2. Reasons for revision

□ To improve the provisions concerning the adjustment of goods whose distribution history is declared and the provisions related to the committee.

□ To relax the notification deadline so as to reduce the burden on businesses.

□ To revise the wording and terminology so as to make them consistent with the Customs Act.

3. Main contents of revision 

□ Adjustment of items for distribution reporting (Appendix 1).

◌ Three items (H-shaped steel, flanges, manhole covers) → One item (H-shaped steel) designated anew.

※ Designation period: September 1, 2024 - July 31, 2026

□ Provision on the scope of goods whose distribution history has been declared (Article 3).

◌ It defines the scope of application following the transfer of seafood management to the Ministry of Oceans and Fisheries (October 1, 2020) and the transfer of agricultural products management to the Ministry of Agriculture, Food and Rural Affairs (January 1, 2022)

- (Addition) Agricultural and fisheries products stipulated in the Framework Act on Agriculture, Rural Community and Food Industry do not fall under the items subject to the distribution history declaration as designated by the Commissioner of Customs.

□ Shortening of the period for designation of goods whose distribution history has been declared (Article 4).

◌ 5 years → 3 years: The maximum designation period for goods whose distribution history has been declared has been shortened from 5 to 3 years to ease the burden on importers and distributors.

◌ 'Designated time limit' → 'Designated period': The term has been revised.

□ Abolition of the Distribution History Review Committee (Article 4-2) and Establishment of the Preliminary Review Meeting (Article 4)

◌ As the committee is not stipulated under the higher statute, it has been abolished in accordance with the plan for reorganizing the committee.

※ Recent meetings of the Distribution History Review Committee: once in 2021, once in 2022, none in 2023.

◌ It introduces a preliminary review meeting to improve the reliability and validity of the designation of items subject to the distribution history declaration.

□ Relaxation of the reporting deadline to reduce the burden on businesses (Article 8).

◌ (Current) Within 5 days as a rule ⇨ (Exceptions added): By the 10th of the month following the month in which the transfer date falls in the case of a business that issues tax invoices in bulk by summing up the supply amount by month for each customer in accordance with Article 34 (3) of the Value-added Tax Act.

- It is possible to reduce the burden of reporting by matching the timing of issuance of the tax invoice and reporting of the distribution history when the tax invoices are issued in aggregated amounts monthly, and when the contents of the tax invoice are similar to those of the reported distribution history.

- Unlike agricultural and fishery products, which may spoil or deteriorate over time, industrial products can be traced in their distribution stage even if the reporting period is relaxed.