BUSAN, South Korea — South Korea’s customs agency said today it will simplify the customs clearance process for low-priced consumption goods purchased on foreign websites. This is a move aimed at shortening delivery time and increasing benefits to consumers.
The Korea Customs Service (KCS) said it will apply the clearance process called ‘de minimis’ to consumption goods bought from foreign websites starting in July.
The rule will be applied to products priced at US$100 or lower. For goods bought from U.S. websites, the cap will be raised to $200, under the free trade pact between the two countries.
De minimis refers to a clearance system in which specified items — usually low-priced goods — are exempted from documentation and taxation. Currently, six items including clothing and shoes benefit from the system.
The move comes as a growing number of local consumers turn to the so-called overseas direct purchase. Direct purchase refers to purchasing goods for direct delivery to their domestic addresses from online shopping malls abroad.
Source: Busan eFM News