Trade activities between China and South Korea have been steadily increasing year by year. However, for many Chinese enterprises, successfully navigating maritime exports remains a complex and challenging process. This comprehensive analysis examines potential obstacles, critical policies, and practical considerations to help exporters achieve success in the South Korean market.
I. Compliance Requirements for Electronic and Electrical Products
1. KC Certification
All electronic and electrical products exported to South Korea must bear the KC Mark, which serves as mandatory safety certification. The KC Mark has replaced the previous EK Mark, requiring all electronic products to complete KC Mark certification before entering the South Korean market. This certification process includes annual factory inspections and product sampling tests, with no expiration date on the certification.
2. Country of Origin Labeling
All products exported to South Korea must clearly display "MADE IN CHINA" on their labels. For apparel and footwear products, origin markings must follow specific care label formats—alternative labeling methods will be considered invalid.
3. China-South Korea Free Trade Agreement (FTA)
To benefit from tariff preferences under this agreement, businesses must submit relevant certificates of origin during customs clearance procedures.
II. Requirements for Wooden Packaging
Products using wooden packaging for export must display the IPPC mark to ensure smooth customs clearance, although the original fumigation certificate doesn't need to be mailed to South Korean clients.
III. Customs Clearance and Transportation Guidelines
1. Customs Clearance Conditions
South Korea prohibits customs clearance under personal names unless the individual possesses a valid local business license for operations such as real estate, retail stores, or hotels.
2. Container Weight Restrictions
Containers exported to South Korea should generally not exceed 25 tons net weight. Exceeding this limit may trigger strict customs inspections, with specific limits of 17 tons for small containers and 23 tons for large containers.
3. Shipping to Jeju Island
Currently, no direct shipping routes exist from China to Jeju Island—all maritime cargo must be transshipped through Busan.
4. Infeasibility of Origin Certificate Modification
Due to certain countries' trade restrictions against China, obtaining certificates of origin in South Korea for Chinese goods is impractical. South Korea only issues certificates of origin for genuinely manufactured products.
IV. Selecting South Korea's Major Ports
1. Ports and Associated Costs
Incheon features three ports: the old Incheon Port, New Port, and Gyeongin Port. Buyers typically avoid Gyeongin Port due to its higher trucking fees.
2. Seoul Transportation
It's important to note that Seoul itself isn't a port city or international airport—Incheon's airport and ports serve as the nearest transportation hubs to the capital.
3. Bill of Lading Processing
Shipping documents including bills of lading, packing lists, and invoices must be prepared at the port of origin to avoid customs declaration issues in South Korea. Late submission may result in fines ranging from $100 to $150.
V. EDI and Pre-Clearance Procedures
1. EDI Requirements
EDI submissions must include the South Korean buyer's business license. The bill of lading must clearly display buyer contact information—inaccurate data will be treated as non-compliance and incur penalties.
2. Pre-Clearance Benefits
South Korea permits pre-clearance authorization, allowing frequent importers to expedite customs clearance and cargo pickup upon arrival.
VI. Product Compliance and Return Policies
All products that directly contact human skin or food items require Chinese sanitary certificates for customs clearance. For returns due to quality issues or buyer reasons, written consent from the South Korean buyer is mandatory.
VII. Special Products and Tariff Considerations
1. Hazardous Materials
Hazardous goods typically cannot be shipped to Incheon Port and must instead be routed through Busan or Ulsan ports.
2. Duties and Taxes
While tariff rates vary by customs code, all imported goods are subject to a standard 10% value-added tax (VAT), commonly referred to as consumption tax.
VIII. Bill of Lading and Information Disclosure
1. Backdating and Switch Bills
South Korea permits backdated bills of lading to accommodate letter of credit deadlines. Switch bills are also allowed, providing flexibility for intermediaries in three-party trades.
2. Confidential Information
In certain cases—particularly in three-party trades—shipper information may be withheld to protect commercial secrets.
IX. Customs Clearance Channels
All clearance must occur through official channels—no "gray customs clearance" methods exist. Compliance with proper clearance procedures forms the foundation for sustainable business growth.
X. ISO Tank Container Regulations
When using ISO tank containers for exports to South Korea, providers must supply tank certificates, tank numbers, and Material Safety Data Sheets (MSDS). Additionally, cleaned tanks require accompanying cleaning reports.
Understanding and adhering to these export requirements and considerations will enable businesses to conduct maritime exports to South Korea more efficiently, enhance compliance, and minimize potential financial losses and legal risks. Through thorough preparation and practical implementation, exporters can secure a competitive position in this dynamic market.
