The Seoul Customs Office of the tariff authorities discovers a violation of origin labeling for a park golf club. The golf club should be labeled as ‘Made in China’ due to insufficient domestic manufacturing cost ratio, but it is labeled as ‘Made in Korea.’ /Courtesy of the tariff authorities

Companies that falsely labeled park golf clubs imported from China as domestic products were caught by customs authorities. The golf clubs found in violation of origin labeling are valued at approximately 9 billion won.

The Seoul Customs of the Korea Customs Service noted on the 7th that it focused on violations of origin labeling for imported park golf clubs and seized goods valued at approximately 9 billion won.

The Korea Customs Service explained that it initiated strict enforcement actions as the number of park golf participants exceeded 1 million, resulting in a surge in demand for related products.

The products identified by the Korea Customs Service for violating origin labeling were falsely labeled as domestic products or had their Chinese origin labels removed.

Many companies were caught importing heads and grips, the main components of park golf clubs, from China, and assembling them with domestically produced shafts to sell them under the false pretense of being domestically produced.

According to Article 86 of the Foreign Trade Management Regulations, domestic products made using imported raw materials can only be labeled as domestic if the ratio of domestic manufacturing cost meets a certain percentage (51%). These companies did not meet the criteria but falsely marked the origin as domestic.

There were also sellers who imported all components of park golf clubs from China and only went through a simple assembly process domestically, yet removed the Chinese origin label at the time of import customs clearance to sell the products. When imported goods are only subject to simple processing such as assembly after customs clearance, the original origin label (Chinese) must be maintained.