Provisional Act On Special Cases Concerning The Customs Act, Etc. Following The Implementation Of Agreement Under Article …


Published: 2009-12-31

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 Article 1 (Purpose)   print
The purpose of this Act is to provide for special cases for the Customs Act, Provisional Import Surtax Act, Value-Added Tax Act, Individual Consumption Tax Act, Liquor Tax Act, and Traffic, Energy and Environment Tax Act (hereinafter referred to as "the Customs Act and other relevant Acts") in order to implement the Agreement under Article Ⅳ of the Mutual Defense Treaty between the Republic of Korea and the United States of America regarding Facilities and Areas and the Status of the United States Armed Forces in the Republic of Korea (hereinafter referred to as the "Agreement").
[This Article Wholly Amended by Act No. 8829, Dec. 31, 2007]
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 Article 2 (Definitions)   print
(1) The term "military vessel" in this Act means a ship operated for official purposes pursuant to Article Ⅹ of the Agreement under Article Ⅳ of the Mutual Defense Treaty between the Republic of Korea and the United States of America, regarding Facilities and Areas and the Status of United States Armed Forces in the Republic of Korea (hereinafter referred to as the "Agreement").
(2) The term "military aircraft" in this Act means an aircraft operated for official purposes pursuant to Article Ⅹ of the Agreement.
(3) The term "tax-exempt agencies" in this Act means the United States Armed Forces, their authorized procurement agencies, and non-appropriated fund organizations, exempt from customs duties and other charges pursuant to Article Ⅸ of the Agreement.
(4) The term "tax-exempt person" in this Act means a member or a civilian person of the United States Armed Forces under Article Ⅰ of the Agreement, his/her family member, or an invited contractor under Article XV of the Agreement.
(5) The term "non-tax-exempt person" means any person other than tax-exempt persons.
(6) The term "military supplies" means goods provided by a person who is a non-tax-exempt agency for the exclusive use of the United States Armed Forces or goods imported in order to incorporate them into articles or facilities used by the United States Armed Forces with certification issued by the appropriate authorities of the United States Armed Forces that such goods are to be used for such a purpose.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 3 (Collection of Fees for Entry into and Exit from Non-Open Port Areas)   print
(1) When a military vessel carries goods not exempt from customs duties pursuant to the Agreement, an amount calculated by multiplying the amount equivalent to the fee for a permit to enter into and exit from an area other than a port open to the vessel, which shall be calculated in accordance with Article 134 (2) of the Customs Act, by the ratio of the weight of such goods to the weight of all cargo loaded thereon, shall be collected as the fee for a permit to enter into and exit from non-open port areas.
(2) Where a military aircraft travels to and from a foreign country without using an open airport under Article 133 (1) of the Customs Act, paragraph (1) shall apply mutatis mutandis.
(3) To be eligible for the application of paragraph (1) or (2), the master or captain of a military vessel or aircraft shall prove that the vessel or aircraft is a military vessel or aircraft.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 4 Deleted.<by Act No. 2932, Dec. 22, 1976>   print
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 Article 5 (Procedure for Entry into and Exit from Ports)   print
(1) Articles 135 through 137, Articles 140 through 144, and Article 321 of the Customs Act shall not apply to a military vessel or aircraft: Provided, That the foregoing shall not apply to the submission of an entry report, a bill of lading, a list of supplies for a vessel or an aircraft, and a list of passengers under Article 135 of the said Act and the submission of an application for an exit permit under Article 136 of the said Act.
(2) Where a military vessel or aircraft carries articles or passengers exempt from customs examination pursuant to Article Ⅸ of the Agreement, only such fact and the total weight of such articles or the number of passengers shall be described in the bill of lading or the passenger manifest under the proviso to paragraph (1).
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 6 (Additional Collection of Customs Duties and Other Taxes)   print
Where it is not certified by the appropriate authorities of the United States Armed Forces that military supplies exempted from customs duties, provisional import surtax, value-added tax, individual consumption tax, liquor tax, or traffic, energy and environment tax (hereinafter referred to as "customs duties or other tax") pursuant to Article Ⅸ of the Agreement have been delivered to the United States Armed Forces within the period specified by the head of a customs office or have been incorporated into facilities or goods used by the United States Armed Forces, the customs duties or other tax so exempted shall be collected immediately from the person who imported such supplies: Provided, That the foregoing shall not apply where the head of a customs office acknowledges that such supplies have been destroyed by a natural disaster or other force-majeure events.
[This Article Wholly Amended by Act No. 8829, Dec. 31, 2007]
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 Article 7 (Manufacturing, etc. of Commodities Exempt from Customs Duties)   print
(1) When works under any of the following subparagraphs are performed before military supplies exempted from customs duties or other tax pursuant to Article Ⅸ of the Agreement are delivered to the United States Armed Forces or incorporated into facilities or goods used by the United States Armed Forces, such works shall be performed at a place approved by the head of the competent customs office during a pre-specified period:
1. The re-packing, assortment, division, or amalgamation of such supplies or other similar works;
2. The processing of such supplies or the mixture with other materials;
3. The manufacturing of other goods by using such supplies as raw materials.
(2) In order to inspect the bringing-in and taking-out of supplies under paragraph (1), works for such supplies, or the processing, mixing, or manufacturing of such supplies, the head of a customs office may require the importer of such supplies to submit necessary documents or assign public officials under his/her control to inspect such supplies.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 8 (Restriction on Transfer of Goods Exempt from Customs Duties)   print
(1) When a person who is or was exempted from taxes intends to transfer goods exempted from customs duties to a non-tax-exempt person within the territory of the Republic of Korea (including cases where such a person intends to allow a person who is commissioned to transfer such goods or a person who intermediates such a transfer to possess the goods; the same shall apply hereinafter), he/she shall obtain approval therefor from the head of a customs office.
(2) If it is necessary to grant approval under paragraph (1), the head of a customs office may require the bringing-in of relevant goods to a bonded area (including a place permitted by the head of a customs office pursuant to Article 156 (1) of the Customs Act; the same shall apply hereinafter) or assign public officials under his/her control to inspect the goods.
(3) When the head of a customs office considers it necessary, he/she shall notify the public of the extent of restriction on the approval for transfer under paragraph (1).
(4) A person who transfers goods without approval under paragraph (1) shall be deemed a person who imports the goods without filing a declaration under Article 241 of the Customs Act. Articles 269 (2) and 271 (2) of the Customs Act shall apply to such cases.
(5) As to cases under paragraph (1), Articles 283 through 319 of the Customs Act shall apply mutatis mutandis.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 9 (Acquisition of Goods Exempted from Taxes and Collection of Customs Duties or other Tax)   print
(1) Where a non-tax-exempt person acquires goods exempted from customs duties pursuant to the Agreement through a transfer from a tax-exempt agency or a person who is or was exempted from taxes (including products manufactured by using such goods or by-products therefrom) within the territories of the Republic of Korea (including cases where such agency or person allows a person commissioned to transfer such goods or a person who intermediates such transfer to possess the goods; the same shall apply hereinafter), the transfer shall be deemed to be import goods and thus the Customs Act, Provisional Import Surtax Act, Value-Added Tax Act, Individual Consumption Tax Act, and Liquor Tax Act shall apply to such cases.
(2) Where a non-tax-exempt person acquires goods under paragraph (1) through a transfer before an import declaration is accepted (excluding cases where such goods have been confiscated or notice of payment in kind has been given pursuant to the Customs Act), the transferee shall be deemed the taxpayer liable for customs duties and other taxes on the goods, and such customs duties and taxes shall be collected according to relevant Acts and subordinate statutes applicable to the date of such transfer and the nature and quantity of the goods at that time: Provided, That where such goods are re-transferred before the payment for customs duties and other taxes are completed, such customs duties and other taxes shall be collected from the owner or possessor of the goods, only if it is impossible to collect them from the first transferee.
(3) The head of a customs office may order a transferee or a re-transferee under paragraph (2) or a person who owns or possesses such goods to place the goods in a bonded area by the deadline specified by the head of a customs office. In such cases, if a person fails to place such goods in a bonded area, the head of a customs office may order public officials under his/her control to place the goods in a bonded area and may collect expenses incurred in the transportation and storage of such goods from the person who has been ordered to place the goods in the bonded area.
(4) If goods placed in a bonded area pursuant to paragraph (3) are goods publicly notified pursuant to Article 8 (3), the head of the competent customs office shall give notice of payment of customs duties without delay and shall retain such goods in the place where have been stored.
(5) If the storage period for goods placed in a bonded area (including goods keep in custody pursuant to paragraph (4)) has elapsed, such goods shall be deemed goods under Article 210 of the Customs Act. In such cases, customs duties and other taxes on the goods shall be collected according to relevant Acts and subordinate statutes applicable to the date of sale and the nature and quantity of the goods at that time.
(6) Goods to which any of paragraphs (1) through (5) shall be applied shall be deemed foreign goods under the Customs Act, and an import declaration on the goods shall be deemed to have been accepted, if customs duties and other taxes have been collected pursuant to paragraphs (2) through (5).
(7) The reporting and approval of the transfer under Article 8 (1), the inspection under Article 8 (2), and the import declaration and the inspection, and acceptance of the declaration under paragraph (1) may be conducted at one simultaneously, if relevant goods have been placed in a bonded area.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 10 (Taxable Price for Customs Duties and Provisional Import Surtax)   print
(1) Notwithstanding the provisions of the Customs Act and the Provisional Import Surtax Act, the taxable price for goods acquired through a transfer under Article 9 (1), (2), or (5) shall be the amount calculated by subtracting customs duties, other penalty surcharges, and ordinary transaction expenses from the domestic wholesale price for the kind of goods the same as or similar to the kind of relevant goods, at which such goods are traded at any of the following times:
1. When an import declaration is filed in cases falling under Article 9 (1);
2. When goods are acquired through a transfer in cases falling under Article 9 (2);
3. When goods are all sold in cases falling under Article 9 (5).
(2) Where goods acquired through a transfer are owned by the United States Armed Forces and disposed of under an agreement between the Republic of Korea and a tax-exempt agency, the price of disposition shall be deemed the taxable price.
[This Article Wholly Amended by Act No. 9902, Dec. 31, 2009]
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 Article 11 Deleted.<by Act No. 2932, Dec. 22, 1976>   print
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 Article 12 (Taxable Base for Value-Added Tax, Individual Consumption Tax, Liquor Tax, and Traffic, Energy and Environment Tax)   print
As to the tax base for value-added tax, special consumption tax, liquor tax, and traffic, energy and environment tax shall be governed by Article 13 of the Value-Added Tax Act, Article 8 of the Special Consumption Tax Act, Article 19 of the Liquor Tax Act, and Article 6 of the Traffic, Energy and Environment Tax Act. In such cases, Article 10 shall apply mutatis mutandis to the price appraised for the purpose of imposing customs duties.
[This Article Wholly Amended by Act No. 8138, Dec. 30, 2006]
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date when the Agreement takes effect.
(2) (Transitional Measure) Goods that have been brought into the territory of the Republic of Korea by the United States Armed Forces, their authorized procurement agencies, non-appropriated fund organizations, members and civilian persons of the United States Armed Forces and their family members, or invited contractors (including products manufactured by using such goods or by-products therefrom) before this Act enters into force shall be deemed goods imported and exempted from customs duties, special customs duties, and internal consumption taxes in accordance with provisions of the Agreement: Provided, That the foregoing shall not apply where customs duties, special customs duties, and internal consumption taxes on such goods have already been collected or where such goods have been exempted from customs duties after the goods were transferred to a non-tax-exempt person.
ADDENDUM<Act No. 2425, Dec. 30, 1972>
This Act shall enter into force on February 1, 1973
ADDENDA<Act No. 2932, Dec. 22, 1976>
Article 1 (Enforcement Date)
This Act shall enter into force on the date the Value-Added Tax Act enters into force.
Articles 2 through 12 Omitted.
ADDENDA<Act No. 4280, Dec. 31, 1990>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1990.
Articles 2 through 4 Omitted.
ADDENDA<Act No. 4667, Dec. 31, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1994.
Articles 2 through 10 Omitted.
ADDENDUM<Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA<Act No. 5583, Dec. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1999.
Articles 2 through 6 Omitted.
ADDENDA<Act No. 8138, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA<Act No. 8829, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Articles 2 through 12 Omitted.
ADDENDA<Act No. 9346, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDUM<Act No. 9902, Dec. 31, 2009>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 1, 6, and 12 regarding the Act on the repeal of the Traffic, Energy and Environment Tax Act (Act No. 9346) shall enter into force on January 1, 2013.