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


Published: 2012-01-06

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 Article 1 (Purpose)   print
The purpose of this Decree is to prescribe the matters delegated by the Act on Special Cases Concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export, and matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 19337, Feb. 9, 2006>
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 Article 2 (Lump-Sum Payment Period for Customs Duties, etc.)   print
(1) The lump-sum payment period provided for in the provisions of Article 5 (2) of the Act on Special Cases Concerning the Refund of Customs Duties, etc. Levied on Raw Materials for Export (hereinafter referred to as the "Act") shall be one month, two months or three months: Provided, That where it is deemed necessary to efficiently perform the settlement of account work provided for in the provisions of Article 7 of the Act, which is prescribed by Ordinance of the Ministry of Strategy and Finance, the lump-sum payment period may be set otherwise within the scope of six months. <Amended by Presidential Decree No. 20720, Feb. 29, 2008>
(2) Anyone who intends to file an application for the lump-sum payment of his customs duties, etc. pursuant to the provisions of Article 5 (2) of the Act shall choose any one of the lump-sum payment periods referred to in the provisions of paragraph (1).
(3) The lump-sum payment periods referred to in the provisions of paragraph (1) shall be reckoned from the first day of the month to which the date on which the application is filed for the lump-sum payment of custom duties, etc. belongs.
(4) The lump-sum payment period that is chosen pursuant to the provisions of paragraph (2) shall be prohibited from being changed before one year lapses from the first day of the month to which the date on which the application is filed for the lump-sum payment of customs duties, etc. belongs.
[This Article Wholly Amended by Presidential Decree No. 19337, Feb. 9, 2006]
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 Article 3 (Types of Security and Process of Furnishing Security)   print
(1) The types of security which may be furnished by the enterprise paying lump-sum customs duties, etc. pursuant to the provisions of Article 6 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 17791, Dec. 5, 2002; Presidential Decree No. 18087, Aug. 21, 2003; Presidential Decree No. 19337, Feb. 9, 2006>
1. Cash;
2. A bond or security issued by the State or local governments;
3. A bank guarantee for payment;
4. A security insurance policy for the payment of taxes;
5. A credit guarantee provided for in the Credit Guarantee Fund Act or the Regional Credit Guarantee Foundation Act; and
6. A credit guarantee provided for in the Korea Technology Credit Guarantee Fund Act.
(2) A person seeking to furnish a security for customs duties, etc. on raw materials for export pursuant to the provisions of Article 6 (1) of the Act shall submit an offer sheet for a security with a description of the type, quantity, amount of money, etc. of the security which is to be furnished to the head of a customhouse.
(3) A person furnishing a security pursuant to the provisions of paragraph (2) of this Article shall include a security which is equivalent to the tax amount which is sought to be paid in a lump-sum, and shall furnish it to the head of a customhouse (where a head office is primarily dealing with the process of refund, etc., it means the head of a customhouse having jurisdiction over that head office; hereinafter referred to as the "head of district customhouse") having jurisdiction over the factory, before the import declaration.
(4) Notwithstanding the provisions of paragraph (3) of this Article, the person seeking to furnish a security for customs duties, etc. every time he makes an import declaration may do so when declaring import to the head of a customhouse at the place of clearance.
(5) The process and other necessary matters for the furnishing and revocation of a security shall be determined by the Commissioner of the Korea Customs Service.
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 Article 4 (Designation of Credit Security Enterprise)   print
(1) A person seeking to get exemption from providing the security pursuant to the provisions of Article 6 (2) of the Act shall be a person falling under any of the following subparagraphs who receives designation as a credit security enterprise from the head of district customhouse: <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 17048, Dec. 29, 2000; Presidential Decree No. 19337, Feb. 9, 2006; Presidential Decree No. 20720, Feb. 29, 2008>
1. A person who has a record of export and refund accomplishments of not less than a fixed amount prescribed by the Commissioner of the Korea Customs Service for the last three years or more;
2. A person who has not defaulted on customs duties for the last two years or more;
3. A person who has not received a punishment for violation of Article 23 of the Act or Articles 269 through 276 of the Customs Act for the last three year period; and
4. A person who may be recognized as an earnest payer of the customs duties, etc., according to the standards as prescribed by Ordinance of the Ministry of Strategy and Finance.
(2) The designation process of a credit security enterprise, standards of amount limit which may be paid in a lump-sum without furnishing a security, and other necessary matters shall be determined by the Commissioner of the Korea Customs Service.
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 Article 5 (Cancellation of Designation of Credit Security Enterprise)   print
Where a person designated as a credit security enterprise falls under any of the following subparagraphs, a head of customhouse shall cancel that designation:
1. Where such person has not been in conformity with the standards of the subparagraphs of Article 4 (1); and
2. Where the grounds as stipulated in the subparagraphs of Article 7 (1) have occurred.
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 Article 6 (Notification of Settlement of Account)   print
(1) The head of a customhouse shall notify every enterprise that has paid its lump-sum customs duties, etc. of the result of the settlement of account, which includes the matter falling under each of the following subparagraphs:
1. The details of the customs duties, etc. that have to be paid in a lump sum pursuant to the provisions of Article 5 (2) of the Act;
2. The details of the refund amount whose payment is withheld pursuant to the provisions of Article 16 (3) of the Act; and
3. The amount of the custom duties, etc., which have to be paid as a result of the settlement of account or the refund amount that has to be paid.
(2) "Day prescribed by Presidential Decree" in Article 7 (1) of the Act means the first day of the month following the month during which the lump-sum payment period expires pursuant to the provisions of Article 2 (1).
(3) The customs duties, etc. that are paid by the enterprise that has to pay them in a lump sum pursuant to the provisions of Article 7 (3) of the Act shall be made the amount of annual revenue of the head of a customhouse who notifies the result of the settlement of account of such customs duties, etc.
[This Article Wholly Amended by Presidential Decree No. 19994, Apr. 5, 2007]
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 Article 7 (Ex Officio Settlement of Accounts)   print
(1) "Grounds prescribed by Presidential Decree" in Article 8 (1) of the Act means cases falling under any of the following subparagraphs: <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 17048, Dec. 29, 2000; Presidential Decree No. 19337, Feb. 9, 2006; Presidential Decree No. 19994, Apr. 5, 2007; Presidential Decree No. 20720, Feb. 29, 2008>
1. Deleted; <by Presidential Decree No. 19994, Apr. 5, 2007>
2. Cases where a punishment has been received for being in violation of Article 23 of the Act or Article 269 through 276 of the Customs Act;
3. Cases where default of customs duties, etc. has occurred: Provided, That cases where voluntary payment is made within the urged period shall be excluded;
4. Cases where an assurance on recovery of obligations for customs duties, etc. is necessary due to a declaration of bankruptcy, the dishonoring of bills, etc.; and
5. Other cases as prescribed separately by Ordinance of the Ministry of Strategy and Finance, as deemed necessary for an assurance on recovery of obligations for customs duties, etc.
(2) Where the head of a customhouse intends to settle accounts ex officio because the grounds stipulated in the subparagraphs of paragraph (1) of this Article occurred, he shall give notice of this fact to the enterprises concerned.
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 Article 8 (Limit on Lump-Sum Payments of Customs Duties, etc.)   print
In cases of making an ex officio settlement of accounts on grounds of the provisions of Article 7 (1) of this Decree, the head of a customhouse shall not apply the provisions of Article 5 (2) of the Act during the period limited to three years as prescribed by Ordinance of the Ministry of Strategy and Finance with regard to the raw materials for export which are imported after the date of the ex officio settlement of accounts by the subject enterprise of the ex officio settlement of accounts. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
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 Article 9 (Basic Date of Export Performance Period)   print
(1) For the purpose of Article 9 (1) of the Act, the term "date as prescribed by Presidential Decree" means the last day of the month which pertains to the date falling under any of the following subparagraphs:
1. In cases of export as provided in subparagraph 1 of Article 4 of the Act, the date of having accepted the export declaration; and
2. In cases of export as provided in subparagraphs 2 through 4 of Article 4 of the Act, the date of having completed the export, sales, construction work, or supply.
(2) With respect to the raw materials for export on which the customs duties, etc. are refunded under Article 9 (1) of the Act, their import declaration acceptance, withdrawal approval, immediate withdrawal declaration and transactions, which fall under any of the following subparagraphs, shall be fulfilled within two years retroactive from the basic date of an export performance period under paragraph (1) of this Article: <Amended by Presidential Decree No. 16985, Oct. 23, 2000; Presidential Decree No. 17048, Dec. 29, 2000; Presidential Decree No. 19337, Feb. 9, 2006>
1. Acceptance of the import declaration under Article 248 of the Customs Act;
2. Withdrawal approval prior to the acceptance of the import declaration under Article 252 of the Customs Act;
3. Immediate withdrawal declaration prior to the import declaration under Article 253 of the Customs Act; and
4. Last transaction, in case the raw materials for export are transacted through the payment by a local letter of credit, etc.
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 Article 10 (Period of Transactions Peformed in Use of Local Letters of Credits, etc.)   print
"Period prescribed by Presidential Decree" in the main sentence of Article 9 (2) of the Act means one year.
[This Article Wholly Amended by Presidential Decree No. 19994, Apr. 5, 2007]
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 Article 11 (Calculation, etc. of Required Amount)   print
(1) A person seeking to prepare a statement of accounts for the amount required (hereinafter referred to as an "enterprise preparing a statement of accounts for the amount required") in accordance with the provisions of Article 10 (1) of the Act shall report the matters stipulated in the following subparagraphs to the head of district customhouse and calculate the required amount according to the reported matters:
1. The name of the items for export;
2. The method of assessing the required amount;
3. The period being the standard for assessing the required amount and applicable periods;
4. The manufacturing process of the items for export and an explanation of the process; and
5. Other matters, prescribed by the Commissioner of the Korea Customs Service, related to the calculation of the required amount.
(2) In cases of seeking to modify the contents stipulated in the subparagraphs of paragraph (1) of this Article, the enterprise preparing a statement of accounts for the amount required shall report those contents without delay to the head of district customhouse.
(3) In cases where a person applying for a refund as provided in Article 14 (1) of the Act is different from the producer of the items for export, the person applying for refund shall prepare the statement of accounts for the amount required pursuant to the required amount which has been assessed by the person who has produced the relevant items for export: Provided, That in case of applying a standard required amount pursuant to the provisions of Article 10 (2) of the Act, the same shall not apply.
(4) Matters necessary for the assessment of a required amount, management standards and the process thereof shall be prescribed by the Commissioner of the Korea Customs Service.
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 Article 12 (Certificate of Average Tax Amount)   print
(1) A person seeking to receive the issuance of a certificate of average tax amount pursuant to the provisions of Article 11 (1) of the Act shall receive the appointment of the items subject to the certification of the average tax amount from the head of district customhouse. In this case, the items, which the Commissioner of the Korea Customs Service determines after recognizing that it is difficult to fix the average tax amount thereof, including any case in which the item code number of the item classification table of both customs duties on and statistics of raw materials for the export (hereinafter referred to as the "item code number") or the required amount thereof is changed, shall not be appointed as those items which are subject to the issuance of a certificate of average tax amount. <Amended by Presidential Decree No. 15978, Dec. 31, 1998>
(2) A person seeking to receive the issuance of an average tax amount certificate with regard to goods which have been authorized pursuant to the provisions of paragraph (1) of this Article shall attach the documentary evidence which has been prescribed by the Commissioner of the Korea Customs Service to an application form mentioning the matters stipulated in the following subparagraphs and submit it to the head of district customhouse after the 1st of the month following the month including the date on which the raw materials for export were imported or the date of purchase by local letter of credit, etc.:
1. The tax amount of customs duties, etc. and import amount classified by authorized items;
2. The tax amount of customs duties, etc. and purchase amount by the local letter of credit, etc. classified by the authorized items; and
3. Other matters, prescribed by the Commissioner of the Korea Customs Service, related to a certificate of average tax amount.
(3) When the matters provided in the subparagraphs of paragraph (2) of this Article are modified in whole or in part after the issuance of a certificate of average tax amount, the head of a customhouse shall issue a certificate of average tax amount in accordance with the conditions as prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(4) A certificate of average tax amount shall be applied for collectively in respect to the whole quantity of raw materials for export which have been purchased pursuant to a local letter of credit, etc. or have been imported monthly on the basis of the item code number: Provided, That the same shall not apply to any such case as prescribed by Ordinance of the Ministry of Strategy and Finance. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(5) With respect to authorized items pursuant to the provisions of paragraph (1) of this Article, the issuance of a certificate of average tax amount shall continuously be applied for.
(6) A certificate of import declaration or a certificate of tax payment on basic raw materials, etc. concerning raw materials for export by which a certificate of average tax amount shall be issued shall not be used as data of an application for refund of customs duties, etc. or application for the issuance of a certificate of tax payment on basic raw materials, etc. for use in the next step of a domestic transaction.
(7) Where it is deemed that there is a notable difference between refund or issuance of a certificate of tax payment on basic raw materials, etc. through a certificate of average tax amount and the tax amount of customs duties, etc. on raw materials for export, the head of a customhouse shall cancel the authorization of the subject items by which the certificate of average tax amount may be issued.
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 Article 13 (Certificate of Tax Payment on Basic Raw Materials and Certificate of Divided Import Tax Amount)   print
(1) A person who intends to acquire a certificate of tax payment on basic raw materials or a certificate of the divided import tax amount (hereinafter referred to as the "certificate of tax payment on basic raw materials, etc.") provided for in the provisions of Article 12 (1) of the Act shall file an application for the issuance of a certificate in which the following matters are entered, to the head of district customhouse: <Newly Inserted by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 19994, Apr. 5, 2007>
1. Transferor and transferee;
2. Transfer date;
3. Names and standards of the items concerned;
4. Quantity and tax amount of the transferred items; and
5. Other matters necessary for the issuance of a certificate of tax payment on basic raw materials, etc., which are determined by the Commissioner of the Korea Customs Service.
(2) With respect to items restricted from a refund of customs duties, etc. pursuant to Article 17 of the Act, the head of a customhouse shall deduct the tax amount restricted by the refund and issue a certificate of tax payment on basic raw materials, etc. <Amended by Presidential Decree No. 19994, Apr. 5, 2007>
(3) Where items are transacted by one local letter of credit on two or more installments of supply, the certificate of tax payment on basic raw materials, etc. shall be issued on the presumption that the raw materials for export in question have been wholly transacted on the day when the first item of installment was supplied: Provided, That where the person supplying the raw materials for export pursuant to a local letter of credit, etc. does not desire to do so, the same shall not apply. <Amended by Presidential Decree No. 19994, Apr. 5, 2007>
(4) Where it is deemed necessary for the purpose of efficient handling of the affairs relevant to the issuance of a certificate of tax payment on basic raw materials, etc., the Commissioner of the Korea Customs Service may independently designate a head of customhouse to issue such certificate. <Amended by Presidential Decree No. 19994, Apr. 5, 2007>
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 Article 14 (Standards for Fixed Amount Refund)   print
(1) The fixed amount refund rates table as provided in Article 13 (1) of the Act, even though determined on the basis of the item code numbers of items for export, may be determined by names or by standards of items for export, if necessary.
(2) When a fixed amount refund rates table is determined as provided in paragraph (1) of this Article, the fixed rate may be adjusted proportionately for a reasonable refund taking into consideration the fluctuations of the customs duties rate and exchange rate, etc.
(3) In cases where items for export or items transacted pursuant to a local letter of credit, etc. are mentioned in a fixed amount refund rates table as provided in Article 13 (1) of the Act, refund or issuance of a certificate of tax payment on basic raw materials shall be made in accordance with the conditions prescribed in a fixed amount refund rates table which enters into force on the date when those are supplied for the export, etc. or transacted pursuant to a local letter of credit, etc.: Provided, That in cases where obtaining approval not to apply a fixed amount refund rates table (hereinafter referred to as "approval not to apply") under the conditions as provided by the Commissioner of the Korea Customs Service, the same shall not apply.
(4) As for the items to which a fixed amount refund rates table is applied as provided in Article 15, a fixed amount refund rates table as provided Article 16 shall not be applied.
(5) With respect to each and every item for export by a person who has received approval not to apply (including items transacted pursuant to a local letter of credit, etc.) pursuant to the provisions of the proviso of paragraph (3) of this Article, a fixed amount refund rates table shall not be applied.
(6) In cases where a person who has obtained the approval not to apply pursuant to the provisions of the proviso of paragraph (3) of this Article applies for an application of a fixed amount refund rates table in accordance with such conditions as determined by the Commissioner of the Korea Customs Service or a person who has obtained the approval to apply a fixed amount refund rates table applies again for the approval not to apply, he shall not make an application therefor within two years from the date when he obtained the approval not to apply or the approval to apply: Provided, That in any case falling under any of the following subparagraphs, the said application may be made even within two years in accordance with such conditions as determined by the Commissioner of the Korea Customs Service: <Amended by Presidential Decree No. 16985, Oct. 23, 2000>
1. In case it is difficult to prepare a statement of accounts for the amount required due to any change of the production process, etc.; and
2. In case the refund amount under a fixed amount refund rates table is less than 70% of any other refund amount as calculated under Article 10 of the Act.
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 Article 15 (Fixed Amount Refund of Special Process Items)   print
(1) When the Commissioner of the Korea Customs Service determines a fixed amount refund rates table of items for export having an extraordinary production process pursuant to the provisions of Article 13 (1) of the Act (hereinafter referred to as a "fixed amount refund rates table for special process items"), he shall make it on the basis of the average refund amount of or the average amount of tax payment of customs duties, etc. on the raw materials purchased pursuant to import or a local letter of credit, etc. during the period of the last six months or more.
(2) In order to determine a fixed amount refund rates table for special process items or to make an adjustment on such tables which have been publicly notified, the Commissioner of the Korea Customs Service may request the submission of relevant materials from the producer of the relevant items, if necessary.
(3) A person who has received the application of a fixed amount refund rates table for special process items shall report matters related to amount of tax payment of customs duties, etc. and changes in the production process, etc. concerning raw materials for export, by items for export, to the Commissioner of the Korea Customs Service. In this case, the Commissioner of the Korea Customs Service may adjust the fixed amount refund rates table for special process items on the basis of the reported data and give notice of such.
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 Article 16 (Simplified Fixed Amount Refund)   print
(1) When the Commissioner of the Korea Customs Service determines the fixed amount refund rates table (hereinafter referred to as "simplified fixed amount refund rates table") applicable to items for export by a small and medium enterprise pursuant to the provisions of Article 13 (1) of the Act, he shall determine a reasonable refund amount or the average amount of tax payment, etc. by code number of items for export during the latest period of six months or more: Provided, That in the event that it is judged unreasonable to set the amount of refund on the simplified fixed amount refund rates table based on the amount of average refund by the item code number of the relevant goods or the amount of average customs duties paid, etc. on the grounds of the lack or the insignificance of the refund record (excluding the record of the simplified fixed amount refund) by the code number of items for export for the last 6 months or longer, a proper amount of refund may be set based on the amount of refund on the latest simplified fixed amount refund rates table. <Amended by Presidential Decree No. 18087, Aug. 21, 2003>
(2) The simplified fixed amount refund rates table as provided in paragraph (1) of this Article shall apply only to items for export produced by persons as prescribed by Ordinance of the Ministry of Strategy and Finance. In this case, the same shall apply only to the refund of customs duties, etc. as directly requested by a producer of items for export, if the exporter and the producer of the items for export are different. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 16985, Oct. 23, 2000; Presidential Decree No. 20720, Feb. 29, 2008>
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 Article 17 (Request for Public Notice of Fixed Amount Refund Rates Table)   print
(1) Persons requesting the public notice of a fixed amount refund rates table pursuant to the provisions of Article 13 (3) of the Act shall submit an application form accompanied by the materials stipulated in the following subparagraphs to the Commissioner of the Korea Customs Service:
1. A document stipulating the reasons for the request for public notice;
2. Particulars of the required raw materials for each item code number of the items for export;
3. Particulars of payments of customs duties during the last one year for each raw material; and
4. Other materials prescribed by the Commissioner of the Korea Customs Service such as materials, etc. which demonstrate the necessity of a request for public notice of a fixed amount refund rates table.
(2) In case of receiving the request for public notice of a fixed amount refund rates table pursuant to the provisions of paragraph (1) of this Article, the Commissioner of the Korea Customs Service shall put this on public notice based on the submitted documents and the past refund records: Provided, That in cases where it is deemed that the items are not suitable to be subject to the fixed amount refund for fear of a remarkably large or small refund because of their peculiarity, etc. in transaction of the items concerned, he may not notify this.
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 Article 18 (Application for Refund)   print
(1) An application for the refund of customs duties, etc. as provided in Article 14 (1) of the Act shall be made by a person falling under any of the following subparagraphs: <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 18087, Aug. 21, 2003>
1. In the case of the export provided for in subparagraph 1 of Article 4 of the Act, an exporter (referring to an export consignor if the export is consigned) or a person from among producers of items for export who is entered as an applicant for refund in a certificate for export declaration; and
2. A person who is recorded as an exporter, seller, supplier or constructor of the concerned items in those documents which the Commissioner of the Korea Customs Service determines in order to confirm the fact that the said items are provided for the export, etc., in case of subparagraphs 2 through 4 of Article 4 of the Act.
(2) A person seeking to receive refund of customs duties, etc. pursuant to the provisions of Article 14 (1) of the Act shall submit an application form for refund of customs duties, etc. as prescribed by the Commissioner of the Korea Customs Service together with the documents stipulated in the following subparagraphs to the head of district customhouse: Provided, That with respect to items for export to which a fixed amount refund rates table is applied, the documents stipulated in subparagraphs 2 and 3 shall not be attached: <Amended by Presidential Decree No. 15978, Dec. 31, 1998>
1. Documents in which the fact that the said items are provided for the export, etc. is confirmed under any subparagraph of paragraph (1);
2. Documents in which the required amount is calculated;
3. Documents in which the tax payment amount for the required raw materials is confirmed; and
4. Other documents which are determined by the Commissioner of the Korea Customs Service and which are related to the confirmation of refund money.
(3) An application for refund of customs duties, etc. shall be a blanket application in regard to raw materials needed for the production of items for export: Provided, That in cases as prescribed separately by the Commissioner of the Korea Customs Service because a blanket application is deemed unreasonable, the same shall not apply.
(4) An application for refund of customs duties, etc. as prescribed in Article 14 (1) of the Act may be filed in cases falling under any of the following subparagraphs:
1. When the items for export have been loaded onto a ship or onto an aircraft in case of exporting pursuant to subparagraph 1 of Article 4 of the Act; and
2. When the export, sale, construction, or supply of the items for export has been completed in case of exporting pursuant to subparagraphs 2 through 4 of Article 4 of the Act.
(5) When seeking to receive refund of customs duties, etc. as provided in Article 14 (1) of the Act, the application shall be filed within two years from the acceptance date of the export declaration in case of exports pursuant to subparagraph 1 of Article 4 of the Act and within two years from the completion date of export, sale, construction, or supply, etc., in case of such export, sale, construction, or supply, etc., pursuant to subparagraphs 2 through 4 of Article 4 of the Act.
(6) An applicant for refund shall establish his account in accordance with the conditions notified and determined by the Commissioner of the Korea Customs Service before the refund application, and shall inform the head of district customhouse of the number of the account. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 19994, Apr. 5, 2007>
(7) Notwithstanding the provisions of paragraphs (2) and (4), with respect to the items for export to which the simplified fixed refund rates table is applied, the head of a customhouse may allow a simple entry of the refund application in an export declaration, when it is filed, to replace such refund application under the conditions as prescribed by the Commissioner of the Korea Customs Service. <Newly Inserted by Presidential Decree No. 18087, Aug. 21, 2003>
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 Article 19 (Designation of Customhouse for Applications for Refund)   print
Where it is deemed necessary for the efficient execution of business affairs related to the refund of customs duties, etc., the Commissioner of the Korea Customs Service may designate a customhouse for filing the application for refund of customs duties, etc. or may modify that designation, on the application of applicant for refund or ex officio.
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 Article 20 (Ex Post Facto Review of Refund Money)   print
(1) In cases where it is necessary to review whether or not the refund money is correct pursuant to the provisions of Article 14 (2) of the Act, the head of a customhouse shall review the correctness, through the application form for refund and attached materials thereto, the materials which have been submitted pursuant to the provisions of Article 20 (3) of the Act, or a field investigation.
(2) A review as provided in paragraph (1) of this Article shall be completed within two years from the date of the application for refund: Provided, That in cases where the Commissioner of the Korea Customs Service separately prescribes the examination period, the same shall not apply.
(3) The process, method, and other necessary matters for the review as provided in paragraph (1) of this Article shall be prescribed by the Commissioner of the Korea Customs Service.
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 Article 21 (Transfer and Payment of Refund)   print
(1) The refund provided for in Article 16 (1) of the Act shall be paid by means of depositing it on the account, of which the relevant refund applicant notifies in accordance with Article 18 (6).
(2) The head of a customhouse, who intends to pay the refund in accordance with paragraph (1), shall ask the Bank of Korea to deposit such refund on the account set up by the relevant refund applicant.
(3) The Bank of Korea shall, upon receiving a request for the payment of refund under paragraph (2), immediately transfer the refund from the revenue account of the head of a customhouse asked for payment during the relevant year to the account of the refund applicant and then notify the relevant head of customhouse of details of the transfer and deposit.
(4) The refund shall be deemed paid at the time when the refund is deposited on the account of the refund applicant under paragraph (3).
[This Article Wholly Amended by Presidential Decree No. 18087, Aug. 21, 2003]
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 Article 22 (Mediation Between Tax Revenue Accounts Under Competency of Head of Customhouse)   print
(1) When tax revenue of the competent tax revenue account is insufficient to pay refund money or when there is apprehension that a shortage may arise, the head of a customhouse may request the Commissioner of the Korea Customs Service for the action which is necessary for receiving a transfer of the required money amount.
(2) The Commissioner of the Korea Customs Service who has received the request as provided in paragraph (1) of this Article shall instruct the head of a customhouse with a reserve of tax revenue in a competent tax revenue account (hereafter in this Article referred to as "head of customhouse who is transferring") to demand that the Bank of Korea transfer the necessary amount from the head of a customhouse who is transferring to the head of a customhouse who requested the transfer of tax revenue (hereafter in this Article referred to as "head of customhouse who is receiving transfer") and shall give notice of this fact to the head of a customhouse who is receiving the transfer.
(3) The head of a customhouse who received the instructions as provided in paragraph (2) of this Article shall demand that the Bank of Korea transfer the subject amount from the competent tax revenue account to the competent tax revenue account of the head of a customhouse who is receiving the transfer.
(4) When demanded as provided in paragraph (3) of this Article, the Bank of Korea shall transfer the tax amount without delay and shall give notice to both the head of a customhouse who is receiving the transfer and the head of a customhouse who is transferring.
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 Article 23 (Disposal of Unpaid Funds)   print
(1) In cases where there is a refund money which could not be deposited into the account of an applicant, among refund money payment which has been received a payment request pursuant to the provisions of Article 21 (2), the Bank of Korea shall immediately notify the relevant head of customhouse of that fact. <Amended by Presidential Decree No. 18087, Aug. 21, 2003>
(2) The head of a customhouse who receives notification pursuant to the provisions of paragraph (1) of this Article shall take measures so that refund money can be provided by examining the account, etc. of the applicant for refund without delay, and shall take measures so that refund money, which has not been paid for one year since the determination date of the refund money, is included in the revenue for the fiscal year in which that period ended.
(3) When an applicant for refund seeks to receive refund money which has been transferred to the tax revenue account of a head of customhouse pursuant to the provisions of paragraph (2) of this Article, an application form accompanied by the matters stipulated in the following subparagraphs shall be submitted to the head of district customhouse. In this case, the head of a customhouse shall examine and certify this and do what is necessary for that payment:
1. The money amount of customs duties, etc. sought to be received as a refund; and
2. The reasons for not receiving payment of the refund within one year from the date when the refund money was determined.
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 Article 24 (Deferment of Payment of Refund Money and Notification of Facts of Appropriation for Default)   print
When deferring payment of refund money or when appropriating refund money to defaulted customs duties, etc., a fine for default, an additional tax, and a disposition fee for arrears pursuant to the provisions of Article 16 (3) and (4) of the Act, the head of a customhouse shall notify those facts to the relevant applicant for refund: Provided, That in cases where it is appropriated pursuant to a request from an applicant for refund, that notification may not be given.
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 Article 25 (Limit on Refund)   print
(1) The head of the administrative body concerned or interested parties shall submit the materials stipulated in the following subparagraphs to the Minister of Strategy and Finance and may request a limit on the refund as provided in Article 17 (1) of the Act: <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
1. The name, standard, and use of the items concerned;
2. The rate for limiting the refund and the reasons thereof;
3. The domestic demand, production results, and production capacity of the items concerned for the relevant year and previous year;
4. The monthly import price, import quantity, and total gross import amount for the latest one year period;
5. The monthly factory price and the monthly past record amount of goods taken out of warehouse for each main domestic manufacturing firm for the latest one year period; and
6. The domestic outlook of production and demand for the items concerned for the upcoming one year period.
(2) In cases where it is deemed necessary for the examination of matters which are necessary with respect to a limit on the refund of customs duties, etc., the Minister of Strategy and Finance who received a request for a limit on refund pursuant to the provisions of paragraph (1) of this Article may request the presentation of relevant materials and other necessary cooperation from the related administrative body, exporter, importer, and other interested parties, etc. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(3) When the Minister of Strategy and Finance seeks to determine the items which are limited on the refund of customs duties, etc. and the limitation rate pursuant to the provisions of Article 17 of the Act, the deliberations of the Customs Duties Deliberation Committee as provided in Article 13 of the Customs Act shall be passed. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 17048, Dec. 29, 2000; Presidential Decree No. 19337, Feb. 9, 2006; Presidential Decree No. 20720, Feb. 29, 2008>
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 Article 26 (Application for Consent to Use, etc., Besides Already Specified Uses)   print
A person seeking to receive consent to use, besides already specified uses, or destroy with respect to items which have received refund of customs duties, etc. pursuant to the provisions of Article 18 (1) of the Act shall submit an application form accompanied by the matters stipulated in the following subparagraphs to the head of a customhouse exercising jurisdiction over the location of the items concerned:
1. The names, the standards and the amount of materials of the items concerned;
2. The reasons for the application for consent to use, besides already specified uses, or destroy;
3. The supplier of the items concerned; and
4. Other matters prescribed by the Commissioner of the Korea Customs Service such as personal matters, etc. of the applicant.
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 Article 27 (Tax Rate Reduction of Customs Duties, etc. in Place of Refund)   print
(1) The head of the administrative body concerned or the interested party shall submit the materials regarding the items concerned stipulated in the following subparagraphs to the Minister of Strategy and Finance and may request a tax rate reduction of customs duties, etc. as provided in Article 19 (1) of the Act: <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
1. The name, standard, and use of the items concerned;
2. The amount of production and production capacity for both export and domestic consumption, during the latest one year period, of domestic main production enterprises;
3. The monthly import amounts and import amounts of money for both export and domestic consumption during the latest one year period;
4. The consumption results of main domestic demand enterprises during the latest one year period; and
5. The domestic outlook of production and demand for the upcoming one year period.
(2) In cases where it is deemed necessary for examination into matters necessary with respect to tax rate reduction of customs duties, etc. in place of refund, the Minister of Strategy and Finance may request the presentation of relevant materials and other necessary cooperation from the related administrative body, exporter, importer, and other interested parties, etc. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(3) The head of the administrative body concerned may prescribe the import admission rate or approval rate for both export and domestic consumption in accordance with the export and domestic consumption rate which has become the basis of the tax rate reduction of customs duties, etc. pursuant to the conditions prescribed by the related Acts and subordinate statutes with respect to items where the tax rate of customs duties, etc. has been reduced (hereinafter referred to as "items of tax rate reduction of customs duties, etc.") pursuant to the provisions of Article 19 of the Act.
(4) When seeking to modify the import admission rate or approval rate for both export and domestic consumption as provided in paragraph (3) of this Article and other important matters which have become the basis of the tax rate reduction of customs duties, etc. with respect to items of tax rate reduction of customs duties, etc., the head of the administrative body concerned shall, in advance, consult with the Minister of Strategy and Finance. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(5) The Commissioner of the Korea Customs Service and the head of an administrative organ who has permitted or approved import concerning items of tax rate reduction of customs duties, etc. shall report, every quarter, each of the import results and import admission results or approval results for both export and domestic consumption related to items of tax rate reduction of customs duties, etc. to the Minister of Strategy and Finance and the head of the administrative body concerned. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(6) A person seeking to furnish raw materials for export which have been imported before the reduction of the tax rate of customs duties, etc. for export, etc. after the tax rate of customs duties, etc. has been reduced pursuant to the provisions of Article 19 of the Act and to receive refund of customs duties, etc. shall report the amount of the items imported for export and the tax amount of customs duties, etc., in accordance with the conditions prescribed by Ordinance of the Ministry of Strategy and Finance to the head of district customhouse within 30 days from the date when the tax rate of customs duties, etc. was reduced. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(7) The items on which the tax rate of customs duties, etc. is reduced and the tax rate as provided in Article 19 (2) of the Act shall be prescribed separately by Presidential Decree.
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 Article 28 (Custody and Submission, etc. of Documents)   print
(1) The documents which are to be kept under the provisions of Article 20 (1) of the Act and the custody period shall be as follows: <Amended by Presidential Decree No. 16985, Oct. 23, 2000; Presidential Decree No. 19337, Feb. 9, 2006>
1. Five years from the date of application for refund of basic documents for the calculation of required amounts of raw materials by each item for export and documents relative to calculation particulars: Provided, That the custody period of those supply and receipt books of raw materials or items for export which are to be kept by a small and medium enterprise owner as provided in Article 2 (1) of the Framework Act on Small and Medium Enterprises shall be three years;
2. Three years from the issuance date of the certificate of tax payment on basic raw materials, etc. of documents related to transactions of raw materials for export, such as local letters of credit;
3. Three years from the application date for refund documents that may verify the export facts which are prescribed in Article 4 of the Act, such as a certificate of complete declaration of exports;
4. Three years from the date on which the documents, which may verify the tax amount payment for raw materials, such as a certificate of complete declaration of imports, are used for the application, etc. for refund; and
5. Three years from the date on which other documents, as prescribed by the Commissioner of the Korea Customs Service, are used for the application, etc. for refund.
(2) When requesting submittal of related documents and data in accordance with the provisions of Article 20 (3) of the Act, the Commissioner of the Korea Customs Service and the head of a customhouse shall do so in writing.
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 Article 29 (Reporting of Matters concerning Determination and Payment of Refund Money)   print
(1) The head of a customhouse shall report matters concerning the determination of refund money and matters concerning the payment of refund money as provided in Article 14 (2) of the Act every month to the Commissioner of the Korea Customs Service, and the Commissioner of the Korea Customs Service shall integrate this and submit it to the Minister of Strategy and Finance. <Amended by Presidential Decree No. 15978, Dec. 31, 1998; Presidential Decree No. 20720, Feb. 29, 2008>
(2) The head of a customhouse shall submit the documents for the calculation of the determined amount of refund money together with its documentary evidence to the Board of Audit and Inspection in accordance with the conditions as prescribed by the provisions of Article 25 of the Board of Audit and Inspection Act. <Amended by Presidential Decree No. 19337, Feb. 9, 2006>
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 Article 30 (Fine for Default)   print
(1) The money amount of the interest rate which is to be included in excessive refund money, etc. and insufficient refund money pursuant to the provisions of Articles 21 (2) and 22 (2) of the Act shall be 39/100,000 per day of the amount that has to be collected. <Amended by Presidential Decree No. 19337, Feb. 9, 2006>
(2) In cases of voluntarily reporting excessive refund money, etc. pursuant to Article 21 (5) of the Act and paying the relevant customs duties, etc., the money amount of the interest rate which is to be included in the excessive refund money, etc. shall be 10/100,000 per day of the amount that has to be collected for a period from the date following the date of refund to the date of voluntary report: Provided, That in cases of voluntarily reporting excessive refund money, etc. within three months on the date when the refund is received, this shall not be included. <Amended by Presidential Decree No. 19337, Feb. 9, 2006; Presidential Decree No. 19994, Apr. 5, 2007>
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 Article 31 (Voluntary Report concerning Excessive Refund Money)   print
(1) A person who intends to make a voluntary report on the amount that has been excessively refunded or the amount that has been deficiently settled up pursuant to the provisions of main sentence of Article 21 (4) of the Act shall present the matters stipulated in each of the following subparagraphs to the head of a customhouse who has refunded him or notified him of the settlement of his account: <Amended by Presidential Decree No. 19994, Apr. 5, 2007>
1. The particulars of the application for refund, etc. related to the excessive refund or the deficient settlement of account;
2. The particulars of the calculation of the tax amount which was excessively refunded or deficiently settled up;
3. The reasons for the excessive refund or the deficient settlement of account; and
4. Other matters prescribed by the Commissioner of the Korea Customs Service such as personal matters of the person reporting.
(2) In case of the customs duties, etc. which are voluntarily reported pursuant to the provisions of paragraph (1) of this Article, the relevant tax amount shall be paid within fifteen days from the date of the report.
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 Article 32 (Insufficient Refund Subjected to Additional Payment)   print
Cases where insufficient refund is made as provided in Article 22 (1) of the Act shall be regarded as a case of such deficient reimbursement which was made on account of a cause for which the head of a customhouse is responsible.
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 Article 33 (Form)   print
The application form, notification form, directives, and other forms as provided in this Decree shall be prescribed by the Commissioner of the Korea Customs Service.
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 Article 34 (Management of Personally Identifiable Information)   print
Where it is inevitable for performance of affairs concerning review and determination of applications for refund under Article 14 of the Act and payment of refunds under Article 16 of the Act, the head of a customhouse may manage data containing the resident registration numbers or alien registration numbers specified under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 1997.
Article 2 (General Transitional Measures)
Matters being in force pursuant to the previous provisions, before the enforcement of this Decree, shall be subject to the previous provisions.
Article 3 (Applicability to of Record Date of Export Performance Period)
The provisions of Article 9 (1) shall be applicable beginning with the portion of the application for refund after July 1, 1997.
Article 4 (Applicability to Fixed Amount Refund Rates Table)
A fixed amount refund rates table notified publicly and applied by the Commissioner of the Korea Customs Service before the enforcement of this Decree shall be considered as having been notified pursuant to this Decree.
Article 5 (Limit on Application of Fixed Amount Refund Rates Table)
The provisions of Article 14 (6) shall be applicable beginning with the portion of the application for approval to apply or not to apply a fixed amount refund rates table after July 1, 1997.
Article 6 (Applicability to Application for Refund)
The provisions of Article 18 (1) and (4) shall be applicable beginning with the portion of the application for refund after July 1, 1997.
Article 7 (Applicability to Application Date for Refund)
The provisions of Article 18 (5) shall be applicable beginning with the portion of exporting, selling, constructing, or supplying after July 1, 1997.
Article 8 (Example of Application Related to Ex Post Facto Review)
The provisions of Article 20 shall be applicable beginning with the portion of the application for refund after July 1, 1997.
Article 9 (Example of Application Related to Transfer and Payment of Refund Money)
Transfer and payment of refund money as provided in Article 21 shall be applicable beginning with the portion of the application for refund after July 1, 1997.
Article 10 (Example of Application Related to Fine for Default concerning Excessive Refund Money)
The provisions of Article 30 shall be applicable beginning with the portion of the application for refund after July 1, 1997.
ADDENDA <Presidential Decree No. 15978, Dec. 31, 1998>
(1) (Enforcement Date) This Decree shall enter into force on January 1, 1999.
(2) (General Transitional Measures) With respect to the matters which are taking effect under the previous provisions before this Decree enters into force, the said previous provisions shall apply.
(3) (Applicability to Documents in which Fact of Provision for Export, etc. is Confirmed) The amended provisions of Article 18 (1) and (2) shall be applicable beginning with the provision for the export, etc. after January 1, 1999.
ADDENDA <Presidential Decree No. 16985, Oct. 23, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of the proviso of Article 28 (1) 1 shall enter into force on January 1, 2001.
(2) (Applicability to Custody Period of Documents) The amended provisions of the proviso of Article 28 (1) 1 shall be applicable beginning with documents on the application for the refund of customs duties, etc. which is initially made after January 1, 2001.
ADDENDA <Presidential Decree No. 17048, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2001.
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 17791, Dec. 5, 2002>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 18087, Aug. 21, 2003>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 21 and 23 (1) shall enter into force on December 1, 2003.
(2) (Applicability to Refund Application) The amended provisions of Article 18 (1) 1 and (7) shall apply, starting with the portion of the refund for which an application is filed after the enforcement of this Decree.
(3) (Applicability to Transfer and Payment of Refund) The amended provisions of Articles 21 and 23 (1) shall apply, starting with the portion of the refund, the payment of which is requested on or after December 1, 2003.
ADDENDA <Presidential Decree No. 19337, Feb. 9, 2006>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 2 and 6 (2) shall enter into force on April 1, 2006.
(2) (Applicability to Surcharge on Excessively Refunded Amount and Under-Refunded Amount) The amended provisions of Article 30 (1) and (2) shall apply, starting with the portion for which an application is first filed for its refund after the enforcement of this Decree.
(3) (Transitional Measures concerning Lump-Sum Payment Period of Customs Duties, etc.) Anyone who has made the lump-sum payment of his customs duties, etc. pursuant to the previous provisions on or before April 1, 2006 shall choose any one of the lump-sum payment periods provided for in the amended provisions of Article 2 (1) and file a return thereon to the head of customhouse on or before April 30, 2006.
ADDENDA <Presidential Decree No. 19994, Apr. 5, 2007>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Ex Officio Settlement of Accounts) The portion for which the lump-sum payment period expires prior to the enforcement of this Decree shall be governed by the previous provisions, notwithstanding the amended provisions of Article 7 (1) 1.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso omitted.)
Article 2 Omitted.