New system to help firms proactively manage tariff risk and ensure stable operations
The Korea Customs Service said Wednesday it will introduce a customs sincere filing verification regime to support voluntary compliance by businesses. The initiative is one of the key tasks under the tax rationalization and taxpayer convenience category of the 2026 tax law revision package announced by the Ministry of Economy and Finance.
Under the regime, companies designated as sincere filing verification targets voluntarily submit their customs declarations for review. With the help of licensed customs brokers or other specialists, they assess the accuracy of their filings and submit a verification report to the head of the relevant customs office, after which they receive preferential treatment in customs administration.
The regime targets mid-sized and small and medium-sized enterprises with annual import values below $30 million. Companies already certified as Authorized Economic Operators (AEO) are excluded.
Businesses wishing to participate must apply to their local customs office for designation as a sincere filing verification target no later than two months before the end of the relevant tax year. Once designated, the status is valid for five years and can be renewed in five-year increments.
Designated companies must engage a customs broker or other qualified specialist each tax year to review the accuracy of their declarations — covering dutiable value, tariff classification and other reported items — and submit the resulting verification report to customs within three months of the end of that tax year.
Designated companies will benefit from reduced or waived inspections of imported goods during customs clearance. If errors are found during the verification process and the declared duty amount is corrected, the correction will be treated as having been made within the statutory amendment period, allowing the company to receive a reduction in penalty surcharges.
Park Cheon-jeong, head of the Korea Customs Service's review policy division, said the agency would "provide full support so that companies can proactively resolve tariff risks and continue stable business operations." Park added that a pilot program and public consultation process will be conducted in 2027 for companies wishing to participate, with full implementation set for 2028, and pledged to "spare no effort to ensure the regime is successfully put into practice."
kwonhl@heraldcorp.com
