Going forward, importers who bring in products cheaply under an allocation tariff but then intentionally delay bringing them into Korea or distributing them domestically will be excluded from allocation tariff eligibility and face sanctions such as tax collection. Even if the government lowers the tariff, the stabilizing effect on prices does not appear if goods do not reach the market, so this measure aims to strengthen the price-stabilizing function of allocation tariffs.
The Ministry of Finance and Economy said on the 18th that it will push a revision to the Enforcement Decree of the Customs Act reflecting these measures. After a public notice for legislation this month, it plans to promulgate and enforce it starting next month.
The government plans to later designate items such as ▲ items with easy storability like frozen meat ▲ items with a prior violation record for intentionally delaying removal from bonded areas ▲ items with complex distribution systems as "allocation tariff focus management items," and sanction importers for intentionally delaying domestic entry and distribution.
Once designated as focus management items, a deadline will be set for removal from bonded areas; if violated, the allocation tariff recommendation will be canceled and taxes will be collected. These items will also be subject to additional tax for delayed import declarations. If an importer fails to file an import declaration within 30 days after the goods enter a bonded area, an additional tax of up to 2% of the value of the goods will be imposed.
The government also included measures in this revision to support restructuring in the petrochemical industry. Currently, main and byproducts generated through the in-house petrochemical processes of refiners that use naphtha as a feedstock are excluded from the "allocation tariff on crude oil for naphtha production (3→0%)." However, for refiners and petrochemical corporations merged under the Corporate Vitality Enhancement Act, the government plans to apply the allocation tariff to main and byproducts of naphtha generated this year. The government said, "Corporations participating in the current restructuring of the petrochemical industry will benefit."
The government will also establish procedures to implement "countermeasures" in response to the spread of protectionism. The government said, "In future trade negotiations with foreign countries and the like, the range of response tools that can actually be used will be expanded."