ENGLISH
Use of duty free shops
Persons eligible to use duty free shops
Duty free shop for diplomats- Only diplomats to Korea and employees of diplomatic missions to Korea who are eligible for tax exemption can use duty free shops for diplomats (「Notification on the Licensing and Operation of Bonded Store」 Article 29(1)).
Duty free shop at the departure area- A departure area indicates a place where passengers who are about to depart or stay temporarily for transit waiting for flights or ships within a bonded area in an airport or sea port (「Notification on the Licensing and Operation of Bonded Store」 Article 2-7).
- Koreans and foreigners who are about to go abroad and passengers who stay temporarily due to transit flights or ships to other nations can use duty free shops at the departure area (「Notification on the Licensing and Operation of Bonded Store」 Article 29(2)).
Downtown duty free shop- As a downtown duty free shop is located away from the departure area, only Koreans and foreigners who are about to go abroad can use downtown duty free shops (「Notification on the Licensing and Operation of Bonded Store」 Article 29(2)).
Passport and boarding pass Passport- A traveler going abroad should hold a passportand he or she needs it when purchasing goods at a duty free shop (The PassportAct, Article 2).
· When apassport is re-issued due to an expiration date concern, name change, etc.after purchasing duty free goods, the passport holder should contact the dutyfree shop and change passport information.
Information of departing flight and passengership- Unlike ordinary shopping malls, foreigners whosedeparture date is fixed can use duty free shops. Therefore, a traveler shouldknow the fixed departure date, time, and flight number to use duty free shops.
· If a travelitinerary is changed or departure information is entered incorrectly, atraveler should contact the duty free shop and change departure information.
Order Ordering duty free goods at a duty free shopfor diplomats- If a person wants to purchase duty free goods at a duty free shop for diplomats, the person should submit an application for duty free customs clearance, which confirms the person is eligible inaccordance with the Customs Act Article 88 (1) 1 to 4, to the duty free shop (「Customs Act」 Article 88, 「Notification on the Licensing and Operation of Bonded Store」 main sentence of Article 34(1) and Annex 17).
- If a person wants to purchase liquor or tobacco, the person should submit a written request for duty free customs clearance issued by the Minister of Foreign Affairs of the Republic of Korea and purchase goods within an allowed limit (proviso to Article 34(1) and Annex 19 of 「Notification on the Licensing and Operation of Bonded Store」).
Ordering duty free goods at a downtown dutyfree shop- Only a person going abroad can purchase goods at a downtown duty free shop (「Notification on the Licensing and Operation of Bonded Store」 Article 29(2)).
- If a person purchases duty free goods at a downtown duty free shop, the person is given an exchange ticket signed by the same person (including a transcribed ticket by an electronic signature). In the case of issuing a transcribed ticket, the buyer’s identity may be verified with a passport or other identification at the time of delivery (「Notification on the Licensing and Operation of Bonded Store」 Article 36(1)).
Ordering duty free goods at a duty free shopat the departure area- Only a person going abroad can purchase goods at a duty free shop at the departure area (「Notification on the Licensing and Operation of Bonded Store」 Article 29(2)).
- If a person purchases duty free goods at a dutyfree shop at the departure area, the person needs a passport and a boardingpass since the person receives the goods on the spot.
Ordering duty free goods at an online dutyfree shop- Only a person going abroad can purchase goods at an online duty free shop (「Notification on the Licensing and Operation of Bonded Store」 Article 35(1)).
- If a person purchases duty free goods at an online duty free shop, the person is given an exchange ticket signed by the same person (including a transcribed ticket by an electronic signature). In the case of issuing a transcribed ticket, the buyer’s identity may be verified with a passport or other identification at the time of delivery (「Notification on the Licensing and Operation of Bonded Store」 Article 36(1)).
Ordering duty free goods at an on-boardairplane duty free shop- For matters concerning in-flight duty free goods,please contact relevant airlines.
Payment Payment in cash- Cash receipt
· Purchases made at bonded stores under Article 196 of the 「Customs Act」, designated duty-free shops and duty-free goods sold on ships and aircraft under Article 121-13 of the 「Act on Restriction on Special Cases Concerning Taxation」 are excluded from income deduction and, therefore, cash receipts are not issued (Article 126-2(4)(4) of the 「Act on Restriction on Special Cases Concerning Taxation」 and Article 121-2(6)(12) of the 「Enforcement Decree of the Act on Restriction on Special Cases Concerning Taxation」).
- Contract for insurance for the compensation ofcustomer damage
· When a personpays in cash at an online duty free shop, to secure the safety of the purchasethe person can choose to use the escrow system until provided with thepurchased goods or sign a contract for insurance for the compensation ofcustomer damage, if the person wants (「Act on the Consumer Protection in ElectronicCommerce, etc.」 Article 24 (2)).
· If a contractfor insurance for the compensation of customer damage is signed, an insurancepolicy is issued upon receipt of deposit.
- Receipt of payment for goods
· A duty free shop may receive payment for goods sold either in KRW or in a foreign currency. In calculation of foreign exchange rates, a number lower than 1 shall be rounded off in favor of the customer. Where a small change is not available in a foreign currency, the shop may pay it in KRW. (「Notification on the Licensing and Operation of Bonded Store」 Article 41).
Payment by credit card- A purchase may pay the price with a credit cardissued in his/her home country or overseas. The use of a credit card issueoverseas will entail relevant handling charge.
Things to take note when purchasing duty free goods Hours to purchase- As for downtown duty free shops and online dutyfree shops, a person may not purchase goods after a nominated time too close todeparture, since it takes time to transport purchased goods to a place ofdelivery.
- Details about in-flight duty free goods maydiffer from airline to airline. Please check with your airline.
Allowed limit for purchase and tax exemptionlimit- Purchase limit
· The purchase limit for foreign goods by departing Korean nationals was revised on March 18, 2022, allowing them to purchase goods without any restrictions (「Notification on the Licensing and Operation of Bonded Store」 Article 29(4)).
- Tax exemption limit
· The taxexemption limit of an inbound foreigner is up to USD 600 per 1 person for thetotal taxable value of personal effects or separately delivered baggage(excluding those retaken into the country after being taken out with theascertainment of the customs office). (「Customs Act」 Article 96 (1)-1 and 「EnforcementRegulation of the Customs Act」 Article 48 (2)).
√ The tax exemption limit is calculated by including foreignand domestic goods and it is based on the total effects taken from overseas,such as goods purchased at duty free shops in Korea and purchased abroad.
· Besides thebasic tax exemption limit, tax on liquor, tobacco, and perfume is exempted asfollows (「Customs Act」 Article 96 (1) 1 and 「Enforcement Regulation of the Customs Act」 Article 48(3)):
√ Liquor : capacity must not exceed 2 liters, and price must not exceed USD 400
√ Tobacco : Tobacco : 200 cigarettes, 50 cigars, Electronic cigarette (200cigarette types, 20㎖ of liquid nicotine, other types 110g)250g of other types of tobacco (however, iftwo or more types of tobacco are taken, only one can be exempted from tax)
√ Perfume : 60㎖
· However,customs duties on liquor and tobacco taken by a person under the age of 19 arenot exempted and, in cases where the liquor and tobacco include domesticliquor, tobacco and/or perfume purchased under the proviso to Subparagraph 1 ofArticle 196(1) and Article 196(2) of the Customs Act, the quantity of thedomestic goods are excluded from the separate exemption (Subparagraph 1 ofArticle 96(1) of the Customs Act and Article 48(3) of the EnforcementRegulation of the Customs Act).
Flight transit- When a purchaser transfers to a transit flight,goods purchased at duty free shops are taken on-board by the purchaser sincegenerally check-in baggage is sent to the final destination.
- As the danger of liquid explosives is growingglobally as a new threat, according to the recommendations of the InternationalCivil Aviation Organization (ICAO), taking liquids and gels onto allinternational flights (including through and transit flights) departingairports in the territory of the Republic of Korea since March 1, 2007 carrythe following restrictions:
- Liquids, sprays and gelscanbe taken on-board if requirements as follows are met(Article 5(1) of the Regulations on Restricted Items including Liquids, Spraysand Gels Onboard Airplanes):
· The itemshould be contained in a Transparent Re-Sealable Plastic Bag (TRSPB) that doesnot exceed 1ℓ (20.5㎝X20.5㎝, 25㎝X15㎝ or equivalent size). All items shall be put in theplastic bag so that it can be completely sealed.
· The itemshould be contained in an 100㎖ container or equivalent size (3.4oz, 100g).
· Do not carry aportion of liquids, sprays or gels in a container with a capacity of over 100㎖. A passengermay carry empty containers with a capacity of over 100㎖.
· One plasticbag is allowed per passenger.
※ A plastic bagcontainingliquids, sprays and gels should be presented to security at the airport afterbeing separated from other luggage prior to a security check.
- However, goods purchased at duty free shops canbe taken on board as an exception, if all requirements as follows are met met (Permissible Standards of Liquids, Sprays and Gels).
· If the goodsare contained in a Security Tamper Evident Bag (STEB), which is manufactured inaccordance with international standards and provided by a duty free shop
· If the receiptfor the goods is enclosed in or attached to a STEB
· If a STEB issealed until the passenger boards a flight to the final destination
※ Regulations can vary by nation depending onwhether the nation has accepted the recommendations or not. Liquids and gelscan be confiscated or disposed of when a passenger transfers at an overseasairport since security regulations vary. A passenger should inquire about thepassenger security regulations of a stopover country with airlines or travelagencies in advance.
Confirming customs clearance regulations ofcountry to enter- When a passenger enters another country bringinggoods purchased in duty free shops in Korea, customs clearance is carried outin compliance with the customs clearance regulations of that country as eachnation has its own customs clearance regulations on personal effects.
- Therefore, a passenger should confirm the customsclearance regulations on personal effects of a country he or she wishes toenter since items on which tax can be exempted when entering Korea may besubject to tax or prohibited in some countries according to local customsclearance regulations.
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