South Korean Customs System To Undergo Radical Modernisation In 2004

by Mary Swire, Tax-News.com, Hong Kong

20 January 2004

The Korean Customs Service has announced its committment to implement a 60-point plan through 2004 as part of the government’s overall strategy to develop the country into a regional business hub.

"In order to make their markets more conducive to business, most nations are eliminating business regulations, simplifying customs procedures and actively seeking foreign investment," observed Kim Yong-duk, the commissioner of Korea Customs.

Accordingly the customs service intends to present a more ‘business-friendly’ image by attempting to reduce the number of goods subject to clearance requirement verification and introduce one-time declaration procedures for frequently carried personal effects, and simplified clearance procedures for goods with particular purpose.

The KCS also proposes to improve upon import and export procedures in a bid to make the system more convenient for taxpayers. This is to be done by establishing various more efficient procedures such as: a voluntary tax correction system; tax payment on a monthly basis; a comprehensive audit system based on self-examination; and a pre-audit system on the self-management yield ratio.

Additionally, there is also to be a heavy emphasis on technological changes within the customs administration and part of the department’s e-customs goal will be to establish its export declaration system via the internet, as well as completing full automation of the supporting documents. The service will also provide a special clearance procedure for electronic commercial goods.

“With these reforms, KCS will make continuous efforts to create a business-friendly trade environment and improve logistics system, and thus contribute to the realization of the national goal to be a business hub in northeast Asia,” the department explained in a statement earlier this month.

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