Both Singapore and the Republic of Korea enjoy close, longstanding ties with each other when it comes to trade and diplomatic relations. They entered into a Republic of Korea-Singapore Free Trade Agreement (KSFTA) in March 2006 and have since engaged in high levels of exchange and investment interests in each other’s markets.
In recent years, both Singapore and South Korea indicated their interest in building smart cities where Fintech, strong cybersecurity, start-ups, and advanced manufacturing are amongst the leading economic initiatives. In fact, with Korea ranking as the eighth largest trading partner of Singapore in 2019, it is not difficult to identify the lucrative business opportunity of entering the Korean market. Evidently, based on similar goals of advancing technology and e-commerce in today’s society, shipping to Korea can offer Singaporean businesses much potential for growth.
Thus, this article aims to offer businesses a guide on pre-existing trade agreements, important information on South Korean Customs, as well as rules and regulations that govern the export of different goods to South Korea.
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Customs guidelines and trade agreements between Singapore and South Korea
Established in 2006 as a means of encouraging trade between the countries, the KSFTA eliminates or reduces tariffs for 91.6% of Singapore’s exports to South Korea. It is crucial to note that for businesses to qualify for reduced taxes, all shipments must be registered with Singapore Customs before transit occurs.
Before shipping to South Korea, one should always check the tariff schedule to ensure they are paying the reduced tariffs and taxes for their imports rather than the full rates and duties.
Goods with a value of more than US$150 are dutiable under Korean Customs. Each item is subject to a different rate depending on the nature of the product. The Korea Certification (KC) is also required for exports to Korea and will need to be completed before shipping. If not, there may be delays in the checking of goods for customs clearance.
South Korean customs taxes, duties and additional fees
South Korea imposes two forms of taxes on all imports to the country, customs duties and Value Added Tax (VAT). Korean customs uses the Harmonized System (HS) code to calculate import duty fees on each imported product on an international scale. As per Santander Trade, the average rates of customs duties levied on items are estimated to be 8% of the market value of the product, with certain items ranking higher as per the Korean customs website via the aforementioned source.
All items undergo VAT at 10%, with the exemptions of items under their de minimis limit of KR₩150,000. Liquor and tobacco are charged excise duties in addition to the payment of VAT.
However, the preferential rates given to Singaporean exports as per the KSFTA may reduce the customs duties and taxes pertaining to your imports and should be referenced with your logistics partner, the Korean tariff schedule, as well as customs officials in South Korea beforehand.
Things to know about shipping documents to South Korea
The Korean Customs Service requires strict compliance and accuracy on customs entry to detect illegal goods concealed in DHL Express’ international express shipping of non-dutiable shipments like documents (DOX).
Thus, to prevent clearance delays at the South Korea Customs or potential penalties, ensure that the origins comply with the following or have it coded as Worldwide Parcel Express (WPX).
Consignee’s full name, phone number, and full address in the waybill and data entry.
Products to be correctly coded.
DOX shipments should not have a customs value. These include:
Technical plans and drawings
Artwork including drawings is WPX. If proof or layout is included in the artwork, the product will be considered DOX.
Magazines, periodicals, and journals
If these items are free of charge and not for resale purposes, they can be sent as DOX.
Cheques, cancelled (NI)
If the value of a cheque is over US$10,00, then it should be coded as WPX. As an exchange transaction of cheques is possible only after formal clearance, the description must be written as cheques.
These items will still go through a formal clearance, which will require an invoice and could result in additional delays.
Things to know when shipping parcels to South Korea
To prevent clearance delays or potential penalties, the origins must comply with the following:
Non-compliance for erroneous or generic goods description, undervalue, etc., will be subject to a physical inspection at South Korea’s Customs and penalty.
Ensure that the consignee's name, phone number, and full address are present on the waybill and entry information system before shipping to South Korea.
Any original documents required for customs clearance must accompany the physical shipment, for example, the Country of Origin, ATA Carnet, etc.
Alcohol
For formal import, the consignee must have an import licence, which is subjected to a quarantined test at the quarantine office with a minimum delay of seven days.
For importing samples for private consumption, only one bottle is permitted from a licenced company and won’t require any quarantine test. However, a formal clearance is required for the same. Plus, the consignee must pay the liquor tax regardless of the invoice value.
Animal skins
Animal quarantine by QIA (Animal and Plant Quarantine Agency) is required, along with an original certificate of quarantine from the country of origin.
In the case of CITES or Convention on International Trade in Endangered Species of Wild Fauna and Flora, a CITES export permit must be provided from the party who is preparing to export and send the parcel to Korea, as the consignee is required to submit a CITES export and import permit to South Korea’s Customs.
Animal products
Similar to animal skins, animal quarantine by QIA and an original certificate of quarantine from the country of origin are required.
For unprocessed animal products, a quarantined test must be run at the quarantine office. Expect a minimum delay of six days during the process of shipping to Korea.
For cow products, the consignee must provide a certificate of non-BSE (Bovine Spongiform Encephalopathy) from the Korea Food & Drug Administration, stating that the shipment or product is free from mad cow disease.
Photographs or photos as a part of business reports
All photos included in international shipping to South Korea are considered Worldwide Parcel Express (WPX) regardless of use or purpose.
Foodstuff (including grain)
Unprocessed grain-related foodstuffs are subject to plant quarantine and require an original phytosanitary certificate from their origin. If you are shipping meat products, they will be subject to animal quarantine and will require an original certificate of quarantine from their origin.
Additionally, food quarantine by MFDS (Ministry of Food and Drug Safety) is needed, and the consignee is required to be a licenced food importer.
Only a small quantity of foodstuff is permitted for non-commercial purposes or personal consumption depending on South Korea’s Customs decision and could be exempted from certification for related authority from, for example, the radio waves act or food quarantine.
Perishables (fruit/flower/vegetables)
Perishable items are subject to plant quarantine and will require an original phytosanitary certificate from their origin. For edible fruits and vegetables, food quarantine would also be required. Also, only a small quantity for non-commercial purposes or personal consumption could be exempted from the certification for related authority (e.g radio waves act or food quarantine) depending on the decision of South Korea’s Customs.
It is important to pay attention to the guidelines on shipping perishable food items correctly.
X-ray machines
Contact the destination prior to accepting the shipment for any licences or permit requirements.
Cosmetics
An Entry Notice of imported products from KPTA (Korea Pharmaceutical Traders Association) is required. If applicable, TSE (BSE) Free certificate from the manufacturer is also required to issue the Entry Notice of products sent as exports to Korea.
However, only a small quantity for non-commercial or personal use is permitted for import without the certificate, depending on Korea’s customs decision.
Drugs in pharmacy with or without prescription
An Entry Notice of imported products from KPTA is required. In case they are for private individuals, health products and vitamins are limited to a total of six bottles per person per day based on the item category. Other drugs could be acceptable after submitting a South Korean doctor’s prescription.
However, only a small quantity for non-commercial or personal consumption is permitted for import without the certificate, depending on South Korea’s Customs decision.
Plastic & articles thereof
No additional restrictions are required for the international shipping of “Plastic and articles thereof” to South Korea as long as they are not related to electronic, food, and children’s products.
Electronic, telecommunication, mobile phones, radio equipment, or parts
To import any electrical goods, either a Conformity Assessment Certificate by RRA (Radio Research Agency) or Electrical Equipment Safety Certificate by KTC (Korea Testing Certification)/KTL (Korea Testing Laboratory)/KTR (Korea Testing & Research Institute) or both are required.
Private individuals can only receive one piece of each model per person via exports and shipping to Korea without related certificates.
Diplomatic material
Only shipments with a description on the waybill as Diplomatic Pouch, Diplomatic Mail, and Diplomatic Bag can be released by South Korea’s Customs within one working day with Proof of Address (POA) from the embassy. For more urgent documents, consider DHL Express’ Same Day delivery service that promises the earliest possible delivery.
If the description on the waybill is not included in these three above-stated types, it could lead to UD (Uncontrollable Clearance Delay).
Medical samples
For blood samples, they must be packed within a cooling device when preparing to send the parcel to South Korea via courier services like DHL Express’ medical express services.
Medical samples are acceptable only in small quantities without commercial purpose unless they contain prohibited, restricted, or dangerous ingredients under South Korea’s Customs decision.
Lithium batteries
There are no requirements for the international shipment of lithium batteries in South Korea’s Customs clearance. In the case of lithium-ion or polymer accumulators, an Electrical Equipment Safety Certificate by KTC/KTL/KTR is required.
Private individuals can only receive one piece of each model per person without related certificates.
Chemicals, liquids, other non-hazardous substances, oil products, and bunker oil samples (for analysis)
Shipment and exports to South Korea must fulfil the International Air Transport Association (IATA)'s Dangerous Goods Regulations. A Material Safety Data Sheet (MSDS) is also recommended and should be imaged.
The shipping of liquid items internationally is also strictly regulated. You should read up and understand the regulations of the country you are exporting to and the general rules when it comes to international shipping of liquids to Korea and beyond.
Computer components & parts
Depending on South Korea’s Customs decision, only a small quantity for non-commercial purposes or personal consumption may be exempted from the certification for related authority (e.g. radio waves act or food quarantine).
Most computer components and parts have no special requirements for Customs clearance. Shipping electronics such as computers to South Korea and elsewhere can be daunting due to the strict requirements for shipping these items. Therefore, it is essential for you to find out how to ship computers worldwide in an accurate and safe manner, ahead of time.
Passports
They are considered DOX if the consignee is an embassy or a visa application centre. Urgent courier service to Korea may be arranged through DHL Express’ Optional Services, where confidential documents like passports are delivered with proactive tracking updates or Saturday delivery.
Plant and plant products
Unprocessed plants (products) are subject to in-plant quarantine by QIA and require an original phytosanitary certificate from the country of origin. The soil must be completely removed when preparing to send parcels for couriers to Korea. Otherwise, it could be destroyed or returned to its origin (RTO).
Seeds
International shipping of seeds to South Korea is subject to in-plant quarantine by QIA and requires an original phytosanitary certificate from the country of origin. Recommendations from related organisations may also be required for some seeds with cultivation purposes.
Tea
Food quarantine by MFDS is required, and the consignee should be a licenced food importer before they may be allowed to export goods to South Korea.
Unprocessed tea leaves are additionally subject to plant quarantine and require an original phytosanitary certificate from the country of origin.
Depending on South Korea’s Customs decision, only a small quantity for non-commercial purposes or personal consumption may be exempted from the certification for related authority (e.g. radio waves act or food quarantine).
Biological Substance Cat B, UN3373
No additional restrictions are required if IATA DGR instructions/restrictions are adhered to.
Military equipment
Import licence from the DAPA (Defense Acquisition Program Administration) may be required.
Ships, parts of (gib, bearing)
Description, quantity, value, and name of the vessel for ship spares in transit should be precisely written on the invoice when preparing to send parcels containing these items to Korea.
Toys
Electrical Equipment Safety Certificate and Safety Certification may be required. Plus, Customs clearance is very strictly and limitedly approved.
Depending on South Korea’s Customs decision, only a small quantity for non-commercial or personal consumption can be imported without the certificate.
Shipping rules for business-to-customer (B2C)
Effective from 1st Dec 2020, South Korea Customs reinforced the submission of PCCC (Personal Customs Clearance Code) for de-minimis B2C shipments and exports to Korea. The Consignee’s DOB (date of birth) is only applied to C2C and is no longer required for B2C. The shipper only needs to input the consignee’s PCCC, which is alphabet P and 12 numbers, into the Receiver/Consignee VAT field of DHL Express’s electronic shipping solution to prevent delay in Customs clearance.
South Korea’s Customs Service requires strict compliance and accuracy on Customs entry. The non-compliance is subject to a physical inspection or penalty. An incomplete and missing consignee’s telephone number or incomplete consignee’s address, including DOX, is not acceptable and can be delayed. Ensure full and accurate information for declaration on the waybill, invoice, and data entry to avoid any delays for your parcels and exports to Korea.
International shipping process when you send parcels from Singapore to South Korea
When shipping to South Korea, the right paperwork will help courier services like DHL Express customs services to clear your shipment from customs without any delays.
1. Documents required when preparing to ship to Korea
The minimum number of documents necessary can include your air waybill, bill of lading, commercial and customs invoices, packing lists, data sheets, and KC licence. These documents will be checked and processed by South Korea’s Customs officers before either rejecting your export’s entry to Korea or accepting and issuing a certificate of import declaration. The documents should be uploaded to UNIPASS for Korean Customs services before shipping to expedite the customs-checking process.
2. Inspection process at South Korea’s Customs
During South Korea’s Customs inspection, officers will verify the accuracy of the details provided via your customs declaration documents. This can include, but is not limited to, your product description, market value, quantity, weight and measurements, certificate of origin, and if your product is copyrighted or trademarked when relevant. If there is misinformation in your declaration forms during inspection, corrections or supplementations of additional information may be required to proceed with customs clearance.
3. Penalties and delays on international exports to South Korea
If the process takes too long, or a variety of corrections are required to amend your declaration and documents, clearance may be delayed or withheld so as to not impede other shipments’ arrivals. Any illegal or illicit imports not declared will be confiscated, and the importer will be fined accordingly. As such, we urge you to take the utmost care in including all details in your documents accurately and being as upfront as possible with South Korea’s Customs officials so as to incur fewer payments and delays in your shipments and exports to Korea.
