Korea: Imported plastic toys that can be assembled and disassembled subject to 0% tariff rate (Tax Tribunal decision)
Tax Tribunal held that imported plastic toys were classified as “other construction sets and constructional toys”
Classified as “other construction sets and constructional toys”
The Tax Tribunal held (2022-Customs-0029, 3 April 2023) that imported plastic toys were classified as “other construction sets and constructional toys” subject to a 0% tariff rate under a World Trade Organization (WTO) agreement.
The importer imported bracelets, role-playing toys, unassembled figures, and assembled figures and declared them as “other construction sets and constructional toys” subject to WTO agreement tariff rate of 0%. However, the Korea customs authority argued that the goods ought to be classified as “other toys” subject to a basic tariff rate of 8% and notified the additional customs duty accordingly.
The importer appealed, and the tribunal held that the goods were intended to be assembled and disassembled into various shapes for play rather than to be played with as a finished product in a specific model. Therefore, they were properly classified as “other construction sets and constructional toys.”
Read a June 2023 report [PDF 281 KB] prepared by the KPMG member firm in Korea
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