Business imports go through a formal import declaration
Goods brought into Korea for sale or distribution are declared to customs in the importer's (the business's) name, and released once import duty and VAT are paid. Declarations are usually filed by a licensed customs broker (관세사) through the Korea Customs Service's UNI-PASS system, and the importer needs a customs code (통관고유부호) issued against its business registration number.
- Customs code: the ID that identifies you as an importer. Apply on UNI-PASS with your Korean business registration number before your first shipment.
- Declaration documents: commercial invoice, packing list, and a bill of lading (B/L) or air waybill (AWB). To claim an FTA rate you also need a certificate of origin.
- Paying the tax: duty and VAT are paid around the time the declaration is accepted, after which the cargo is released to your warehouse or 3PL.
The USD 150 duty-free allowance and simplified list clearance (목록통관) are for individuals importing for personal use. They don't apply to goods a business imports for resale, so budget duty and VAT even on small commercial shipments.
How duty and VAT are calculated
Korea values imports on a CIF basis: the price of the goods plus freight and insurance to the Korean port of arrival. From there it's three steps.
Work out the customs value (CIF)
Customs value = (transaction price + freight to Korea + insurance) × KCS customs exchange rate. If you bought FOB, add the freight and insurance after loading in China. If you bought CIF, the invoice value is your starting point.
Calculate the import duty
Duty = customs value × duty rate. The rate is set by the product's HS code, and many manufactured goods carry an 8% basic rate. If the goods meet the Korea–China FTA rules of origin and you hold a certificate of origin, a lower preferential rate may apply.
Calculate the import VAT
VAT = (customs value + duty + any excise taxes) × 10%. Customs issues an import tax invoice, and a VAT-registered business can usually claim it back as input tax in its VAT return.
Worked example (sea LCL, FOB terms)
Say you buy CNY 50,000 of goods FOB Ningbo. The KCS exchange rate is 190 KRW/CNY, freight and insurance to Korea come to ₩450,000, and the duty rate is 8%.
| Item | Calculation | Amount |
|---|---|---|
| Customs value (CIF) | 50,000 × 190 + 450,000 | ₩9,950,000 |
| Import duty | ₩9,950,000 × 8% | ₩796,000 |
| Import VAT (10%) | (₩9,950,000 + ₩796,000) × 10% | ₩1,074,600 |
| Total tax payable | ₩796,000 + ₩1,074,600 | ₩1,870,600 |
These numbers are only an example. KCS publishes the customs exchange rate weekly, and the duty rate depends on the HS code and whether you have a certificate of origin. We check the HS code and estimated tax with you at the quote stage. Since import VAT is usually recoverable, duty is the part that stays in your landed cost.
HS code, origin and import requirements
Paperwork and product requirements hold up shipments more often than the tax itself. Check these three things before you place the order.
- HS code: both the duty rate and the import requirements follow from it. Confirm it with your customs broker based on the product spec (material, function, power source).
- Origin marking and certificate of origin: goods subject to origin marking must show it (e.g. 'Made in China') on the product or packaging. A China-issued certificate of origin is needed for the Korea–China FTA rate.
- Import requirements: electrical and household products may need KC safety certification, radio or EMC-related products need conformity assessment under the Radio Waves Act, children's products need children's product safety certification, and food or cosmetics involve MFDS procedures. Missing requirements mean the shipment is held.
Our Yiwu office collects spec sheets and test reports from the factory, checks the likely HS code and certification needs up front, and lines up the documents with your customs broker and forwarder. If certification is needed, build that time into the schedule before you order.
Reference: KCS taxable freight table (small express shipments)
For samples and small shipments sent by air express, a standard taxable freight set by the Korea Customs Service may be used in the customs value instead of the freight you actually paid. Regular sea and air cargo uses actual freight and insurance. The table below covers express shipments from China, in Korean won (KRW), by weight (kg) and whether the goods are worth more than ₩200,000.
1 – 15 kg
| Weight (kg) | ≤ ₩200,000 | > ₩200,000 |
|---|---|---|
| 1 | 11,100 | 15,000 |
| 2 | 11,000 | 20,200 |
| 3 | 14,500 | 24,500 |
| 4 | 14,500 | 26,500 |
| 5 | 17,800 | 28,500 |
| 6 | 17,800 | 30,500 |
| 7 | 21,200 | 32,500 |
| 8 | 21,200 | 35,500 |
| 9 | 24,600 | 38,500 |
| 10 | 24,600 | 41,500 |
| 11 | 27,900 | 44,500 |
| 12 | 27,900 | 47,500 |
| 13 | 31,300 | 50,500 |
| 14 | 31,300 | 53,500 |
| 15 | 34,600 | 56,500 |
16 – 30 kg
| Weight (kg) | ≤ ₩200,000 | > ₩200,000 |
|---|---|---|
| 16 | 34,600 | 59,700 |
| 17 | 38,000 | 63,100 |
| 18 | 38,000 | 66,500 |
| 19 | 41,400 | 69,900 |
| 20 | 41,400 | 73,300 |
| 21 | 44,800 | 76,700 |
| 22 | 44,800 | 79,900 |
| 23 | 48,200 | 82,900 |
| 24 | 48,200 | 85,700 |
| 25 | 51,600 | 88,300 |
| 26 | 51,600 | 90,900 |
| 27 | 55,000 | 93,500 |
| 28 | 55,000 | 96,100 |
| 29 | 58,400 | 98,700 |
| 30 | 58,400 | 101,300 |
Duty rates, exchange rates and the taxable freight table can change by KCS notice. This page is for reference only, so confirm current figures with the Korea Customs Service or your customs broker before you file.