WORLD TRADE
ORGANIZATIONG/VAL/N/1/KOR/2
27 April 2001
(01-2126)
Committee on Customs Valuation Original:  English
NOTIFICATION UNDER ARTICLE 22.2 OF THE AGREEMENT
ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994
KOREA
The following communication, dated 20 April 2001, has been received from the Permanent
Mission of Korea.
_______________
Pursuant to Article 22.2 of the Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994, I hereby wish to notify the revised Customs Act and all its sub-
regulations concerning customs valuation, which entered into force on 1 January 2001.  Since this
notification includes all domestic regulations, it replaces previous ones made under the GATT 1947 or
the WTO.
_______________
THE CUSTOMS ACT
Article 15 (Customs Value)
The customs value shall be the value or quantity of imported goods.
Article 18 (Exchange Rate for Valuation)
In case where the price expressed in a foreign currency is converted into domestic currency price to
determine the customs value, the Commissioner of the Customs Service shall decide the rate byaveraging the foreign exchange sales rates in the week  prior to the week in which the date provided in
Article 17 (as for the goods introduced to a bonded construction site, the date of import declaration)
falls.
Article 27 (Value Declaration)
1. When the liable duty payer files an import declaration, he shall make a declaration on the
value of the goods concerned to the customs collector as prescribed by the Presidential Decree
(hereinafter referred to as "value declaration"). However, if it is deemed necessary for efficient
clearance, the value declaration may be filed before the import declaration of the goods is made, inaccordance with the Presidential Decree.
2. The value declaration shall be accompanied by data related to the determination of the
customs value (hereinafter referred to as "assessment data") in accordance with the Presidential
Decree.G/VAL/N/1/KOR/2
Page 2
3. With respect to such goods prescribed by the Ordinance of the Ministry of Finance and
Economy as deemed not difficult in determining the customs value, the value declaration may be
omitted.
Article 28 (Provisional Value Declaration)
1. In making a value declaration, if it is the case in which the value to be declared is not
definitive and which is prescribed so by the Presidential Decree, the provisional value may be
declared as value. In this case, the method of declaration and other necessary matters shall be
prescribed by the Presidential Decree.
2. When the liable duty payer has made value declaration with the provisional value under
Paragraph 1, he shall declare the definitive value of the goods concerned within the period prescribed
by the Presidential Decree to the customs collector.
3. The customs collector shall, upon receiving the declaration under the provision of Paragraph
2, collect or refund the difference between the duty amount paid on the basis of the provisional valueand that calculated on the basis of the definitive value, in accordance with the Presidential Decree.
Article 29 (Report on the Price Survey)
The Minister of Finance and Economy or the Comm issioner of the Customs Service, when deemed
necessary for determining the customs value, may request importers and exporters, economic
associations and other persons concerned to submit such data as is necessary for determining the
customs value. In this case, persons so requested shall comply therewith unless there are justifiable
reasons for noncompliance.
Article 30 (Principles for Determining the Customs Value)
1. The customs value of imported goods shall be the transaction value, that is the price actually
paid or payable by the buyer for the goods sold for export to Korea, adjusted by adding the amounts
falling under the following items: however, in adding  the following amounts, it shall be based on the
objective and quantifiable data, and where that is not available, the customs value shall be determined
not by the provisions of this article, but by those of Articles 31 to 35.
(1) commissions and brokerage incurred by the buyer, except buying commissions;
(2)     the cost of containers which are treated as being one with the goods concerned and the cost of
labor and materials for packing incurred by the buyer;
(3)    where the goods and services prescribed by the Presidential  Decree are supplied directly or
indirectly by the buyer free of charge or at reduced prices in connection with the production
and sale for export of the goods concerned, the value of those goods and services or the
reduced amount;
(4)     royalties and license fees paid for the use of right of patent, utility model, design, trademark
and other similar rights and calculated under the provisions of the Presidential Decree;
(5)    the value of any part of the proceeds of any subsequent resale, disposal or use of the imported
goods that accrues directly or indirectly to the seller; and
(6)     the costs of transport and insurance and asso ciated costs incurred with  respect to transport of
the imported goods to the port of importation calculated under the provisions of the
Presidential Decree. However, the whole or part of them may be excluded in case of goodsprescribed by the Ordinance of the Ministry of Finance and Economy.
2. "The price actually paid or payable by the buyer" as mentioned in Paragraph 1 is the total
amount paid or to be paid by the buyer for the imported goods, and it includes the amount that theG/VAL/N/1/KOR/2
Page 3
buyer sets off the price of the imported goods against any debt of the seller, the amount that the buyer
repays the seller's debt, and other indirect payments: However, it means the amount obtained by
deducting the followings, provided that they are di stinguished obviously from the total amount paid or
payable by the buyer.
(1) charges for construction, erection, assembly, repairs, maintenance or technical assistance,
undertaken on the imported goods being valued after importation;
(2) the cost of transport and insurance  and  associ ated  costs incurred with respect to transport of
the imported goods concerned after the arrival at the port of importation;
(3) taxes, such as duties, and other public charges imposed on the imported goods in Korea; and
(4) deferred payment interest on the imported goods concerned in the case of a deferred payment
import.
3. The customs value of the goods concerned shall not be the transaction value referred to in
Paragraph 1, but be subject to the provisions of Articles 31 to 35, in the following cases:
 (1) where there are any restrictions as to the disposal or use of the goods,  except in such case as
prescribed by the Presidential Decree;
 (2) where the sale or price of the goods concerned is subject to some condition or consideration
for which a value cannot be determined;
 (3) where any part of the proceeds of any after-importation resale, disposal or use of the goods
concerned accrues directly or indirectly to the seller, except in case where an appropriateadjustment can be made in accordance with the provisions of Paragraph 1; and
 (4) where there exists special relationship between the buyer and seller as described by the
Presidential Decree (hereinafter referred to as “special relationship”), and the relationship
influenced the price of the goods concerned.
4.     Where the liable duty payer has made value declaration with the transaction value in
accordance with the provision of Paragraph 1, and where it is difficult to accept it as customs value
for reasons, such as its significant difference with the transaction values of identical or similar goods
as prescribed by the Presidential Decree, the customs collector may ask the liable duty payer to
provide data proving the truthfulness of the declared value in accordance with the Presidential Decree.
5.     Where the liable duty payer does not provide the data required under Paragraph 4, or where it
is difficult to accept the declared value as customs value just on the basis of data provided by the
liable duty payer, the customs collector shall dete rmine the customs value not by the methods under
Paragraphs 1 and 2, but by those prescribed in the provisions of Articles 31 to 35. In this case, the
customs collector shall notify the liable duty payer of the reasons why the declared value can not be
accepted as customs value, and the decision on customs value.
Article 31 (Determination of Customs Value on the basis of Transaction Value of Identical
Goods)
1.     If the customs value cannot be determined by the method provided in Article 30, the customs
value shall be determined on the basis of the transaction value of identical goods which has been
accepted as the customs value and meets the requ irements prescribed in the following Sub-
paragraphs:
(1) the identical goods concerned are produced in the same country as those being valued, and are
imported by shipment at the shipping date of those being valued or during a period before or
after the shipping date in which there is no change in the market conditions or commercial
practices affecting the price; andG/VAL/N/1/KOR/2
Page 4
(2) the identical goods shall be same as the goods being valued in their commercial level,
transaction quantity, distance and mode of transport, etc. and adjustments shall be made
according to the differences between them, if any.
2.     If two or more transaction values of identical goods are found in applying the provisions of
Paragraph 1, the customs value shall be determined on the basis of the value of goods most similar to
the goods being valued in producers, timing of transaction, commercial level, transaction quantity,
etc. (hereinafter referred to as "transaction contents, etc.") and where there are two or more goods of
which transaction contents, etc. are equal and the values of those goods are different each other, the
customs value shall be determined on the basis of the lowest value.
Article 32 (Determination of Customs Value on  the basis of Transaction Value of Similar
Goods)
1. If the customs value cannot be determined under the provisions of Articles 30 and 31, the
customs value shall be determined on the basis of the transaction value of similar goods which has
been accepted as the customs value and meets the requirements prescribed in Sub-paragraphs of
Article 31, Paragraph 1.
2.     If two or more transaction values of similar goods are found in applying the provisions of
Paragraph 1, the customs value shall be determined on the basis of the value of goods most similar in
transaction contents, etc. and where there are two or more goods of which transaction contents, etc.are equal and values of those goods are different each other, the customs value shall be determined on
the basis of the lowest value.
Article 33 (Determination of Customs Value on the Basis of Domestic Sale Price)
1.     If the customs value cannot be determined under the provisions of Article 30 to 32, the
customs value shall be the amount of Sub-paragraph (1) subtracted by the amount of Sub-paragraphs
(2) to (4). However, if the liable duty payer so requests, the provisions of Article 34 shall be applied.
 (1) the amount calculated on the basis of domestic unit price at which the goods concerned or
identical or similar goods are sold in the condition as imported in the greatest aggregate
quantity, at or about the time of the import declaration of the goods concerned, to personswho do not have any special relationship.
(2) the commissions usually paid or agreed to be paid in connection with domestic sales, or the
additions usually made for profit and general expenses in connection with domestic sales of
imported goods of the same class or kind.
(3) the usual costs of transport and insurance and other associated costs     incurred domestically
after the arrival of the goods concerned at the port of importation; and
(4) the taxes and other public charges paid or payable in connection  with the importation and
domestic sale of the goods concerned.
2.    If neither the imported goods nor identical nor similar goods have been sold   domestically in
the condition as imported, then, if the liable duty payer so  requests, the customs value shall be the
amount calculated on the basis of the unit price at which the imported goods, after further processing,
are sold in the greatest aggregate quantity to pers ons who do not have any special relationship, subject
to deductions of the amounts prescribed below:
(1) amounts prescribed in Sub-paragraphs (2) to (4) of Paragraph 1; and
(2) the value added by domestic processing.G/VAL/N/1/KOR/2
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Article 34 (Determination of Customs Va lue on the Basis of Computed Value)
If the customs value cannot be determined under the provisions of Article 30 to 33, the customs value
shall be determined on the basis of the value whic h consist of sum of the amounts of following items:
(1) the cost or value of materials for assembling or other processing employed in producing the
imported goods;
(2) an amount for profit and general expenses equal to that usually reflected in sales of goods of
the same class or kind as the goods being valued  which are made by producers in the country
of exportation for export to Korea;
(3) the cost of transport and insurance and associat ed costs incurred with  respect to the transport
of the imported goods to the port of importation, which are determined under the provisionsof Sub-paragraph (6) of Paragraph 1, Article 30.
Article 35 (Determination of Customs Value on the Basis of Reasonable Standards)
If the customs value cannot be determined under the provisions of Article 30 to 34, the customs value
shall be determined, under the conditions as prescribed by the Presidential Decree, using reasonable
standards consistent with the principles prescribed in Articles 30 to 34.
Article 36 (Notification of Determining Method of Customs Value, etc.)
The customs collector shall, upon receiving the written request of a liable duty payer, notify him in
writing of the method used for determining the customs value, the customs value and the basis of the
calculation.
Article 37 (Advance Ruling on Customs Value)
1. If a person who is liable to make a duty declaration under the provision of Paragraph 1,
Article 38 has any doubt about the following items which are the basis of the determination of the
customs value, he may request the Commissioner of the Customs Service or the customs collector to
examine it in advance, providing the  documents as prescribed by the Presidential Decree prior to the
value declaration:
(1) amount as prescribed in Sub-paragraphs of Article 30, Paragraph 1, or amount to be added or
deducted under Paragraph 2 of the said Article in calculating the price actually paid or
payable by the buyer for the imported goods;
(2) whether or not it meets the requirements as prescribed in Sub- paragraphs of Article 30,
Paragraph 3; and
(3) other important matters which are the basis of determining the customs  value, and are
prescribed by the Presidential Decree.
2. The Commissioner of the Customs Service or the customs collector shall, upon receiving a
request as referred to in Paragraph 1, examine it and issue an advance ruling on customs value(hereinafter referred to as "advance ruling") to the requesting person within one month.
3.     In case where a liable duty payer has made a duty payment declaration on the basis of the
advance ruling, if it is deemed that the liable duty payer is identical with the requesting person as
referred to in Paragraph 1, and the goods the import of which is declared, and the value declarationthereof is corresponding to the contents of the ad vance ruling, the customs collector shall determine
the customs value in conformity with the contents of the advance ruling, unless there is any special
reason as prescribed by the Presidential Decree.G/VAL/N/1/KOR/2
Page 6
ENFORCEMENT DECREE OF THE CUSTOMS ACT
(Presidential Decree)
Article 15 (Value Declaration)
1. Any person who desires to make a value declaration as prescribed in the text of Article 27,
Paragraph 1 of the Act, shall submit to the customs collector a document stating the following
matters: however, in cases where same kind of goods is imported repeatedly, where there does not
exist any amount to be added to the price actually paid or payable by the buyer for goods sold for
export to Korea, in addition to the cost of transport and insurance to the port of importation, or where
the Commissioner of the Customs Service determines there is no difficulty in determining the customs
value, the whole or part of such documents may not be submitted.
(1) matters pertaining to transaction for the importation; and
(2) matters pertaining to details calculating the customs value.
2. Any person who desires to make the value declaration prior to the date of import declaration
of goods under the provision of Article 27, Paragraph 1 of the Act, shall submit to the customs
collector a written declaration stating the reason therefor and such matters as prescribed in Sub-
paragraphs of Paragraph 1.
3. The assessment data to be presented upon making the value declaration under Article 27,
Paragraph 2 of the Act shall be as follows; however, in case where the customs collector deems that
there is no difficulty in determining the customs valu e in the light of contents of transaction of the
goods concerned, method determining the customs value, etc., part of the data may not be required:
(1) Invoice;
(2) written contract of transaction;
(3) documentary evidence indicating the amounts of various expenses and the grounds of calculation
thereof; and
(4) other materials necessary for establishing the particulars of the value declaration.
Article 16 (Provisional Value Declaration, etc.)
1. As used in Article 28, Paragraph 1 of the Act, the term "the case in which the value to be
declared is not definitive and which is prescribed so by the Presidential Decree" means any of the
following cases:
(1) where the commercial practice is that the value of the goods (limited to those prescribed by
the Ordinance of the Ministry of Finance and Economy) is determined upon expiration of a
certain period from the time of transaction, and where such value has not been determined as
of the date of import declaration;
(2) where it is ascertained through such documents as referred to in Paragraph 2, that the amount
to be adjusted under Sub-paragraphs of Article 30, Paragraph 1 of the Act could bedetermined at the expiration of a certain period from the date of import declaration; or
(3) where it is accepted by the customs collector that value declaration with a provisional value is
unavoidable in view of the contents of contract or the nature of transaction.
2. Any person who desires to make the value declaration with a provisional value under
Paragraph 1, shall submit to the customs collector a written declaration stating the following matters,
together with such documents in Sub-paragraphs of Article 15, Paragraph 3:
(1) matters set out in Sub-paragraphs of Article 15, Paragraph 1;G/VAL/N/1/KOR/2
Page 7
(2) details of the transaction;
(3) reason why it is impossible to determine the customs value;
(4) provisional value and the method for determining the provisional value;  and
(5) the expected time when the customs value will be determined.
3. Any person who has made the value declaration with a provisional value, shall declare the
definitive value (hereinafter in this Article refe rred to as "definitive value") within the period
designated by the customs collector.
4. If it is deemed that there is any inevitable reas on not to determine the value, such as change in
particulars of a transaction contract between the buyer and the seller, and upon a request of a liable
duty payer, the customs collector may extend the declaration period as designated by him underParagraph 3: however, the period from the day of provisional value declaration to the day of definitive
value declaration, may not exceed two years.
5. Any person who desires to declare the definitive value under Article 28, Paragraph 2 of the
Act, shall submit to the customs collector a written declaration stating the following matters, togetherwith the data as prescribed in Sub-paragraphs (3) and (4) of Article 15, Paragraph 3:
(1) provisional value declaration number or importation declaration number, and date of that
declaration;
(2) descriptions of the goods and date of accepting the import declaration; and(3) provisional and definitive values, and the difference between those values.
6. In collecting or refunding the difference between the duty amount declared and paid on the
basis of the provisional value and that calculated on the basis of the definitive value under Article 28,
Paragraph 3 of the Act, the provisions of Articl e 33, Paragraph 2 through 4 of Article 34, and Article
50 through55 shall be applicable.
Article 17 (Scope of goods sold for export to Korea)
“Goods sold for export to Korea” referred to in Article 30, Paragraph 1 of the Act shall not include the
following goods:
(1) goods imported free of charge;
(2) goods imported on consignment for which the sale prices are determined by auction, etc. after
importation;
(3) goods imported for sale in Korea under the responsibility of the exporter;
(4) goods imported by branch offices which are not independent legal entities;(5) goods imported under a hire or leasing contract;
(6) goods rented free of charge; and
(7) goods imported for destruction in Korea such as industrial waste, etc. with the cost incurred
by the exporter.
Article 18 (Scope of Goods and Service suppl ied free of charge or at reduced price)
As used in Sub-paragraph (3) of Article 30, Paragraph 1 of the Act, the term "goods and services
prescribed by the Presidential Decree" means any of the following Sub-paragraphs supplied directly
or indirectly by the buyer:
(1) materials, components, parts and similar items incorporated into the imported goods;
(2) tools, moulds, dies, and similar items used in the production of the imported goods as
prescribed by the Ordinance of the Ministry of Finance and Economy;G/VAL/N/1/KOR/2
Page 8
(3) materials consumed in the production of the imported goods; and
(4) engineering, plans, development, art work and design work necessary for the production of
the imported goods, excluding those undertaken in Korea.
Article 19 (Calculation of Royalty and License fee)
1. The term "similar right" used in Sub-paragraph (4) of Article 30, Paragraph 1 of the Act
means any of the following:
(1) legal rights, such as copyright, etc.; and
(2) any method of production and sale, and other te chnical or managerial information, etc. useful
for business activities, which is not included in the legal right, but have economic value andare maintained in secret by a considerable effort (hereinafter referred to as "business secret").
2. The payment for use of the rights of patent, utility model, design, trademark and other similar
rights, which is to be added to the price actually paid or payable by the buyer for the goods concerned
under Article 30, Paragraph 1 of the Act (excluding any charge for the right to reproduce specificideas or creation in Korea using the imported goods incorporating such ideas or creation, and
hereinafter referred to as "royalty and license fee"), shall be the amount related to the goods
concerned, and paid directly or indirectly by the buyer as a condition of sale of the goods concerned.
3. In application of the provisions of Paragraph 2, the royalty and license fee shall be considered
to be related to the goods concerned, in any of the following cases:
(1) if the royalty and license fee is paid for the right of patent, where imported  goods are any of
the following:
(a) patented inventions;(b) goods produced by a patent on method;
(c) parts, raw materials or components of goods which are to be produced under the
patent in Korea and in which the whole or part of the patent is realized; and
(d) equipment, machine and apparatus (including parts and others provided with major
characteristics thereof) designed suitable for realizing the patent on method
(2) if the royalty and license fee is paid for the right of design, where imported goods are the
goods which express the design, parts  or components of goods which are to be producedunder the right of design in Korea and in which the whole or part of the design is
incorporated;
(3) if the royalty and license fee is paid for the right of trademark, where the trademark is
attached to imported goods, or the trademark is  attached after a slight processing, such as
diluting, mixing, classifying, simple assembling, repacking, etc.;
(4) if the royalty and license fee is paid for th e copyright, where imported goods contain words,
melody, picture, com puter software, etc.;
(5) if the royalty and license fee is paid for the right of utility model and the business secret,
where such right of utility model and business secret is related to imported goods in terms of
the provisions of Sub-paragraph (1); and
(6) if the royalty and license fee is paid to other rights, where the  right is related to imported
goods in terms of the provisions of Sub-paragraphs (1) to (5) concerning the right most
similar to the right in question by nature, out of Sub-paragraphs (1) to (5).
4. In application of the provisions of Paragraph 2, the royalty and license fee paid for the
computer software shall not be considered as related to the magnetic tapes and disks, CD-roms and
similar goods (limited to those included in No. 8524 in the Tariff Schedules) bearing the computer
software.G/VAL/N/1/KOR/2
Page 9
5. In application of the provisions of Paragraph 2, the royalty and license fee shall be considered
to be paid as a condition of sale of the goods, in any of the following cases:
(1) where the buyer pays the royalty and license fee to the seller for buying the imported goods;
(2)   where the buyer pays the royalty and license fee to a person other than the seller for buying
the imported goods under an agreement between  the buyer and the seller of the imported
goods; and
(3)   where the buyer has, for buying the imported goods, the seller use the  patent right, etc. after
obtaining a permission of a person other than the seller on the use of such patent right, etc.,
and he pays the royalty and license fee to the person other than the seller.
6. The detailed matters other than those as prescribed in Paragraphs 1 to 4, which are necessary
for calculating the royalty and license fee shall be determined by the Commissioner of the Customs
Service.
Article 20 (Determination of Cost of transport, etc.)
1.  The cost of transport and insurance as prescribed in Sub-paragraph (6) of Article 30,
Paragraph 1 of the Act shall be calculated on the basis of statements of the cost of transport and
insurance issued by the businessman concerned, or documents in lieu thereof.
2.     If it is impossible to calculate the cost of transport and insurance under Paragraph 1, it shall
be calculated under the conditions as prescribed by the Commissioner of the Customs Service, taking
into account the distance and method, etc. of transportation.
3.     In the case that the goods as prescribed by the Commissioner of the Customs Service is
transported by aircraft, the cost of transport and insurance shall be calculated considering as suchgoods having been transported by a general transportation method other than aircraft.
4.     If the cost of transport of goods in any of the following is remarkably different from that
required ordinarily, the ordinary cost of transpor t as determined by the Commissioner of the Customs
Service taking into account the distance and method, etc. of transportation, may be the cost of
transport of such goods.
(1) goods transported by a vessel or aircraft owned by importer;
(2) goods transported according to a shipping char ter specially stipulating the transport cost and
loading quantity (including a case where the actual loading quantity is less than the stipulated
one); and
(3) goods transported under other special condition.
5.     The amount as prescribed in the first sentence of Sub-paragraph (6) of Article 30, Paragraph 1
of the Act, shall be the cost incurred by the buyer until the time before unloading the imported goods
at the port of importation.
6.   “Other indirect payment” referred to in Article 30, Paragraph 2 of the Act includes the
following amount:
(1) the amount paid to a third party by the buyer at the request of the seller for the price of the
import or part thereof;
(2) if the buyer, instead of the seller or a third party, has made a warrant contract as terms of a
transaction, and the corresponding amount has been discounted or all or part of cost for such
warrant contract has been paid separately, the amount such discounted or paid;
(3) overseas training or education cost paid by the buyer as a terms of the import transaction; andG/VAL/N/1/KOR/2
Page 10
(4) Financial and other costs that are generally incurred by the seller but paid by the buyer.
7.     In order for the deferred payment interest on the imported goods to be deducted from the total
amount paid or to be paid by the buyer under Sub-paragraph (4) of Article 30, Paragraph 2, the
deferred payment interest shall meet the following requirements:
(1) The deferred payment interest is distinguished from the amount actually paid or payable for
the imported goods;
(2) A written financing arrangement confirms the fact; and
(3) such goods are actually sold at the price declared, and the claimed interest rate does not
exceed the level for such transaction prevalent in the country where, and at the time when
financing is provided.
Article 21 (Scope of restrictions on disposal or use)
Goods of which disposal or use is restricted as prescribed in Sub-paragraph (1) of Article 30,
Paragraph 3 of the Act shall include the following cases:
(1) limitation on usage of goods only for specific purposes such as display, charity, education,
etc.;
(2) goods limited to be sold or leased only to specific persons; and
(3) other limitations which substantially affect the value of the goods concerned.
Article 22 (Restriction which does not affect Transaction Value)
1.     The term "such case as prescribed by the Presidential Decree" in the provisio of Sub-
paragraph (1) of Article 30, Paragraph 3 of the Act means the cases of restriction falling under any ofthe following Sub-paragraphs:
(1) restriction imposed or required by the legislation of Korea or by the disposal pursuant to the
said legislation;
(2) restriction on the region where the imported goods can be  sold; and
(3) other restriction, as recognized by the customs collector, that does not    substantially affect
the value of the imported goods.
2. The case which is subject to some condition or consideration  for which a value cannot be
determined, under Sub-paragraph (2) of Article 30, Paragraph 3 of the Act, includes the following
cases:
(1) the price of the goods concerned is established on condition that the   buyer will also  buy
other goods in specified quantities from the seller;
(2) the price of the goods concerned is dependent upon the price at which the buyer sells other
goods to the seller; and
(3) the price of the goods concerned is established on condition that the seller will receive a
specified quantity of the finished goods for semi-finished goods provided by the seller to the
buyer.
Article 23 (Scope of Special Relationship, etc.)
1. The “special relationship between the buyer and seller as prescribed by the Presidential
Decree” in Sub-paragraph (4) of Article 30, Paragrap h 3 of the Act refers to any of the following
cases:G/VAL/N/1/KOR/2
Page 11
(1) where the buyer and the seller are officers or directors of each other's    business;
(2) where the buyer and the seller are legal partners of each other;
(3) where the buyer and the seller are in employment relationship;
(4) where any person directly or indirectly owns or controls 5 percent or more of the outstanding
voting stocks of both the buyer and the seller;
(5) where one of the buyer and the seller directly or indirectly controls the  other, such as one is
legally or actually in a position to exercise direction or control over the other;
(6) where the buyer and the seller are directly or indirectly controlled by a  third person;
(7) where the buyer and the seller together directly or indirectly control a   third person; and
(8) where the buyer and the seller are members of same family falling under any of Sub-
paragraphs 1 to 8 of Article 20 of the Enforcement Decree of the Basic National Taxation
Act.
2. In case where the buyer and the seller have the special relationship as referred to in Paragraph
1, if the price of the goods concerned falls in any of the following cases, such special relationship
shall not be considered as having affected on the price of the goods concerned:
(1) the price has been determined by a price determination method used ordinarily between a
buyer and a seller having no special relationship;
(2) the price determined by a method conforming to the normal practice of price determination in
the industry field concerned; and
(3) the price is close to the price as referred to in any of the following ones as prescribed by the
Ordinance of the Ministry of Finance and Economy.
(a)  the transaction value of identical or similar goods exported to a buyer in Korea who has
no special relationship; and
(b)  the customs value of identical or similar goods, which is determined under the provisions
of Articles 33 and 34 of the Act.
3.     In comparing the price of the goods concerned with that as referred to in Sub-paragraph (3) of
Paragraph 2, the commercial level and transaction quantity of the goods concerned, and differences of
matters prescribed in Article 30, Paragraph 1 of the Act, etc. shall be taken into account.
4.     Any person who desires to have the provisions of Paragraph 2 applied, shall present materials
necessary for proving it, when he makes a value declaration under the conditions as prescribed by theCommissioner of the Customs Service.
Article 24 (Scope of Unacceptable Customs Value, etc.)
1.     The case “where it is difficult to accept as customs value, and the Presidential Decree
prescribed so” referred to in Article 30, Paragraph 4 of the Act means any of the following cases:
(1) Where there is a significant difference between the value declared by  liable duty payer and
the value of identical or similar goods;
(2) Where there are significant changes in the declared value even though the goods are imported
continuously from the same supplier;
(3) Where there is a significant difference between the declared value and the officially-
announced transaction value in case of goods such as crude oil, minerals, grains, etc. of which
international transaction value is publicly announced;
(4) Where the liable duty payer changes the seller and there is a significant difference between
the declared value and the previous value; and
(5) Where there are reasons comparable to Sub-paragraph (1) through (4) under the conditions
prescribed by the Ordinance of the Ministry of Finance and Economy.G/VAL/N/1/KOR/2
Page 12
2.    When the customs collector requests data according to Article 30, Paragraph 4 of the Act, the
request shall be made in writing, which states the reasons and the period for submission.
Article 25 (Scope of Identical Goods)
The term "identical goods" in Article 31, Paragraph 1 of the Act means goods produced in the
countries where the imported goods concerned are produced, which are same in all respects including
physical characteristics, quality and reputation with consumers (including the same goods in all
respects other than minor differences in appearance).
Article 26 (Scope of Similar Goods)
The term "similar goods" in Article 32, Paragraph 1 of the Act means goods produced in the countries
where the imported goods concerned are produced and having characteristics and component
materials so alike as to perform the same function and to be interchangeable, although not alike in all
respects.
Article 27 (Domestic Sales Price of Imported Goods, etc.)
1. The term  "domestic unit price” in Sub-paragraph (1) of Article 33, Paragraph 1 of the Act
means the unit price of goods to be sold at the first commercial level after importation; however, in
any of the following cases, the selling price shall not be deemed the domestic unit price.
(1) when the buyer at the first commercial level does not have any special relationship as
provided in Article 23, Paragraph 1, with the seller or exporter; or
(2) when the buyer at the first commercial level supplies the seller or exporter with the goods and
services prescribed in Sub-paragraphs of Article 18, free of charge or for discounted prices inrelation to the production or transaction of the imported goods.
2.     In application of the provisions of Sub-paragraph (1) of Article 33, Paragraph 1 of the Act,
the unit price at which goods are sold about the time of import declaration, shall be the selling price
during the period in which there is almost no varia tion of price from the price on the date of import
declaration, depending on the kinds and natures of the goods concerned; provided that the price at
which such goods are sold after ninety days from the import declaration is excluded.
3.     The term "imported goods of the same class or kind" in Sub-paragraph (2) of Article 33,
Paragraph 1 of the Act means goods which are produced in a particular industry or industrial sector in
which the imported goods are manufactured, and which belong generally to the same category as the
imported goods (including the identical or similar goods).
4.     The profit and general expenses as prescribed in Sub-paragraph (2) of Article 33, Paragraph 1
of the Act shall be taken as a whole, and calculated on the basis of the financial report submitted by a
liable duty payer, which is prepared according to the generally accepted accounting principles:
however, the profit and general expenses will be adjusted in accordance with the Ordinance of theMinistry of Finance and Economy in any of the following cases:
(1)  if the profit and general expenses calculated on the basis of the financial report submitted by
the liable duty payer, does not fall under the categories of the profit and general expenses
which are incurred ordinarily in the business sector to which the goods concerned belong andwhich are calculated in accordance with what the Commissioner of the Customs Service
determines; and
(2)  if the liable duty payer fails to present the profit and general expenses.G/VAL/N/1/KOR/2
Page 13
Article 28 (Cost or Value Incurred in  Assembling or Processing a Goods)
Cost or value for assembling or other processing referred to in Sub-paragraph (1) of Article 34 of the
Act includes the cost as prescribed in Sub-paragraph (2) of Article 30, Paragraph 1 of the Act, and
when the producer bears the costs of engineering, plans, development, design, art work undertaken inKorea, such costs shall be included.
  
Article 29 (Determination of Customs Value on the Basis of Reasonable Standards)
1. In determining the customs value according to the provisions of Article 35 of the Act, it shall
preferentially be subject to the following methods:
(1) in application of the provisions of Article 31 or 32 of the Act, the method interpreting and
applying flexibly the requirements as prescribed in Sub-paragraph (1) of Article 31,
Paragraph 1 of the Act,;
(2) in application of the provisions of Article 33 of the Act, the method interpreting and applying
flexibly the requirements that goods should be sold in the condition as imported,;
(3) the method by which the customs value is determined on the basis of the customs value of
identical or similar goods, which have been recognized as customs value under Article 33 or
34 of the Act; and
(4) the method in which the provisions of the proviso of Article 27, Paragraph 2 are not applied.
2. In determining the customs value under Article 35 of the Act, it should not be based on any of
the following prices:
(1) domestic sale price of goods produced in Korea;
(2) value determined in conformity with the criter ia that the customs value  should be the higher
of alternative values;
(3) domestic sale price in the exporting country;
(4) values determined with respect to identical or similar goods, on the basis of the production
cost by a method other than that under Article 34 of the Act;
(5) price of the goods for export to a country other than Korea;
(6) minimum customs standard value established in advance for  specified imported goods; and
(7) arbitrary or fictitious values.
3.  The Commissioner of the Customs Service may decide detailed matters necessary for the
determination of customs value, such as the basic data, calculation method of amount and others
necessary for determining  the customs value of the following goods:
(1) goods degenerated or damaged before an import declaration;
(2)    personal effects of travelers and crews, postal items, consignment and unaccompanied goods;
(3)    leasehold imported goods;
(4)    secondhand goods;
(5)    goods as considered as foreign ones under the proviso of Article 188 of  the Act;(6)    illegal goods; and
(7) other goods as deemed by the Commissioner of the Customs Service  to be apprehended that
it might cause any confusion in determination of  the customs value.
Article 30 (Application of Addition or Deduction Rate)
1. In applying the provisions of Article 30, Paragraph 1 or Article 33, Paragraph 1 or 2 of the
Act to goods imported repeatedly for an extended period of time, if it is deemed necessary for
convenience of liable duty payers and rapid clearance, the Commissioner of the Customs Service orG/VAL/N/1/KOR/2
Page 14
the customs collector may determine and apply an addition or deduction rate as recognized ordinarily
with respect to the goods concerned.
2. The addition or deduction rate as referred to in Paragraph 1 shall apply only when a liable
duty payer requests it.
Article 31 (Advance Ruling on Customs Value)
1. Any person who desires to request an advance ruling on the customs value under Article 37,
Paragraph 1 of the Act, shall submit to the Commissioner of the Customs Service or the customs
collector an application stating the trading parties, customhouse of clearance, particulars of
application, etc. with the following documents:
(1) basic contract on the trading relation (investment contract, agency contract, technical service
contract, technology introduction contract, etc.);
(2) business plan related to the imported goods;
(3) supply contract of the imported goods;(4) basic materials for determining the price of imported goods; and
(5) other reference materials necessary for determining the customs value.
2.     If the Commissioner of the Customs Service or the customs collector deems that the
application and documents submitted under Paragraph 1 are insufficient for the examination of thecustoms value, he may demand any  revision and correction in a specified period.
3.     When the Commissioner of the Customs Service or the customs collector has made an
advance ruling on the customs value, he shall delive r a written advance ruling on customs value to the
applicant pursuant to the provisions of Article 37, Paragraph 2 of the Act, and notify it to the customscollector of clearance.
4.     As used in Sub-paragraph (3) of Article 37, Paragraph 1 of the Act, the term    "important
matters which are the basis of determining the cust oms value, and are prescribed by the Presidential
Decree" means any of the following Sub-paragraphs:
(1) whether or not the requirements as prescribed in Article 31, Paragraph1 of  the  Act are met;
and
(2) whether or not it is conformed to the reasonable means as prescribed in  Article 35 of the Act.
5.     As used in Article 37, Paragraph 3 of the Act, the term "special reason as     prescribed by the
Presidential Decree" means any of the following cases:
(1) where the contents of advance ruling are changed according to the      revision of legislation;
(2) where the trading relation and particulars which are the basis of the advance ruling, are
changed; and
(3) where any error is made in the advance ruling because the applicant has submitted a false
materials or failed to submit materials.
ENFORCEMENT REGULATION OF THE CUSTOMS ACT
(Ordinance of the Minister of Finance and Economy)
Article 2 (Omission of Value Declaration)
1. Items of goods of which value declaration are allowed to be omitted under the provisions of
Article 27, Paragraph 3 of the Act are as follows:G/VAL/N/1/KOR/2
Page 15
(1) goods imported by the central or local government
(2) government-procured goods
(3) goods imported by the government-invested institutions under the provisions of the Basic Act
on Management of Government-Invested Institutions
(4) goods for which the tariff rate applied under the provisions of Article 50 of the Act is nil
(5) machinery and its components and materials imported for the use in the defense industry;
provided that import of those goods are confirmed or recommended by the head of the
relevant central government agency.
(6) raw materials for export
(7) goods imported by specified research institutes under the provisions of the Acts on
establishment of those research institutes
2. Goods falling under any of the following Sub-paragraphs are excluded from those allowed
with omission of value declaration under Paragraph 1.
(1) goods for which the amounts specified in the provisions of Sub-Paragraphs (1) to (5) of
Article 30, Paragraph 1 of the Act shall be added to its customs value
(2) goods on which customs duties are imposed and collected by the customs collector under the
provisions of Article 39 of the Act
(3) goods falling under Sub-paragraphs of Article 16, Paragraph 1 of the Enforcement Decree of
the Customs Act (hereinafter referred to as “Decree”).
(4) Goods falling under Sub-paragraphs (3) to (5) of Article 8, Paragraph 1
Article 3 (Goods Subject to Provisional Value Declaration)
“Those prescribed by the Ordinance of the Minister of Finance and Economy” in Sub-paragraph (1) of
Article 16, Paragraph 1 of the Decree means crude oil, grains, minerals, and other similar primary
products.
Article 4 (Goods and Services Provided Free of Charge or at Reduced Price)
1. “Goods as prescribed by the Ordinance of the Ministry of Finance and Economy” in Sub-
paragraph (2) of Article 18 of the Decree means machines and tools directly used in the production ofthe imported goods concerned including assembly, processing, reforming, etc.
2. Engineering necessary for the production of the imported goods as prescribed in Article 18,
Paragraph 4 of the Decree refers to engineering that is already developed including patent and know-
how and newly obtained one.
3. Values of those goods and services in each Sub-paragraph of Article 18 are determined
according to the amount classified in the following Sub-paragraphs:
(1) in case where the goods and services concerned are supplied by the purchaser who has
purchased or rented those from a person who has no special relationship as prescribed in
Article 23, Paragraph 1 of the Decree: amount of the cost incurred in purchasing or renting
those goods and services added by the cost for transporting those to the place of production
(2) in case where the goods and services concerned are produced and supplied by the purchaser:
amount of the production cost added by the cost incurred in transporting those to the place ofproduction of the imported goods
(3) in case where the goods and services concerned are supplied by the purchaser who has
purchased or rented those from a person who has special relationship as prescribed in Article
23, Paragraph 1 of the Decree: amount of the cost calculated as prescribed by theG/VAL/N/1/KOR/2
Page 16
Commissioner of the Customs Service added by the cost incurred in transporting those to the
place of production of the imported goods
(4) in case where engineering, plans, development, art work, and design work necessary for the
production of the imported goods (hereinafter referred to as “engineering, etc.” in this Sub-
paragraph) are related to both imported goods and domestically produced goods: value of theengineering, etc. apportioned to the imported goods that are produced using such engineering,
etc.
Article 5 (Value of Goods not Affected by Special Relationship)
1. “The price as prescribed by the Ordinance of the Ministry of Finance and Economy” in the
text of Sub-paragraph (3) of Article 23, Paragraph 2 of the Decree means the case where thedifference between the import price and the value in each item of Sub-paragraph (3) of Article 23,
Paragraph 2 of the Decree (hereinafter referred to as “comparable value”) is no more than 10 % of the
comparable value; provided that when the import price is accepted as reasonable by the customs
collector considering characteristics of the goods, transaction contents, transaction practices, etc.,
even where the price exceeds 110% of the comparab le value, it is deemed as being close to the
comparable value, and when the price is determined  to be unreasonable, even where the price is no
more than 110% of the comparable value, it is not deemed as being close to the comparable value.
2. Comparable values shall be used only for the purpose of comparison and not be determined as
customs value.
Article 6 (Standard for Acceptance of Profits and General Costs Submitted by Liable Duty
Payer)
1. When the ratio of profits and general costs calculated based on the accounting report
submitted by the liable duty payer under the provisions in Sub-paragraph (1) of Article 27, Paragraph
4 of the Decree exceeds 120 % of such ordinary ratio calculated as prescribed by the Commissioner of
the Customs Service (hereinafter referred to as “comparable ratio”), the amount representing 120% of
the comparable ratio is accepted as profits and general costs, and when the liable duty payer has not
submitted profits and general costs according to Sub-paragraph (2) of Article 27, Paragraph 4 of the
Decree, the amount representing the comparable ratio is accepted as the profits and general costs.
2. When the liable duty payer decides that application of the comparable ratio is unreasonable
due to characteristics of the business concerned, inappropriate classification, etc., he may make an
application for the acceptance of the profits and general costs that he intends to apply to the imported
goods, to the Commissioner of the Customs Service via the customs collector who has cleared or will
clear the imported goods.  In that case, the Commissi oner of the Customs Service, after reviewing the
documents submitted by the liable duty payer and materials from related industries and organizations,
may calculate profits and general costs only to be applied to the goods imported by the liable duty
payer concerned for their application.
Article 7 (Determination of Customs Value Based on Reasonable Standard)
1. “ The method interpreting and applying flexibly the requirements as prescribed in Sub-
paragraph (1) of Article 31, Paragraph 1 of the Act” in Sub-paragraph (1) of Article 29, Paragraph 1
of the Decree refers to the method in each Sub-paragraph in the following:
(1) a method extending the locational requirements to be produced in the producing country of
the goods concerned to other producing countries for its interpretation and applicationG/VAL/N/1/KOR/2
Page 17
(2) a method of extending the time requirements to be met at the shipping date of the goods
concerned or around the date, to 90 days prior to or following the shipping date for its
interpretation and application.
2. “The method interpreting and applying flexibly the requirements that goods should be sold in
the condition as imported” in Sub-paragraph (2) of Article 29, Paragraph 1 of the Decree means the
method determining customs value according to the provisions in Article 33, Paragraph 2 of the Act,
even when there is no request from the liable duty payer.
3. “The method in which the provisions of the provision of Article 27, Paragraph 2 are not
applied” in Sub-paragraph (4) of Article 29, Paragraph 1 of the Decree means the method of applying
the sales price within 180 days after the import declaration
NOTICE ON CUSTOMS VALUATION
(Customs Administration Order. No. 2000 - 46, Dec. 30. 2000)
Chapter 1: General Provisions
Article 1-1 (Purpose)
This Notice  sets forth the guidelines necessary to implement the provisions of the Customs Act , the
Enforcement Decree of the Customs Act and the Enforcement Regulation of the Customs Act
(hereinafter referred to as “the Act”, “the Decree” and “the Regulation”), as well as the Agreement on
Implementation of Article VII   o f  t h e  General Agreement on Tariffs and Trade 1994  (hereinafter
referred to as “the Agreement”), in determining customs value of the imported goods.
Article 1-2 (Definitions)
The definition of the terms used in this Notice  are as follow:
(1) “First method” means the method of determining customs value based on transaction value of
the goods concerned.
(2) “Second method” means the method of determining customs value based on transaction value
of the identical goods.
(3) “Third method” means the method of determining customs value based on transaction value
of the similar goods.
(4) “Fourth method” means the method of determining customs value based on domestic sales
price.
(5) “Fifth method” means the method of determining customs value based on the computed
value.
(6) “Sixth method” means the method of determining customs value based on reasonable means.
Article 1-3 (Basic currency for determination of customs value)
The customs value shall be determined based on the currency stated in the invoice.  However, if any
relevant data confirm that the currency stated in the invoice differs from the actual currency of
transaction, the customs value shall be determined based on the currency used in the actual
transaction.
Article 1-4 (Foreign exchange rate for customs duty)
1. Pursuant to the provisions of Article 18 of the Act, the Commissioner of the Customs Service
shall determine the foreign exchange rate for customs duty by averaging telegraphic transfer(T/T)G/VAL/N/1/KOR/2
Page 18
selling rates applied to customers by major foreign exchange banks from Monday through Saturday in
the previous week.  In this case, the foreign exchange rate shall be calculated to the same number of
decimal places as the foreign exchange rate applied by foreign exchange banks but rounded off at the
decimal place nearest to the last digit.  The special selling rate applied to small transactions by foreign
exchange banks shall not be used as the basis for determination of foreign exchange rate for customs
duty.
2. If the price is indicated in a foreign currency for which no exchange rate for customs duty has
been determined, it shall be converted into the domestic currency using the average value of US dollar
computed in accordance with provisions of Paragraph 1 compared to the IMF’s par value of that
foreign currency against the US dollar in the previo us week. If IMF's par value of the foreign currency
against the US dollar is not available, the foreign currency shall be converted into the domesticcurrency based on the rate evaluated by the Korea Exchange Bank.
Article 1-5 (Price actually paid or payable)
1. “The price actually paid or payable” provided in the text of Paragraph 1 of Article 30 of the
Act shall include the following:
(1) The amount paid by the buyer to the seller by way of letter of credit,  etc.;
(2) The amount of the debt of the seller offset by the buyer as payment for the imported goods;
(3) The amount paid by the buyer to a third party on behalf of the seller to settle the seller's debt
owed to the third party;
(4) In cases where the buyer pays a part of payment for imported goods to a third party pursuant
to the request of the seller, the paid amount, or where goods or services are provided for the
same reason, the price of such goods or the cost of such services;
(5) Amount responsible by a buyer as a condition of the sale out of the costs for warranty
undertaken by a seller or a third party.
(6) Any other direct or indirect payments made by the buyer as conditions for transaction of the
imported goods.  However, the costs of activities undertaken by the buyer on his own
account, other than those stipulated in Sub-paragraphs of Article 30, Paragraph 1 of the Act,
shall be excluded from the customs value even if they might be regarded as the benefit of the
seller.
2. If imported goods are subject to provisional price declaration described in Article 28,
Paragraph 1 of the Act, “the price actually paid or payable” shall be the amount to be paid at the time
when the declared price is finalized in accordance with the contract for importation of goods.
Chapter 2: Requirements for Excluding the Transaction Value
Article 2-1  < deleted >
Article 2-2 (Subsequent proceeds)
1. “Proceeds of any after-importation resale, disposal or use of the goods” referred to in Sub-
paragraph (3) of Article 30, Paragraph 3 of the Act means profits or rent charges, processing wages,
etc. which result from the resale, use, etc. of the imported goods concerned.  However, payments such
as dividends, which are not directly related to the imported goods are not included.
2. If the payment for sales promotional activities, such as advertising, which are undertaken by
the buyer on his own account, is not a condition of sale of the goods in question, such payment is not
included in the subsequent proceeds stipulated in Sub-paragraph (3) of Article 30, Paragraph 3 of the
Act.G/VAL/N/1/KOR/2
Page 19
Article 2-3 (Special relationship)
The value stipulated in each item of Sub-paragraph (3) of Article 23, Paragraph 2 of the Decree shall
not be used as customs value, but only for comparison purposes.
Article 2-4 (Cases of Reasonable Doubts)
1. When the customs collector has requested the liable duty payer to provide data proving the
truthfulness of the declared value in cases provided in Sub-paragraphs of Article 24, Paragraph 1 of
the Decree, if those data are not provided, or it is difficult to accept the declared value just on the
basis of data so provided, the customs value shall be determined by the second through sixth methods.
2. The written request for data provided in Article 24, Paragraph 2 of the Decree shall present
the reasons in detail and the period for submitting data shall be 15 days. However, if the liable duty
payer applies for extension of the period for submitting data for an inevitable reason, the customs
collector shall determine a reasonable period, considering the reason for application.
3. The Customs collector shall examine the data provided in line with Paragraph 2,  within 60
days.  Where it is difficult to accept the declared value based on the data provided or the data is not
provided, the Customs collector shall notify the liable duty payer of the reasons for not accepting the
declared value and of the particulars of the determined customs value.
Chapter 3: Additional Elements
Article 3-1 (Definitions of commissions, etc.)
“Commissions and brokerage” referred to in Sub-paragraph (1) of Article 30,  Paragraph 1 of the Act
shall be the following:
(1) “Commission”  refers to fees paid by the buyer or the seller to an agent for services provided
for selling or buying on behalf of the seller or the buyer.
(2) "Brokerage” refers to fees paid by the seller and the buyer to an agent who mediates or
recommends a transaction for the seller and the buyer.
(3) “Buying commission” refers to fees paid by the buyer to his agent for the services performed
abroad for the purchase of the goods concerned, as the agent of buyer. Those services may
include finding suppliers, transmitting the buyer’s requirements to the seller, collecting
samples, inspecting goods and, in some cases, arranging the insurance, transportation, storage,
and delivery of the goods.
Article 3-2 (Production assistance costs)
1. The term “production of the goods concerned” referred to in Sub-paragraph (3) of Article 30,
Paragraph 1 of the Act means the activities  producing the goods or other activities adding value to the
goods, such as growing, manufacturing, mining, collecting, processing, assembling, etc.
2. <deleted>3. <deleted>
4. “Cost calculated as prescribed by the Commissioner of the Customs Service” in Sub-
paragraph (3) of Article 4, Paragraph 3 of the Decree refers to the following as appropriate:G/VAL/N/1/KOR/2
Page 20
(1) In a case where a person having no special relationship has purchased or rented goods, the
cost for those purchase or rent;
(2) In a case where a person having no special relationship has not purchased or rented goods, a
sum of production cost, profit and general expenses.
Article 3-3 (Method of addition)
When the cost of production assistance is added to the price actually paid or payable as provided in
Article 18 of the Decree, one of the following methods of addition shall be used:
(1) If a liable duty payer wishes to pay duty on the cost of production assistance by a single
payment, the total amount of the cost of production assistance shall be added to the valuedeclared for the first shipment;
(2) If a liable duty payer wishes to pay duty on the cost of production assistance only for the
amount apportioned to the imported goods concerned,  the foreign currency amount of the
cost of production assistance apportioned to the imported goods concerned in proportion to
the entire amount of import to be made through such production assistance shall be added tothe value declared for the imported goods concerned;
(3) If services including engineering, etc. are related to both imported and domestically produced
goods, the amount calculated by multiplying the costs for services including engineering, etc.
by the ratio of the imported goods produced using such services including engineering, etc. to
the transaction value of entire goods produced using such services including engineering(hereinafter referred to as “adjusted amount”) shall be added to the value declared for the
imported goods.
(4) If services, including engineering, etc. are related to both imported and domestically produced
goods and the imported goods are imported separately, being related to various kinds of
goods, each adjusted amount apportioned to the transaction value of each imported good shallbe added. The method of apportioning shall be to calculate the addition rate first and then to
multiply that rate to each transaction value of the imported goods;
(5) The addition rate in the Sub-paragraph (4) shall be the ratio of adjusted amount to the total
price of the imported goods produced using the services including engineering, etc.
(6) The price of goods to be used in calculating the adjusted amount shall be the price actually
paid or payable for imported goods and the price excluding VAT for domestically produced
goods.
Article 3-4 (Calculation of royalties and license fees)
Methods of calculation of royalties and license fees determined by the Commissioner of the Customs
Service pursuant to Article 19, Paragraph 6 of the Decree are as follows:
(1) If imported goods are finished goods (including goods which undergo minor assembly,
mixing, dilution, sorting, processing, or re-packing after importation), the total amount of
royalties and license fees paid in relation to the goods shall be added.
(2) If the rights in question are related only to th e imported goods, then, even in cases where the
imported goods are to be used as parts, raw materials or components, etc. (hereinafter referred
to as “imported parts, etc.) of the goods to be produced domestically, the fall amount of
royalties or license fees paid for the right shall be added. However, if the royalties or license
fees include payment for activities of production or other business undertaken in Korea which
are not related to imported parts, the royalties or license fees calculated by multiplying theratio of the price of the imported parts, etc. to the price of the completed goods
(manufacturing cost minus duties) by the full amount of the royalties or license fees shall be
added.G/VAL/N/1/KOR/2
Page 21
(3) If imported goods are equipments, machinery or installations (including parts, etc. which have
the essential characteristics) created to carry out patented processes, the full amount of
royalties or license fees paid in relation to th e imported goods shall be added.  However, if the
royalties or license fees are paid for an overall production process or manufacturing process
for specific finished goods and the imported goods are equipments, etc. needed to carry outpart of those processes, the royalties or license fees calculated by multiplying the ratio of the
price of imported equipments to the total price of all equipments by the full amount of the
royalties or license fees shall be added.
(4) If the goods for which royalties or license fees are paid are imported repeatedly an extended
period of time, the adjusted amount and the rate of addition for apportionment of the royalties
or license fees shall be calculated according to the following items:
(a)  If the imported goods fall under proviso of Sub-paragraph (2),
adjusted amount =  total royalty paid
 ×     price  of  the  imported  goods concerned
        price of the finished goods(excluding taxes)
rate of additions(%) =  adjusted    amount    x 100
price of the imported goods concerned
(b)  If the imported goods fall under proviso of Sub-paragraph (3),
             adjusted amount = total royalty paid
x     price of the imported equipments
total price of all equipments
rate of additions(%) =   adjusted amount   x100
price of the imported equipments
Article 3-5 (Cost of transport, etc.)
1. The term “to the port of importation” in Sub-paragraph (6) of Article 30, Paragraph 1 and
Sub-paragraph (3) of Article 34 of the Act, and the term “arrival at the port of importation” in  Sub-
paragraph (2) of Article 30, Paragraph 2 of the Act shall refer to the time and the place at which the
imported goods concerned has arrived at the port of importation, and the preparation for the unloadingfrom the vessel is finished.
2. The calculation methods of cost of transport prescribed by the Commissioner of the Customs
Service pursuant to the provisions of Article 20, Paragraph 2 of the Decree shall be as follows:
(1) When imported goods, such as vessels and crafts, have arrived by their own navigation, the
cost of transport shall be the total cost actually  spent for the transportation, such as the cost of
fuel from the port of departure to the port of importation, cost of meals for crew, wages and
allowances for crew, dispatch costs for seamen, and other expenses;
(2) If imported goods are transported free of charge or by the importer's own transportation
means or by a transporter who is related to the importer, the cost of transport shall be the
freight charge usually charged by normal transporters based on the schedule of freight rates;
(3) If imported goods are transported by chartered vessel, the cost of transport shall be expenses
actually paid under the charter contract in question, including the charge for return of a vacant
vessel;G/VAL/N/1/KOR/2
Page 22
(4) If various goods are transported in multiple round trips under one charter contract (time
charter), or if various goods are transported under a single transporting contract subject to a
payment in lump sum (voyage charter), the co st of transport shall be the freight charge
apportioned to the imported goods based on the weight.  However, when the weight of the
imported goods is not available or the method of apportionment based on the weight isconsidered significantly unreasonable, the cost of transport shall be the freight charge
apportioned based on the value.
(5) When the cost of shipping material or vessel renovation is paid by the buyer in order to
transport the imported goods, the cost of transport shall include such costs;
(6) If the freight charge of the imported goods concerned includes unloading charge at the port of
importation which is separately indicated, the unloading charge shall not be included in the
customs value;
(7) Demurrage costs paid by the buyer at the port of shipment shall be added to the customs value
and a dispatch money occurring at the port of shipment, if refunded, shall not be included in
the customs value, provided that the amount of the dispatch money needs to be confirmed at
the time of import clearance and that, in case of provisional value declaration, it is deducted
from the customs value on the basis of documents proving the amount submitted on or beforethe definite value declaration.  However, when the place of demurrage or dispatch is not
distinguishable due to the conditions of the contract of transportation in question which only
provide the total allowed lay days without distinguishing the port of shipment or port of
importation, half of the total allowed lay days shall be regarded as the allowed lay days at the
port of shipment and the other half at the port of importation.  Hence, the demurrage cost paidby the buyer to the carrier shall be added to the customs value and the refunded dispatch
money shall be deducted from the customs value;
(8) A demurrage cost at the port of importation shall not be added to the customs value and a
dispatch money at the port of importation shall not be deducted from the customs value;
(9) When freight charges for international transportation and inland transportation are
distinguished according to the contract of door-to-door transportation by container, the freight
charge incurred after the goods have arrived at the port of importation shall not be included in
the customs value;
(10) If the payment for container rental is made separately from the freight charge, the container
rental charges shall be included in the customs value.
Article 3-6  (Insurance premium)
1 The insurance premium shall be included in the customs value only when imported goods are
actually covered by the insurance.
2. The insurance premium shall be calculated based on the insurance premium statement or an
equivalent document issued by the issuer in question as provided in Article20, Paragraph 1 of the
Decree.  However, in the case of a comprehensive insurance contract, the insurance premium shall be
calculated according to one of the following methods:
(1) If an insurance premium statement issued by the insurer is submitted at  the time of import
declaration, the insurance premium shall be based on the statement.;
(2) If details of insurance policy (including insu rance tariff rate, insurance premium, etc.) are
stated in the import license, the insurance pr emium shall be calculated accordingly and the
insurance premium statement need not be submitted at the time of import declaration;
(3) If the insurance premium cannot be calculated based on an insurance premium statement or
an import license, the insurance premium shall be declared provisionally based on an
estimated insurance statement issued by the insu rer. In this case, the insurance premium shall
be definitely declared immediately after the actual insurance premium is fixed.G/VAL/N/1/KOR/2
Page 23
3. When goods are originally contracted to be carried by general transportation means, other
than airplane, but when the goods are actually carried by airplane for some reasons, such as delay in
production, having no cause attributable to the importer, to the exporter’s cost for the change of
transportation means, the insurance premium for the goods concerned shall be the insurance premium
calculated based on the insurance tariff rate for general transportation, usually applied by insurers,pursuant to provisions of Article 20, Paragraph 3 of the Decree.
Article 3-7 (Special cases of determination of the freight costs for the goods imported via air
transportation )
Pursuant to Article 20, Paragraph 3 of the Decree, freight costs for general transportation means, other
than airplane, shall be applied to goods imported via air transportation which fall under one of thefollowing Sub-paragraphs:
(1) Commercial samples, advertising goods, and the raw materials for  those goods entered into
Korea free of charge, of which the total customs value excluding costs of transport and
insurance is W200,000 or less;
(2) Raw materials for manufacturing or processing of export goods to be used in acquiring
foreign currency which are brought into Korea free of charge and are and which are deemed
necessary to carry out the export contract by the customs collector;
(3) When imported or exported goods which are different with that of terms of contract or which
have some trouble during the warranty period, are re-imported free of charge after beingrepaired in foreign countries or for repair in Korea, such goods of which total customs value
excluding freight and insurance premium is W200,000 or less, and some goods imported free
of charge to maintain, repair, or replace such goods; 
(4) Film negatives, recorded tapes and any other similar news material brought into Korea by
newspaper or, broadcasting companies, or news agencies;
(5) Goods to be received by a resident in Korea, deemed to be used for private purposes and
whose customs value, excluding the freight and insurance premium, is W200,000 or less,;
(6) Unaccompanied household goods which are brought in by anyone who plans to establish
residence in Korea (including persons who will reside in Korea for two years or more or
persons who will reside in Korea for one year or more, accompanied by their families, with
the exception of persons reentering Korea after a temporary departure) and of which total
customs value excluding the freight and insurance premium is W500,000 or less;
(7) Unaccompanied goods used by anyone reentering Korea after having stayed abroad for more
than six months (excluding crew members entering Korea via ship or aircraft) of which the
total customs value excluding the freight and insurance premium is W500,000 or less;
(8) Goods originally contracted to be carried by general transportation means, other than airplane,
but actually carried by airplane for some reasons such as delay in production, having no causeattributable to the importer, to the exporter’s cost for the charge of transportation means.
(9) Aircraft stores brought into by an air carrier by his own transportation means, and
expendables and office supplies sent free of charge by main or branch office in a foreign
country and to be used in the transportation business in question.
2. The cost of transport for goods provided in Sub-paragraphs (1) through (7) of Paragraph 1
shall be calculated based on freight charges of surface parcel mail applied in Korea.  When the weight
of the goods concerned  exceeds the maximum weight listed in the freight charge schedule of surface
parcel mails, the cost of transport shall be the sum of fare for the maximum weight and that for the
weight exceeding the maximum weight on the schedule.  However, if the fare of the surface parcelmail is higher than the actual air freight cost, the latter shall be applied.
3. The cost of transport for goods provided in Subparagraphs 8 and 9 of Paragraph 1 shall be
calculated based on a freight charge in the schedule of sea freight tariff usually applied by a vesselG/VAL/N/1/KOR/2
Page 24
carrier.  However, if the charge in the schedule is higher than the actual air freight charge, the latter
shall be applied.
Article 3-8 (Freight cost of goods being transported under special terms)
“The ordinary cost of transport as determined by the Commissioner of the Customs Service” referred
to in Article 20, Paragraph 4 of the Decree means the freight cost usually recognized as necessary for
transportation to the port of importation considering the type, volume and terms of transport (i.e.
mode and channel of transportation) of the goods concerned.  However, when a freight charge is
decided under a voyage charter contract which specifies the freight charge and quantity to be loaded,
but if less than contracted shipment is loaded, the freight charge actually paid in accordance with the
contract shall be used as the usual freight charge.
Article 3-9 (Determination of addition or deduction rates)
1. Any importer who wants the application of an ordinary addition or deduction rate to the goods
imported repeatedly for an extended period of time in accordance Article 30, Paragraph 2 of theDecree, shall submit the Annex 9 Form along with  the following documents to the Commissioner of
the Customs Service or the customs collector:
(1) Record of imports of the goods concerned for the recent 1 year;
(2) Documents stipulated in Sub-paragraphs of Article 31, Paragraph 1 of the Decree;(3) Domestic sale prices, profits and general expenses of the goods concerned for the recent 1
year (limited to application for deduction rates)
2. When calculating addition or deduction rates pursuant to Article 30, Paragraph 1 of the
Decree, the Commissioner of the Customs Service or the customs collector shall give the importersufficient opportunity to present his opinion and the addition or deduction rates shall be recalculated
yearly, in principle.
3. The Commissioner of the Customs Service or the customs collector shall examine the
application referred to in Paragraph 1 and notify the applicant and the customs collector in charge of
the expected clearance of the decision on addition (deduction) rate using Annex 10 Form within 21
days. However, this does not apply when the calculation of usual rates of addition or deduction isdifficult.
4. The rates of addition or deduction shall be calculated to the second decimal digit, rounded off
from the third decimal place.
5. Provisions of Paragraph 4 are applied also to calculation of addition rates referred to in
Articles 3-3, 3-4, and 7-2.
6. If a liable duty payer declares the customs value based on the rates of addition (deduction)
determined according to Paragraph 3, the declared value shall be regarded as the definitive customsvalue.
Chapter 4: Determination of the Customs Valu e when the Transaction Value is Unacceptable
Article 4-1 (Determination of the custom s value by the second and third method)
1. The term “shipping date” referred to in Sub-paragraph (1) of Article 31, Paragraph 1 of the
Act refers to the date of shipping of the imported goods for transportation from the exporting country
to Korea, and the date shall be confirmed by bill of lading, commercial invoices, etc.G/VAL/N/1/KOR/2
Page 25
2. The adjustment for the price difference, provided in Sub-paragraph (2) of Article 31,
Paragraph 1 of the Act shall be made as the following:
(1) Where the commercial level is different, the adjustment is made in reflection to the price
difference per each level generally accepted at the country of exportation;
(2) Where the transaction quantity is different, the adjustment is made in consideration of the
reference information such as quantity discount and etc., if any
(3) Where the transportation distance is different, the adjustment is made by calculating the price
difference in proportion to the distance.
(4) Where the mode of transport is different, the adjustment is made in reflection to the price
difference generally applied to each mode of transport.
3.    Provisions of Paragraphs 1 and 2 above are also applied to Article 32, Paragraph 1 of the Act.
Article 4-2 (Determination of the customs value by the fourth method)
1. The goods in question, identical goods, and similar goods shall be applied in sequential order
when determining the customs value according to provisions of Article 33 of the Act.
2. The term “other associated costs” referred to in Sub-paragraph (3) of Article 33, Paragraph 1
of the Act means any costs incurred in connection with importation and domestic sale of the goodsconcerned, identical goods or similar goods.
3. <deleted>4. <deleted>5. In case where the goods for which the customs value is determined by the fourth method are
imported repeatedly for an extended period of time, if the liable duty payer applies the application of
the rate of deduction from the domestic sale prices for a specific period, instead of calculating the
deductible costs for each unit of import declaration, the Commissioner of the Customs Service may
calculate and apply the deduction rate in accordance with Article 30 of the Decree.
6. The application for and the method of calculating deduction rate referred to in Paragraph 5
shall be made in accordance with Article 3-9.
Article 4-3 (Determination of the customs value by the fifth method)
The costs referred to in Sub-paragraph (1) of Article 34 of the Act shall be calculated based on data
relevant to production, such as accounting books, provided by the producer of the goods concerned.
Article 4-4 (Determination of the customs value by the sixth method)
When the customs value is determined in accordance with provisions of Article 29, Paragraph 1 of the
Decree, the previously established customs values shall be fully used.
Chapter 5: Determination of the Customs Value of Special Goods
Article 5-1 (Principles for customs valuation of special goods)
1. The customs value of special goods provided in Article 29, Paragraph 3 of the Decree shall be
determined by applying the first to the sixth methods in a sequential order.G/VAL/N/1/KOR/2
Page 26
2. Where the sixth method is applied in accordance with Paragraph 1, the customs value is
determined by using the methods stipulated in Articles 5-2 to 5-11.
Article 5-2 (Customs value of deteriorated or damaged goods)
1. Pursuant to Sub-paragraph (1) of Article 29, Paragraph 3 of the Decree, the customs value of
imported goods which are deteriorated or damaged before import declaration shall be determined
using the following methods in sequential order:
(1) The first method shall not be applied since the price actually paid or  payable is not for
deteriorated or damaged goods.  However, if only part of the goods has been deteriorated ordamaged and the remaining goods are normal, the customs value of the normal part shall be
calculated using the first method ;
(2) When the transaction value for the goods identical to the deteriorated or damaged goods in
question is available, the second method shall be used to determine the customs value. In this
case, even though those are not produced in the country where the goods being valued havebeen produced, the customs value may be determined using the second method;
(3) When the transaction value for the goods similar to the deteriorated or damaged goods in
question is available, the third method shall be used to determine the customs value.  In this
case, even though those are not produced in the country where the goods being valued have
been produced, the customs value may be determined using the third method;
(4) Where the deteriorated or damaged goods are sold in Korea and the domestic sale price
thereof meets the requirements for the application of the fourth method, the fourth method
shall be used to determine the customs value.  In this case, the requirements that the goods be
sold in the same state as the imported and that the goods be sold within 90 days after
importation can be applied flexibly;
(5) When the customs value cannot be determined by one of the methods provided in Sub-
paragraphs (1) through (4), the customs value shall be determined based on the price of the
goods not deteriorated or damaged. In this case, the basis of transaction value of the goods not
deteriorated or damaged includes the price re-determined between the buyer and the seller due
to the deterioration or damage, if any, the price appraised by a certified evaluation agency not
related to the buyer or seller, the price reflecting the repair or replacement costs or the
compensation amount from the insurance company, etc.
2. The basis value depreciation for the deteriorated or damaged goods determined by the
Commissioner of the Customs Service according to the provisions of Article 118, Paragraph 2 of the
Decree shall be subject to Paragraph 1, and the basis of value depreciation for used goods shall be
subject to the method provided in the provisions of Article 5-5, Paragraph 1.
Article 5-3 (Customs value of travelers' baggage, etc.)
1. Pursuant to Sub-paragraph (2) of Article 29, Paragraph 3 of the Decree, a customs collector
shall determine the customs value of personal effects of travellers and crews, postal items,consignments, and unaccompanied goods (hereinafter referred to as “travellers' baggage, etc.”) based
on the following prices:
(1) The price suggested by the declarant, only  when the customs collector deems the price as
reasonable;
(2) The price table surveyed by the Commissioner of the Customs Service;
(3) The normal prices in foreign countries surveyed in an objective manner (e.g. Bluebook, etc.);
(4) The customs value converted by applying conversion rate to the domestic wholesale price of
the goods concerned, or identical or similar goods;G/VAL/N/1/KOR/2
Page 27
(5) The price appraised by a certified evaluation agency in Korea
2. “The conversion rate” referred to in Sub-paragraph (4) of Paragraph 1 means the rate for
computing the customs value by deducting profit and sales expenses, import taxes and other import
related expenses from the domestic wholesale price and is calculated according to one of thefollowing methods:
A. Goods of which import prices are the basis for customs duties and of which domestic
wholesale price includes a value added tax (ad valorem duty)
(i) When standard price for special excise tax has not been established
(a) Customs Value =                WP
                                    1.485 + 1.1C + 1.1S(1+C)(1+E+F)
(b) Conversion Rate =                1
                                     1.485 + 1.1C + 1.1S(1+C)(1+E+F)
(ii) When standard price for special excise tax has been established(a) Customs Value =    WP + 1.1S·SP(1+E+F)
                           1.485 + 1.1C + 1.1S(1+C)(1+E+F)
(b) Conversion Rate = WP + 1.1S·SP(1+E+F)
                                   WP[1.485 + 1.1C + 1.1S(1+C)(1+E+F)]
B. Goods of which import prices are the basis for customs duties and of which domestic
wholesale price does not include a value added tax (ad valorem duty)
(i) When standard price for special excise tax has not been established(a) Customs Value =            WP
                      1.35 +C + S(1+C)(1+E+F)
(b) Conversion Rate =            1
                           1.35 +C + S(1+C)(1+E+F)
(ii) When standard price for special excise tax has been established(a) Customs Value = WP + S·SP(1+E+F)
  1.35 + C + S(1+C)(1+E+F)
(b) Conversion Rate = WP + S·SP(1+E+F)
                    WP[1.35 + C + S(1+C)(1+E+F)]C. Goods of which import volume is the basis for customs duties and whose domestic wholesale
price includes a value added tax (specific duty)
(i) When standard price for special excise tax has not been established
(a) Customs Value = WP1.1C'Q[1+S(1+E+F)]
                      1.485 + 1.1S(1+E+F)G/VAL/N/1/KOR/2
Page 28
 (b) Conversion Rate = WP1.1C'Q[1+S(1+E+F)]
                      WP[1.485 + 1.1S(1+E+F)]
(ii) When standard price for special consumption tax has been established
Customs Value  = WP1.1C'Q[1+S(1+E+F)] + 1.1S·SP(1+E+F)
1.485 + 1.1S(1+E+F)
Conversion Rate  = WP1.1C'Q[1 +S(1+E+F)] + 1.1S·SP(1+E+F)
WP[1.485 + 1.1S(1+E+F)]
D. Goods of which import volume is the basis for customs duties and of which domestic
wholesale price does not include a value added tax (specific duty)
(i) When standard price for special excise tax has not been established
             (a) Customs Value = WPC'Q [1+S(1+E+F)]
1.35 + S(1+E+F)
 (b) Conversion Rate = WPC'Q [1+S(1+E+F)]
             WP[1.35 + S(1+E+F)]
(ii) When standard price for special excise tax has been established
              (a) Customs Value = WPC'Q[1+S(1+E+F)] + S·SP(1+E+F)
                  1.35 + S(1+E+F)              (b) Conversion Rate = WPC'Q[1+S(1+E+F)] + S·SP(1+E+F)
                        WP[1.35 + S(1+E+F)]
Where,
WP = domestic wholesale price
C' = specific duty (specific duty actually applied at the formation of domestic whole price)E  = education tax rate
Q  = unit quantity
C  = customs duty rate (customs duty rate actually applied at the formation of domestic
wholesale price)
S  = special excise tax rate, liquor tax rate, transportation tax rateF  = agriculture and fisheries special tax rate
SP = standard price for special excise tax
3. The examples of conversion rate (for goods subject to ad valorem duty and special excise tax
but have no standard price, and are not subject to agriculture and fisheries tax and transportation tax)calculated in accordance with provisions of Paragraph 2 are illustrated in Table 1-1 and 1-2.
Article 5-4 (Customs value of rented or leased goods)
1. When the customs value of rented or leased goods is determined using the sixth method in
accordance with provisions of Sub-paragraph (3) of Article 29, Paragraph 3 of the Decree, the
following prices shall be applied in sequential order in determining the customs value:G/VAL/N/1/KOR/2
Page 29
(1) A price of the rented or leased goods which is the basis for computing the rental or lease
amount;
(2) A catalogue price which is published when the rented or leased goods in question, identical
goods, or similar goods are exported to Korea (in case of used goods, the price determined in
accordance with provisions of Article 5-5);
(3) A price calculated based on the total estimated rental amount for the full economic life of the
goods in question
2. In accordance with provisions of Sub-paragraph (3) of Paragraph 1, the customs value shall
be determined using one of the following methods.  However, this provision shall not apply if the
customs collector decides that the application of uniform economic life is unreasonable.
(1) A price converted to the current value from the total estimated rental amount payable over the
full economic life of the imported goods concerned shall be the basis for customs value.  If
expenses incurred in maintaining and using the goods in question in normal state after
importation are included in rental charges, such expenses shall be deducted from the total
estimated rental charge;
(2) If the importer pays separately on regular or irregular basis royalty for patent rights, etc. and
other costs, other than for rental or leasing fees, as a condition of sale of the goods concerned,
such payments shall be treated same as rental payment;
(3) Interest rate to be applied in converting to  the current value shall be that of the leasing
contract in question.  However, if no interest rates are set forth in the contract or the stipulatedinterest rate is over 11%, 11% shall be applied as the annual interest rate;
(4) When the importer has an option to buy the goods imported under the leasing contract, the
customs value shall be determined based on the sum of the estimated total rental amount
payable until he can exercise the option to buy and the current value of the amount payable
when the option is exercised.
Article 5-5 (Customs value of used goods)
1. Where the sixth method is applied to the used goods in accordance with the provisions of
Sub-paragraph (4) of Article 29, Paragraph 3 of the Decree, the customs value shall be determined
using one of the following prices;
(1) A price calculated on the basis of a value appraised by a certified domestic evaluation agency;
(2) A price calculated by applying the conversion rate to a domestic wholesale price;
(3) A price calculated on the basis of value depreciation for used goods
2. “The basis of value depreciation” in Sub-paragraph (3) of Paragraph 1 shall be based on the
basis by item as provided in the following Sub-paragraphs:
(1) As for the basic equipment and machinery, standard asset life by industrial sector, standard
asset life and residual value table under fixed rate method of Asset Life Table, provided in the
Enforcement Regulation of Corporation Tax Act shall be used.
(2) As for passenger cars and trucks, standard of Table 2 shall be used, as for motorcycles,
standard of Table 3 shall be used, and as for construction equipments, standard of Table 4
shall be used, respectively.
3. The declining rate for calculating the customs value of goods depreciated due to usage shall
be applied on monthly basis.  In this case, 15 days or less shall not be considered as a month, but 16
days or more shall be considered as one month.G/VAL/N/1/KOR/2
Page 30
Article 5-6 (Customs value of goods brought into Korea from a bonded factory)
1. The customs value of goods entering Korea fr om a bonded factory under provisions of Article
188 (Imposition of Customs Duty on Finished Products) of the Act shall be determined in accordance
with provisions of Articles 30 through 35 (the first method through the sixth method) of the Act.
2.  The customs value of goods produced using both foreign and domestic goods with the
approval of the customs collector, according to provision of Article 188 (Imposition of Customs Duty
on Finished Goods) of the Act, shall be calculated  by multiplying the price determined in accordance
with paragraph 1 with the ratio of the price of foreign goods over the sum of the prices of foreign and
domestic goods.  The prices of foreign and domestic goods shall be based on the methods prescribed
in the following Sub-paragraphs:
(1) The price of foreign goods used in the production of the goods   concerned shall be
determined by the methods prescribed in Articles 30 through 35 of the Act;
(2) The price of domestic goods used in the production of the goods concerned shall be the
purchase price at the bonded factory in question.  However, when the buyer and the sellerhave the special relationship falling under any Sub-paragraphs of Article 23, Paragraph 1 of
the Decree or have provided production assistances prescribed in Sub-paragraphs of Article
18 of the Decree, the domestic sale price of identical or similar goods (domestic sale prices of
the same level as the goods in question entered the bonded factory) shall be the purchase
price;
(3) The prices referred to in Sub-paragraphs (1) and (2) above shall be verified when the use of
the goods is declared pursuant to Article 186, Paragraph 1 of the Act and such prices shall be
determined in Won at that time.
3. The customs value of the goods subject to imposition of customs duty under Article 189
(Imposition of customs duty on raw materials) of the Act shall be determined under the methods
prescribed in Articles 30 through 35 (the first method through the sixth method) of the Act.
Article 5-7 (Customs value of goods brought into Korea from a free trade zone)
Under provisions of Sub-paragraph (7) of Article 29, Paragraph 3 of the Decree, the customs value of
goods brought into Korea from a free trade zone shall be determined according to the methods inArticles 30 through 35 (the first method through the sixth method) of the Act, whereby the Free Trade
Zone is regarded as the exporting country.
Article 5-8 (Customs value of goods re-impo rted after repair or processing abroad)
The customs value of goods re-imported after repair or processing abroad (except for goods which
were temporarily exported for inspection or display purposes) pursuant to proviso of Sub-paragraph
(2) of Article 101, Paragraph 1 of the Act shall be the sum of the price of the goods exported for
repair or processing and the costs enumerated below:
(1) Freight charge and insurance premium incurred  in transporting the goods in question to the
country where repair or processing is carried out;
(2) Unloading charge incurred in the country where repair or processing is carried out and any
other expenses required in delivering the goods to the repairer or processor;
(3) The expenses used for repair or processing;(4) Transporting, loading and any other expenses incurred after repair or processing in the
country of repair or processing until the goods in question are loaded;
(5) Freight charge, insurance premium, and any other expenses incurred from the shipping port of
the country where the repair or processing is carried out to the port of importation.G/VAL/N/1/KOR/2
Page 31
Article 5-9 (Customs value of repaired ships, etc.)
Costs paid for the repair or replacement of parts of a ship shall be confirmed by any of the following
documents:
(1) Payment statement issued by a foreign exchange bank;
(2) Permission for repair and use of foreign currency issued by the relevant Minister;
(3) Certificate listing the details of the repair or processing issued by an overseas mission;
(4) Any other documents which the customs collector deems reasonable.
Article 5-10 (Customs value of goods imported from bonded exhibition)
1. Pursuant to Sub-paragraph (7) of Article 29, Paragraph 3 of the Decree, the customs value of
goods imported from a bonded exhibition shall be determined according to the methods prescribed in
Articles 30 through 35 (the first method through the sixth method) of the Act.
2. The customs value of the goods imported after repair works in a bonded area pursuant to
Article 158 of the Act shall include the value added to the goods due to the repair works (repair costs
such as for material, wages, and equipment user fees, etc.)
Article 5-11 (Customs value of illegal goods)
The customs value of the illegal goods, referred to in Sub-paragraph (6) of Article 29, Paragraph 3 of
the Decree, shall be determined under one of the following items:
(1) When normal imported goods are found to be illegal goods, the customs value shall be
determined in accordance with the provisions of Articles 30 through 35 of the Act.  In thiscase, the value declaration which a liable duty payer should have made pursuant to Article 15,
Paragraph 1 of the Decree shall be determined, based on the result of customs violation
investigation;
(2) When goods falling under Sub-paragraphs (1) through (5) and (7) of Article 29, Paragraphs 3
of the Decree are found to be illegal, the cu stoms value shall be determined in accordance
with provisions of Article 5-2 through 5-10.
Article 5-12 (Estimated value and cust oms value of goods subject to auction)
Pursuant to Paragraph 7 of Article 222 of the Decree, the estimated value and customs value of goods
of which duration of storage has expired shall be  determined according to one of the following
methods:
(1) When the imported goods are settled in a normal way and the transaction value of the goods
are available, the customs value shall be determined in accordance with provisions of Articles
30 through 35 (the first method through the sixth method) of the Act and the estimated value
for auction shall include the taxes, such as the customs duty and value added tax.
(2) When the goods subject to auction are travellers' baggage, etc., the customs value shall be
determined in accordance with provisions of Article 5-3 and the estimated value shall include
the taxes, such as the customs duty and value added tax.
(3) When the goods subject to auction are deteriorated or damaged or have depreciated in value
through usage, the customs value shall be determined using the basis of value depreciation forused goods  provided in Article 5-5, Paragraph 2 (where the price calculated by these
provisions is regarded as unreasonable, a price calculated by multiplying the conversion rate
with the reasonable domestic wholesale price), and the estimated value shall include the taxes,
such as the customs duty and value added tax.G/VAL/N/1/KOR/2
Page 32
(4) When goods are auctioned on the condition that those will be exported, the estimate value
shall be calculated by deducting taxes, freight charge and insurance premium from the
estimated value determined in accordance with provisions of Sub-paragraph (1) through (3)
above;
(5) If the customs director deems the calculation of a customs value and an estimated auction
value to be inappropriate or unreasonable, such values may be re-determined based on other
reasonable means.
Article 5-13 (Customs value of imported bulk ca rgo which exceed or lack in quantity at the time
of clearance)
When imported bulk cargo are found to be exceeding or lacking in quantity at the time of clearance,
the customs value shall be determined acc ording to the following Sub-paragraphs:
(1) When the contract shows that the imported bulk cargo are transacted in unit price, the
customs value shall be the price actually paid or payable according to the price review clauses
thereof;
(2) When the imported bulk cargo are transacted in a single amount for the total quantity, the
customs value shall be the total payment actually paid or payable.
Article 5-14 (Customs value of disposed goods)
1. When the goods in question are sold under provisions of Guideline for Sale of US Army
Surplus Property, the sale price thereof shall be the customs value.  However, when various goods are
sold in the same transaction and their respective prices are not distinguished, the customs value for
each item of goods shall be established by apportioning the sale price based on the domestic
wholesale price of the goods identical to the goods in question.
2. When the goods, sold on the condition that those would be exported, are declared for
importation, not being exported, the customs value shall be the sum of the sale price, importer’s
normal profit, the freight charge, and the insurance premium.  However, when various goods are sold
in the same transaction and their respective prices are not distinguished, provisions of paragraph 1 are
also applied mutatis  mutandis  in determining the customs value of those goods which includes sale
price, importer’s normal profit, the freight charge, and the insurance premium.
Chapter 6: Value Declaration
Article 6-1 (Value declaration)
1. Value declaration in line with Article 15, Paragraph 1 of the Decree shall be made using the
Value Declaration Form (Annex 1 form)
2. Notwithstanding the provisions of Paragraph 1, in any of the following cases, the value
declaration may be omitted:
(1) As for the goods for which import declaration is omitted under the Notice on Import
Clearance Guidelines, which are subject to simplified declaration, or which are sent as special
consignment for clearance by item list, or simplified declaration, the submission of value
declaration shall be omitted. 
(2) The value declaration of the goods subject to exemption of import approval, other than the
ones described in the Sub-paragraph (3) may be replaced by submissions of the Declaration of
Reasons for Exemption of Import Approval a nd Value(Annex 4 Form).  Even though theseG/VAL/N/1/KOR/2
Page 33
goods are not subject to voluntary declaration and payment, the boxes for price declaration in
the form shall be filled in, if the price data are available.
Article 6-2 (Provisional value declaration)
1. Provisional value declaration shall be made by submitting the Value Declaration Form
provided in Article 6-1, Paragraph 1 (Annex 1 Form).
2. Upon receiving the provisional value declara tion, the customs collector shall record the
contents of the declaration on the ledger of provisional value declaration (Annex 6 Form) and when
processing the import declaration, the customs collector shall decide the definitive value declaration
period not exceeding 2 years based on the expected price declaration data declared by the liable dutypayer, and record it on the customs use boxes on the import declaration and the import declaration
certificate.
Article 6-3 (Method of provisional value declaration)
1. Anyone who is to import goods falling under provisions of Sub-paragraphs of Article 16,
Paragraph 1 of the Decree may declare the provisional value in accordance with one of the following
methods:
(1) If goods fall under Sub-paragraph (1) of Article 16, Paragraph 1 of the Decree, the price
which the importer has agreed upon to pay provisionally in accordance with the provisional
contact may be declared as the provisional value.
(2) If the addition amount such as royalties and subsequent proceeds of the goods falling under
Sub-paragraph (2) of Article 16, Paragraph 1 of the Decree is fixed as the result of sales, etc.
after importation, the amount calculated using the following methods in sequential order maybe declared as provisional addition amount.
(a) Expected payment amount calculated based on sales or production forecast in import-
related plan or business plan. However, in cases where the imported goods are
imported for an extended period of time, and where the fixed addition rate for the
goods imported under the same contract in the previous year or previous period is
available, the provisional addition amount may be calculated using the rate as
provisional addition rate.
(b) In cases where payment has been made for identical or similar goods in previous
year, the estimated payment amount calcu lated by using the following formula.
Estimated payment amount = {average income (sales amount) in the previous year ×
royalty payment rate} × contract period
(3) If the freight or insurance premium of the goods falling under Sub-paragraph (2) of Article
16, Paragraph 1 of the Decree is fixed by the quantity of the imported goods actually
transported during a specific unit of period (such as comprehensive contract for transportation
or insurance), the expected payment amount indicated in the tentative statement issued by thecarrier or insurer concerned or other similar documents may be declared as provisional
addition amount.
2. In applying Subparagraph (2), (a) of Paragraph 1, the detailed calculation method of
provisional addition amount shall follow those of Article 3-3 or 3-4.
3. Paragraphs 1 and 2 shall be applied in determining provisional value of goods referred to in
Article 1-5, Paragraphs 2.G/VAL/N/1/KOR/2
Page 34
Article 6-4 (Definitive value declaration)
1. When the liable duty payer learns that the value for the goods concerned has been fixed after
declaring a provisional value as provided in Article 6-2, he/she shall declare the definitive value by
submitting the Definitive Value Declaration Form (Annex 7 Form) and assessment data provided inSub-paragraphs (3) and (4) of Article 15, Paragraph 3 of the Decree(hereinafter referred to as
“definitive value declaration”) within the period designated by the customs collector.
2. Upon receiving the definitive value declaration provided in Paragraph 1, the customs collector
shall collect or refund the difference in duties betw een the provisional value and the definitive value
according to the provision of Article 16, Paragraph 6 of the Decree, and record this on the ledger of
provisional value declaration.
3. Whoever desires to extend the definitive value declaration period as provided in Article 16,
Paragraph 4 of the Decree shall submit two copies of the Application for Extension of Definitive
Value Declaration Period Form (Annex 8 Form) to the customs collector 3 days before the expiration
date.
4. Upon receiving the application for extension of definitive value declaration period, the
customs collector shall extend the period within the extent not exceeding 2 years from the date of
import declaration of the imported goods concerned and return one copy of the Application for
Extension of Definitive Value Declaration Period Form (Annex 8 Form) to the applicant.
5.  The customs collector shall report to the Commissioner of the Customs Service if anybody
who has made a provisional value declaration fails to declare the definitive value within the definitive
value declaration period.
Article 6-5 (Prior legal review on reassessment on customs value)
1. If any customs collector is going to reassess the decision on customs value in any of
following cases, he/she shall submit the written opinion on the reassessment and other related
documents to the Commissioner of the Customs Service.
(1) Where the content of transaction, the basis for determination of customs value, is complex, as
in case of foreign invested company.
(2) Where it is a new type of transaction, or the assessment practice is not yet established.
2. The Commissioner of the Customs Service shall notify the decision on legality of the written
reassessment opinion submitted under Paragraph 1 to the customs collector within one month.
Chapter 7: Application for Advance Ruling on Customs Value
Article 7-1 (Application for advance ruling)
1. Application for advance ruling on customs value under the provisions of Article 31,
Paragraph 1 of the Decree shall be made by using the Application for Advance Ruling on Customs
Value Form provided in Annex 11.
2. Upon receiving the application for advance ruling on customs value under Article 31,
Paragraph 1 of the Decree, the Commissioner of the Customs Service or the customs collector shall
examine the contents of the application and supplementary documents and record the contents of the
application on the ledger of application for advance ruling on customs value provided in Annex 12.G/VAL/N/1/KOR/2
Page 35
Article 7-2 (Filing and examination of advance ruling on customs value)
1. According to Article 37, Paragraph 2 of the Act, when the Commissioner of the Customs
Service or the customs collector finishes an advance ruling on customs value, he/she shall issue
Advance Ruling on Customs Value using Annex 13 Form and shall also notify the concerned customscollector.  In this case, if the Commissioner of the Customs Service or the customs collector deems a
validation period of the advance ruling on customs value to be necessary due to special characteristics
of the examination, he/she may specify such a validation period.
2. When the Commissioner of the Customs Service or the customs collector demands a revision
or correction under provisions of Article 31, Paragraph 2 of the Decree, he/she shall make the request
within seven days from receiving the application, providing 10 days for the revision or correction.
3. The Commissioner of the Customs Service or the customs collector may return the
application for advance ruling in any of the following cases:
(1) The goods are declared for importation before issuing the advance ruling;
(2) The document is not revised or corrected within the period for revision or correction
prescribed in Paragraph 2
Addenda (Date of enforcement)
This Notice shall become effective on January 1, 2001.G/VAL/N/1/KOR/2
Page 36
Table 1-1 Example of Conversion Rate
(C)
(S) (E)0123456789 1 0 1 3 1 5 1 8 2 0 2 5 3 0 5 0
0 0 673 668 664 659 654 649 645 640 636 631 627 614 606 594 587 568 551 491
5 10 647 642 637 633 628 624 619 615 610 606 602 589 582 570 563 545 528 470
7 30 631 626 621 611 612 608 603 599 595 591 586 574 567 555 548 530 514 458
10 30 614 610 605 600 596 592 581 583 579 575 571 559 551 540 533 516 500 445
10.5 30 612 601 602 598 593 589 585 580 576 512 568 556 549 538 530 513 491 442
14 30 593 589 584 580 576 571 567 563 559 555 551 539 532 521 514 497 482 428
15 30 588 584 579 575 511 567 562 558 554 550 546 535 521 516 510 493 418 424
20 30 565 560 556 552 548 543 539 535 531 521 524 513 505 495 488 412 457 406
21 30 560 556 551 547 543 539 535 531 521 523 519 508 501 491 484 468 453 402
25 30 543 538 534 530 526 522 518 514 510 501 503 492 485 415 469 453 439 389
30 30 522 518 514 510 506 502 499 495 491 481 484 473 467 457 450 435 421 373
* 30 10 541 537 533 529 525 521 517 513 509 505 501 491 484 474 467 452 437 388
* 35 10 524 520 516 512 508 504 500 496 493 489 485 475 468 458 452 437 423 374
* 40 10 508 504 500 496 492 488 484 481 471 474 410 460 453 444 437 423 409 362
* 45 10 493 489 485 481 477 474 470 466 463 459 456 446 439 430 424 410 396 351
* 50 10 478 475 471 467 463 460 456 453 449 446 442 433 426 411 411 397 384 340
* 70 10 429 425 422 418 415 412 408 405 402 399 396 381 381 373 367 355 343 303
* 80 30 380 377 314 311 368 365 362 359 356 353 350 342 337 330 325 313 303 267
* 100 30 343 340 337 334 332 329 326 323 321 318 316 308 304 291 292 282 272 239
* 130 30 299 296 294 291 289 286 284 282 279 277 275 268 264 258 254 245 236 207
Table 1-2 Example of Conversion Rate
0 0 741 735 730 725 719 714 709 704 699 694 690 676 667 654 645 625 606 541
* 5 10 712 706 701 696 691 686 681 676 671 667 662 648 640 627 619 599 581 517
7 30 694 689 684 679 674 669 664 659 654 650 645 632 623 611 603 584 566 503
10 30 676 671 666 661 656 651 646 641 637 632 628 615 606 594 586 567 550 489
10.5 30 673 668 663 658 653 648 643 639 634 629 625 612 604 591 583 565 547 487
14 30 65 648 643 638 633 628 624 619 615 610 606 593 585 573 565 547 530 471
15 30 647 642 637 633 628 623 619 614 610 605 601 588 580 568 561 542 525 467
20 30 621 616 612 607 602 598 593 589 585 580 576 564 556 544 537 519 503 446
21 30 616 611 607 602 597 593 588 584 580 576 571 559 551 540 533 515 499 443
25 30 597 592 588 583 579 574 570 566 561 557 553 541 534 523 515 498 483 428
30 30 575 570 566 561 557 553 548 544 540 536 532 521 513 502 496 479 464 411
* 30 10 595 591 586 581 577 573 568 564 560 556 552 540 532 521 514 497 481 426
* 35 10 576 572 567 563 559 554 550 546 542 538 534 522 515 504 497 480 465 412
* 40 10 559 554 550 545 541 537 533 529 525 521 517 506 499 488 481 465 450 398
* 45 10 542 538 533 529 525 521 517 513 509 505 501 490 483 473 466 451 436 386
* 50 10 526 522 518 514 510 506 502 498 494 490 487 476 469 459 452 437 423 374
* 70 10 472 468 464 460 456 453 449 446 442 439 435 426 419 410 404 390 377 333
* 80 30 418 415 411 408 405 401 398 395 392 389 386 377 371 363 357 345 333 293
* 100 30 377 374 371 368 365 362 359 356 353 350 347 339 334 326 322 310 299 263
* 130 30 329 326 323 320 318 315 312 310 307 305 302 295 290 284 279 269 260 228
Note
1. [Table 1-1] This is an example of conversion rate for goods subject to ad valorem duty and
special excise tax that has no standard price, and domestic price of which includes value added tax
[Table 1-2] This is an example of conversion rate for goods subject to ad valorem duty and
special excise tax that has no standard price, and domestic price of which does not include value
added tax
2. Rates with *mark are applied to alcoholic beverages.3. C : customs duty rate E : education tax rate S: special excise taxG/VAL/N/1/KOR/2
Page 37
[Annex 1 Form]
Value Declaration
 1. Import Declaration Number:  2. Date of Shipment:
 3.With regard to the transaction price (Fill in the blank with yes or no )
 Are there any restrictions in disposing or using the imported goods?                                   
Is the price of the imported goods affected by terms or circumstances of which value cannot be
determined?                                                   
Is any part of the profits resulting from disposal or use of the imported goods given to the seller?
   
Has the special relationship with the exporter affected the price?                                  
 4.With regard to contracts regarding imports (Fill in the blank with yes or no )
 exclusive agency contract    long-term supply contract    
 import on the installment plan by a single contract      
 occasional contract    first transaction   special relationship with the exporter  [  ]
 5. payment
 remittance prior to import declaration
   bank transaction number(Ref.No.)              
 remittance after import declaration
   Invoice No.               6. separate payment
  amount              
  name of bank
               bank           branch
  certification number                date of payment              
7. method used for determining customs value         
8. calculation of customs value()
  amount actually paid (A)      subtotal:               
    invoiced amount               
    discounted amount                 
    amount offsetting exporter’s debt                           
    amount reimbursed by the purchaser for seller’s
debt                     amount of other indirect payment                
  costs added(B)          subtotal:               
    commission            brokerage fee
    container cost               
    packing cost              
production assistance cost                
    royalty cost                
    after-importation profits                
    insurance cost            freight cost
    transportation-related cost                 costs deducted(C)            subtotal:               
   after-importation transportation cost                  installation and assembly costs after importation    
   domestically imposed taxes and other charges        
   deferred interest payment                
 customs value(A+B-C)                9. in case of provisional value declaration
  provisional value declaration No.               
  provisional addition rate                 
  amount to be provisionally added               
time of value settlement               
 period of contract for import transaction
concerned
              
  reasons of provisional value declaration(Y,
N)
    commission                 
    brokerage fee                    container cost                
    packing cost                 
    material cost                 
    production assistance cost      
    royalty cost                       
    after-importation profits        
    insurance cost                    freight cost                  
    transportation-related cost      
    others                      
    reasons for others                 G/VAL/N/1/KOR/2
Page 38
 [Annex 4 Form]
Reasons for Exemption of Import Approval and Value Declaration
Reasons for exemption of import approval
1. importer(consigner)
name of company :name of the importer(consigner) :
    address :
 business registration number :  (I.D. number) clearance I.D. mark :2. relation with transmitter
general transactional relation       □
main or branch office/ partnership   □
special relationship              □
family/ relative              □
others(       )
3. use of imports
samples  □   advertisement  □   repair  □ substitutes  □  gifts  □
production/manufacturing  □    others (                    )
4. reasons of import (Describe in detail)
Value declaration
With consideration Without consideration5. Has the payment been
made?
Amount of payment (         )
 Means of payment
    Remittance         □
    Direct cash payment  □
    others(         )Method of value determination
comparable price      □
price list            □
others(         )
6. price of the goods
(               )7. amount to be added
   freight cost(           )
    insurance cost(      )    other amount(       )8. customs value(6+7)
(               )
I confirm that the above declaration is true to the fact.
200   .      .      .
declarer      position(        ) name( ) Tel.No.(   )G/VAL/N/1/KOR/2
Page 39
[Annex 6 Form]
 Ledger of provisional value declaration
Value declared Results of review
Regis-
tration
numberDeclara
-tion
dateImport
declaration
numberLiable tax
payer(company
name)Goods
importe
dProvisional
valueDefinitive
valueProvisional
addition rateDefinitive
addition ratePeriod of
definitive
value
declarationExtended
declaration
period collection refundOther
informat-
ion
+G/VAL/N/1/KOR/2
Page 40
[Annex 7 Form]
Definitive Value Declaration Form
 import declaration
number   (date of
declaration) imported goods
 date of declaration
acceptance period of definitive
value declaration
 provisional value provisional addition
rate
 definitive value definitive addition
rate
 difference in value
 (-) difference in addition
rate    (-)
 calculation of definitive value/ definitive addition rate :
I hereby declare a definitive value under the provisions of Article 28, Paragraph 2 of the CustomsAct and Article 16, Paragraph 5 of the Enforcement Decree of the Act.
                                       Date:
                                      Declarer            (seal)
Documents
attached1. invoice (         ) 2. contracts (         )
3. Documents of various costs and other materials based on which calculation
was made (        )
4. other proof materials (        )
 In case where above documents do not exist, their submission is not
required.G/VAL/N/1/KOR/2
Page 41
[Annex 8 Form]
Application for Extension of Defi nitive Value Declaration Period

company
name
representative applica
nt
 address       (Tel.No)
 date of
import
declaration import declaration
number imported
goods quantity provisionally
declared value
(provisional
addition rate)
 customs
collector in
charge original
declaration period extension period
desired  extension period
accepted(filled in by the Customs
)
 reasons for application of extension :
I hereby apply for the extension of definitive
value declaration period under the provisions ofArticle 16, paragraph 4 of the Enforcement
Decree of the Customs Act.
date of application:
             applicant        (seal)
   This application has been accepted under the
provisions of Article 16, Paragraph 4 of theEnforcement Decree of the Customs Act.
   Date of acceptance:
               Customs  Collector        (seal)G/VAL/N/1/KOR/2
Page 42
[Table2]
Depreciating value for passenger cars and trucks
(unit:%)
Passage of
timeOver 6
monthsOver
1yearOver
2
yearsOver
3
yearsOver
4
yearsOver
5
yearsOver
6
yearsOver
7
yearsOver
8
yearsOver
9
yearsOver
10
Years
Passenger car
Trucks93.3 88 76.6 64.8 52.9 42.5 33.7 26.1 19.4 14.2 10
[Table 3]
Depreciating value for motorcycles
mileage Over 500km Over 5,000km Over 10,000km
Remaining value 95% 87% 80%
[Table 4]
(i) Depreciating value for construction equipments
(unit :%)
Passage of time
Durable yearsLess
than 6
monthOver 6
monthsOver 1
yearOver 2
yearsOver 3
yearsOver 4
yearsOver 5
yearsOver 6
yearsOver 7
years
5 year
6 year7 year95.1
95.896.490.1
91.692.880.1
83.185.464.2
69.272.951.4
57.462.341.2
47.753.233.0
39.645.433.0
38.0 33.0G/VAL/N/1/KOR/2
Page 43
[Annex 9 Form]
Application of addition (or deduction) rate
 company
name
representativeApplicant
 address         (Tel.No.)
 imported goods import of the goods
concerned for the
recent 1 year duration of the
import contractexpected
customs collector
in charge
Number of cases:value(\):
 factors appliedroyalty(    )  cost of engineering labor(    )
after-importation profits (    )   others(    )
 application of
addition/deduction rateprovisional(definitive) addition rate:
provisional(definitive) deduction rate :
 contents of the import transaction :
 method for determining value :
I hereby apply for the addition (or deduction) rate to the Commissioner of Customs Service or thecustoms collector under the provisions of Article 30 of the Enforcement Decree of the Customs
Act.
          Date of application
                                        Name of applicant                  (seal)
Documents
attached1. record of imports of the goods concerned for the last 1 year
 2. basic contract on the transaction relation (technology transfer contract, etc.)
3. business plan regarding the imports
4. supply contract for the imports
5. other materials used for value determination
 6. records on domestic sales price, profits, and general costs of the imported goods
concerned for the recent 1 yearG/VAL/N/1/KOR/2
Page 44
[Annex 10 Form]
Determination of addition (or deduction) rate
 company
name representative
Applican
t  address (Tel.No)
 goods to be imported expected Customs in
charge adjusted amount addition or
deduction rate
  contents of import transaction :
  details of addition (or deduction) rate calculation:
  effectiveperiod
  Any changes in the relationship or contents of the transaction that led to the above determination
should be immediately declared.
I hereby determine the addition (or deduction) rate under the provisions of Article 30 of the
Enforcement Decree of the Customs Act.
                     date of issuance:
Commissioner of the Customs Service(Customs Collector)G/VAL/N/1/KOR/2
Page 45
 [Annex 11 Form]
Application for Advance Ruling on Customs Value

compan
y name representative
Applica
nt
address(Tel.No)
 goods to be
imported
 planned period
of importation expected
Customs in
charge
Amount to be added under each Sub-paragraph of Article 30,Paragraph 1 of the Customs Act
Amount to be added or deducted from the amount actually paidas prescribed in Article 30, Paragraph 2 of the Customs Act
Whether the conditions prescribed in Article 30, Paragraph 3 ofthe Customs Act are met so that the customs value can be the
transaction value
Whether the requirements of identical goods in kind and qualityas prescribed in Article 31, Paragraph 1 of the Customs Act are
met.
contents of
application
Whether the reasonable standards as prescribed in Article 35 of
the Customs Act can be applied.
 description of transaction and methods used for determining import price
I hereby apply to the Commissioner of the Customs Service/ the Customs Collector for an
advance ruling on customs value under Article 37, Paragraph 1 of the Customs Act and Article31, Paragraph 1 of the Enforcement Decree of the Act.
Date of application:
                  Applicant:                     (seal)
Documents attached :G/VAL/N/1/KOR/2
Page 46
[Annex 12 Form]
Ledger of application for advance ruling on customs value
Registr-
ation
numberDate of
regist-
rationApplicant
(company
name)Goods
applied
for
reviewContent
s of
applicati
onPeriod for
correctionResult of
reviewIssuance
dateEffective
periodExpected
customs
collector in
chargeOther
informa
tionG/VAL/N/1/KOR/2
Page 47
 [Annex 13 Form]
Advance Ruling on Customs Value
 company
name representative
Applican
t
 address            (Tel.No)
 goods to be imported
 planned period of
importationexpected
Customs in
charge
 description of the transaction and the method used for determining price
 result of advance ruling on customs value:
 effective period
 Any changes in relation or contents of the transaction, based on which above determination has
been made, should be reported to the Commissioner of the Customs Service or the customs
collector who has issued an advance ruling.
I hereby issue an advance ruling on customs value under Article 37, Paragraph 2 of theCustoms Act and Article 31, Paragraph 3 of the Enforcement Decree of the Act.
                                        Date of issuance:
Commissioner of the Customs Service/Customs Collector
Documents attached :
__________