Reasons for Proposal and Major Provisions

As mega FTA agreements such as the Regional Comprehensive Economic Partnership (RCEP), which took effect on February 1, 2022, have expanded, the demand for e-commerce from general consumers has also increased rapidly. And in order to faithfully report imports and prevent imports of harmful goods that hinder national health and safety, the role of licensed customs brokers, who are specialized in import and export reporting, is becoming very important.

In accordance with Article 7 (1) of the Licensed Customs Broker Act, a qualified person is required to register with the Commissioner of the Korea Customs Service in order to work as a licensed customs broker, but some customs offices, joint offices, customs service corporations, and customs agencies have been found to hire qualified persons as job assistants to perform licensed customs broker duties such as import and export consulting without registering them.

According to a survey, as of August 2022, 52 persons were hired by customs service corporations as job assistants without registration. However, this is a number voluntarily reported to the Korea Certified Customs Attorneys Association, and it is expected that the actual number will be higher, including cases where it has not been reported.

Registered licensed customs brokers are required to fulfill various licensed customs broker duties under the Licensed Customs Broker Act, such as confidentiality, prohibition of engagement in profit-making business, application of crime of dual punishment for rebates, attendance in licensed customs broker training, subscription to liability insurance for damages, etc. A person who has retired as a high-ranking public official of Grade 5 or higher shall be subject to strict restrictions on fees according to Article 13-6 of the Licensed Customs Broker Act (Enforced on January 6, 2022). 

However, in the case of unregistered licensed customs brokers, they are actually employed by customs offices, joint offices, customs service corporations, and customs handling corporations to carry out licensed customs broker duties, but are not registered, and thus are not subject to the supervision and management of the customs administration, not bearing any of the obligations stipulated in the Licensed Customs Broker Act.

Accordingly, If a qualified licensed customs broker wants to be hired as a job assistant by customs offices, joint offices, customs service corporations, customs handling corporations, etc. he/she must register with the Commissioner of the Korea Customs Service to faithfully fulfill all obligations stipulated by the Licensed Customs Broker Act, while ensuring that the client does not mistake the unregistered customs broker for the registered customs broker, and make sure to prevent damage caused by poor service provision to clients and to ensure equity between registered and unregistered customs brokers (Article 7 (1)).