Due to shortfalls in customs revenue collections in the past year, Korea Customs has announced its intention to increase the number of customs audits in 2013. It is expected that company-level audits will increase by over 50%, possibly affecting up to 130 companies.
Along with company-level audits, Korea Customs will continue to conduct planned audits, free-trade agreement (FTA) origin audits, foreign exchange investigations and other aspects of its compliance review programs. Overall, it is expected that the total number of companies audited this year could be more than double the amount audited last year.
Korea Customs has also announced that it will be focusing on multinational corporations that have large volumes of related-party sales with their local Korean entities. Companies that have not been audited in the past four years and/or have import levels of greater than US$50m may also face a greater risk of being audited this year.
Companies with high duty rates or high-value luxury goods are also likely to be selected for audit.