false declaration/ reporting
If a false report/fraud is detected
Additional Duties and Surcharges
- Additional duties refer to the duties collected in addition to the computed customs duty in case of failure to meet any obligation prescribed in the Customs Act (Article 42, etc.).
- If customs duties are not fully paied by the specified time limit, a surcharge of such customs duties in arrears shall be collected from the date on which the said time limit expires, as prescribed in Article 41 of the Customs Act.
Administrative Fines
- Article 277 of the Customs Act stipulates administrative fines to ensure compliance with export and import declaration obligations. Administrative fines imposed on violations stipulated in the Foreign Trade Act, the Foreign Exchange Transactions Act and other laws, as well as the Customs Act.
- Penalties for negligence are imposed on non-compliance with customs administration purposes, including failure to meet declaration obligations, so they are different from customs punishment imposed on direct violation against customs purposes.
Customs Penalties
- Any violation found with the Customs Act, Act on Special Cases concerning the Drawback of Customs, etc. Levied on Raw Materials for Export, Foreign Trade Act, Foreign Exchange Transactions Act, and other relevant laws will be subject to a notice or request for prosecution.
- Punishment Regulations Under Key Customs Laws:
| Major Customs Offences | Details of Violation | Punishment |
|---|---|---|
| Export/import Prohibited Goods | Exporting or importing prohibited articles (articles disrupting public order including obscene materials, articles leaking government secret, counterfeit currency, bond, etc.) | -Imprisonment of up to 7 years or fine of up to 70 million won -Confiscation of smuggled articles (Collection of market price* if it is impossible to confiscate the articles) |
| Smuggling in | Failing to make an import declaration or importing goods different from ones declared | - No longer than 5 years in prison or fines no more than the higher amount between 10 times more than the customs value and the production cost of the goods - Confiscation of goods smuggled in / enforcement penalty for goods smuggled in |
| Smuggling out | Failing to make an export (return) declaration or exporting goods different from the ones declared | - No longer than 3 years in prison or fines no more than the production cost of the goods - Confiscation of goods smuggled out/ enforcement penalty for goods smuggled out |
| Customs Duty Evasion | Failing to make an export (return) declaration or exporting goods different from the ones declared |
No longer than 3 years in prison or fines no more than the production cost of the goods - Confiscation of goods smuggled out/ enforcement penalty for goods smuggled out |
| Divided import to evade restriction of import | Importing incomplete products or importing partially in order to evade import restrictions | Imprisonment of up to 3 years or a fine equivalent to the cost of the article |
| Illegal import | Importing without satisfying the import requirement or by satisfying the import requirement illegally | Imprisonment of up to 3 years or fine of up to 30 million won |
| Illegal export | Exporting without satisfying the export requirement or by satisfying the export requirement illegally | Imprisonment of up to 1 year or fine of up to 20 million won |
| Illegal exemption | Receiving exemption from customs duty illegally or evading collection of customs duty for an article exempted from customs duty | Imprisonment of up to 3 years or fine of up to 5 times the amount of of the waived (evaded) customs duty |
| Illegal refund | Receiving a refund of customs duty by an illegal method | Imprisonment of up to 3 years or fine of up to 5 times the amount of the refunded tax |
| Price manipulation | Making an export and import declaration or a revised or corrected report on the price of articles in order to take property gains illegally | Imprisonment of up to 2 years or a fine equivalent to the cost of the article or 50 million won, whichever is larger |
| Acquisition of Contraband Goods, Etc. | Acquiring, transferring, carrying, keeping, helping to find or assessing contraband goods (or illegally exported/ imported goods) | - No longer than 3 years in prison or fines no more than the production cost of the goods - Confiscation of contraband goods/ enforcement penalty for contraband goods |
Market price means the wholesale price of the article in Korea when the act was committed.
