After the U.S. Supreme Court ruled that "reciprocal tariffs" are illegal, the Korea Customs Service said on the 22nd that it will support corporations exporting to the United States with measures such as tariff refunds.
According to the Korea Customs Service, it is generally the U.S.-based importer who files a claim with U.S. Customs and Border Protection (CBP) for a tariff refund. However, if the exporter used delivered duty paid (DDP), a trade settlement term under which the exporter pays the tariff on behalf of the importer, the exporter can apply directly to CBP for a refund. DDP is a transaction term in which the exporter delivers the goods to a designated location in the importing country and bears all taxes, including tariffs and value-added taxes.
The Korea Customs Service plans to identify corporations that exported goods subject to reciprocal tariffs and items such as steel and aluminum subject to item tariffs to the United States under DDP terms. It will then provide each corporation with the basic procedures for tariff refunds and the filing deadlines through export-import corporation support centers at customs offices nationwide. Of the roughly 24,000 corporations that exported tariffed goods to the United States, about 6,000 are estimated to have exported under DDP terms.
The Korea Customs Service said, "There will be an announcement from U.S. CBP on the specific refund procedures and methods going forward," adding, "We will quickly identify related developments and provide real-time guidance to our export corporations."