1.

Customs automation

Increased Global limitless Stagnated

trade volume competitiveness customs staff
10,796
*$1b trade → 9,633 2015
KR-CN FTA
(Unit : $100m
Imp 4,491
2004 4,427
Exp Commence FTA 3,931
5,456
2008
3,326 Financial crisis
1,348
1997 IMF

1995WTO

1990 2000 2005 2011 2016 1990 2000 2016

1
1. Customs automation
Smart – Customs • Establishing 4TH System plan (12) Smart
Development stage • Develop (2013) / Open (2016)
clearance
service
• Investigation info.(1999) Internet
• Passenger info. (2000)
e – Customs clearance
•Customs Knowledge M (2001)
• CDW (2002) portal

Information
Knowledge Mgt management
System system • Internet declaration system(2004~5)
• Internet Clearance portal (2005)
• Risk Management System (2005)
EDI • Single Window (2006 ~ )
clearance
Auto EDI
Clearance System
Air cargo • Basic plan for EDI Clearance automation (1991)
clearance • Export clearance (1994)
• Import clearance (1996)
system • Export cargo (1997)
Simple
Online Service • Import cargo (1997)
• Duty drawback (1997)

1990 1998 2002 2005 2007 year

2
1. Customs automation

Clearance time
High company
logistic cost
Import clearance Export clearance
<Sales vs. logistic cost>

9.7%
+ 3 hours 7.5% + 20 mins

4.8%

1.4 hours
2 mins

Jap US Kor
Before 2000 2013 Before 2000 2013

3
2. What is Single Window?

Customs
…
55
regulatory
agencies Quar.

Envi.

Tech.
standard
F&D

4
2 What is Single Window?

Delay in
Physical visit Delay in logistics;
to regulatory customs Increase
agencies declaration logistic cost

5
2. What is Single Window?

10 digit HS Code – 5,720 items from total of 12,232

(47% of overall goods)

COMM.
구분 ENV. F&D QUAR. OTHERS TOTAL De-Dup.
IND.
EXP. 946 100 81 262 1,389 1,195
IMP. 1,272 3,382 1,317 412 779 7,162 4,525
TOTAL 2,218 3,482 1,398 412 1,041 8,551 5,720

* Reduce duplicates : 194 for export, 2,637 for export, total 2,831

6
2. What is Single Window?

Legal requirement of all trade transaction

One-time electronic submission through one system

Quarantine

Food & drug Environment

E-clearance
One click system
UNI-PASS
싱글윈도우
Customer Feed assoc. Customs

7
2. What is Single Window?

Aug. 2003 Selecting ‘Innovation Project of Import/Export Logistics Information system’ as

31st tasks of E-Government

Aug. 2004 Establishing the single window system targeting eight major agencies
assessing import requirements

Standardizing forms and contents through working-level meetings with related

Mar. 2005
agencies
Reviewing and improving regulations such as the Customs Act

Developing a computerized system for single-window operations

Mar. 2006 Opening the single window system at the eight agencies

Jul. 2008 Highly Upgrading & Innovation of Single Window

And Expanding Single Window(15 OGAs)

Dec. 2016 Single Window (40 OGAs)

8
3. Overcoming barriers

Agency Volume SW dec. Use rate

Food & drug security 190,570 2 0.0%
Plant quarantine 119,846 154 01.%
Gov’t
Fisheries quality 83,610 19,050 22.8%
Vet quarantine 67,005 44 0.1%
Pharma. trade assoc. 58,344 284 0.5%
Public Medical dev. ind. assoc. 39,548 3,523 8.9%
Assoc.
Animal drug assoc. 6,262 1,176 18.8%
Dental assoc. 2,026 87 4.3%

9
3. Overcoming barriers

10
 ▪ Reference (1/2)

# of # of
Name of Institution Application form name Name of Institution Application form name
applications applications

The Korea Medical Devices

Food import application Standard clearance report 1
Industry Association

The Korea Animal Health

Import approval application Standard clearance report 1
Products Association

Import change approval application Korea Conformity Laboratories Industrial product model certification 1
The Korea Food and Drug
Export approval application 8 Industrial product model certification
Administration Korea Testing & Research
Electric appliance safety condition 2
Export change approval application Institute (KTR)
certification application
Material import application Industrial product model certification
Korea Testing Laboratory (KTL) Electric appliance safety condition 2
Material export application
certification application

Korea Apparel Testing &

Internet buying agent food import application Industrial product model certification 1
Research Institute (KATRI)

Dong-Eui Herbal Medicine FITI Testing & Research

Korean herb quality inspection application 1 Industrial product model certification 1
Analysis Center Co, Ltd Institute
Quarantine application for fisheries products
Industrial product model certification
import
The National Fisheries
Korea Testing Certification
Products Quality Inspection 2 2
Quarantine application for fisheries products (KTC) Electric appliance safety condition
Service export certification application

11
 ▪ Reference (2/2)
# of # of
Name of Institution Application form name Name of Institution Application form name
applications applications
Plant quarantine product import declaration KOTITI Testing and Research Safety inspection for similar Manufactured
1
and inspection application Institute goods verification application
Animal and Plant Plant export quarantine application Korea Seed Association Seed import condition verification application 1
4
Quarantine Agency (Plant)
Import inspection amendment application
Korea Seeding Produce
Non-disinfect wood packing quarantine Seed import condition verification application 1
Association
application
Korea Medicine Herbal
Import animal products quarantine application Seed import condition verification application 1
Association
Animal import quarantine application Korea Forest Service Seed import condition verification application 1

Animal and Plant Foundation of Agricultural

Import quarantine transportation notice
Quarantine Agency Technology Commercialization & Seed import condition verification application 1
application
6 Transfer
(Animal)

Export animal products quarantine application Seed import condition verification application
Duty allocation apply recommendation
Animal export quarantine application
application
Import animal products quarantine exemption Duty concession apply recommendation
application National Agricultural Cooperative application
Duty agreement apply recommendation 6
Federation
Waste import permission/declaration form
Korea Environment application
2
Corporation Waste export permission/declaration form
Duty reduction apply recommendation
application
Radio transmission equipment qualification
Seed importation application
assessment application
Korea products safety
Radio Research Agency Application for electronic device clearance 3 Electronic device exemption application 1
association
The Korea Feed Association
Application for electronic device authentication Seed importation application 1
(KFA)
The Korea Standard clearance report Korea Feed Ingredients
Seed importation application 1
Pharmaceutical Traders Standard clearance report 2 Association
Association (human body structure) Korea gas safety corporation Import equipment condition application 1

12
4. Implementation effects

Reduction of company logistic cost vs. sales

<2003> <2009>
9.7%

7.5% 8.5% 8.3%

4.8% 4.8%

Jap US Kor Jap US Kor

‘04 ’06 ’09 ‘12

Reduce logistic 9.6 days 4.5 days 3.2 days 2 days
processing time
Reduce logistic cost - $1.2m $34.5m $178.2m

14
5. Success factor

15
6. Future implementation strategy

Single Window

Import Customs
declaration

Integrated
DATA SET

Regulatory Regulatory agency

Declarer Application [Food&drugetc.]

16
6. Future implementation strategy

Return / scrap

Save uncovered cases by OGA to the customs system to target/inspect illegal

goods
Efficient uncovering of goods through joint inspection with OGA during
clearance stage
17