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.