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South Korea

Voluntary Compliance Customs Administration (KR0048)

Overview

At-a-Glance

Action Plan: South Korea Action Plan 2018-2020

Action Plan Cycle: 2018

Status: Active

Institutions

Lead Institution: Creative Planning and Finance Office, Korea Customs Service

Support Institution(s): Creative Planning and Finance Officer, Audit Policy Division, Corporation Audit Division, Investigation Planning Division, Cyber Investigation Division at Seoul Customs of Korea Customs Service Web portal groups (e. g. a Naver cafe, Joonggonara), online shopping malls (e. g. the 11th street) Associations of major industries including automobile and fabric Customs administration innovation T/F Various stake-holders including customs brokers and logistics companies

Policy Areas

Capacity Building, Citizenship and Immigration, Human Rights, Justice, Legislation & Regulation, Private Sector, Public Participation

IRM Review

IRM Report: Pending IRM Review

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Pending IRM Review

Relevant to OGP Values: Not Relevant

Potential Impact: Pending IRM Review

Implementation i

Completion: Pending IRM Review

Description

Transition towards the Customs Administration System Based on Voluntary Compliance
Commitment Start and End Date
September 1, 2018 ~ August 31, 2020
Lead Implementing Agency/Actor
Creative Planning and Finance Office, Korea Customs Service
Commitment Description
What is the public problem that the commitment will address?
The customs administration has been done primarily through coerced investigation, tax charge, crackdown and publishment, but such practices have created additional social costs and conflicts such as disobedience on a large scale and tax conflict. The existing customs and border management methods, considering environmental changes, are limited in their capacity in protecting the public; therefore changes need to be made to operational strategies of the customs and border control.
What is the commitment?
The purpose of this commitment is to create a voluntary compliance environment focused on “cooperation and prevention” to reduce conflicts with the public and increase the level of understanding and acceptance over relevant policies in customs and border control. To do so, 1) the customs administration will be reformed from coerced investigation and tax imposition to preemptive provision of information to facilitate the public’s voluntary compliance and tax payment. For example, the import tax settlement system which allows businesses to autonomously inspect and settle the unpaid tax amount notified by the customs will be expanded. Also, the pre-evaluation system, a consulting program where the Commissioner of Customs decides on the tax amount and taxable price before the declaration will be expanded. 2) Instead of prosecuting offenders, information will be provided on areas where violation is most likely to occur in order to eliminate conflicts and protect human rights. In this regard, information on declarations errors and violation and educational briefings will be provided prior to crackdown and sanctions in order to encourage honest and accurate tax report. In addition, supervisory crackdowns on relevant industries regarding minor yet frequently violated matters will be preannounced and carried out. 3) The public’s opinions on travelers’ personal belongings, most relevant to the public, will be collected and reflected in policy making to encourage voluntary declarations and autonomous compliance through carrying out a public survey, operating the public design group, participating in public participation forums. The public’s level of understanding on customs policies will increase, and their right to know will be ensured through preventing coerced administrative execution and customs violations through public-private cooperation and autonomous compliance. Furthermore, conflicts amongst the business, government and public will be minimized thanks to the preemptive provision of information and autonomous compliance, and the public’s trust and confidence will be boosted through conducting safer and more effective customs and border control with more accurate export-and-import declaration through voluntary participation.
How will the commitment contribute to solve the public problem?
The detailed implementation methods are as follows: 1) to build a system to inform the public of how to file a customs declaration tailored to a type of tax payers using big data including the export-and-import declaration and register and disclose the information via the Customs Law Information Portal; 2) to provide tax payment support services tailored to companies via the e-customs clearance system to help the individuals and businesses to file a customs declaration without an error by disclosing and sharing information on possible errors on tax payment; 3) to inform the public of the possibility of legal violation through monitoring online advertisements on reselling products directly purchased from overseas and selling counterfeited products in partnership with operators of internet communities; 4) to reform the government’s internal performance evaluation system from examining exposure, crackdown and collection to the operation of dutiful declaration support, tax payment cooperation programs and preliminary guidance.
Why is this commitment relevant to OGP values?
Citizen Participation / Transparency / Governance through new technologies
Exchange and Peer Learning
N/A
Additional Information
N/A
Milestone Activity with a Verifiable Deliverable
Updating the DB of the Customs Law Information Portal
Building the system to provide information on possible tax payment errors tailored to businesses
Establishing the check-list of errors per industry and item
Hosting an annual briefing per customs office
Publishing a guide book on dutiful tax declaration
Carrying out an initiative to support SMEs from getting officially certified
Disclosing the evaluation standard of compliance and providing training
Operating the public design group to encourage voluntary tax declaration
Conducting a survey on the public’s level of awareness on the declaration of personal belongings when traveling
Carrying out the regular import-tax settlement system
Providing preliminary information on legal violation (on- and off-line)
Conducting monitoring and guidance activities to prevent crimes and irregularities regarding customs duty
Promoting the preemptive provision of legal information offered offline
Contact Information
Name of Responsible Person from Implementing Agency
Kibong Doh
Title, Division
Deputy Director, Creative Planning and Finance Officer
Email and Phone
+82-42-481-7715
Other Actors Involved,
Creative Planning and Finance Officer, Audit Policy Division, Corporation Audit Division, Investigation Planning Division, Cyber Investigation Division at Seoul Customs of Korea Customs Service
Web portal groups (e. g. a Naver cafe, Joonggonara), online shopping malls (e. g. the 11th street) Associations of major industries including automobile and fabric Customs administration innovation T/F Various stake-holders including customs brokers and logistics companies


Commitments

  1. Public-Private Anti-Corruption System

    KR0036, 2018, Anti-Corruption Institutions

  2. Management System for Performance Venues

    KR0037, 2018, Open Data

  3. Real-Name Policy System

    KR0038, 2018, E-Government

  4. Safety Inspection System

    KR0039, 2018, Health

  5. Public Diplomacy System

    KR0040, 2018, Public Participation

  6. Open Communication Forum

    KR0041, 2018, E-Government

  7. Citizen Participation in Policy-Making

    KR0042, 2018, E-Government

  8. Disclosure of the Amount of Harmful Substance Contained in Foods

    KR0043, 2018, Environment and Climate

  9. Open Data

    KR0044, 2018, Open Data

  10. Discosure of Cultural Heritage Resources

    KR0045, 2018, Infrastructure & Transport

  11. Open National Priority Data

    KR0046, 2018, Environment and Climate

  12. Public Data Qulity Management

    KR0047, 2018, Legislation & Regulation

  13. Voluntary Compliance Customs Administration

    KR0048, 2018, Capacity Building

  14. Organization Information Disclosure Online

    KR0022, 2016, E-Government

  15. Information in Original Form

    KR0023, 2016, Capacity Building

  16. Standard Model for Pre-Release Information

    KR0024, 2016, Capacity Building

  17. National Data Disclosure

    KR0025, 2016, Fiscal Transparency

  18. Public Data Quality Management

    KR0026, 2016, Fiscal Transparency

  19. Free Open Format Use

    KR0027, 2016, Open Data

  20. Open Data Standards

    KR0028, 2016, Capacity Building

  21. Citizen Groups Government Service Design

    KR0029, 2016, Capacity Building

  22. e-Government Service Environment

    KR0030, 2016, E-Government

  23. Citizen Service Portals

    KR0031, 2016, Capacity Building

  24. Citizen Services Application

    KR0032, 2016, Anti-Corruption Institutions

  25. Public Sector Corruption Research

    KR0033, 2016, E-Government

  26. Citizens' Accessibility to ODA Statistics

    KR0034, 2016, Aid

  27. Disclosing Information on International Aids

    KR0035, 2016, Aid

  28. Strengthening Public-Private Collaboration

    KR0017, 2014, E-Government

  29. Providing Customized Services

    KR0018, 2014, Marginalized Communities

  30. Enhancing Information Disclosure

    KR0019, 2014, Public Participation

  31. Strengthening Public Service Ethics

    KR0020, 2014, Asset Disclosure

  32. Encouraging the Private Sector to Utilze Public Data

    KR0021, 2014, Open Data

  33. Provision of Diverse Public Services

    KR0001, 2012, E-Government

  34. Strengthening Citizens’ Monitoring of Government

    KR0002, 2012, Fiscal Transparency

  35. Use e-People to Promote Public Input in Policy Development

    KR0003, 2012, Public Participation

  36. Promote the Proposal System for Receiving Public Input Electronically

    KR0004, 2012, E-Government

  37. Develop a Manual on Consensus Building Among Various Stakeholders

    KR0005, 2012, E-Government

  38. Conduct Field Visits to Interact Directly with Stakeholders

    KR0006, 2012, E-Government

  39. Simplify Online Civil Affairs Application Forms

    KR0007, 2012, E-Government

  40. Refine the Portal to Be More User Friendly

    KR0008, 2012,

  41. Customise Online Services for Business

    KR0009, 2012, Private Sector

  42. Establish an Online Civil Affairs Hub to Provide 24-Hour Services

    KR0010, 2012, E-Government

  43. Disclose Critical Information on Food, Environment, and Education

    KR0011, 2012, E-Government

  44. Engage CSOs on Relevant Information to Be Disclosed

    KR0012, 2012, Public Participation

  45. Strengthen Asset Disclosure for Public Servants

    KR0013, 2012, Asset Disclosure

  46. Monitor Restrictions on Post-Public Employment

    KR0014, 2012, Asset Disclosure

  47. Release Public Information for Private Sector Use on the Data Sharing Portal

    KR0015, 2012, E-Government

  48. Engage Citizens in Administrative and Budget Processes

    KR0016, 2012, E-Government