(1) When any declaration, an application, a request, the submission of documents, a notification, a payment or collection provided in this Act are deemed impossible to be made within a fixed due date due to any natural disaster or on other grounds prescribed by Presidential Decree, the head of a customs office may permit the installment payment of any customs duty, as prescribed by Presidential Decree within a period of not exceeding one year.
(2) When any of the following goods are imported, the head of a customs office may permit the installment payment of any customs duty within a fixed period of not exceeding five years, as prescribed by Presidential Decree:
1. Goods published by the Minister of Economy and Finance which are facilities and machinery, basic installations, raw materials and structures for construction, and equipment used for construction works: Provided, That goods used for types of business prescribed by Ordinance of the Ministry of Economy and Finance shall be excluded herefrom;
2. Goods prescribed by Ordinance of the Ministry of Economy and Finance which are imported by the Government or local governments;
3. Goods prescribed by Ordinance of the Ministry of Economy and Finance which are imported by schools and vocational training institutions, and non-profit corporations for public-interest projects;
4. Goods published by the Minister of Economy and Finance which are imported by social welfare institutions and establishments prescribed by Ordinance of the Ministry of Economy and Finance including medical institutions, etc.;
5. Goods published by the Minister of Economy and Finance which are imported by research institutes affiliated with companies, industrial technology research associations and nonprofit research institutes prescribed by Ordinance of the Ministry of Economy and Finance, and other research institutes similar thereto for the research and development of technology and for experiments and practices;
6. Goods imported by small manufacturing firms prescribed by Ordinance of the Ministry of Economy and Finance for their direct use: Provided, That such goods shall be in conformity with the standards prescribed by Ordinance of the Ministry of Economy and Finance;
7. Goods published by the Minister of Economy and Finance, from among goods imported by vocational training institutions affiliated with companies prescribed by Ordinance of the Ministry of Economy and Finance, which are difficult to be manufactured in Korea, for the use of vocational training, education, experiments and practices.
(3) If a person who has been granted with approval for the installment payment of his or her customs duty under paragraph (2) intends to change the use of the relevant goods or to transfer them, he or she shall obtain prior approval therefor from the head of a customs office.
(4) If a corporation which has been granted approval for the installment payment of its customs duties, is merged, divided, merged after dividing itself, dissolved or declared bankrupt, or a person who is granted with approval the installment payment of his or her customs duties is declared bankrupt, the person liable to pay duties under paragraphs (6) through (8) shall without delay report the reasons thereof to the head of a customs office.
(5) If the goods on which approval has been granted for the installment payment of its customs duties are transferred to a person who intends to use them for the same purpose, the transferee of such goods shall pay such customs duties, and if such goods are transferred to a person who intends to use them for other purpose, the transferor of such goods shall pay such customs duties. In such cases, if it is unable to collect such customs duties from the transferor, the customs duties in question shall be collected from the transferee.
(6) If a corporation that has been granted approval for payment of customs duties in installments is merged, divided or merged after dividing itself, a corporation surviving a merger, a division or a merger after division or other corporation that is incorporated by a merger, a division or a merger after division shall jointly pay such customs duties.
(7) If a person who has been granted approval for the installment payment of its customs duties is declared bankrupt, a bankruptcy trustee thereof shall pay such customs duties.
(8) If a corporation that has been granted approval for the installment payment of its customs duties is dissolved, a liquidator thereof shall pay such customs duties.
(9) In any of the following cases, the whole amount of unpaid customs duties shall be promptly collected:
1. Where goods on which approval has been granted for the installment payment of its customs duties are used for other purpose than the relevant purpose within a period provided in paragraph (2) or transferred to a person who intends to use them for other purpose than the relevant purpose;
2. Where any customs duties are not paid by a fixed due date: Provided, That this shall not apply where the Commissioner of the Korea Customs Service recognizes the existence of unavoidable causes thereof;
3. Where a bankruptcy is declared;
4. Where a corporation is dissolved.[This Article Wholly Amended on Dec. 30, 2010]