When determining the customs value of imported goods, transportation-related costs must be carefully assessed to decide whether they should be included in the dutiable value.
Customs Valuation Basics
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The customs value is based on the price actually paid or payable (“transaction value”) plus statutory additions (e.g., transport, insurance) up to the port of importation.
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Costs incurred after arrival in Korea are excluded.
Key Rules for Freight and Transport Costs
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Under the Customs Act (Art. 30) and Enforcement Decree (Art. 20), freight and related charges up to the point of unloading readiness at the Korean port must be added.
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“Unloading readiness” is interpreted as when the vessel is berthed, or, in case of voyage charter contracts, when a notice of readiness has been issued (even if not berthed). Demurrage incurred after this notice is non-dutiable.
Surcharges That Must Be Included (if paid separately to the carrier)
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BAF (Bunker Adjustment Factor) – fuel surcharge
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CAF (Currency Adjustment Factor) – currency fluctuation surcharge
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LSS (Low Sulphur Surcharge) – low-sulphur fuel surcharge under IMO rules
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EBS (Emergency Bunker Surcharge) – emergency fuel surcharge due to sudden oil price hikes
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CRS (Cost Recovery Surcharge) – port logistics and container repositioning cost recovery
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PSS (Peak Season Surcharge) – peak season surcharge
Costs with Different Tax Treatment Depending on Location
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CIC (Container Imbalance Charge): taxable if incurred abroad, non-taxable if incurred in Korea
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THC (Terminal Handling Charge): taxable in the export country, non-taxable in Korea
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Demurrage (port detention charges): taxable if incurred abroad; non-taxable if incurred domestically.
Summary
Only transport-related costs up to the Korean port of importation are dutiable. Costs arising after arrival in Korea are excluded, even if invoiced to the importer. Accurate determination requires confirming where each charge was incurred, not just relying on the invoice currency.
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아래 메일 또는 전화로 문의주시면,
신속·정확·친절하게 안내 도와드리겠습니다.
※ 직접 전화로 문의 주시면 더욱 빠른 답변을 도와드릴 수 있습니다.
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