Korean Customs Import and Export Taxes
[Overview]
Whether individuals or business entities are engaged in the import of goods in Korea, they must pay import duties and other taxes. All import duties and taxes are calculated based on the freight value, that is, the landed price (CIF). At the same time, imported goods are also subject to value-added tax, education tax, special consumption tax, and alcohol tax on certain goods.
[Tariffs]
Korea's tariff rates range from 0% to 40%, with an average tariff rate of 4.17%. Certain goods are exempt from tariffs, such as books.
[VAT]
VAT = standard VAT rate 10% × (CIF price + tariff + applicable taxes and fees).
[Others]
Special consumption tax is a tax on certain specific products that can be levied at an ad valorem rate of 5%-20% based on the sum of CIF price and tariff. Special consumption tax can also be levied on quantity, such as how many won per kilogram. There are two types of liquor tax rates: ad valorem and specific. The tax rate for spirits is 57,000 won/KL (an additional 600 won for every 1% of alcohol content over 95%), and the tax rate for other liquors is ad valorem, ranging from 5% to 72%. The education tax is levied on the basis of the special consumption tax, liquor tax, or transportation tax, with a tax rate between 10% and 30%.