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South Korean Customs Clearance Policy Plans

South Korea issued its custom clearance policy plans for imported foods1 on January 11, 2023, introducing five projects and expected effects:

Project

Contents

Implementation Time

Expanding the scope of imported foods that can enjoy fast customs clearance

Current Policy 

Only products (processed foods for sale) imported by registered “good importer” can declare for fast customs clearance.

 

Modification

The raw materials for manufacturing food products whose safety has been confirmed (flavorings, raw materials for refining or processing, etc.) are to be included in the scope of imported foods subject to fast customs clearance.

 

Expected Effects

The authority plans to smoothly supply the raw materials and stabilize the price by supporting the fast customs clearance of raw materials.

The imported foods subject to fast customs clearance is expected to be enlarged from 39,000 tons to 2,120,000 tons per year.

June, 2023

Amending the scope of import inspections delegated to private institutions

Current Policy 

① The import inspection for the risky products and other specified situations shall be conducted by a regional food and drug administration. 

② For the situation where it needs undergo a thorough inspection, such as foods imported to South Korea for the first time,   enterprises can choose to take the inspection by a regional MFDS or a private test institution. 

 

Modification

① For the specified situations where the import inspection is conducted by a regional MFDS, the authority plans to give options for enterprises to take the inspection by a regional MFDS or a private test institution. 

② The thorough inspection is delegated to private institutions.

 

Expected Effects

Inspection period can be shortened to 2-4 days, which can help save the warehouse storage fee and accelerate product distribution.

① December, 2022

② June, 2023

Amending recognition criteria for the “same product from one enterprise”.

(except for health functional food and food additive)

Current Policy 

The recognition criteria for the "same product from one enterprise" is that the manufacturing country, manufacturer, product name, manufacturing process, and raw material name are the one and same. When the product’s name is different, even though the ingredients, manufacturer, and manufacturing process are the same, the product will be deemed as a different product and need to undergo a thorough inspection.

 

Modification

Product name is to be deleted from the recognition standard for the “same product from one enterprise”.

 

Expected Effects

The storage fee and inspection fee can be saved.

January, 2024

Permitting more situations for changing the usage purpose of imported food

Current Policy 

① Changing the usage purpose of the imported raw materials declared to be used for manufacturing is restricted. 

② Imported raw materials for the acquisition of foreign currencies are prohibited from the usage purpose change.

 

Modification

① The health functional food manufacturer (건강기능식품제조업체) and distributors (유통전문판매업체) can apply for changing the usage purpose of“imported raw materials for manufacturing food products”. 

② The usage purposes of "imported raw materials for the acquisition of foreign currencies" can be changed.

 

Expected Effects

The authority expects to improve the utilization of food raw materials and reduce enterprises’ burden on food waste through the new policy.

December, 2023

Establishing the incentive mechanism for food importers

Current Policy 

Importers are classified into three levels, namely, "good", "general", and "special", amongst which "general importer" accounts for 99.5%. 

 

Modification

 “General importer” is further sorted into three grades.

 

Expected Effects

Authority intends to offer benefits to promising enterprises and enhance their competency.

December, 2023

ChemLinked Notes

Although the plan involves many aspects, the main effects the Korean government looks for are the stabilization of prices and efficient utilization of food materials. South Korea levied a zero-percent quota tariff and adjusted the Tariff Rate Quotas (TRQ) volume of several imported food items last year. ChemLinked estimates that South Korea may introduce more provisions to ease the burden on food importers this year. Enterprises interested in selling foods to South Korea are suggested to pay close attention to the Government dynamics to enjoy the preferential policy. ChemLinked also reminds enterprises to keep informed of the regulation updates to keep product compliance.

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