WORLD TRADE
ORGANIZATIONG/LIC/N/3/KOR/3
14 June 2002
(02-3317)
Committee on Import Licensing Original:  English
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES1
Notification under Article 7.3 of the
Agreement on Import Licensing Procedures
KOREA
The following notification, dated 16 May 2002, has been received from the Permanent
Mission of Korea.
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Outline of systems
1. Korea has continued to reduce trade-related regulations, embracing the principle of free trade
with respect to export and import activities.  In this context, restrictions on trade, if any, are limited to
the very minimum necessary.
No licensing (since 6 June 1993), registration (since 30 December 1996) or notification (since
1 January 2000) is required to be importers and exporters.  Only for statistical purposes, the Korea
International Trade Association (KITA), a privat e organization, assigns upon request a trade business
number to anyone who wishes to conduct trade business.
The Foreign Trade Act (FTA) is the basic law that governs international trade between Korea
and other countries.  Specific items for which exports and/or imports are restricted are listed in the
Export-Import Notice published by the Ministry  of Commerce, Industry and Energy (MOCIE).
In addition to the FTA, 52 separate laws also stipulate approval or authorization requirements
for certain items, and those items can be imported by obtaining certification, permission and type
approval.  Those requirements are maintained mostly for the protection of morals, human health,
hygiene and sanitation, animal and plant life, environmental conservation or essential security
interests in compliance with domestic legislati on requirements or international commitments.
To enhance transparency and for the convenience of trading companies, MOCIE updates
semi-annually the Consolidated Public Notice, a single document containing all export and import
certification requirements in the 52 separate laws.
On 1 July 1997, with the amendment of the Export-Import Notice, import of 77 HSK ten-digit
items including pork, poultry, eels, shrimps, natural honey and oranges was liberalized, thereby
raising the import liberalization ration from 99.3 per cent to 99.9 per cent, which is calculated by
                                                     
1 See G/LIC/3, Annex, for the Questionnaire.G/LIC/N/3/KOR/3
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dividing the total number of HSK ten-digit codes by the number of items of which import is restricted
by the FTA.
Import restrictions on the remaining eight beef-related items were lifted on 1 January 2001 as
scheduled.  At present, Korea has no quantitative import restrictions except on rice.
Purpose and coverage of licensing
2. As of January 2002, there is no quantitative import restriction on the basis of the HSK
ten-digit code except on rice.  Import-related requirements provided by the 52 separate laws pertain to
petroleum, LPG (Liquefied Petroleum Gas), agricult ural fertilizers, crop seeds, animals and animal
products, nuclear materials, narcotics, foods and food additives, foreign publications, firearms and
explosives.  The list of import-regulating laws other than the FTA is the same as Annex II in Korea'sprevious notification (G/LIC/N/3/KOR/2), with the single exception that the Sericulture Law was
abolished on 21 January 1999.
2
3. The system applies to goods originating in and coming from all countries.
4. All import-related regulations except those on rice are not intended to restrict the quantity or
value of imports.  Rather, they are maintained in order to protect national security, human, animal or
plant life or health, and the environment, etc. in accordance with the provisions of Articles XX and
XXI of GATT 1994, other WTO Agreements and ot her international rules or agreements.
5. The import approval system is enforced under the Foreign Trade Act, the Enforcement
Decree of the Foreign Trade Act, the Foreign Trade Management Regulation and the Export-Import
Notice.
The import-related requirements are set forth in the 52 domestic laws.  A list of these laws is
attached in Annex II of Korea's previous notifi cation (G/LIC/N/3/KOR/2), with the only exception
being that the Sericulture Law was abolished on 1 January 1999.  The detailed approval conditions are
prescribed in enforcement decrees or regulations for the above-mentioned 52 domestic laws.2
While it is not possible for the executive branch to abolish or to convert the approval system
without legislative approval, there is administrative flexibility to some extent since the authority to
classify a specific item for import regulation is entrusted to the executive branch.
Procedures
6.I Tariff rate tables attached to the Tariff Act contain information relating to total quantities of
rice import quotas, and can be accessed by the public through the Korean National Assembly website.The formalities for filing rice import quota allocations and import licences are stipulated in the Food
Grain Management Act, which is also accessible through the internet.
II. Total quotas and sub-quotas for each importer are determined on an annual basis.  Importers
can import up to the quantity of their quota allocations at any time during the quota year.
III. The allocation of quotas is not limited to domestic producers of like products.  Each company
should return the unused portion of the allocated quota and unused quotas are reallocated to other
eligible importers on an annual basis.  Unused quotas are not added to quotas for the next year.  The
list of importers to whom quotas are allocated is not made known to exporting countries for businessprivacy purposes.
                                                     
2 See Annex I for the revised list.G/LIC/N/3/KOR/3
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IV. A period of 30 days or more is allowed for the application for quota allocation.
V. According to the Food Grain Management Act, the maximum period for processing rice
import applications is 20 days.
VI. There is no minimum length of time between them.
VII. Quota allocation and applications for rice import licences are considered by one organization,
the Ministry of Agriculture.
VIII. Quotas are allocated mainly on the basis of past performance.  A certain portion of the quota
is allocated to new eligible applicants.  Applicat ions for quota allocation are examined simultaneously
and applications for import licences are examined upon receipt.
IX-X. Not applicable.XI. No.7. Not applicable.  There are no licensing procedures for items not subject to import restrictions
on quantity.
8. An application for approval cannot be rejected if it satisfies the established criteria.Eligibility of importers to apply for licence
9.(a) In cases involving import-restricted items under the FTA, the quotas are allocated to
end-users.  As for rice, however, qualified importers are generally designated by the Ministry ofAgriculture, as prescribed by the Food Grain Management Act.
(b) No licensing (since 6 June 1993), registration (since 30 December 1996) or notification (since
1 January 2000) is required to be importers and exporters under non-restrictive systems.
For statistical purposes only, the Korea International Trade Association (KITA), a private
organization, assigns upon request a trade business number to anyone who wishes to carry out trade
business.  The KITA publishes a list of traders annually.
Documentational and other requirements for application for licence
10. An offer sheet or a copy of the contract and other necessary documents must be submitted
together with the application.
11. Only in the case of import-restricted items, upon actual importation, the import declaration,
import approval, commercial invoice, Bill of Lading and other necessary documents must be
submitted.
12. There is no licensing fee or administrative charge.13. There is no deposit or advance payment requirement associated with the issue of licences.G/LIC/N/3/KOR/3
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Conditions of licensing
14. In principle, the period of validity for import approval is one year.  However, the period can
be extended or shortened, depending on specific circumstances, when the approval is issued by
relevant administrative agencies.
15. There is no penalty for the non-utilisation of a licence or a portion of a licence.
16. Licences are not transferable between importers.17. No other conditions are attached to the issue of a licence.Other procedural requirements
18. There are no other administrative procedures, apart from import licensing and similar
administrative procedures, required prior to importation.
19. Foreign exchange is provided automatically for goods to be imported under the standard
settlement method.  However, in cases involving a non-standard settlement method, where certain
criteria are imposed on the payment under the Foreig n Exchange Transaction Act, for instance, where
the settlement exceeds a specified period of time or a designated amount of money in transactions
such as deferred payments, instalment payments or imports based on remittance, permission from the
Bank of Korea or the Ministry of Finance and Economy must be obtained.G/LIC/N/3/KOR/3
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ANNEX I
The following tables briefly describe the items subject to import-related requirements and the
administrative organizations under the 52 domestic laws.  Each Ministry takes charge of application
of the laws whose procedures or requirements fall under its authority.
1. Ministry of Trade, Industry and Energy
Law Product coveredRelated administrative
organization
Petroleum Business Act Crude oil, petroleum Korea Petroleum Association
High Pressure Gas SafetyControl ActHigh pressure gas, container
and facilitiesKorea Gas Safety Corporation
Liquified Petroleum Gas Safety
and Business Management ActGas appliances Korea Gas Safety Corporation
Propane, butane
The Act of Control on the
Production etc. of SpecifiedSubstances for the Protection ofthe Ozone LayerControlled substances under the
Montreal ProtocolMinistry
Electric Appliances Safety
Control ActDesignated electric appliances
which can cause danger orinjuryNational Institute of
Technology and Quality
Law for ManufacturingManagement of ElevatorDesignated electric appliances
which can cause danger or
injuryNational Institute of
Technology and Quality
Quality ManagementPromotion ActDesignated consumer products
which can cause danger or
injuryFITI Testing and Research
Institute
Korea Machinery, Meta and
Petrochemical Testing and
Research InstituteKorea Testing and Research
Institute for Chemical Industry
Korea Merchandise Testing andResearch Institute
Weights and Measures Act Legal measuring instruments Korea Machinery, Meta and
Petrochemical Testing andResearch InstituteG/LIC/N/3/KOR/3
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2. Ministry of Agriculture
Law Product coveredRelated administrative
organization
Food Grain Management Act Rice Ministry
Fertilizer Management Act Agricultural fertilizer Ministry
Agrochemicals ManagementLawAgrochemicals Ministry
Livestock Epidemics
Prevention and Control ActAnimals and animal products National Animal Quarantine
Service
Plant Protection Act Plants and plant products National Plant Quarantine
Service
Major Agricultural Crop SeedsActCrop seeds Rural Development
Administration
Seedlings Management Act Vegetable seeds for sale Korea Seed Association
Fruit trees for sale Rural Development
Administration
Livestock Act Pure-bred breeding stocks Korea Animal Improvement
AssociationKorea Poultry Association
Pharmaceutical Act Veterinary medecine Ministry
Korea Animal Health ProductAssociation
Ginseng Industry Law Ginseng National Agricultural Product
Inspection Office
3. National Forestry Administration
Law Product coveredRelated administrative
organization
The Law concerning Protection
of Wildlife and GameWildlife animalsAdminstration, local
governments
4. Ministry of Marine Affairs and Fisheries
Law Product coveredRelated administrative
organization
Fisheries Act Marine animals and plants MinistryG/LIC/N/3/KOR/3
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5. Ministry of Finance and Economy
Law Product coveredRelated administrative
organization
Foreign Exchange ManagementActCoinage, banknotes, securitiesForeign exchange banks, the
Bank of Korea
Tobacco Business Act Tobacco seeds Ministry
6. Ministry of Science and Technology
Law Product coveredRelated administrative
organization
Atomic Energy Act Nuclear materials Ministry
Radioisotope, radiationgeneratorsKorea Radioisotope
Association
7. Ministry of Health and Welfare
Law Product coveredRelated administrative
organization
Pharmaceutical Act Finished pharmaceuticals Ministry
Korea Pharmaceutical Traders'
Association
Materials for medicine or forherbal drugsKorea Pharmaceutical Traders'
Association
Medical devices Korea Medical Instruments
Industrial Cooperative
Narcotics Act Narcotics Ministry
Cannabis Control Act Cannabis
Psychotropic SubstancesControl ActFinished pharmaceuticals Korea Pharmaceutical Traders'
Association
Materials for medecine
Food Sanitation Act Food, food additives, apparatus,
container and packageNational Quarantine Station or
Regional Food and DrugAdministration
Quarantine Act Designated products National Quarantine Station or
Regional Food and Drug
AdministrationG/LIC/N/3/KOR/3
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Law Product coveredRelated administrative
organization
Public Health Act Sanitation-related products (e.g.
detergent)National Quarantine Station or
Regional Food and Drug
Administration
Recreation equipments Ministry
8. Ministry of Labour
Law Product coveredRelated administrative
organization
Industrial Safety and HealthActHarmful substances (e.g.
yellow phosphorous matches,
benzidine)Local labour administration
New chemical substances (e.g.
chemical elements, radioactive
substances)Ministry
Safeguarding measures (e.g.
safeguarding measures against
press)Korea Industrial Safety
Corporation
Harmful or hazardous
equipments (e.g. cranes, lifts)
Protective equipments (e.g.safety helmet)
9. Ministry of Information-Communication
Law Product coveredRelated administrative
organization
Radio Waves Act Apparatus of radio equipment Radio Research Laboratory
EMI or EMC equipment
Telecommunications Basic Act T elecommunication equipmentG/LIC/N/3/KOR/3
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10. Ministry of Culture and Sports
Law Product coveredRelated administrative
organization
Act relating to Import and
Distribution of Foreign
PublicationsForeign publications Ministry
Motion Picture Promotion Act Motion picture
Act relating to Records and
Video WorksRecord and video works Korea Ethics for Performing
Arts Committee
Tourist Promotion Act Casino machine and its parts Ministry
Cultural Properties ProtectionActCultural properties
11. Ministry of National Defence
Law Product coveredRelated administrative
organization
Special Measure Act relating to
Defence IndustryMilitary products Ministry
12. National Police Agency
Law Product coveredRelated administrative
organization
Firearms, Swords, Explosives
etc. Control ActFirearms, swords and
explosivesAgencyG/LIC/N/3/KOR/3
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13. Ministry of Environment
Law Product coveredRelated administrative
organization
Toxic Chemicals Control Act Toxic substances Local governments,
environmental management
offices or regionalenvironmental management
offices
Chemical substances Ministry
Natural Environment
Preservation ActAnimals and plants detrimental
to ecosystemEnvironmental management
offices or regional
environmental management
offices
Endangered wild animals and
plants
Drinking Water Management
ActBottled water, water treatment
chemicals and its containerEnvironmental management
offices or regionalenvironmental management
offices
Wastes Control Act Wastes Korea Copper Industrial
Cooperative
Federation of Korea
Non-Ferrous Metal Industry
Cooperative
Environmental managementoffices or regional
environmental management
offices
Noise and Vibration Regulation
ActMotor vehicles, etc. National Institute of
Environmental Research
Atmospheric EnvironmentPreservation Act
14. Ministry of Construction and Transportation
Law Product coveredRelated administrative
organization
Motor Vehicles Control Act Motor vehicles Ministry
Construction Machines ControlActConstruction machines MinistryG/LIC/N/3/KOR/3
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15. National Tax Administration
Law Product coveredRelated administrative
organization
Liquor Tax Act Liquor District tax offices
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