursuant to paragraph (7) of the aforesaid Article. In such cases, the day on which the investigation into origin begins, shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
(2) Where it is confirmed as a result of an investigation into origin that the origin of the goods subject to investigation is the same as the origin declared by an importer, the head of a customs house shall rectify the amount of duties for the goods to which a conventional tariff has not been applied pursuant to paragraph (1) and refund the customs duties. In such cases, Articles 38-3, 46, and 48 of the Customs Act shall apply mutatis mutandis to the rectification of the amount of duties and the refund of customs duties.
(3) The procedure and method for suspending an application of conventional tariffs and other necessary matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 17-2 (Submission, etc. of Documentary Evidence and Evidential Material for Objections)   print
(1) The adjudicating authority for a petition for examination or adjudication under Article 119 of the Customs Act (hereafter referred to as "adjudicating authority" in this Article) shall, if deemed necessary for the review on the petition for examination or adjudication filed by a petitioner, require an exporter or producer in any other signatory nation to submit documentary evidence or evidential materials directly to the adjudicating authority.
(2) Any adjudicating authority shall not supply or divulge to any third person (including the customs authority of any other signatory nation) any material that a petitioner or an exporter or producer of any other signatory nation under paragraph (1) requested to keep confidential when he/she submits the material, nor use such material for any purpose other than originally intended purposes. In such cases, Article 20 shall apply mutatis mutandis.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 17-3 (Submission of Objections)   print
Where an exporter or producer of any other signatory nation prescribed by Presidential Decree suffers any infringement on his/her rights or interests because he/she was subject to an illegal or improper disposition or unable to receive a necessary disposition with respect to the disposition related to any of the following subparagraphs, he/she may file a petition for examination or adjudication pursuant to Article 119 of the Customs Act:
1. Examination on the origin pursuant to Article 13;
2. Preliminary examination on the origin, etc. pursuant to Article 14.
[This Article Newly Inserted by Act No. 9918, Jan. 1, 2010]
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 Article 18 (Reciprocal Cooperation)   print
(1) The Commissioner of the Korea Customs Service may cooperate with the customs authority of any other signatory nation, as stipulated in the relevant agreement, in the streamlining of customs clearance procedures necessary for the uniform and efficient implementation of the agreement, the exchanges of information to the extent not contravening any other Act, the technical support for customs affairs, and other matters specified by Presidential Decree.
(2) The Commissioner of the Korea Customs Service may, if necessary for verifying whether the origin of goods imported from any other signatory nation is correct or whether the application of conventional tariffs is appropriate, perform any of the following acts to the scope stipulated in the relevant agreement:
1. Requesting the customs authority of any other signatory nation to supply necessary materials;
2. Conducting an investigation into origin simultaneously with any other signatory nation;
3. Dispatching customs officials to any other signatory nation to assign them to conduct an investigation into origin directly or participate in an investigation into origin conducted by other signatory nation;
4. Accepting a request from the customs authority of any other signatory nation for cooperation in an investigation into origin pursuant to the relevant agreement.
(3) The Commissioner of the Korea Customs Service shall, when he/she conducts activities cooperative with the customs authority of any other signatory nation or takes any necessary measure pursuant to paragraphs (1) and (2), report to the Minister of Strategy and Finance on the results thereof within 30 days.
(4) The Minister of Strategy and Finance may establish and operate a consultative organization jointly with the government of any other signatory nation as stipulated in the relevant agreement for consultation on matters concerning the implementation of such agreement (limited to the customs affairs only). In such cases, the Minister of Strategy and Finance shall consult in advance with the Minister of Foreign Affairs and Trade.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 19 (Applications, etc. for Reciprocal Consultations on Customs Duties)   print
(1) If the customs authority of any other signatory nation has made or is likely to make a determination of origin or impose a tariff on any goods exported by him/her in contravention of the relevant agreement, any exporter or producer may file an application with the Minister of Strategy and Finance for reciprocal consultations about customs duties with the customs authority of the other signatory nation, as prescribed by Presidential Decree.
(2) The Minister of Strategy and Finance shall, upon receiving an application for reciprocal consultations on customs duties pursuant to paragraph (1), request the customs authority of the other signatory nation to have consultations on customs duties, except in any of the following cases. In such cases, the Minister of Strategy and Finance shall consult in advance with the Minister of Foreign Affairs and Trade:
1. Where there is a final and conclusive judgment by a domestic or foreign court with respect to the determination of origin or the imposition of the tariff;
2. Where it is found that an applicant intends to use the procedure for reciprocal consultations on customs duties for the evasion of customs duties;
3. Where an application is filed three years after the date on which the determination of origin or the imposition of customs duties was made.
(3) If deemed necessary for prompt reciprocal consultations on customs duties, the Minister of Strategy and Finance may request to hold a meeting of the consultative organization under the former part of Article 18 (4) as stipulated in the relevant agreement. In such cases, the Minister of Strategy and Finance shall consult in advance with the Minister of Foreign Affairs and Trade.
(4) Other matters necessary for consultations on customs duties shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 20 (Duty of Confidentiality)   print
(1) No customs official and issuer of documentary evidence of origin who is specified by Presidential Decree shall supply or divulge to any third person (including the customs authority of any other signatory nation) any material designated as confidential material (hereinafter referred to as "confidential material"), as prescribed by Presidential Decree, that an importer, an exporter, a producer (including an exporter or a producer who resides in the other signatory nation and any other interested party), or an authorized agency of the other signatory nation submitted for the determination of origin, the imposition or collection of customs duties, or customs clearance pursuant to the relevant agreement and this Act, nor use such material for any purpose other than originally intended purposes: Provided, That any confidential material may be supplied in any of the following cases only for the specific purpose:
1. Where a State agency demands any confidential material for the purpose of using it for a contentious case on customs duties or the prosecution of a customs offender;
2. Where submitting any confidential material is demanded by an order issued by a court or a writ issued by a judge;
3. Where customs officials supply one another with any confidential material as may be necessary for the imposition and collection of customs duties, customs clearance, interrogation, or inspection.
(2) The preservation period and the preservation method of confidential material and the procedure for the supply and use of such confidential material shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 20-2 (Special Exception to Customs Clearance Procedure)   print
The Commissioner of the Korea Customs Service may apply a more expeditious and simpler customs clearance procedure to goods imported from any other signatory nation, as prescribed by Presidential Decree, to the scope stipulated in the relevant agreement.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 20-3 (Requests for Submission of Relevant Materials)   print
(1) The Minister of Strategy and Finance may, if deemed necessary for the implementation of this Act and follow-up measures for an agreement, request a State agency, local government major economic organization, association or cooperative by type of business, or any other interested party to submit data relevant to the imposition and collection of customs duties and customs clearance, statistics of foreign trade, material concerning the current status of a related industry, and other necessary material.
(2) The head of an agency, organization, association, or cooperative shall, upon receiving a request under paragraph (1), cooperate as requested unless there is any justifiable ground otherwise, except as otherwise provided for in any other Act or subordinate statute.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 21 (Delegation of Authority)   print
The Minister of Strategy and Finance, the Commissioner of the Korea Customs Service, or the head of a customs house may delegate part of his/her authority granted pursuant to any provision of this Act to the Commissioner of the Korea Customs Service, the head of a customs house, or the head of any other affiliated agency, as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 22 (Penal Provisions)   print
(1) Any person who supplies or divulges to a third person any confidential material, or uses any confidential material for any purpose other than originally intended purposes, in violation of Article 20, (including cases to which the aforesaid Article shall apply mutatitis mutandis pursuant to Article 17-2 (2)) shall be punished by imprisonment with prison labor for not more than three years or by a fine not exceeding 30 million won.
(2) Any person who falls under any of the following subparagraphs shall be punished by a fine not exceeding 20 million won: Provided, That any person who falls under subparagraphs 2 and 3 by negligence shall be punished by a fine not exceeding three million won:
1. A person who applies for any documentary evidence of origin under an agreement or this Act by deceit or other fraudulent means to obtain it or a person who prepares or issues any documentary evidence of origin by deceit or other fraudulent means;
2. A person (excluding a person who falls under Article 24 (2) 2) who uses or transfers any goods eligible for the application of a usage tariff rate for any purpose other than originally intended purposes, in violation of Article 83 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 4 (2);
3. A person (excluding a person who falls under Article 24 (2) 3) who uses or transfers any duty-free goods for any purpose other than originally intended purposes, in violation of Article 97 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 8 (3);
4. A person who does not keep relevant material without any justifiable ground, in violation of Article 12 (1);
5. A person who submits a false document upon request from the Commissioner of the Korea Customs Service or the head of a customs house;
6. A person who submits a false document, or who intentionally omits to submit any document, for preliminary examination under Article 14;
7. A customs official who issues any documentary evidence of origin under an agreement or this Act by deceit or other fraudulent means and an issuer of documentary evidence of origin who is specified by Presidential Decree.
(3) Any person who applies for documentary evidence of origin under an agreement or this Act by false statement of facts to obtain it or who prepares and issues documentary evidence of origin with untrue information contained therein shall be punished by a fine not exceeding three million won: Provided, That the foregoing sentence shall not apply to any person who gave notice of a revision to such documentary evidence of origin in accordance with Article 11 (1).
(4) Article 278 (1) and (2) and Articles 283 through 319 of the Customs Act shall apply mutatis mutandis to any person who commits an offense, in violation of any penal provision of paragraphs (2) and (3).
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 23 (Joint Penal Provisions)   print
If the representative of a legal entity or an agent, an executive, an employee, or a servant of a legal entity or a private individual commits any offense set out in Article 22 (2) and (3) in the scope of the business of the legal entity or the private individual, not only shall such actor be punishable accordingly, but the legal entity or the private individual shall be punishable by a fine prescribed in the aforesaid Article: Provided, That this shall not apply where the legal entity or the individual person has not been negligent to pay due attention and supervision concerning the business to prevent such violation.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 24 (Fines for Negligence)   print
(1) Any of the following persons (excluding an exporter and producer of any other signatory nation) shall be punished by a fine for negligence not exceeding ten million won:
1. A person who fails to submit any document within the period pursuant to Article 12 (3) without any justifiable ground;
2. A person who rejects, obstructs, or evades a documentary or field investigation conducted by the Commissioner of the Korea Customs Service or the head of a customs house pursuant to Article 13 (2).
(2) Any of the following persons shall be punished by a fine for negligence not exceeding five million won:
1. A person who uses any goods, to which a usage tariff rate variable depending upon the purpose of use was applied, for any other purpose, to which a lower tariff rate is applicable, without approval in violation of Article 83 (1) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 4 (2);
2. A person who transfers any goods, in violation of Article 83 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 4 (2), to another person who intends to use the goods for the same purpose as any purpose to which a lower tariff rate is applicable;
3. A person who transfers any goods, in violation of Article 97 (2) of the Customs Act, which shall apply mutatis mutandis pursuant to Article 8 (3), to any person who is eligible for the abatement or exemption of customs duties if the person imported the goods directly;
4. A person who fails to file an application for correction or modification, a report on revision, or a request for rectification with respect to the amount of duties with the head of a customs house, although he/she was notified of an error in documentary evidence of origin pursuant to Article 11 (2).
(3) A fine for negligence under paragraphs (1) and (2) shall be levied and collected by the head of a customs house, as prescribed by Presidential Decree. <Amended by Act No. 9271, Dec. 26, 2008>
(4) through (6) Deleted.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
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 Article 25 (Implementation of Agreement)   print
Necessary matters for the implementation of an agreement shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9918, Jan. 1, 2010]
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date on which the Free Trade Agreement between the Government of the Republic of Korea and the Government of Singapore becomes effective.
(2) (Applicability) This Act shall be applicable to goods for which an import or export declaration is filed after this Act enters into force.
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.
ADDENDA<Act No. 9271, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force 30 days after the date of its promulgation.
Article 2 (General Applicability)
This Act shall be applicable to import or export declarations filed on or after the day on which this Act enters into force.
Article 3 (Applicability to Consultations on Anti-Dumping or Countervailing Duty)
The amended provisions of Article 5-2 shall apply to the anti-dumping or countervailing duty requested to levy on or after the day on which this Act enters into force.
Article 4 (Applicability to Objections Raised with Regard to Preliminary Examination on Origin)
The amended provisions of Article 14 (5) shall apply to notices given about the results of a preliminary examination on or after the day on which this Act enters into force.
Article 5 (Applicability to Petition for Objection)
The amended provisions of Article 17-2 shall apply to petitions for examination or adjudication filed on or after the day on which this Act enters into force.
Article 6 (Applicability to Duty of Confidentiality)
The amended provisions of Article 20 (including the cases to which the aforesaid Article shall apply mutatis mutandis pursuant to Article 17-2 (2)) shall apply to the confidential material submitted on or after the day on which this Act enters into force.
Article 7 (Special Exception to Requests for Application of Conventional Tariff)
For the purposes of applying the amended provisions of Article 10 (3), the goods for which an import declaration is filed on or after the effective date of the Free Trade Agreement between the Government of the Republic of Korea and the Government of Singapore shall be deemed to have been declared for import on the enforcement date of this Act.
Article 8 (Transitional Measures concerning Penal Provisions)
In applying the penal provisions, previous provisions shall apply to any act performed before this Act enters into force.
ADDENDA<Act No. 9918, Jan. 1, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation: Provided, That the amended provisions of Article 7-2 shall enter into force on the date when the Comprehensive Economic Partnership Agreement between the Republic of Korea and the Republic of India becomes effective.
Article 2 (Abolishment of Other Acts)
The Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements between the Republic of Korea and the Republic of Chile shall be abolished.
Article 3 (Applicability to Special Cases on Imposition of Emergency Tariff)
The amended provisions of Article 7-2 shall apply from the emergency tariff imposed for the first time after enforcement of this Act.
Article 4 (Applicability to Exemption of Tariff)
The amended provisions of Article 8 (2) 1 shall apply from the import clearance filed for the first time after enforcement of this Act.
Article 5 (Applicability to Additional Charge on Refundment)
The amended provisions of Article 10 (6) shall apply from the import clearance filed for the first time after enforcement of this Act.
Article 6 (Transitional Measures concerning Penal Provisions)
(1) Any disposition, procedure and other acts done or made pursuant to the previous Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements between the Republic of Korea and the Republic of Chile as at the time this Act enters into force shall be deemed done or made under this Act.
(2) Any conventional tariffs imposed/refunded or to be imposed/refunded pursuant to the previous Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements between the Republic of Korea and the Republic of Chile as at the time this Act enters into force shall be governed by the said previous Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements between the Republic of Korea and the Republic of Chile.
(3) When penalties and fines for negligence are to be imposed on any acts violating the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements between the Republic of Korea and the Republic of Chile committed before this Act enters into force, the said imposition shall be governed by the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements between the Republic of Korea and the Republic of Chile.
Article 7 Omitted.
ADDENDUM<Act No. 10806, Jun. 30, 2011>
This Act shall enter into force on the date when the Free Trade Agreement Between the Republic of Korea, of the One Part, and the Europe Union and its Member States, the Other Part becomes effective.
ADDENDUM<Act No. 11107, Dec. 2, 2011>
This Act shall enter into force on the date when the Free Trade Agreement between the Republic of Korea and the United States of America and Exchange of Letters related to the Agreement becomes effective.