Exporter/Export Agent Name on Export Declarations when Procuring Equipment for Overseas Construction Sites
Machine translated
I am in charge of procuring construction equipment for overseas construction sites at a construction company, and I have an inquiry regarding the designation of the Exporter/Export Agent on export declarations.
The current situation is as follows:
1) A purchase contract is signed between our company and a domestic equipment supplier.
2) A Purchase Confirmation (구매확인서) is issued to apply the zero-rated VAT rate.
3) The delivery term in the purchase contract is FOB domestic port, and the export declaration is performed by a customs broker designated by the supplier.
4) The export declaration is filed with our company as the Exporter/Export Agent and the supplier as the Manufacturer.
The problems are:
- Since the supplier designates the customs broker, our company cannot control the correction or amendment of the export declaration.
- Our company faces sanctions due to reporting errors made by the customs broker.
- Because our company is designated as the Exporter, the responsibility for strategic item determination and export licensing falls on us, but we face operational inefficiencies due to a lack of accurate information regarding the equipment.
Questions:
1) When a purchase contract is signed with a domestic supplier for the purpose of installation at an overseas construction site and a Purchase Confirmation is issued, must our company necessarily be designated as the Exporter/Export Agent on the export declaration?
2) If a Purchase Confirmation is issued, is there any way to designate the supplier as the Exporter/Export Agent on the export declaration?
3) I would appreciate it if you could provide the names of the laws and the specific article numbers that regulate this.
Answer 1
- 0✓Question 1. When issuing a Local L/C (Purchase Confirmation), required supporting documents include the export L/C, export contract, export declaration certificate, etc. Regarding the relevant provisions, there is no explicit mention of who must be listed as the exporter or export agent on the export declaration certificate. I understand that matters related to the preparation of the export declaration are based on the Customs Act. Since the method of preparing the export declaration certificate and any related disputes are matters pertaining to the Customs Act, it would be appropriate to consult with a customs broker. Similarly, as Question 2 also concerns the preparation of the export declaration, it would be appropriate to consult with a customs broker. Question 3. The relevant provisions are Article 18 of the Foreign Trade Act (Issuance of Purchase Confirmation, etc.), Article 31 of the Enforcement Decree of the Foreign Trade Act (Application and Issuance of Purchase Confirmation, etc.), and Articles 36 to 39 of the Foreign Trade Management Regulations.Machine translated
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