Tariffs and regulations
Tariffs and duty rates are constantly revised and are subject to change without notice.
Austrade strongly recommends you reconfirm these prior to selling to the Republic of Korea.
For further information please visit the Korea Customs Service.
Tariffs and non-tariff barriers
Tariffs are based on the two column Harmonised System - most goods are subject to rates shown in the ‘general’ column.
Annual duty rate reductions occur in a wide range of product classification.
Specific imports from GATT member countries receive a concession rate.
Temporary rates are also utilised.
Duties are mainly a percentage of the cost, insurance and freight (CIF) value provided such value is based on current domestic value at date of export.
A fluctuating list of products is subject to tariff quotas.
Customs authority contact details:
Korea Customs Service
920 Doonsan dong
Seo-ku, Taejon 302-701
Tel: +82 42 481 4114
Non-tariff barriers
Import licenses are valid for one year. The term of validity of the import license may vary, as can the approval authorities dependent on the import. License applications must be accompanied by the purchase contract, offer sheet and any other documents required by the respective bank or Ministry and only registered traders are authorised to import goods in their own names. Imports are controlled by the Ministry of Commerce, Industry and Energy and are classified into three categories:
- Prohibited (unable to be imported)
- Restricted (requires an import license)
- Automatic approval (no special license required)
The Korean Central Bank authorises banks to allocate foreign exchange.
Methods of quoting and payment
Unless otherwise specified, popular price quotations are in US dollars. Sometimes it is requested that they be broken down into FOB, C&F and CIF values (Incoterms 1990).
Payment is usually made in US dollars. Settlements can be based on irrevocable letter of credit, D/P D/A or T/T. Australian dollars are becoming prevalent.
Letters of credit may be opened by merchant banks.
Labelling
Labels on most foods must show:
- product name (generic and trade)
- manufacturer's name
- dates of manufacture
- weights or quantities
- ingredients in descending order of composition
- importer's name, address and phone number
- methods of preservation
- places where the product can be returned or exchanged
- expiry dates
Imported foodstuffs and pharmaceutical products must show the above information in the Korean language on the original retail pack. Labels can be either printed or applied via adhesive stickers, provided they are in place prior to customs clearance.
Special certificates
Shipments of plants, seeds, vegetable products, livestock and animal products, including greasy wool and hides, must be accompanied by sanitary certificates issued by the approved authority in the country of origin. In Australia this is the Australian Quarantine and Inspection Service of the Commonwealth Department of Agriculture, Fisheries and Forestry-Australia (AFFA).
Certificates required for all pharmaceuticals, medical devices and health food products include:
- Pharmaceuticals
- Certificate of Manufacture - must be issued by the approved authority in the country of origin.
- Certificate of Free Sales - must be issued by the listed or registered authority in the country of sale.
- Medical devices
- Certificate of Manufacture - must be issued by the approved authority in the country of origin.
- Certificate of Free Sales - must be issued by the listed or registered authority in the country of sales.
- GMP Certificate - must be issued by an accredited international institution.
- Health food
- Accompanying documents including ingredient(s) specifications and manufacturing procedure, and certificate of analysis issued by manufacturer.
- Other (eg. BSE-free certificate for products in gelatine capsule form imported from non-BSE countries, Certificate of Free Sales, etc).
Documentary requirements
Pro-forma invoice
Required sometimes for importers to open letter of credit conveniently.
Commercial invoice
No special form prescribed. However, standardised form is widely used in Korea for export.
May be printed on firm's letterhead but must be issued and signed by the seller and show unit cost of each article, and, if necessary, other costs.
Should be sent under separate cover to the consignee.
Bill of lading/Airway bill
May be made out To the Order of L/C Opening Bank. May be required to bear the name and address of the consignee.
Packing list
Minimum of two copies required; one copy to be included in the relative package, and one copy to be sent to the negotiating bank. It must also contain a full description of the contents of the shipment.
Certificate of origin
Required only if specified in letter of credit or specifically requested by importer.
Public health requirements
Imports of livestock must be accompanied by a current quarantine certificate issued by the appropriate government agency in the country of origin. In Australia, this is the Australian Quarantine and Inspection Service (AQIS). All permitted plant and vegetable products require health and phytosanitary certificates. Plant quarantine laws ban the import of most Australian fresh fruit and vegetables with the exception of:
- green bananas
- onions
- potatoes
- cut asparagus
- shelled nuts
- oranges and lemons
- mangoes
Certificates of authority to manufacture, issued by the appropriate authority in the exporting country, are required for shipments of pharmaceutical, medical instruments, sanitary material and cosmetics. Only licensed pharmaceutical companies may import pharmaceutical subject to the approval of the Korean Health Authority.
Detailed information on current requirements for export of livestock, horticulture products and livestock products to the Republic of Korea is available from AQIS.
Insurance
Normal commercial practice. In the case of a CIF contract (Incoterms 1990), the policy must cover 110 per cent of the invoice value, be endorsed by the exporters and expressly state that claims are payable in the currency of the draft. Policy should name an insurance agent as the correspondent in Korea for the settlement of any claims.
Certificate of insurance
Must be provided if insurance is arranged by the exporter.
Weights and measures
The metric system.