Reasons for Amendment

The Amendment strengthens control over tax avoidance by broadening the grounds for exemption from the limitation period for assessing customs duties and adds customs duty evaders to the scope of persons subject to being named in a list of defaulters. It introduces an anti-circumvention system to prevent circumvention from undermining the effectiveness of anti-dumping measures, and obligates duty payers to retain books and documentary evidence to support the content of information that has been declared or submitted. 

The Amendment builds a culture of tax compliance by increasing the reduction rate of additional duties on underreported amounts when an amended declaration is filed, strengthens the protection of the rights and interests of duty payers by increasing the scope of compensation for damages incurred due to an inspection of goods carried out by a customs office, and abolishes the inspection fee for imported and exported goods.

Moreover, the Amendment enhances the stability of the Comprehensive Customs Duties Information Network of Korea and electronic document brokerage by strengthening penalties against business entities, prescribes special procedures for bonded transportation by international trade vessels in open ports, and stipulates legal grounds to punish persons who fail to comply with the obligation to prevent leakage of information for taxation.