CUSTOMS DUTIES: UNITED STATES TO SOUTH KOREA

Overview of Customs Duties from United States to South Korea

When exporting goods from the United States to South Korea, it is essential to understand the customs duties, taxes, and regulatory requirements that apply to your shipments. South Korea maintains a well-established import system with clear procedures for duty assessment and customs clearance. The Korea Customs Service administers all import regulations and tariff collection. As a member of the World Trade Organization (WTO) and a signatory to the United States–Korea Free Trade Agreement (KORUS), South Korea offers favorable trade conditions for many U.S. products, with duty rates that are generally competitive and fair for cross-border commerce.

General Duty Rates and Tax Structure

South Korea applies duties on a Cost-Insurance-Freight (CIF) basis, meaning duties are calculated on the product cost plus freight, insurance, and associated charges. The following table outlines the key tax and duty components applicable to imports:

Tax/Duty Type	Rate	Basis of Calculation	Notes
Import Duty (Average Rate)	8%	CIF Value	Applied to cost of goods plus freight and insurance
Value Added Tax (VAT)	10%	CIF Value + Duties	General rate applied to all imports
Special Excise Tax	10-20%	CIF Value	Applied to luxury items and durable consumer goods (e.g., automobiles)

De Minimis Thresholds

South Korea provides favorable de minimis treatment for low-value shipments. Imports valued under the de minimis threshold are exempt from duties and taxes:

• General de minimis threshold: USD 150 (FOB value)
• U.S. and Puerto Rico-origin shipments: USD 200 (FOB value)

Shipments from the United States valued under USD 200 will be considered both tax-free and duty-free imports, providing significant cost savings for lower-value transactions.

Required Documentation

To successfully export goods to South Korea, you must prepare and submit the following documentation:

• Commercial Invoice with detailed product descriptions and values
• Packing List specifying contents, weights, and dimensions
• Bill of Lading or Airway Bill (proof of shipment)
• Import Declaration Certificate (required for customs clearance)
• Certificate of Origin (to claim preferential rates under KORUS, if applicable)
• Product-specific certifications (standards, safety, or health certificates as required)
• Harmonized System (HS) Code classification for accurate duty assessment

Important Regulations and Customs Procedures

South Korea maintains specific regulations and procedures for importing goods:

• Import Declaration System: South Korea allows for the release of goods without delay upon acceptance of an accurate import declaration certificate.
• Payment Terms: All tariffs and taxes must be paid in Korean Won within 15 days after goods have cleared customs.
• Product Registration Requirements: Certain product categories require registration, standards compliance, and safety testing to ensure protection of public health and sanitation.
• Tariff Quota System: South Korea maintains a tariff quota system designed to stabilize domestic commodity markets. Customs duties may be adjusted every six months within specified limits.
• Valuation Method: The primary customs valuation method is the transaction value method, with alternative WTO appraisement methods available if needed.

Trade Agreements and Preferential Rates

The United States–Korea Free Trade Agreement (KORUS), which entered into force on March 15, 2012, significantly reduces tariff barriers on bilateral trade:

• Korea immediately eliminated duties on nearly 80 percent of bilateral trade in industrial and consumer goods upon KORUS implementation.
• Duties on most remaining goods were phased out over 10 years and have been completely eliminated as of January 1, 2021.
• South Korea maintains at least 17 trade agreements covering 57 countries, offering zero or highly discounted duty rates for qualifying products.
• To claim preferential KORUS rates, U.S. exporters must provide a valid Certificate of Origin demonstrating U.S. origin or sufficient U.S. content.

For specific tariff rate information, consult the U.S. Department of Commerce's FTA Tariff Tool or contact the U.S. Agricultural Trade Office in Seoul for detailed product-specific guidance.

Recommended Shipping Partners

Major courier services operating between the United States and South Korea include Korea Post, DHL Express, and FedEx. These carriers offer comprehensive customs brokerage services and can assist with documentation and duty payment processing.