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Duty Drawback

What is Duty Drawback?
It's the system to refund duties to the exporter or the manufacturer of exporting goods in accordance with 'Act on Special Cases Concerning the Refund of Customs Duties Levied on Raw Materials for Export' such as where the imported with tariff paid is exported after domestically manufactured

Duty Drawbacks

Individual Drawback

Individual Drawback info
Subject of Application Applicable Items Document to be Submitted
All Exporters All Exporting Items Affidavits for Export
Certificate of Tax Amount
Paid Calculation
Bill of Yield Ratio
Refunding the yielded tax amount paid at the time of import
of the raw materials used for the manufacture of exporting goods

Simplified Fixed Drawback

Simplified Fixed Drawback info
Subject of Application Applicable Items Document to be Submitted
Annual Refund for SMEs
(Less than KRW 0.8 billion)		 Exporting items
in Simplified
Fixed Drawback
(Amount) Rates Table		 Affidavits for Export
Refunding some amount per every KRW 10,000 of export
amount in case of the export of the goods subject to simplified fixed drawback

Individual Drawback Process

  1. 1
    Importing Raw
    Materials
    • The amount of tax paid for the imported raw materials should be available.
    • If the purchase was domestically made, the amount of paid tax should be proved with Certificate of Tax Payment on Raw Materials, Certificate of Split (or Partial) Tax-Payment on Import, or Certificate of Average Tax Amount etc.
  2. 2
    Manufacturing
    Exporting Goods
    • Imported raw materials should be combined with the goods to be exported physically or chemically.
    • The raw materials subject to drawback include consumed items to be used for exporting goods manufacturing process and packaging items of the exporting goods.
  3. 3
    Yield-Ratio
    Calculation
    • Yield-Ratio for manufacturing exporting goods should be calculated by randomly selecting one of the six methods set forth in 'Notice of Yield-Ratio Calculation and Administration/Audit'.
  4. 4
    Application
    for Drawback
    • The application should be made within 5 years from the day of supply for export etc.
  5. 5
    Paying Refund
    • The refund in application is paid to the claimant’s bank account after checking the filled-in information and the preparation of document to be submitted.
  6. 6
    urveillance
    Audit
    • The refund should be audited for its accuracy of amount after it’s paid except where the claimant had been penalized for improper refund or there’s a risk of overpayment.

Overview of Drawback

Service Scope

Service Scope list
Individual Drawback Application Simplified Fixed Drawback Application
Declaration (Amendment) of Yield Ratio Calculation Refund Payment Application
Additional Drawback Application Application for Issuance of Certificate of Average Tax Amount
Application for Issuance of Certificate of Tax Payment on Raw Materials Application for Issuance of Certificate of Split