15-20% of shipments delayed due to documentation errors. Average delay cost: $500-$2,000 per shipment. Proper documentation = faster clearance + FTA benefits. This guide ensures smooth export from Korea to your destination.
UNI-PASS: Korea's Export System
What: Korea's integrated customs clearance system used by all exporters, importers, customs brokers, and freight forwarders.
Key Features
- Electronic customs declaration
- Real-time status tracking
- Automated clearance (95%+ of shipments)
- 24/7 operation
Benefits
- Fast processing (1-2 hours typical)
- Reduced paperwork
- Transparent tracking
- Automatic approval for 95% of shipments
Export Clearance Process (5 Steps)
Prepare Export Declaration
Who files: Supplier or their customs broker
Required info:
- Exporter & importer details
- HS Code (10 digits)
- Product description (Korean & English)
- Quantity, value, currency
- Transport details (vessel/flight info)
Submit via UNI-PASS
Timeline: Minutes to complete
Types:
- General Export: Value > $2,000
- Simplified Export: Value < $2,000
- Samples/Gifts: No commercial value
Customs Review
Automated (95%): 1-2 hours, no inspection
Manual Review (5%): 4-24 hours
Physical Inspection (1-2%): 1-3 days
Approval & Loading
Upon approval:
- Export permit issued
- Permit number generated
- Cargo authorized for loading
- Container sealed (if applicable)
Departure & Completion
After vessel/aircraft departs:
- Export completion confirmed in system
- FTA Certificate of Origin can be issued
- Records retained for 5 years (required by law)
Essential Export Documents
1. Commercial Invoice
Purpose: Proof of sale, customs valuation, duty calculation
Must include:
- Invoice number and date
- Exporter & importer full details
- Product description with HS code
- Quantity, unit price, total value
- Incoterm (FOB, CIF, EXW)
- Payment terms
- Shipping details (port, vessel, date)
Critical: Original signature + company stamp (red seal). No erasures or corrections.
2. Packing List
Purpose: Cargo handling, customs inspection, freight calculation
Must include:
- Carton-by-carton details (numbered 1/50, 2/50... 50/50)
- Dimensions for each carton size (L × W × H cm)
- Gross weight & net weight per carton
- Total CBM calculated
- Shipping marks described
3. Certificate of Origin (CO)
Purpose: Prove goods originated in Korea, claim FTA benefits
FTA Certificates by Destination:
| Destination | Form Type | Cost | Savings |
|---|---|---|---|
| USA | Form A (self-certify) | Free | 5-30% on duties |
| EU | EUR.1 | $4-8 | 5-30% on duties |
| UK | UK-Korea Form | $4-8 | 5-30% on duties |
| Canada | CKFTA Form | Free | 5-30% on duties |
| Australia | KAFTA Form | Free | 5-30% on duties |
FTA Application Process (EUR.1 example)
- Supplier applies online at FTA Portal
- Upload: Commercial invoice, BOM, proof of origin
- Customs reviews (1-2 days)
- Customs stamps EUR.1 form
- Original sent to buyer (cost: $4-8)
4. Bill of Lading (B/L) / Airway Bill (AWB)
What: Transport contract, proof of shipment, title document
Types:
- Original B/L: Paper document (sent by courier)
- Telex Release: Electronic release (faster, cheaper)
- Air Waybill (AWB): For air freight, non-negotiable
Recommendation: Telex release preferred for faster processing
HS Code Classification
What: Harmonized System Code - international product classification system used by 200+ countries. Determines customs duty, trade statistics, and regulations.
3304.99.00.00 (Example: Cosmetics) 33 = Chapter (Cosmetics) 3304 = Heading (Beauty/makeup products) 3304.99 = Subheading (Other) 3304.99.00 = 8-digit (Korea level) 3304.99.00.00 = 10-digit (Korea detailed)
How to Find HS Code
Method 1: Korea Customs
Visit: UNI-PASS HS Search
Search in Korean or English for official Korea export HS code
Method 2: Ask Supplier
Experienced exporters know HS codes for their products
Always verify accuracy - wrong code = delays/penalties
Why HS Code Accuracy Matters
Correct HS Code:
- Smooth customs clearance
- Accurate duty calculation
- FTA benefits eligibility
Wrong HS Code:
- Shipment delayed 3-7 days
- Duty miscalculation
- Penalties if intentionally wrong
- FTA benefits denied
Common HS Codes Reference
| Product Category | HS Code | USA Rate (No FTA) | With KORUS FTA |
|---|---|---|---|
| Cosmetics (skincare) | 3304.99 | 6.5% | 0% |
| Cosmetics (makeup) | 3304.20 | 6.5% | 0% |
| Clothing (cotton) | 6109.10 | 16.5% | 0% |
| Electronics (speakers) | 8518.21 | 2-4% | 0% |
| Food (kimchi) | 2005.99 | 11.2% | 0% |
Export Restrictions & Prohibited Items
General Prohibitions (Never exportable)
- Illegal drugs (narcotics)
- Counterfeit goods (fake brands)
- Items violating intellectual property
- Goods embargoed by UN sanctions
Strategic Trade Control
Dual-use items requiring license:
- Advanced electronics (certain semiconductors)
- Certain chemicals & materials
- Encryption software
Check: Yestrade Portal before exporting
Product-Specific Licenses
- Cultural Properties: Antiques >50 years (rarely granted)
- Food Products: Health certificate from MFDS
- Cosmetics (EU): CPNP notification
- Electronics: Test reports (UL, CE, FCC)
Export Payment Methods
T/T (Most Common)
30/70 Structure:
- 30% deposit before production
- 70% balance before shipment
Pros: Simple, fast | Cons: Risk for buyer
L/C (Letter of Credit)
Bank guarantee for payment
When to use: Large orders ($50K+), new suppliers
Cost: $200-500 + 0.5-1.5% of value
Timeline & Costs Summary
Typical Export Timeline
| Stage | Duration | Notes |
|---|---|---|
| Production | 15-45 days | Depends on product |
| Documentation | 1-2 days | Invoice, packing list, CO |
| Export declaration | 1 day | UNI-PASS submission |
| Customs clearance | 1-2 days | Usually auto-approved |
| Loading & departure | 1-2 days | Container pickup |
| TOTAL | 20-55 days | Production + 5-7 days export |
Export-Related Costs (Supplier typically pays under FOB)
| Item | Cost Range |
|---|---|
| Export declaration | $23-38 (KRW 30,000-50,000) |
| Customs broker (if used) | $38-115 (KRW 50,000-150,000) |
| Certificate of Origin | $0-8 (Free to KRW 10,000) |
| Inland transport to port | $77-385 (KRW 100,000-500,000) |
| B/L issuance | $50-150 |
| Total typical | $230-1,150 |
Common Export Issues & Solutions
Issue 1: Document Discrepancies
Problem: Invoice shows 1,000 units, packing list shows 1,050 units
Solution: Triple-check all documents match. Same descriptions, quantities, weights, values across all documents.
Issue 2: Wrong HS Code
Problem: Incorrect classification leads to rejection
Solution: Verify HS code accuracy before production. Check both Korea export code and destination import code.
Issue 3: Under-Valuation
Temptation: Declare lower value to help buyer save duties
Reality: 40% penalty + criminal charges. Insurance void. NEVER under-declare.
Issue 4: Missing Certificates
Problem: Health certificate not obtained for food products
Solution: Identify certificate requirements early. Apply 2-3 weeks before shipment.
Key Takeaways
- 95% of exports auto-approved - Proper documentation = smooth process
- UNI-PASS is the system - Everything electronic, fast, transparent
- HS code accuracy critical - Wrong code = delays, penalties
- FTA certificates save money - Free or cheap ($4-8), saves 5-30% on duties
- Certificate of Origin essential - Most buyers need this for FTA benefits
- Under-valuation is illegal - 40% penalty + criminal charges
- Documents must match perfectly - Discrepancies cause delays
- Keep records 5 years - Required by law for audits
Korean export procedures are efficient and streamlined. Follow the rules, prepare documents carefully, clear customs smoothly.
Essential Resources
Government Agencies
- Korea Customs Service - UNI-PASS system
- FTA Portal - Certificate of Origin application
- KITA - Trade support, HS code guidance
Industry Organizations
- Korea Chamber of Commerce - CO issuance
- K-SURE - Export credit insurance
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