Not all types of shipments are created equal. Shipping a television will
require different paperwork, duties, and taxes than shipping an accounting
statement, for example.
Here is a list of the most common types of shipments:
You can also skip ahead to the table containing the list of
Commonly Required Documents.
Shipping a gift to South Korea from Canada is tax and duty-free
providing:
- It is a genuine gift and not a commercial good
- The total value of the shipment, including the gift, shipping and
insurance costs is less than 150,000 South Korean won (about $143
CAD)
Gift Checklist
- A commercial invoice must be included with your shipment
- The words 'Gift Shipment' or 'Unsolicited Gift' are included on the
commercial invoice, even if the shipment is sent at Christmas time (see sample)
- List the items in the parcel and write the value of each
- Sending more than one gift in the parcel? Wrap and tag each one
individually.
Shipments from Individual-to-Individual
If you ship a gift to someone in South Korea, the receiver will be
exempt from duties and taxes if the parcel's value (including
insurance and shipping) is less than 150,000 South Korean won (about
$143 CAD).
Shipments from Business-to-Business
There is no exemption from duties and taxes on a gift shipment from a
Canadian business to a South Korean business.
This also applies to a gift sent to an individual at his or her
business address.
Shipments from Business-to-Individual
A gift may be sent from a Canadian business to an individual in South
Korea duty and tax free if the shipment is valued at less than 150,000
South Korean won (about $143 CAD). (This includes the cost of shipping
and insurance.)
Sample Commercial Invoice for Gifts
Multiple Gifts in One Shipment
If there are several gifts in one shipment, the duty and tax exemption
of 150,000 South Korean won or less (about $143 CAD) applies to the
shipment, not to each gift.
Sample Commercial Invoice for Gifts
Sources:
https://www.customs.go.kr/kcshome/main/qna/QnaView.do;jsessionid=5tpndPSGZ0vLfyT1qmRtcQQ8pb922rBK21p19M0pZQ8hwJxbGxk1!-528478286?qnaId=QNA_ID_0000000003332&layoutMenuNo=21035¤tPageNo=432&searchKeyword=&searchCondition=
Personal effects may be shipped to South Korea from Canada duty and
tax free providing:
- They are used items having been owned for a minimum of 3 months
- They are not intended to be sold either wholesale or retail, or used
or distributed for business purposes
- They are NOT medicines or perishable foods
- They are appropriate for a home setting and not a commercial
enterprise
- They are suitable in number and style for your occupation and means
NOTE: Perfumes, alcoholic drinks, tobacco
products CANNOT enter duty or tax free, as well as items less than 3 months
old.
Personal effects can include the following used items:
- Home appliances
- Furniture
Personal items that will incur taxes include the following, and
anything made from them:
- Jewels
- Pearls
- Ivory
- Coral
- Tortoiseshells
- And any item with a value of more than 5 million South Korean won
(about $5,700 CAD)
Moving Temporarily
Students and Non-Students
If you are moving temporarily to South Korea, perhaps to study, no
duties or taxes on your personal effects will be charged.
An exception to this is if you are bringing expensive goods with you,
such as jewellery.
Moving Temporarily - Personal Effects Checklist
- A commercial invoice must be included with your shipment
- Write 'Personal Effects / Personal Belongings' on the commercial
invoice in the general description of goods
- Complete an inventory list of your personal effects that states an
estimated value of the goods
- Include a photocopy of your passport or ID card
Moving Permanently
Are you planning to live in South Korea for more than a year? Then
your personal effects are free of duties and taxes if they have been
used for more than 3 months.
Unaccompanied baggage should arrive in Korea within 6 months of your
arrival in the country.
Moving Permanently - Personal Effects Checklist
- Import declaration form (original)
- Moving goods declaration form (original)
- Packing form (original)
- Copy of Bill of Lading or Airway Bill
- Photocopy of passport or identification card
NOTE: Be sure to provide original copies
on the shipment.
Sources:
http://www.customs.go.kr/kcshome/main/qna/QnaView.do;jsessionid=wLmGRQJGZPJXY2YqdJQ1qndkLxJGWsJW77T2ZGmBXX41ZL8hrnpt!2049041072?qnaId=QNA_ID_0000000002552&layoutMenuNo=21035¤tPageNo=6&searchKeyword=&searchCondition=
Sample Commercial Invoice for Personal Effects
The Free Trade Agreement between Canada and South Korea (CKFTA) allows
a number of foodstuffs and confectionary to enter South Korea from
Canada duty-free.
You May Ship
Do Not Ship
- Meat of goats, lambs, deer
- Any cooked meats
- Cakes if they contain fresh fruits, vegetables, or nuts
Foods Requiring Quarantine
Korea's Food Sanitation Act subjects a number of foods to undergo
quarantine before they enter the country. They are:
- Processed meats like beef jerky, sausages, ham
- Cheese
- Fresh fruit
- Unhusked walnuts
Imported foods are subject to the quarantine according to the Food
Sanitation Act. However, small sum items for personal use are not
checked for having met the condition. When they exceed the duty-free
allowance - 150,000 KRW (about $143 CAD), they must be inspected by
the relevant ministries and get a quarantine certificate and other
required documents.
Sources:
https://m.customs.go.kr/
https://unipass.customs.go.kr/csp/persIndex.do
http://www.qia.go.kr/english/html/Plant/Plant_003.jsp
https://www.fina.org/sites/default/files/general/customs_and_freight_forwarding_guide_final.pdf
https://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/korea-coree/overview-apercu.aspx?lang=eng#1
Sample Commercial Invoice for Food, Chocolate, Candies
Shipments of goods for repair must be declared as a formal entry to
South Korea. This means an ATA carnet cannot be used.
Items Under Warranty
Since South Korea and Canada have a free-trade agreement (CKFTA),
repairs under warranty returning to Canada from South Korea are
duty-free and will not be charged GST.
Items No Longer Under Warranty
Equipment that is no longer under warranty and returning to Canada
from South Korea after repairs will be charged GST on the value of the
repair and on any new parts required to complete the repair.
Sending Product for Repair to South Korea
If a piece of equipment made in South Korea is being returned there
for repair, you will need to include the original South Korean export
permit.
You must include the original export permit issued by South Korean
Customs when the shipment was exported.
Document Checklist
- Write 'REPAIR & RETURN' on the commercial invoice under General
Description or Remarks
- Indicate the Serial/Product number under the Detailed Description of
Goods section on the commercial invoice
- Include a copy of the Repair Contract with all your export
documentation
Returning Product After Repairs are Completed
If a repair was done in Canada and the good is being returned to South
Korea, the duty charge will be based on the cost of repair and the
freight expenses - both to Canada and its return to South Korea.
Document Checklist
- Write 'REPAIR & RETURN' on the commercial invoice under General
Description or Remarks section
- Indicate the serial/product number under the Detailed Description of
Goods section on the commercial invoice
- Include a copy of the repair contract with all your export
documentation
Sources:
https://www.ups.com/ga/CountryRegsPrint?loc=en_US&origcountry=US&destcountry=KR&cat=015016017011018019020021023024009004014006007008002012010005013003&PrintRegulations=PrintRegulations
Sample Commercial Invoice for Warranty Repair
South Korea allows the importation of temporary items duty and tax
free. Items that qualify for this include:
- Commercial samples
- Advertising materials by non-residents of South Korea
- Professional and medical equipment
- Equipment and gear for sporting events or commercial expositions
- Teaching materials
Qualifying for Duty & Tax Free Temporary Import
In order to import your goods duty and tax free into South Korea, you
can pick from 1 of the 2 Temporary Import Methods listed below.
Each option has its pros and cons. Regardless, each of the following
methods requires you to complete a Commercial Invoice (CI). More
details below.
| Option # | Temporary Import Method | Risk of paying Duties and taxes |
|---|
| 1 | Commercial Invoice Only | High - if broker cannot clear goods temporarily) |
| 2 | Commercial Invoice
+
ATA Carnet | Very Low |
1. Complete a Commercial Invoice Only
This is the simplest and quickest option. See example.
NOTE: You should be aware that shipping using this method doesn't guarantee
that your items will be imported duty/tax free. Not all brokers will
clear goods as temporary imports (i.e. UPS, Fedex, DHL), nor is it a
guarantee that customs won't charge any duties and taxes.
2. CI + an ATA Carnet
This option is great for items that frequently travel in and out of
the country. It's also great because once you have an ATA Carnet, it
is accepted by 176 countries worldwide making the application
process a one-time thing.
In addition to declaring your commercial invoice as a temporary
import, you can get an ATA Carnet for the items that are of
temporary nature.
ATA Carnets are beyond the scope of this article. You can however,
contact your local chamber of commerce and they will be able to
guide you along. You can also find more information here: http://www.chamber.ca/carnet/
In addition to the 2 options listed above, goods can stay no longer
than 12 months in South Korea.
- If the above conditions are not followed, duties and taxes will be
charged as though the goods have been imported permanently
- Your Customs broker can clear goods of a temporary nature, however
FedEx, UPS, DHL, etc. typically cannot clear
goods of a temporary nature
Sources:
https://www.export.gov/article?id=Korea-Temporary-Entry
https://www.fina.org/sites/default/files/general/customs_and_freight_forwarding_guide_final.pdf
http://www.customs.go.kr/kcshome/cop/bbs/selectBoardList.do;jsessionid=JVpJh8GHy6KzyjWsStryw1dnmF7VPNpQ7W7L4pkHJgTkLTCgXx5T!259294182?bbsId=BBSMSTR_1779&layoutMenuNo=32094&siteId=english&searchCtgry=&searchWrd=&recordCountPerPage=10¤tPageNo=4
Sample Commercial Invoice for Temporary Imports
