Expertise

Customs Audit (Customs valuation)

Since the change of the customs system from a permit-based system to a report-based system, the customs office is conducting audit via post-valuations such as periodical corporate audit or special audit on the transfer price, license fees, etc., reported by the taxpayer. In some case, such valuations have led to imposition of immense customs on corporations, affecting the very existence of the corporations and requiring restructuring of some multinational companies.

In particular, the "corporate audit" newly established around March 2010 is a comprehensive audit system which includes the existing customs audit component of the "special audit" as well as customs clearance valuation and evaluation of foreign currency transaction, which has considerable impact on corporations. As such, it requires carefully planned and proactive response. The Customs Practice Group at Lee & Ko provides the best defense against customs audit and valuation based on its ample practical experience and knowledge in customs law.


Customs Rate, Classification, Reduction/Exemption, Refund

"Classification" refers to imposing the relevant customs upon classifying export/import items. In the event non-taxable goods are classified as taxable goods or vice versa, amended rate of customs or refund of paid customs becomes an issue. With respect to the above, the Customs Practice Group at Lee & Ko has provided successful resolutions based on our ample practical experience and extensive research on the domestic classification cases as well as on international organizations’ classification systems and cases. 

In addition, we provide responsive and diligent consulting services in respect to whether the products a company intends to import qualify for customs reduction/exemption, whether the refund of customs paid for importation of raw materials that were used for the manufacturing of goods would be permitted and whether a computation of customs refund rate is accurate, etc. 

Lee & Ko provides not only the assurance of optimal outcomes, but also maximum efficiency in reducing procedural burdens by assigning the best qualified customs experts to assist in each situation, 


Investigation on Violation of Customs and Foreign Exchange Regulations

Customs office's investigation on the violation of customs regulations such as illegal import/export, Smuggling, evasion of customs, fabricated report, etc and on the violation of foreign exchange regulations such as flight of domestic properties, breach of debtor obligation, 3rd party payment, illegal set-off and illegal financial transaction, etc may trigger immense financial penalties as well as possibility of criminal punishment on the officers/employees of the subject company. Ultimately, it may lead to immeasurable damage such as downfall of the corporate reputation, etc. 

Accordingly, thorough and extensive response by specialists is vital from the initial stage of such investigations until the completion thereof. The Customs Practice Group at Lee & Ko cooperates actively with criminal law team of the firm and provides effective representation on behalf of clients.


FTA Law and Regulations on Export and Import, Unfair Trade, AEO, FTA

Korean laws and regulations on international trade constitutes a complex web of the Customs Act, the Foreign Trade Act, the Foreign Exchange Transactions Act as well as more than 50 special Acts, hundreds of administrative rules and more than a hundred treaties. As such, it is extremely difficult for import/export companies to have extensive knowledge of such laws and causes frequent, inadvertent violations based on ignorance and failure to enjoy benefits provided under law.

Despite the principle of free and fair trade, increasingly complex structure of international trade has led to many instances of fabricated place of origin, import/export of goods that infringe on trademark/patent rights, etc, and of anti-dumping/safeguard-related goods. Additionally, the need for export/import companies to respond effectively to the recent restriction of strategic product export or AEO (Authorized Economic Operator) system has been ever increasing. 

Moreover, while the number of FTAs (Free Trade Agreements) has been increasing, the respective provisions in the FTAs (particularly the standards for determination of place of origin) are inconsistent with each other, making it difficult for the export/import companies to fully utilize the FTAs. The Customs Practice Group at Lee & Ko provides tailored and pertinent legal services in relation to on export and import of strategic goods, unfair trade, AEO, and FTA, etc based on its practical experience in customs administration and in-depth knowledge in each system.