• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.673-698
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• 2016

This study tries to conduct a systematic analysis on whether adding up the royalties and license fees or not in measuring the taxable amount of tariff. We have confirmed that three main criteria to decide whether it is yes or not are non-inclusion, relatedness and condition of sale. We also have realized that whether satisfying a condition of sale or not depends on license agreement, sales contract, special relationship and so on. Furthermore, we have made case studies of bonded factory, film's domestic distribution, exempt royalty and license fee, price for exclusive use of relevant technology, retroactive application of price change and strict interpretation. Based on the case studies we have derived the following conclusions: First, the royalties and license fees only actually paid to the licensors may be added to taxable amount. Second, the royalties and license fees incurred after the imported goods are made into domestic goods may not be added up. Third, the royalties and license fees paid as a price for use may not be added up. Fourth, the analogical interpretation of relevant codes is not accepted.

• International Area Studies Review
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• v.13 no.2
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• pp.643-666
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• 2009

When it comes to current balance, both of Korea and China enjoy the trade surplus in goods while both countries suffer trade deficit in service. This facts demonstrate that two countries have comparative disadvantages in service industry. In order to identify the international competitiveness of trade in service between Korea and China, several indexes such as TSI, RSCA and IMS was calculated, using the IMF's balance of payments (BOP) statistics as proxy. The results of this analysis are as follows. Korea has a comparative advantage in four sectors (Transportation services, Financial services, Royalties & license fees and Personal cultural recreation), while China has a comparative advantage in five sectors (Travel, Communication services, Insurance services, Computer & information services and Other Business services). Construction services are indeterminate. However, the competitiveness of the two sectors-communication and computer & information-which China has a comparative advantage will be transferred to Korea if some effort to reinforce the competitiveness is added because the gap is being narrowed.