KIFFA Suggests Amending the Custom Clearance System

It was anticipated that there would be conflict between the Korea Inte
rnational Freight Forwarders Association (KIFFA) and the Korea Customs
Brokers regarding customs clearance corporations, a long-run wish for
KIFFA. KIFFA strongly suggested that a Regulatory Reform Committee am
endment be accepted on June 29. Related industries and interested part
ies have been concentrating on the reaction of the Korea Customs Broke
rs.
Since 1988, KIFFA has suggested several times that freight forwarders
handle customs clearance, yet to date this has not happened.
As a matter of fact, KIFFA submitted the amendment to the law to the N
ational Assembly, which was permitted through the 6th Regulatory Refor
m Committee in June 1998, but it failed to pass in the National Assemb
ly due to skeptical lobbyists from related industries.
In the case of advanced western countries, customs clearance corporati
on systems are operated by free registration systems, or by hiring qua
lified personnel without a license. For Korea, the freight forwarders
who took charge of the international transportation system were denied
permission to operate a customs clearance corporation.
KIFFA suggested amending the Customs Brokers law and relax restriction
s. At first, they were needed to increase the available opportunities
to establish custom clearance procedures for freight forwarders. Custo
ms clearance corporations have to be built on the related statute, not
on present customs laws, possessing a license, registration or patent
. As the instrument facility standard was removed to lessen restrictio
ns, the capital needed to establish a customs clearance corporation wi
ll be lowered to 300 million won from the current 500 million won.