USD 150 de-minimis: what's tax-free
Goods imported for personal use clear duty- and VAT-free under list clearance when the item value is USD 150 or less (USD 200 for US-origin goods under the Korea–US FTA). China direct-buy falls under the general USD 150 line.
- The de-minimis test uses the 'item value' (what you paid for the goods); international shipping is usually excluded.
- But the 'dutiable value' used to calculate duty includes item value + international freight + insurance.
- Dollar amounts are converted to won at the customs posted rate (examples assume USD 1 = KRW 1,350).
Key point: once you go 'over' USD 150, the entire amount becomes taxable — not just the excess. That's why USD 149 and USD 151 differ so much in tax.
The formula and worked examples
Once an order is taxable, calculate in this order. Duty rates vary by item, usually 8–13%, while VAT is fixed at 10%.
Find the dutiable value
Add item value + international freight + insurance, then convert to won at the posted rate.
Calculate duty
Dutiable value × duty rate (8–13% etc. by item).
Calculate VAT
(Dutiable value + duty) × 10%.
Total tax
Duty + VAT = what you actually pay.
| Case | Item value | Dutiable value (KRW) | Duty | VAT | Total tax |
|---|---|---|---|---|---|
| A. T-shirts (tax-free) | $120 | de-minimis | KRW 0 | KRW 0 | KRW 0 |
| B. Apparel (13% duty) | $200 + $20 freight | 297,000 | 38,610 | 33,561 | 72,171 |
| C. Bag/electronics (8% duty) | $300 + $25 freight | 438,750 | 35,100 | 47,385 | 82,485 |
Case B math: dutiable value $220 × 1,350 = KRW 297,000 → duty 297,000 × 13% = 38,610 → VAT (297,000 + 38,610) × 10% = 33,561. Case C applies 8% the same way.
Easy-to-miss points and saving tips
- Aggregation: items from the same seller/courier on the same day are combined and may cross USD 150.
- Exchange rate: the posted rate at clearance — not at checkout — is used, so the figure can shift.
- Classification: even 'a bag' can carry a different duty rate by material and use, so the right HS code matters.
If you're near the limit, splitting shipments can help — but check that added shipping doesn't exceed the tax saved. For exact duty rates and clearance steps, continue with the customs guide below.