Appeal Process in Korea and Appeal Strategies

Abstract

The appeal process against the Korean customs offices’ assessment of customs duties can be divided into a pre-assessment procedure and a postassessment procedure in reference to the date of assessment. The pre-assessment review falls under the pre-assessment procedure, whereas an appeal, request for adjudication, and administrative litigation fall under the post-assessment procedure. While the pre-assessment review may be omitted, the request for adjudication is a post-assessment procedure which must take place before filing an administrative litigation, which consists of a trial, an appeal, and the final appeal. Strategies for reduction in tax risk include avoidance of taxation risk through advance ruling to the Korea Customs Service, utilization of the ACVA (a system for an advance agreement between the customs authority and taxpayer on the method of determination of the customs value), and request for rectification following adjustment of customs value of imported goods.