• Korea Trade Review
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• v.44 no.2
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• pp.189-202
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• 2019

The Harmonized System comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification. This study reviews the appropriateness of Korea Customs Service and Tax Tribunal's customs classification decisions concerning the interpretation and application of the Harmonized System for certain ITA goods. Korea Customs Service had classified arbitrary and had not applied in dubio pro reo principle. This paper finds that 57% of Korea Customs Service's classification decisions have erred. Korea government need to take measures to secure uniform interpretation of the HS and its periodic updating in light of developments in technology and changes in trade patterns. This paper suggest to amend customs law and regulation concerning classification committee.

• Journal of Korea Trade
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• v.23 no.8
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• pp.110-131
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• 2019

Purpose - This paper investigates the implications for facilitating trade in the products of Industry 4.0. To identify the issues caused by the conflicts of policy objectives such as applying the tariff concession under the ITA and imposing the export control, by exploring the case of classification of drones. Design/methodology - We adopted a single case study method to gain a deeper understanding of the complex and multifaceted issues of Customs classification in the context of facilitating trade in the products of Industry 4.0. This study employs the case of drones to explore how these issues of Customs classification affect trade facilitation. We ensured the internal validity of the study by confirming the pattern of the results with the existing theories. Findings - Our main findings can be summarised as follows: the intrinsic nature of the products that converge several technologies causes issues in the classification. The inconsistency in product classification delays customs clearance by hindering the Customs risk-management system that pinpoints products subject to controls. To address the issues, therefore, we proposed fundamental reforms of Customs to empower themselves with management roles. Facilitating trade in the products of Industry 4.0 requires more enhanced Customs capability. Therefore, the reforms should include comprehensive capacity-building activities, such as changes in staff-trainings, promotion system, organisation and culture. Customs also need roles in robust designing of cooperative systems to compensate for the lacks of controls and to ensure concrete risk management for expedited Customs procedures. As well, by equipping the Single Window of Customs with crucial control functions of other ministries, Customs need to support the cooperation. The role of harmonising various preaudits of other ministries with its own is another essential role that ensures predictability of clearance procedure. Originality/value - There are scanty studies in the field of knowledge about what obstacles exist and what solution is available in the course of transforming to 'Industry 4.0'. In filling out the gap of knowledge, this paper is of academic significance in that it applies the research theory on trade facilitation for the specific cases of classification of the product of Industry 4.0 to verify its effectiveness and to extend the subject of the studies to the scope of Industry 4.0. It also has practical significance in that the results have provided implications for reforms of Customs procedures to facilitate trade in the products of Industry 4.0.

• International Journal of Advanced Culture Technology
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• v.8 no.1
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• pp.165-172
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• 2020

Industrial Revolution means the improvement of productivity through technological innovation and has been a driving force of the whole change of economic system and social structure as the characteristic of technology as the tool of this productivity has changed. Since the first industrial revolution of the 18th century, productivity efficiency has been advanced through three industrial revolutions so far, and this fourth industrial revolution is expected to bring about another revolution of production. In this study, the demand for the introduction of artificial intelligence(AI) technology has been increasing in various business fields due to the rapid development of ICT technology, and the classification of HS(harmonized commodity description and coding system) items has been decided using artificial intelligence technology, which is the core of the fourth industrial revolution. And it is enough to construct HS classification system based on AI technology using inference and deep learning. Performing the HS item classification is not an easy task. Implementation of item classification system using artificial intelligence technology to analyze information of HS item classification which is performed manually by the current person more accurately and without any mistake, And the customs administrations, customs offices, and customs agencies, it is expected to be highly utilized in the innovation of trade practice and the customs administration innovation FTA origin agent.

• Journal of Intelligence and Information Systems
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• v.29 no.1
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• pp.203-214
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• 2023

The Korea Customs Service is efficiently handling business with an electronic customs system that can effectively handle one-stop business. This is the case and a more effective method is needed. Import and export require HS Code (Harmonized System Code) for classification and tax rate application for all goods, and item classification that classifies the HS Code is a highly difficult task that requires specialized knowledge and experience and is an important part of customs clearance procedures. Therefore, this study uses various types of data information such as product name, product description, and product image in the item classification request form to learn and develop a deep learning model to reflect information well based on Multimodal representation learning. It is expected to reduce the burden of customs duties by classifying and recommending HS Codes and help with customs procedures by promptly classifying items.

• Journal of Korea Society of Digital Industry and Information Management
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• v.19 no.3
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• pp.129-136
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• 2023

In this paper, we describe a rule-based risk classification algorithm to perform Risk-based Inspection (RBI) on imported goods at customs. The RBI system is a method to automatically select which cargos have to be inspected and manage potential risks in boarder. In this study, we designed a rule-based risk classification algorithm for RBI solutions and implemented them using the Svelte web application framework. The risk classification algorithm proposed in this paper uses different indicative risk factors such as HS code, country of origin, importer's reliability, trade relationships, and logistics routes to classify cargos into Green, Yellow, and Red channels. To achieve this, we assigned risk categories to each risk factor and randomly generated risk scores within a specific range for each risk category. This system is expected to contribute to the increased efficiency of customs operations and protect public safety by minimizing the risk of imported hazardous materials.

• Journal of Arbitration Studies
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• v.8 no.1
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• pp.293-322
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• 1998

General Administrative Procedures of the Preshipment Inspection 1. Initial notification Preshipment Inspection is initiated by Agency when it receives notice either from the importing country, or the seller, that an export needs to be imspected 1.1 Notice from the importing country 1.2 Notice from the seller 2. Preliminary price verification After receipt of initial notification, Agency undertakes, Where possible, a preliminary price verification, based upon the Inspection Order and other contractual documents received. 3. Customs classification When required by the Government of the importing country. Agency forms an opinion of the Customs Classification Code based upon the Customs Tariff Book and Rules of Classification of the country of importation. The Customs Classification Code determines the tariff rate on the basis of which the importer will be required to pay import duties. 4. Import eligibility 5. Arrangements for physical inspection 5.1 Inspection request from seller 5.2 Place of inspection 5.3 Date of inspection 5.4 Physical inspection procedures 6. Physical inspection results When the physical inspection is completed, the inspector submits his report to the Agency office and the result of inspection will be communicated to the seller and, where applicable, the place of inspection. The result will state: satisfactory or conditional of unsatisfactory. The seller is welcome to present his views in writting to Agency in the event there is any query regarding the issuance of a conditional of unsatisfactory inspection result. 6.1 Satisfactory 6.2 Conditional 6.3 Unsatisfactory 7. Shipment of the goods The seller is advised to check with Agency prior to shipment if the physical inspection result has not been received or there are any doubts concerning whether a Clean Report of Findings will be issued. 8. Final price verification and classification Based on the results of physical inspection and appropriate final documents, Agency finalises the price verification and the Agency opinion of Customs classification code. When the preliminary price verification has not resulted in any unresolved questions and the inspection result and other documents received are consistent with the preliminary documentation, Agency will not normally require any additional information. The main exception would be if the terms of sale require reference to prices at the date of shipment. 9. The Report of Findings 9.1 Types of Reports of Findings - Clean Reports of Findings(CRF) The Agency will issue a Clean Reports of Findings(CRF), or equivalent document, normally within two working days after receipt of the necessary correct final documents and a satisfactory result in all aspects of the inspection. - Discrepancy Report.

• The Korean Journal of Food And Nutrition
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• v.26 no.3
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• pp.352-357
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• 2013

This study estimates the classification criteria which distinguishes the types of omega-3 health functional foods, fish oils and fish oil usages through $^{13}C$-NMR spectra and fatty acids contents analysis. The major fatty acids of omega-3, eicosapentaenoic acid (EPA, $C_{20:5}$) and docosahexaenoic acid (DHA, $C_{22:6}$) are being analyzed. 10 ethyl ester (EE) forms and 10 triglyceride (TG) forms are the most common types of fish oils for 20 omega-3 products. Gas chromatography (GC) analysis generally shows the matching EPA and DHA contents of the products listed on the notation. But EE form contents of EPA and DHA are higher and are more varied than the TG form. Most of the samples of EPA/DHA ratio show different content ratios of indicated on the products when comparing with standards. The $^{13}C$-NMR analysis of EPA and DHA on sn-1,3 and sn-2 carbonyl peak position with fish oil triglycerides display whether the reconstituted triglycerides (rTG) are being confirmed or not. As a result of the 9 TG form, the 10 TG products showed similar values: EPA sn-1, 3; 13.46~15.66, sn-2; 3.00~4.52, DHA sn-1, 3; 2.43~4.40, sn-2; 3.84~6.36. But one product showed lower contents (EPA: sn-1, 3; 5.88, sn-2; 2.86, DHA sn-1, 3; 2.29, sn-2; 5.95) of EPA, thus it can be considered a different type of oil and only matched six products according to the label. This study is intended to provide basic materials which identify the status for the types and quality of omega-3 fish oil products according to fatty acids profiles and the $^{13}C$-NMR spectrum confirmed the location specificity of EPA and DHA.

• International Commerce and Information Review
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• v.17 no.3
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• pp.203-222
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• 2015

Papers in FTA research have mostly focused on the legal interpretation of the FTA treaties. In this research, more focus was put on the customs laws and related cases delivered in the U.S. federal courts, by which we can analyze the Korea-U.S. FTA in more practical manner to derive the enterprises' solutions to cope with the disputes of FTA preferential duty. The Tariff Act of 1930 is the U.S. customs law to govern FTA preferential duties. The administrative practices with customs duties are coordinated with the FTA rules. The most controversial issue in the U.S. customs law lies in the classification of imported goods for imposition of the customs duties, based on Harmonized Tariff Schedule of the United States. It was found that the U.S. federal courts had been quite favorable to the CBP(U.S. Customs and Border Protections) in litigation with the private importers and exporters. The reason seems to be that the CBP has been dealing with the customs cases so many times, accumulating much experience in execution of the U.S. customs laws, which is likely to make their decisions on customs duties almost free of errors. Therefore, the Korean exporters need to collect the CBP's past cases on the denial of preferential treatment on imported goods and be fully informed of the CBP's policies on the FTA preferential duty treatment.

• The Journal of Bigdata
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• v.8 no.1
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• pp.157-165
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• 2023

Seafood is a major source of protein in many countries and its consumption is increasing. In Korea, consumption of seafood is increasing, but self-sufficiency rate is decreasing, and the importance of safety management is increasing as the amount of imported seafood increases. There are hundreds of species of aquatic products imported into Korea from over 110 countries, and there is a limit to relying only on the experience of inspectors for safety management of imported aquatic products. Based on the data, a model that can predict the customs inspection results of imported aquatic products is developed, and a machine learning classification model that determines the non-conformity of aquatic products when an import declaration is submitted is created. As a result of customs inspection of imported marine products, the nonconformity rate is less than 1%, which is very low imbalanced data. Therefore, a sampling method that can complement these characteristics was comparatively studied, and a preprocessing method that can interpret the classification result was applied. Among various machine learning-based classification models, Random Forest and XGBoost showed good performance. The model that predicts both compliance and non-conformance well as a result of the clearance inspection is the basic random forest model to which ADASYN and one-hot encoding are applied, and has an accuracy of 99.88%, precision of 99.87%, recall of 99.89%, and AUC of 99.88%. XGBoost is the most stable model with all indicators exceeding 90% regardless of oversampling and encoding type.

• International Commerce and Information Review
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• v.16 no.1
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• pp.91-116
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• 2014

This study reviews the methodology for utilizing information technology by which even non-professionalists in FTAs and commodity classification area can perform the determination of commodity classification, with ease and by themselves, by means of easy utilization of the information on commodity classification and FTAs, of importing and exporting goods. This article examines the technological elements and logics, etc. which simulate the commodity classification for utilizing FTAs. To achieve this, the author has developed the technology to support the determination of commodity classification numbers by accumulating the database of examples for classification after analyzing the classification factors by each commodity item. Utilizing this Commodity Classification Determination Supporting System, users can enjoy effects of education as well as consulting. In this regards, the advantages of this system can be enumerated as followings : Firstly, self-checking on commodity classification can be performed. Secondly, time and cost for classification can be saved. Thirdly, comprehensive competitiveness will be enhanced by allowing traders to achieve the benefit of FTA preferential tariff, for they will be able to issue the Certificate of Origins on a more accurate and precise basis of commodity classification.