WORLD TRADE  
ORGANIZATION  G/LIC/N/3/KOR/4 
2 August 2005 
 
 (05-3470) 
Committee on Import Licensing Original:   English 
  
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the  
Agreement on Import Licensing Procedures  
 
KOREA 
 
 The following communication, dated 21 March 2004, is being circulated at the request of the Delegation of Korea. 
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 Outline of systems
 
 1. Korea has continued to reduce trade-related re gulations, embracing the principle of free trade 
with respect to export and import activities.  In this c ontext, restrictions on trade, if any, are limited to 
the very minimum necessary.  
 No licensing (since 6 June 1993), registration (s ince 30 December 1996) or notification (since 
1 January 2000) is required to be  importers and exporters.  Only for statistical purposes, the Korea 
International Trade Association (KITA) – a pr ivate organization – assigns upon request a trade 
business number to anyone who wishes to conduct trade business.  
 The Foreign Trade Act (FTA) is the basic law that governs international trade between Korea 
and other countries. Specific items for which exports and/or imports are restricted are listed in the 
Export-Import Notice published by the Ministry of Commerce, Industry and Energy (MOCIE). But at present, no item is subject to import restrictions according to the Export-Import Notice.   In addition to the FTA, 45 separate laws also stipulate approval or au thorization requirements 
for certain items, and those items can be imported by obtaining certification, permission and type 
approval.  Those requirements are maintained mos tly for the protection of morals, human health, 
hygiene and sanitation, animal and plant life, e nvironmental conservation or essential security 
interests in compliance with domestic legislati on requirements or international commitments. 
 
 To enhance transparency and for the conve nience of trading companies, MOCIE updates 
semi-annually the Consolidated Public Notice, a single document containing all export and import 
certification requirements in the 45 separate laws.  Purpose and coverage of licensing
 
 
2. As of January 2002, there is no quantitativ e import restriction on the basis of the HSK 
ten-digit code except on rice.  Im port-related requirements provided by  the 52 separate laws pertain to 
petroleum, LPG (Liquefied Petroleum Gas), agricultural fertilizers, crop seeds, animals and animal products, nuclear materials, narco tics, foods and food additives, fo reign publications, firearms and 
explosives 
 
                                                     
 
1 See G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/KOR/4 
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3.       The system applies to goods originating in and coming from all countries.   
 4. All import-related regulations except those on ri ce are not intended to restrict the quantity or 
value of imports.  Rather, they are maintained in order to protect national security, human, animal or 
plant life or health, and the environment, etc. in accordance with the provisions of Articles XX and 
XXI of GATT 1994, other WTO Agreements and other international rules or agreements. 
 
5. The import approval system is enforced under the Foreign Trade Act, the Enforcement Decree of the Foreign Trade Act, the Foreign Tr ade Management Regulation and the Export-Import 
Notice.  
 The import-related requirements are set forth in the 45 domestic laws. A list of these laws is 
attached in Annex II. The detailed approval cond itions are prescribed in enforcement decrees or 
regulations for the above-men tioned 52 domestic laws. 
  
 While it is not possible for the executive branch to abolish or to convert the approval system 
without legislative approval, there is administrative flexibility to some extent since the authority to 
classify a specific item for import regulati on is entrusted to the executive branch. 
 Procedures
 
 6.I Tariff rate tables attached to the Tariff Act contain information relating to total quantities of 
rice import quotas, and can be accessed by the public through the Korean National Assembly website.  
The formalities for filing rice import quota allocations and import licences are stipulated in the Food Grain Management Act, which is also accessible through the internet.  II. Total quotas and sub-quotas for each importer ar e determined on an annual basis.  Importers 
can import up to the quantity of their quota allocations at any time during the quota year. 
 III. The allocation of quotas is not limited to dom estic producers of like products.  Each company 
should return the unused portion of the allocated quota and unused quotas are reallocated to other 
eligible importers on an annual basis.  Unused quot as are not added to quotas for the next year.  The 
list of importers to whom quotas are allocated is not made known to exporting countries for business 
privacy purposes. 
 IV. A period of 30 days or more is allo wed for the application for quota allocation. 
 V. According to the Food Grain Management Act, the maximum period for processing rice 
import applications is 20 days. 
 VI. There is no minimum length of time between them.  VII. Quota allocation and applications for rice im port licences are considered by one organization, 
the Ministry of Agriculture. 
 
VIII. Quotas are allocated mainly on the basis of past performance.  A certain portion of the quota 
is allocated to new eligible applicants.  Applica tions for quota allocation are examined simultaneously 
and applications for import licences are examined upon receipt.  
IX-X. Not applicable. 
 XI. No.  7. Not applicable.  There are no licensing proce dures for items not subject to import restrictions 
on quantity.  G/LIC/N/3/KOR/4 
 Page 3 
 
 
 
8. An application for approval cannot be rej ected if it satisfies the established criteria. 
 
Eligibility of importers to apply for licence  
 
9. (a)    In cases involving import-restricted items under the FTA, the quotas are allocated to 
end-users. As for rice, however, qualified importe rs are generally designated by the Ministry 
of Agriculture and Forestry, as prescribed  by the Food Grain Management Act. 
 
(b) No licensing (since 6 June 1993), registration (since 30 December 1996) or notification (since 
1 January 2000) is required to be importers and exporters under non-restrictive systems. 
 
 For statistical purposes only, the Korea Intern ational Trade Association (KITA), a private 
organization, assigns upon request a trade business num ber to anyone who wishes to carry out trade 
business.  The KITA publishes a list of traders annually.  
Documentation and other requirements for application for licence
 
 10. An offer sheet or a copy of the contract and other necessary documents must be submitted 
together with the application.  
11. Only in the case of import-restricted items, upon actual importation, the import declaration, 
import approval, commercial invoice, Bill of La ding and other necessary documents must be 
submitted.  12. There is no licensing fee or administrative charge.  
13. There is no deposit or advance payment requi rement associated with the issue of licences. 
 Conditions of licensing
 
 14. In principle, the period of validity for impor t approval is one year.  However, the period can 
be extended or shortened, depe nding on specific circumstances, when the approval is issued by 
relevant administrative agencies.  15. There is no penalty for the non-utilisation of a licence or a portion of a licence.  16. Licences are not transferable between importers. 
 
17. No other conditions are attach ed to the issue of a licence. 
 
Other procedural requirements
 
 18. There are no other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation. 
 
19. Foreign exchange is provided automatically for goods to be imported under the standard 
settlement method.  However, in cases involving a non-standard settlement method, where certain 
criteria are imposed on the payment under the Forei gn Exchange Transaction Act, for instance, where 
the settlement exceeds a specified period of time or  a designated amount of money in transactions 
such as deferred payments, instalment payments or imports based on remittance, permission from the Bank of Korea or the Ministry of Finance and Economy must be obtained. 
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