Customs valuation is the principle and methods to determine the basis for assessment, which - along with duty rate - the key element in determining customs duty amount to be levied on import goods. The tenets of customs valuation are prescribed at WTO Customs Valuation Agreement.
In Korea customs valuation affairs becomes more difficult and complicated because the international business relations become more complex and plural, and the policy of customs duty of government is changed from control by goods to control by company in order to induce voluntary compliance from tax-payers.
Therefore companies have to consider customs valuation from at the stage of international contract. But companies don’t seem to be capable of doing it because of the insufficient understanding of customs valuation and the lack of experts for this area. So the operation system of customs valuation has to be changed for improving competitive power through paying tax accurately and saving tax legally.
The purpose of this report is to identify the problems in customs valuation operation system of company and to suggest some ways to solve them.
