1. South Korea Customs Guide

2. Duty and Tax Threshold Imports are not assessed duty and tax when CIF* value is <KRW 150,000 Minimum Tresholds & Duty rules Duty Calculation Duty is calculated CIF value Most Commonly Imported Items with Duty Rates Clothing - 45% Natural health products - 8% Cosmetics - 8% Wallets/handbags - 8% CD & DVDs - 8% Auto parts - 8% Footwear - 13% Jewelry (imitation) - 8% Vitamins - 8% Costumes/festive goods - 8% Free Trade Agreements ASEAN-[Republic of] Korea Comprehensive Economic Cooperation Agreement India-[Republic of] Korea Comprehensive Economic Partnership Agreement [Republic of] Korea-Canada Free Trade Agreement [Republic of] Korea-Chile Free Trade Agreement [Republic of] Korea-European Free Trade Association Free Trade Agreement [Republic of] Korea-European Union Free Trade Agreement [ [Republic of] Korea-Singapore Free Trade Agreement [ [Republic of] Korea-United States Free Trade Agreement Closer Economic Partnership Agreement *CIF (Cost, Insurance, Freight: The import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance.

3. Tax Rules, Import Restrictions & Drawback Tax Calculation Tax is calculated on the CIF value plus applicable duties Types of Tax VAT Tax Rates Standard rate is 10% Common Import restrictions More information on Import Restrictions can be found at http://www.customs.go.kr/kcshome/site/index.do?layoutSiteId=english Returns & Drawback No current drawback solution

4. Examples Examples to South Korea Example 1 Sweater of 150000 KRW Example 2 Sweater of 160000 KRW Value of the good 150000 KRW160000 KRW Duty applied Not applicable since <$150000 KRW = $0 KRW Clothing 45% (150000*,45) = 72000 KRW Tax applied Tax 0,10% - Not applicable since <$150000 KRW = 0 KRW Tax 0,10% (160000+72000)*0,10 = 23200 KRW Total cost of goods, duty & tax paid by a client (excl shipping costs) 150000 KRW = 1500000+0+0 255200 KRW = 160000+72000+23200