What is the term for a closed facility where goods can be brought in without being subject to normal import duties?

What is Customs Clearance of Postal Items?

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What is Customs Clearance of Postal Items?
Import clearance
Export clearance
What’s new?
Types of Customs Storage Warehouses
Storage Warehouse
Storage Warehouse (Customs Controlled Area (CCA) Enterprise)
Special Storage Warehouse
Can a Storage Warehouse be relocated?

Import clearance

The postal items shipped or carried in from overseas are classified into goods subject to customs clearance and duty-free goods by the first customs inspection by X-ray. Each duty-free item is automatically sent to the recipient, and the goods subject to customs clearance need to go through the clearance procedures at the customs office.
The postal items subject to customs clearance are again classified into goods subject to onsite taxation and goods subject to customs declaration (simplified or formal clearance).
- The goods subject to onsite taxation are within the clearance allowance for postal items and have objective data required for determining the dutiable value (invoices, receipts, etc.). A duty is imposed on each of them, which is then delivered to the recipient. The clearance procedure for the postal item is completed when the recipient pays the imposed duty to the postman while receiving it.
- The goods subject to customs declaration require necessary data for determining the dutiable value or may have import restrictions. The relevant customs office sends a postal item clearance guide to the owners (recipients) of such goods to provide information on the simplified or formal import declaration procedures. The procedures are as follows:
Simplified and formal declaration procedures
- Goods subject to customs duties
  - Goods tended for personal use, such as for use as gifts, the sum of whose value and the postal charges, etc. exceeds US$150
  - Company goods, commercial goods, etc. (However, goods recognized as samples with a value of not more than US$250 are exempt from duties.)
- Methods of declaration, required documents, etc

Export clearance

Goods subject to simplified export declaration

All exported goods can be exported to foreign countries after the completion of the required export clearance procedures under the Customs Act, but the items mentioned below can be exported by mail without having to go through the process of filing any extra export declaration with the customs office.

Mass media news materials such as newspapers, new coverage films, recording tapes, etc.
Catalogues, records and documents
Goods purchased by foreign tourists in accordance with the Special Regulations on the Value Added Tax and the Special Consumption Tax for Foreign Tourists, etc.
Non-refundable items whose price is not more than FOB 2,000,000 won (However, the items subject to confirmation by the head of a customs office under Article 226 of the Customs Act are excepted.)

Prohibited items for export

The postal items prohibited from being exported to foreign countries are as follows, and violation of this prohibition may result in punishment under the relevant regulations.

Books, publications, pictures, movies, music records, video works, sculptures or any other items of similar nature that may disturb the constitutional order or be harmful to the public security or social customs
Items which may be used to disclose any confidential information of the government or engage in spy activities
Counterfeit or altered items or replicas of money, bonds or other marketable securities
Items which may infringe upon intellectual property rights such as counterfeit goods

What’s new?

20 April 2021 – Changes to Duty and Tax Free shops
Transitional arrangements for inbound duty and tax free shops in addition to the already existing outbound duty and tax free shops, came into force on 5 June 2009. In this revision, the transitional arrangements are removed as they are no longer required. For more information, see the Inbound and Outbound Duty and Tax Free Shops – External Policy.

These are premises / facilities licensed for the storage of imported goods for home use, home use processing, second-hand motor vehicles solely for exports, duty and tax free shops, supply of dutiable local manufacture / imported goods to ship or aircraft stores, duty free imported goods solely for export, consolidation, deconsolidation and for export purposes for a prescribed period. The goods are stored until a need arises whereby an ex-warehouse declaration will be processed for the removal thereof from such customs storage warehouse. In same instance the licensee / owner of the goods will be required to bring the duties and VAT to account if applicable at time of clearance. The goods may not be removed from or placed in such facility until a valid customs declaration has been processed and accepted by Customs. For further details, you can refer to the SC-CF-19 – Registration Licensing and Designation – External Policy.

Types of Customs Storage Warehouses

Storage Warehouse

These premises / facilities are licensed in terms of Section 19 of the Customs and Excise Act, 1964 (the Act), for the storage of dutiable imported goods, including stockists. The goods stored in these facilities are normally intended for home use or home use processing purposes.

Which forms are required for the Customs Storage Warehouse licence application?

- DA 185 – Application form – Registration and licensing of Customs and Excise Clients – External Form
- DA 185.4B3 – Licensing Client Type 4B3 – Storage warehouse – External Form
- DA 185.C – Security particulars – External Form.
Storage Warehouse (Customs Controlled Area (CCA) Enterprise)

These premises / facilities are licensed Customs storage warehouses situated within a designated area within a Special Economic Zone, which have been approved by the Minister of Trade and Industry and Customs.

Which forms are required for the licensing of a Customs Controlled Area (CCA) Storage Warehouse?

- DA 185 – Application form – Registration and licensing of Customs and Excise Clients – External Form;
- DA 185.4B9 – Licensing Client Type 4B9 – Storage warehouse – External Form(Customs Controlled Area Enterprise) – Section 19A, 21, 21A and Rule 21A.10); and
- DA 185.C – Security particulars – External Form, if surety is required.
Special Storage Warehouse

These premises / facilities are licensed for the storage of:

- Dutiable imported goods, including second-hand motor vehicles solely for export;
- Duty free goods for export in terms of Section 21(3) of the Act including consolidation and deconsolidation;
- Imported goods for an operation of an inbound or outbound duty and tax free shop.

How to apply to operate as a Special Storage (SOS) Warehouse?

- Fill in the required application form and relevant annexure(s).
- Send certified supporting documents certified as listed on the form.
- Pay the licence fee needed.
- Pay the security fee if applicable.

Which forms are required for the licensing of a Special Storage Warehouse?

- DA 185 – Application form – Registration and licensing of Customs and Excise Clients – External Form
- DA 185.4B4 – Licensing Client Type 4B4 – Special storage warehouse – External Form (Sections 19A and 21 and the rules thereto)
- DA 185.C – Security particulars – External Form, If surety is required.

Is a police clearance certificate required for licensing an SOS warehouse for second-hand vehicles and when should this be submitted?

The police clearance certificate should accompany the application (if available; if not it must be produced at time of importation and entry to the approved warehouse).

Can a Storage Warehouse be relocated?

The relocation of the warehouse shall only be allowed if the proposed site is located in the same Controller’s / Branch Manager’s area and subject to meeting the terms and conditions of the licence. Refer to the Registration, Licensing and Designation external policy.

Top tip: To avoid contravention, the licensee must be the owner / importer of the second-hand vehicles; no second-hand vehicles can be stored on behalf of other people.

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