(1) The customs value of imported goods shall be the transaction value adjusted by adding up the following amount to the price of goods sold for export to Korea that has been actually paid or is to be paid by a buyer: Provided, That the following amount shall be added based on the objective and quantifiable data, and if such data are unavailable, the customs value shall be determined by the methods provided for in Articles 31 through 35 instead of the methods provided for in this Article: <Amended on Jan. 1, 2013>
1. Commissions and brokerage fees to be borne by a buyer: Provided, That buying commissions shall be excluded herefrom;
2. Cost involved in containers handled in the same manner as the relevant imported goods, labor cost and material cost incurred in packing the relevant imported goods, all of which to be borne by a buyer;
3. The amount calculated by appropriately allocating the price or the balance of the discount for the goods and services in consideration of factors prescribed by Presidential Decree, such as the total production of the relevant imported goods, if a buyer supplies directly or indirectly, the goods and services prescribed by Presidential Decree, free of charge or at a discounted price, for the production and exportation of the relevant imported goods;
4. The amount computed, as prescribed by Presidential Decree, which is paid for the patent right, the utility model right, the design right, the trademark right and other rights similar thereto;
5. The amount which, directly or indirectly, is paid to a seller, among the proceeds accruing from the resale, disposal or use of the relevant imported goods;
6. The amount determined, as prescribed by Presidential Decree, which are freight, insurance bill and other costs involved in transportation to the port of entry: Provided, That for the imported goods prescribed by Ordinance of the Ministry of Economy and Finance, all or some of such amount may be excluded herefrom.
(2) "The price that has been actually paid or is to be paid by a buyer" in the main clause, with the exception of its subparagraphs, of paragraph (1) means the total amount paid or to be paid by the buyer for the relevant imported goods, including the amount offsetting the debt of a seller by the price of the relevant imported goods, the amount of a seller’s debt to be repaid by the buyer, and other indirect payments: Provided, That if any of the following amount is clearly separated from the total amount paid or to be paid by a buyer, it means the amount computed after deducting the following amount:
1. Costs involved in the construction, installation, assembling, repair and maintenance of the relevant imported goods, which are undertaken after importation thereof, or costs involved in providing the technical support for the relevant imported goods;
2. Freight and insurance fees necessary for transporting the relevant imported goods after their arrival at the port of entry and other costs involved in their transportation;
3. Taxes, including customs duties, imposed on the relevant imported goods in Korea, and other public charges;
4. If the relevant goods are imported on a deferred payment basis, the interest rate on such deferred payment.
(3) In any of the following subparagraphs, the customs value of the relevant imported goods shall not be the transaction value referred to in paragraph (1) but shall be determined by the methods provided for in Articles 31 through 35. In such cases, the head of a customs office shall give a prior written notice to a person liable to pay duties of the grounds that give rise to the occurrence of any of the following cases, and provide them with an opportunity to propose their opinion: <Amended on Dec. 31, 2011; Dec. 23, 2014>
1. Where the disposal or use of the relevant goods is restricted: Provided, That cases prescribed by Presidential Decree, such as where there is a restriction deemed by the head of a customs office as not practically affecting the transaction value referred to in paragraph (1), shall be excluded herefrom;
2. Where the effectuation of transaction or the determination of price of the relevant goods is affected by conditions or considerations which cannot be counted in terms of money;
3. Where some of the proceeds accruing from the resale, disposal or use of the relevant goods after importation thereof is paid, directly or indirectly, to a seller: Provided, That this shall not apply where a proper adjustment can be made in accordance with paragraph (1);
4. Where a special relationship prescribed by Presidential Decree between a buyer and a seller (hereinafter referred to as "special relationship") affects the determination of the price of the relevant goods: Provided, That cases prescribed by Presidential Decree, such as where it is determined in a manner conforming to the normal pricing practices in the relevant industry, shall be excluded herefrom.
(4) Where a person liable to pay duties files a value declaration based on a transaction value referred to in paragraph (1) and the relevant declared value is found to be substantially different from the value based on the transaction value of identical or similar goods, making it difficult to recognize such declared value as the customs value, and in cases prescribed by Presidential Decree, the head of a customs office may request the person liable to pay duties to provide data attesting that the relevant customs value declared is correct, as prescribed by Presidential Decree.
(5) Where a person liable to pay duties falls under any of the following subparagraphs, the head of a customs office shall determine a customs value using the methods provided for in Articles 31 through 35 instead of the methods prescribed in paragraphs (1) and (2). In such cases, the head of the customs office shall endeavor to achieve appropriate cooperation, such as information exchange, with a person liable to pay duties in order to determine the customs value as soon as possible and notify the relevant person liable to pay duties of the reason why it is impractical to recognize the declared value as the customs value, along with the customs value determined: <Amended on Jan. 1, 2013>
1. Where he or she fails to submit the data requested under paragraph (4);
2. Where the data submitted upon a request under paragraph (4) has not been prepared in compliance with the generally accepted accounting principles;
3. Where it is impractical to recognize the declared value as the customs value on the grounds prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010]