[Photo by MK DB]
Korea Customs Service said on Thursday it will ease special permit requirements for a bonded factory to help high-tech companies such as Samsung Electronics and SK hynix simplify their production and delivery processes for exports.
A bonded factory is a system that allows foreign raw materials to be brought into a domestic factory for manufacturing without going through import declaration and customs payment procedures.
The new policy, effective from Friday, will be applied to local semiconductor, display and life science exporters.
As part of the new policy, the customs authority will ease the special permit requirements for single bonded factories. Under the current system, a new factory is recognized as a single bonded factory only if it is established within a maximum of 15 km of an existing factory, but in the future, new factories located in the same customs jurisdiction will be recognized as a single factory.
Goods produced in off-site workshops can be transported directly to other bonded areas without shipment to an original bonded factory to reduce inconvenience.
In addition, all goods to be used by companies in a bonded factory will be allowed to be used immediately after being brought into their factory, and test driving of railroad cars will be allowed without customs clearance.
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