ANALYSIS: Korean Supreme Court Excludes Buying Commission From Dutiable Value
Multinational corporations that import goods into Korea are commonly faced with aggressive challenges by the Korea Customs Service (Korea Customs) with respect to customs valuation determinations. The customs treatment of buying commissions, in particular, is a contentious issue. While buying commissions are known to be excluded from the transaction value of imported goods, Korea Customs has generally treated such commissions as dutiable payments that must be included in the transaction value. This approach may change, however, as a recent landmark Supreme Court ruling takes a more pro-importer position on the customs treatment of buying commissions.
Customs Treatment of Buying Commissions.
The World Trade Organization Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (generally referred to as the WTO Valuation Agreement) provides the general principles for an international system of customs valuation. Pursuant to…
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