WORLD TRADE
ORGANIZATIONG/LIC/N/3/KOR/2
15 April 1998
(98-1497)
Committee on Import Licensing Original:  English
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
Notification under Article 7.3 of the
Agreement on Import Licensing Procedures
KOREA
The following notification, dated 6 April 1998, has been received from the Permanent Mission
of Korea.
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Outline of systems
1. Korea embraces the principle of free trade in conducting export and import activities, and
restrictions, if any, are limited to the minimum necessary.
With the amendment of the Foreign Trade Act (FTA), as of 1 January 1997, the required
approval to import goods was abolished except for cases involving import-restricted items.  There are
currently 12 import-restricted items except rice under the FTA (see Annex I).  The import system forrice-related items, which are specially trea ted under Annex 5, Section B of the Agreement on
Agriculture, was notified to the WTO Committ ee on Agriculture on 31 May 1995 (G/AG/N/KOR/1).
Korea applies no quantitative restrictions on the industrial sector.
Where items are subject to certain import-related requirements under separate domestic laws
other than the FTA, they can be imported by obtaini ng certification, permission, type approval, etc. (see
Annex II).
Purposes and coverage of licensing
2. Import-restricted items can be imported by obtaining an import approval licence.  As of
1 July 1997, there were a total of 12 import-restricted items on the basis of the HSK ten-digit code.
Among these 12 items, import restrictions on eight beef-related items, which are specified in the Korean
Schedule LX on agriculture, are scheduled to be eliminated by 2001 as agreed upon in the GATT/BOP
Committee in 1989.  Restrictions on four milk powder items are based on the Agreement on Safeguardsand notified to the Committee on Safeguards on 1 April 1997 (G/SG/N/10/KOR/1).
3. The system applies to goods originating in and coming from all countries.  However, import
quotas are not applied against any milk powder blends originating from developing countries so long as
the share of imports of the product concerned does not exceed three per cent and provided that those
developing countries with less than a three per cent import share account collectively for less than nineper cent of total imports of the products concerned.G/LIC/N/3/KOR/2
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4. The import approval requirement for beef-related items and milk powder brands is intended to
restrict the quantity of imports.
The purpose of import-related requirements under the above-mentioned separate domestic laws
are not intended to restrict imports, but to protect national security, human, animal or plant life or health,
and the environment, etc., in accordance with the GATT 1994 Articles XX and XXI, WTO Agreements,
and other international rules or agreements.
5. The import approval system is enforced under the Foreign Trade Act, the Enforcement Decree of
the Foreign Trade Act, the Foreign Trade Management Regulation and the Export-Import Notice.
The import-related requirements are set forth in the 53 domestic laws.  A list of these laws is
attached in Annex II.  The detailed approval conditions are prescribed in enforcement decrees or
regulations for the above-mentioned 53 domestic laws.  It is not possible for the Government to abolish
or to convert the approval system without legislative approval.
Procedures
6.I. Information relating to total quantity of quota and quota management organization is published
in the Government Gazette.  The formalities of filing quota allocations and import licences are
published in the notice of the quota management organization.
II. Total quota and subquota for each importer are determined on an annual basis.  Importers can
apply for an import licence up to the quantity of its quota allocations at any time during thequota year.
III. The allocation of quota is not limited to domestic producers of like products.  Each company
should return the unusable portion of the allocated quota and unused quotas are reallocated to
other eligible importers.  Unused quotas are not added to quotas for the next year.  The list of
importers to whom quotas are allocated is not made known to exporting countries for businessprivacy protection.
IV. A period of at least 30 days is allowed for the application for quota allocation.
V. Import licences are normally provided to importers within two days.
VI. There is no minimum length of time for the application for import licences.
VII. Quota allocation and applications for import licences are considered by one organization.VIII. Quotas are allocated mainly on the basis of past performance.  A certain portion of the quota is
allocated to new eligible applicants etc.  Applications for quota allocation are examined
simultaneously and applications for import licences are examined on receipt.
IX. Not applicable.
X. Not applicable.XI. Quotas are allocated regardless of their usage, domestic consumption or re-export if an
import-restricted item is not designated as a raw material for re-export.G/LIC/N/3/KOR/2
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7. Not applicable.  There are no licensing procedures for items not subject to import restrictions on
quantity.
8. An application for approval cannot be rejected if it satisfies the established criteria.Eligibility of importers to apply for licence
9.(a) In cases involving import-restricted items, the quotas are generally allocated to end-users.(b) Any person or firm intending to engage in the business of foreign trade should be a member of
the Korea International Trade Association (KITA) and pay the annual membership fee.  There are no
criteria for obtaining a certificate to conduct foreign trade business.  The KITA publishes a list of
registered importers.
Documentational and other requirements for application for licence
10. A sample import licence application form is attached in Annex III.1  An offer sheet or a copy of
the contract and other necessary documents must be submitted together with the application.
11. Upon actual importation, the import declaration, import approval (only in the case of
import-restricted items), commercial invoice, Bill of Lading and other necessary documents must be
submitted.
12. None.13. None.Conditions of licensing
14. The period of validity for import approval is one year.  However, it should be used during the
same quota year or by the specific date which is permitted as the same quota year as the date of issue of
the import licence.
15. There is no penalty for the non-utilization of a licence.16. Licences are not transferrable between importers.17. None.Other procedural requirements
18. None.19. Foreign exchange is provided automatically for goods to be imported under the standard
settlement method.  However, in cases involving a non-standard settlement method, in which certaincriteria are imposed on the payment under the Foreign Exchange Management Act, for instance, where
the settlement exceeds a specified period of time or a designated amount of money in transactions such
as deferred payments, installment payments or imports based on remittance, permission from the Bank
of Korea or the Ministry of Finance and Economy must be obtained.
                                                     
1Available for consultation in the Secretariat (Market Access Division).G/LIC/N/3/KOR/2
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ANNEX I
HSK Description Import Description
0102 Live bovine animals
0102.90
0102.90.10.00
0102.90.20.00Other
Milk cows
Beef cattleSubject to approval of the
Livestock Product Marketing
Organization
0201 Meat of bovine animals, fresh or
chilled
0201.10.00.00
0201.20.00.00
0201.30.00.00Carcasses and half-carcasses
Other cuts with bone in BonelessSubject to approval of the
Livestock Product Marketing
Organization
0202 Meat of bovine animals, frozen
0202.10.00.00
0202.20.00.00
0202.30.00.00Carcasses and half-carcasses
Other cuts with bone in BonelessSubject to approval of the
Livestock Product Marketing
Organization
0404 Whey, whether or not
concentrated or containing
added sugar or other sweetening
matter; products consisting ofnatural milk constituents,
whether or not containing added
sugar or other sweetening
matter, not elsewhere specified
or included.
0404.10.00.00 1.  Whey, and modified whey,
whether or not concentrated or
containing added sugar or other
sweetening matter
0404.10.20.00 B.  Modified whey0404.10.21.00 (1)  Whey from which all or part
of the lactose, proteins or minerals
have been removed
0404.10.21.90
0404.90.00.00(d)  Other
2.  Other(1)  Subject to approval of the
Korea Dairy IndustriesAssociation excluding following
items:
1901 Malt extract; food preparations
of flour, meal, starch or malt
extract, not containing cocoa or
containing less than 40% by
weight of cocoa calculated on a
totally defatted basis notelsewhere specified or included;
food preparations of goods of
heading Nos. 0401-0404, not
containing cocoa or containing
less than 5% by weight of cocoa1.  Mild mineral (calcium)
concentrated product (limited to
use as additivie for the production
of mineral fortified food)
2.  Whey protein concentrated
product, milk protein concentratedproduct (limited to use as an
additive for the production of
protein fortified food)
3.  Chiliean special products
4.  Raw material for production ofG/LIC/N/3/KOR/2
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HSK Description Import Description
calculated on a totally defatted
basis, not elsewhere specified orincluded.Cerelac of Nestlé which is not
"mixtures of milk powder"(2)  Quotas are as follows:
1.  7/3/97-2/97: 20,521 tons
2.  3/98-2/99:  21,691 tons
1901.90.00.00 3.  Other 3.  3/99-2/2000:  22,927 tons
1901.90.20.00 B.  Food preparations of goods
from heading Nos. 0401-04044.  3/2000-2/2001:  24,234 tonsG/LIC/N/3/KOR/2
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ANNEX II
The following tables briefly describe the items subject to import-related requirements and the
administrative organizations under the 53 domestic laws .  Each ministry takes charge of application of
the laws whose procedures or requirements fall under its authority.
1. Ministry of Trade, Industry and Energy
Law Product coveredRelated administrative
organization
Petroleum Business Act Crude oil, petroleum Korea Petroleum Association
High Pressure Gas SafetyControl ActHigh pressure gas, container
and facilitiesKorea Gas Safety Corporation
Liquified Petroleum Gas Safety
and Business Management ActGas appliances Korea Gas Safety Corporation
Propane, butane
The Act of Control on the
Production etc. of Specified
Substances for the Protection ofthe Ozone LayerControlled substances under the
Montreal ProtocolMinistry
Electric Appliances Safety
Control ActDesignated electric appliances
which can cause danger orinjuryNational Institute of
Technology and Quality
Law for ManufacturingManagement of ElevatorDesignated electric appliances
which can cause danger or
injuryNational Institute of
Technology and Quality
Quality ManagementPromotion ActDesignated consumer products
which can cause danger or
injuryFITI Testing and Research
Institute
Korea Machinery, Meta and
Petrochemical Testing and
Research Institute
Korea Testing and ResearchInstitute for Chemical Industry
Korea Merchandise Testing and
Research Institute
Weights and Measures Act Legal measuring instruments Korea Machinery, Meta and
Petrochemical Testing and
Research Institute
2. Ministry of Agriculture
Law Product coveredRelated administrative
organization
Food Grain Management Act Rice Ministry
Fertilizer Management Act Agricultural fertilizer MinistryG/LIC/N/3/KOR/2
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Law Product coveredRelated administrative
organization
Agrochemicals Management
LawAgrochemicals Ministry
Livestock Epidemics
Prevention and Control ActAnimals and animal products National Animal Quarantine
Service
Plant Protection Act Plants and plant products National Plant Quarantine
Service
Major Agricultural Crop SeedsActCrop seeds Rural Development
Administration
Seedlings Management Act Vegetable seeds for sale Korea Seed Association
Fruit trees for sale Rural Development
Administration
Livestock Act Pure-bred breeding stocks Korea Animal Improvement
AssociationKorea Poultry Association
Pharmaceutical Act Veterinary medecine Ministry
Korea Animal Health Product
Association
Sericulture Law Silkworm eggs Provincial agricultural offices
Ginseng Industry Law Ginseng National Agricultural Product
Inspection Office
3. National Forestry Administration
Law Product coveredRelated administrative
organization
The Law concerning Protection
of Wildlife and GameWildlife animalsAdminstration, local
governments
4. Ministry of Marine Affairs and Fisheries
Law Product coveredRelated administrative
organization
Fisheries Act Marine animals and plants MinistryG/LIC/N/3/KOR/2
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5. Ministry of Finance and Economy
Law Product coveredRelated administrative
organization
Foreign Exchange ManagementActCoinage, banknotes, securitiesForeign exchange banks, the
Bank of Korea
Tobacco Business Act Tobacco seeds Ministry
6. Ministry of Science and Technology
Law Product coveredRelated administrative
organization
Atomic Energy Act Nuclear materials Ministry
Radioisotope, radiationgeneratorsKorea Radioisotope
Association
7. Ministry of Health and Welfare
Law Product coveredRelated administrative
organization
Pharmaceutical Act Finished pharmaceuticals Ministry
Korea Pharmaceutical Traders'
Association
Materials for medicine or forherbal drugsKorea Pharmaceutical Traders'
Association
Medical devices Korea Medical Instruments
Industrial Cooperative
Narcotics Act Narcotics Ministry
Cannabis Control Act Cannabis
Psychotropic SubstancesControl ActFinished pharmaceuticals Korea Pharmaceutical Traders'
Association
Materials for medecine
Food Sanitation Act Food, food additives, apparatus,
container and packageNational Quarantine Station or
Regional Food and DrugAdministration
Quarantine Act Designated products National Quarantine Station or
Regional Food and Drug
Administration
Public Health Act Sanitation-related products (e.g.
detergent)National Quarantine Station or
Regional Food and Drug
Administration
Recreation equipments MinistryG/LIC/N/3/KOR/2
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8. Ministry of Labour
Law Product coveredRelated administrative
organization
Industrial Safety and Health
ActHarmful substances (e.g.
yellow phosphorous matches,
benzidine)Local labour administration
New chemical substances (e.g.
chemical elements, radioactive
substances)Ministry
Safeguarding measures (e.g.
safeguarding measures against
press)Korea Industrial Safety
Corporation
Harmful or hazardousequipments (e.g. cranes, lifts)
Protective equipments (e.g.
safety helmet)
9. Ministry of Information-Communication
Law Product coveredRelated administrative
organization
Radio Waves Act Apparatus of radio equipment Radio Research Laboratory
EMI or EMC equipment
Telecommunications Basic Act T elecommunication equipment
10. Ministry of Culture and Sports
Law Product coveredRelated administrative
organization
Act relating to Import andDistribution of Foreign
PublicationsForeign publications Ministry
Motion Picture Promotion Act Motion picture
Act relating to Records and
Video WorksRecord and video works Korea Ethics for Performing
Arts Committee
Tourist Promotion Act Casino machine and its parts Ministry
Cultural Properties ProtectionActCultural propertiesG/LIC/N/3/KOR/2
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11. Ministry of National Defence
Law Product coveredRelated administrative
organization
Special Measure Act relating toDefence IndustryMilitary products Ministry
12. National Police Agency
Law Product coveredRelated administrative
organization
Firearms, Swords, Explosivesetc. Control ActFirearms, swords and
explosivesAgency
13. Ministry of Environment
Law Product coveredRelated administrative
organization
Toxic Chemicals Control Act Toxic substances Local governments,
environmental management
offices or regional
environmental management
offices
Chemical substances Ministry
Natural Environment
Preservation ActAnimals and plants detrimental
to ecosystemEnvironmental management
offices or regional
environmental management
offices
Endangered wild animals andplants
Drinking Water Management
ActBottled water, water treatment
chemicals and its containerEnvironmental management
offices or regional
environmental managementoffices
Wastes Control Act Wastes Korea Copper Industrial
Cooperative
Federation of Korea
Non-Ferrous Metal Industry
Cooperative
Environmental management
offices or regional
environmental management
offices
Noise and Vibration Regulation
ActMotor vehicles, etc. National Institute of
Environmental Research
Atmospheric Environment
Preservation ActG/LIC/N/3/KOR/2
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14. Ministry of Construction and Transportation
Law Product coveredRelated administrative
organization
Motor Vehicles Control Act Motor vehicles Ministry
Construction Machines Control
ActConstruction machines Ministry
15. National Tax Administration
Law Product coveredRelated administrative
organization
Liquor Tax Act Liquor District tax offices
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