Korea Customs Service: "Unreported Items Exceeding Duty-Free Limit, Additional Tax Up to 60%"

by Jeong Ilwoong

Published 03 Nov.2021 10:45(KST)

Provided by Korea Customs Service

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Customs authorities have urged voluntary declaration for goods exceeding the duty-free allowance for overseas travelers.

According to the Incheon Regional Customs Office of the Korea Customs Service on the 3rd, voluntary declaration is a system where overseas travelers who bring goods exceeding the duty-free allowance (600 USD per person) into the country can receive a 30% reduction on customs duties up to a limit of 150,000 KRW when they voluntarily declare the items to customs.

Conversely, if goods exceeding the duty-free allowance are brought in without voluntary declaration and are caught, additional penalties will be imposed, so caution is required. The additional penalty can be up to 60% of the tax amount.

For example, if a bag purchased overseas or at a duty-free shop exceeds the duty-free allowance of 600 USD and the taxable amount is 1,000,000 KRW (with a tax rate of 20%), a voluntary declaration would reduce the tax by 30%, resulting in a tax payment of 140,000 KRW. However, if not voluntarily declared, the tax could increase up to 320,000 KRW.

In particular, if goods are intentionally concealed or smuggled, the items will be confiscated.

An official from the Incheon Regional Customs Office stated, “With the government’s With Corona policy, the number of overseas travelers is expected to increase. Customs plans to strengthen inspections accordingly, so overseas travelers should make voluntary declarations upon entry to avoid disadvantages.”