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  • Proposal to revise parts of Detailed Enforcement Regulations About Imposing and Collecting a Fine fo
    • 담당부서 : 외투기업고충처리실(고상원)
    • 조회수 : 2,892
  • Organization : Korea Customs Service, Incheon Customs
  • Regulation : Detailed Enforcement Regulations About Imposing and Collecting a Fine for Negligence in Accordance w
Grievance
Grievance
•Backgrounds: The customs office imposed a fine of 50,000 to 200,000 won on express cargo companies when their cargo, which had been initially reported for list clearance, had to undergo regular customs due to false information declaration.

※When express cargo companies reported the import of express goods valued at less than US$ 100, they would receive “list clearance” by providing minimum cargo information – details from commercial invoices given to them by their customers, the exporters. List clearance would not be granted if false information were declared, in which case cargo would have to go through a regular customs process.

•Main Issue: On November 4, 2010, foreign express cargo firms including Company F raised their common grievance that it was unfair to fine the companies that simply transported the goods despite the fact that the exporters, the commercial invoice providers, were actually responsible for information accuracy.

•Request: Even though these express cargo companies tried hard to have the exporters write correct information on commercial invoice, they couldn't fulfil all the requests of KCS because they were doing business with more than 220 countries in the world. Therefore system improvement was needed to ease the too strict rules for levying fines for negligence.

Resoultion and Results
Resolution and Results
•Resolution: The Ombudsman Office helped resolve the grievance by recommending improvement of standards to impose fines for negligence.

•Resolution Process
‣(Nov. 1 and 4, 2010) The 1st and 2nd meetings with foreign-invested companies for grievance resolution were held.
‣(Nov. 1, 2011) The Ombudsman office held a meeting with relevant agencies including KCS

※Foreign Investment Ombudsman called for swift implementation of the agreement to ease the standards of levying fines.

※KSC and Incheon Main Customs agreed to ease the regulations of imposing fines by revising "Detailed Enforcement Regulations about Imposing and Collecting a Fine for Negligence in Accordance with Customs Act, etc." or establishing other internal guidelines.

Outcome:
•Results: The Detailed Enforcement Regulations about Imposing and Collecting a Fine for Negligence in Accordance with Customs Act, etc. was revised on December 26, 2011 and came into effect on January 1, 2012.
•Expected effects: Under the new system, 50 percent of fines for negligence are expected to be reduced.

※Standards to levy fines according to each category (before and after revision)
- Relevant provisions for punishment: Paragraph 4-3, Article 277 of Customs Act
- Violation: Anyone who violated Article 254-2 of the Customs Act
① Obvious errors in the name of goods
② prices of goods
③ names of receiver