Import/Export Customs Clearance and Duty Drawback

• Import Clearance

  CTL is committed to perform import customs clearance with the highest accuracy and speed. Our customs attornies with an average of 20 years of experience in customs clearance analyze the data of each import declaration to manage risk. Our proprietary Checkit® gives our clients real time visibility of the status of their goods in the customs clearance process, while enabling us to provide individualized services to clients with special customs clearance requirements.
  
  Checkit® data analytics for physical inspection ratios enable us to anticipate the likely inspections and the related impact on the timeline for clearance of the client’s goods.

• Export Clearance

  CTL provides swift and accurate export clearance services 24/7 every day of the year. Our customs attornies confirm the data of each export declaration to manage risk. Moreover, potential risks for exporters are reduced greatly through the automatic notice on loading deadline and pre-diagnosis on the items subject to export restrictions, such as strategic materials.

• Duty Drawback

  Both international and domestic companies that use imported raw materials or intermediate goods in their manufacturing or processing operations in Korea can apply for and receive drawback (reimbursement) of the import duties paid on the imported component of their exports from Korea. Likewise, companies that import and then re-export goods can receive drawback of the duties on their re-exports. This is particularly important for companies that involve Korea in their global supply chains and make use of Korea’s broad regime of Free Trade Agreements.
  
  For clients exporting from Korea who are not receiving duty drawback, we provide, at no charge, an analysis of their potential opportunities for duty drawback and then we work with them to establish the drawback process based on the proper calculation method and the respective drawback application periods. In the case of the clients using the simplified fixed duty drawback method, we minimize the client’s risk of incurring penalties by confirming the accuracy of their item classification.

• Import & Export Requirement Verification

  In Korea there are hundreds of regulations that require official government verification of import or export requirements. Examples include the Electrical Appliances & Household Items Safety Control Act, the Radio Waves Act, the Special Act on Imported Food Safety Control, the Chemicals Control Act, the Cosmetics Act, and the Medical Appliances Act, among others.
  
  It is sometimes difficult for companies to understsand all the details of these regulations in order to comply completely. CTL has reviewed the compliance requirements of all the applicable Korean import and export regulations on thousands of items imported and exported by domestic and multinational companies. Our specialist advisory group ensures that the proper official requisition, verification and approval is obtained for each such import or export permit.

• Foreign Exchange Transactions

  Korea's Foreign Exchange Transactions Act is complex and sometimes difficult to interpret, especially in situations related to imports and exports of goods. There are frequent cases of penalties and fines imposed for inadvertent errors or omissions even for parties involved in off-set and third-party payment transactions. CTL foreign exchange law specialists check the compliance of all foreign exchange transactions by our clients, and we are able to respond effectively when our clients are subjected to audits and investigations of their foreign exchange transactions.

Expert Consulting Services

• HS Classification

  HS Classification is the determination of the HS Code of an item for import or export. Because the HS Code specifies the legal tariff that applies, accurate HS classification minimizes risks such as tax penalties. CTL experts have participated in the Committee on HS Classification under the Korea Customs Service. CTL has prevailed on behalf of its clients in many HS Code objection proceedings, enabling the clients to use the accurate HS Code that attracts the lowest duty. CTL provides HS Classification consulting services and enables its clients to apply for preliminary examination and approval of the HS Classification of designated items.

• Authorized Economic Operator (AEO)

  An AEO-certified company has been validated by the Korea Customs Service according to the specific regulations on Legal Compliance, Systematic Internal Controls, Financial Solvency and Security Management, which are based on the World Customs Organization SAFE Framework. AEO certified companies enjoy many benefits such as streamlined import/export clearance procedures and exclusion from some types of customs audits. International companies which may have AEO certifications in other countries must still obtain AEO certification from the Korea Customs Service for their Korean subsidiaries.
  
  Qualifying for AEO certification is a complex, exacting and lengthy process. We provide a consulting program to guide our clients through the entire process to acquire and maintain proper AEO certification.

• Strategic Goods

  Items designated as strategic goods must be controlled meticulously by the exporting companies. Korea’s Foreign Trade Act provides for criminal penalties and heavy fines in cases that items designated as strategic goods are exported without the required government approvals. CTL provides authoritative interpretations of strategic goods designations to our clients. In the cases that our client’s goods for export are designated to be strategic goods, we guide the client through the process of receiving the general license to export their strategic goods by meeting the requirements of the government’s Approved Exporter compliance program.

• Transfer Price Policy

  International corporations may face compliance risks depending on their methods of transfer price declaration and intra-company remittance. CTL advises its clients on their handling of transfer prices for import/export value declarations and identifies the best method to protect the client from compliance risk and from the expense of additional duty levies. CTL also advises on using the Advance Customs Valuation Arrangement for Related Parties (ACVA) to obtain prior official approval of the declared taxable value and eliminate risks related to transfer price.

Logistics Service

• Domestic Transport

  We provide all domestic transport services for import cargo, export cargo, and bonded cargo using our network of high-performing professional carriers. Our many years of logistics experience and know-how enable us to offer precise, efficient and speedy transportation services for containers, general cargo, special cargos, and bonded cargo.

• Bonded Trucking & Compliance

  We transport the client’s bonded cargo to and from the Bonded Area and submit the complete Bonded Transportation Report and the Arrival Report in a timely manner to prevent any violations of the laws and customs controls related to bonded cargo and bonded storage.

• International Freight-Forwarding

  Every step from cargo pick up to loading and shipment to port of entry unloading and import/export customs clearance and then domestic delivery is integrated and managed on our Checkit® system.

• KPI & Lead Time Management

  We work with each client to set their required Key Performance Indicators (KPI) from port of entry through customs clearance to delivery. We make a detailed analysis of each occurrence of KPI overage and report to the client on a monthly basis to enable their internal lead time management functions and provide the best value to them.