The Scope of Household Goods to be accepted as such
Goods that do not fall within the household goods to be moved:
- The head of the competent customhouse may not assess any custom duties on the goods he/she has accepted as such, taking into account the reasons for movement, duration of residence, vocation, the number of family members and other circumstances, except for the goods that are not acceptable as household goods [Article 4.1 of Notification on processing import customs clearance of household goods(Notification of Korea Customs Service No. 2022-2, announced December 21, 2021, and enforced on January 1, 2022, and Schedule 1 attached thereto) ].
1. All of the goods transported into Korea at the request of a third person;
2. Goods that are not deemed acceptable as personal or household use [e.g. any goods assumed to be the ones for commercial purposes, including without limitation printers, large copiers and large dish washers; kit cars not produced by automobile manufacturers]
3. Goods that are not appropriate for the declarer’s job [e.g. high-quality musical instruments brought in, regardless of the declarer’s job [(including students majoring in music) such as grand pianos (excluding baby grand pianos), video cameras for the production of works, film projectors, film developers, etc.];
4. Goods that are brought in excessive quantities, compared to the number of moving members [e.g. feminine goods or articles of apparel made of furs in excessive quantities that are brought in by a male person accompanying no family members];
5. Any other goods that the head of the competent customhouse cannot accept as household goods.
※ Checking of the Length of Residence
- The aforementioned length of residence shall be checked, using one of the following methods(Article 4.3 of Notification on processing import customs clearance of household goods).
1. For Korean nationals, the dates of entry and departure shall be checked through the traveler information system or administrative information sharing portal, in principle. However, where the subject concerned submits a certificate of entry and departure previously issued, the period of staying aboard indicated on the certificate shall be checked against the certificate submitted.
2. For Koreans with permanent resident status overseas, the length of residence is checked using the employment contract entered into in Korea at the time of entry or passport validity confirmation issued by the Minister of Foreign Affairs at the time of entry for permanent return.
3. For foreigners, the length of residence is checked by the residence card (or visa, if the issuance of the residence card is pending) or employment contract in Korea issued by the head of the public office of the Immigration Office.
The quantity of household goods permitted per number of family members
- The head of the competent customhouse shall permit durable household goods as moving items but this criteria may be used with discretion based on the living environment, etc[Article 4(2) of Notification on processing import customs clearance of household goods].
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No. of family members
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Permitted number of household goods
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1-2
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5
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3-4
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6
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5-8
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7
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9 or more
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8
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Bringing in household goods
Period for bringing in household goods
- In order to be recognized as household goods, the goods must arrive in Korea (i.e., the date on which the vessel or aircraft carrying the household goods arrive at the port. Same shall apply hereinafter) within 6 months from the date of entry of moving members [Article 5(1) of Notification on processing import customs clearance of household goods].
- The household goods of those who fall under any of the following cases shall arrive in Korea within six months from the date specified below (Article 5(2) of the Notification on Processing Import Customs Clearance of Household Goods).
· Those who declare a waiver of permanentresidency abroad: Date of forfeiture of permanent residency abroad
· Those who are naturalizing: date of expiration of foreign nationality or the date of acquisition of Korean nationality
· Those who are recovering Korean nationality: date of recovery of nationality or date of loss of foreign nationality
When the goods could be considered household goods even after the given period.
· The head of competent customs house may permit the goods brought into Korea after the 6-month period from the date of the entry of moving members as household goods in the following circumstances [Article 5(3) of Notification on processing import customs clearance of household goods].
· Where it is acknowledged that the household goods cannot be brought in within the due date due to natural disasters, bankruptcy of the shipping company (airline), etc.
· Where the head of the competent customhouse acknowledges that moving members had no choice but to reside in Korea or abroad for a certain paid even after six months has passed from the date stipulated under Article 5(2) of the Notification on Processing Import Customs Clearance of Household Goods
· Other causes equivalent to the above that areacknowledged inevitable by the head of the competent customhouse.
Taxation of household goods
Non-tax exempt items
- The head of the competent customhouse shall impose tax on the following goods brought in by moving members which are not tax exempt (not including items confirmed to have been taken out at the time of departure). In such event, whether items are used shall not be considered for items from 1 to 4 and 6 [Article 6(1) and (2) of Notification on processing import customs clearance of household goods].
1. Vessel
2. Aircraft
3. Automobiles (not including cars exported from Korea or those brought in by reporters of foreign nationality for the purpose of news gathering while residing in Korea for the first time, as confirmed by the minister of Ministry of Culture, Sports and Tourism as a press vehicle.)
4. Diamond, pearl, tortoise-shell, coral, pumpkin or ivory or products made using them whose individual taxable value is 5 million won or more.
5. Goods normally recognized as household goods used for less than three months from entry to Korea.
6. Goods exceeding the permitted range of household goods (in the event of selecting taxable subject pursuant to this, it should be applied favorably to the owner of the goods.)
Determination of taxable price
- The taxableprice of the household goods or goods brought in by a short-term sojourner (“Household goods, etc.”) shall be in accordance with the “Notice regardingoperations of customs valuation” (Korea Customs Service Notice No. 2021-41, issued and enforced on March30, 2021). Thefollowing criteria shall be applied to those household goods exceeding thepermitted range of household goods [Article 7 (1) of Notification on processingimport customs clearance of household goods].
· If the period of use is less than 3 months: 80% of a brand new product
· If the period of use is less than 6 months: 60% of a brand new product
· If the period of use is less than 1 year but 6 months or more: 40% of a brand new product
· If the period of use is 1 year or more: 20% of a brand new product
- Notwithstandingthe foregoing, the taxable price of automobiles shall be the list price of anew car listed in a booklet related to automobile prices published periodicallyminus the amount of depreciation due to use from the date of initialregistration to that of import declaration pursuant to AttachedTable 2 of the “Notice regarding operations of customs valuation,” with the cost of transport and insurance addedafterward. However, if the x-documents to x-objectively prove the actualpurchase price is presented, such price may be accepted [Article 7 (2) ofNotification on processing import customs clearance of household goods].
Drafting statement of details of household goods brought in and import report
Who drafts statement of details of goods brought in and file import report?
- The import reports for household goods, etc., must be filed in the reporter’s own name. Provided, however, the statement of details of household goods brought in may be drafted by the following person[Article 8(1) of Notification on processing import customs clearance of household goods].
· Moving members or short-term sojourner (hereinafter, “moving members, etc.”)
· Accompanying family members of moving members, etc.
· Those who have been entrusted by moving members, etc., or whose family relationship has been proven through family relationship certificate, etc.
Documents to be submitted
- Those who intend to file an import report of household goods, etc., shall submit the following documents to the head of the competent customhouse. In such circumstance, 1 or 2 shall be transmitted via the National Customs Service’s electronic customs system[Article 8(2) of Notification on processing import customs clearance of household goods].
1. Import report
2. Statement of details on household goods brought in
3. Packing list
4. Transportation-related documents including Bill of Lading (B/L), Airway Bill, and compound freight transportation documents
5. Document for verification of period of residency
6. Automobile related documents
7. Documents reported for goods carried in at the time of entry (including checked-in goods) (only if report on goods carried in have been filed)
8. Other x-documents deemed necessary for the head of the competent customhouse to determine whether the person is applicable to move, calculate the residing period, determine the pricing of tax costs, or take other measures for customs clearance of household goods
Goods requiring caution when filling in the form
- When a person files an import report for the following goods, one item shall be filled-in per one blank. Other goods not subject for tax payment shall be filled in as “HOUSEHOLD GOOD” in the blank as the item name [Article 8(3) of Notification on processing import customs clearance of household goods].
· Goods not subject to tax exemption
· Goods for which import report acceptance certificate is necessary for registration in Korea following customs clearance such as automobiles, rifles, etc.
· Goods which the reporter wishes to list separately in the import report for after-the-fact certification.
Payment of taxes
Payment after acceptance of import report
- As to the household goods for which customs taxes are payable, customs taxes shall be paid after accepting the import report. However, if any person falling under any of the following cases has made the import report, he/she may request provision of collateral in the amount of the customs tax (Article 11(1) of the Notification on Processing Import Customs Clearance of Household Goods, Subparagraphs 1, 2, 3, and 4 of Article 248(2) of the Customs Act).
· Anyone who has been sentenced to imprisonment by violating the Customs Act or Article 23 of the Act on Special Cases Concerning the Refund of Customs Duties Levied on Raw Materials for Export and finished execution of the sentence (or considered to have finished execution of the sentence), or if two years have not passed since his/her exemption was declared
· Anyone who has been sentenced to probation for imprisonment by violating the Customs Act or Article 23 of the Act on Special Cases Concerning the Refund of Customs Duties Levied on Raw Materials for Export
· Where two years have not passed since the person has been sentenced to penalty or has received a disposition of notification specified under Articles 269 to 271, 274, 275-2, 275-3 of the Customs Act or Article 23 of the Act on Special Cases Concerning the Refund of Customs Duties Levied on Raw Materials for Export
· Anyone who has records of overdue tax payment, including customs, in the last two years from the date of import report specified under Articles 241 or 244 of the Customs Act
Payment due dates
- Moving members, etc., shall pay the tax invoice within 15 days of receipt of the notice of tax payment [Article 11(2) of the Notification on Processing Import Customs Clearance of Household Goods].
Assessment of surcharges, etc.
- The head of the competent customhouse shall encourage payment from those who have failed to pay taxes. Where the head of the competent customhouse has delivered the letter of demand to the defaulter, he/she shall promptly notify the head of Seoul Customs or Busan Customs of the nonpayment of taxes and provide relevant documents accordingly (Article 11(3) of Notification on Processing Import Customs Clearance of Household Goods).
Assessment of surcharges
- The head of the competent customhouse shall assess 20% of taxes (including customs and inland taxes) to be paid as to the goods subject to taxes when assessing taxes for moving members, etc.’s failure to file report for the goods subject to taxes at the time of filing import report (Article 12 of Notification on processing import customs clearance of household goods).