Customs specialist attorney, how do I apply for a customs valuation pre-review?

Hello. This is the customs specialist attorney from Daeryun Law Firm (LLC).

The customs valuation pre-review is a system that allows you to request review in advance from the Commissioner of the Korea Customs Service (Director of the Customs Valuation and Classification Institute) before declaration when there are doubts about determining the dutiable value of imported goods.

Particularly when the supplier is a related party, since transaction prices may differ from normal prices, the Advance Customs Valuation Arrangement (ACVA) procedure is used to confirm this in advance.

Unlike general pre-reviews, the documents to be submitted are more detailed, and the organization, finances, contracts, and pricing basis of the parties to the transaction must be systematically prepared.

The main documents to be submitted when applying for related party pre-review are as follows.

1. Explanatory materials regarding business history, business content, organization, and equity relationships of the parties to the transaction

2. Financial statements for the past 3 years and normal price calculation report

3. Contracts and supplementary documents related to import transactions of goods

4. Materials specifically explaining the calculation method of imported goods prices

5. Documents related to National Tax Service APA approval (if applicable)

6. If a transfer pricing report prepared by an accounting firm exists, the report (including basis materials and analysis materials on factors affecting the prices of assets and trade)

7. Materials confirming that the related party relationship did not affect the transaction price

8. Sales and cost of sales by imported item for the past 3 years

9. Other documents necessary for confirming the dutiable value determination method

Review results are provided in the form of a reply on the dutiable value determination, and since the procedure is complex and the documents to be submitted are voluminous, it is safe to establish a strategy with a customs specialist attorney from the early stage.

Through this, you can systematically prepare the documents to be submitted, prevent unnecessary misunderstandings or disputes during the review process, and minimize risks in future customs declarations.