Import Duties on US Research Equipment and Korea-US FTA Application
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Our school is planning to import research equipment from the United States. While the item price itself does not exceed $1,000, the total may exceed that amount once shipping costs and other expenses are added. I have checked the duty exemption system for research equipment, but should I contact the local Customs Office to receive assistance with the processing? I am also curious about the difference between a customs value of over/under $1,000 and approximately how much the duties will be.
Answer 1
- 0✓1. The customs duty calculation formula is "CIF Value (Goods Value + Overseas Freight + Insurance) × Duty Rate." 2. The duty rate is determined by the HS code of the imported goods (the HS code for the specific research equipment must be verified; it is generally 8%). 3. For duty exemptions for academic research purposes, you can inquire with the import department of the customs office at the port of entry, or receive guidance from the customs broker handling the import clearance. You must receive guidance and prepare the necessary documents before proceeding with import clearance. 4. Under the Korea-US FTA, if the taxable value (CIF) is USD 1,000 or less for products of US origin, the FTA preferential tariff rate can be applied without submitting a separate Certificate of Origin. The FTA preferential rate also varies depending on the HS code (generally lower than the basic rate). 5. Assuming the goods are subject to a basic duty rate of 8%, the customs duty would be 8% of the CIF value and the VAT would be 10.8%, meaning the total tax amount can be viewed as approximately 18.8%.Machine translated
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