Most Popular
-
1
Dongduk Women’s University halts coeducation talks
-
2
Defense ministry denies special treatment for BTS’ V amid phone use allegations
-
3
Russia sent 'anti-air' missiles to Pyongyang, Yoon's aide says
-
4
OpenAI in talks with Samsung to power AI features, report says
-
5
Two jailed for forcing disabled teens into prostitution
-
6
Trump picks ex-N. Korea policy official as his principal deputy national security adviser
-
7
South Korean military plans to launch new division for future warfare
-
8
Kia EV9 GT marks world debut at LA Motor Show
-
9
S. Korea not to attend Sado mine memorial: foreign ministry
-
10
Gold bars and cash bundles; authorities confiscate millions from tax dodgers
Surge may have been caused by Korea-EU FTA taking effect
The number of travelers purchasing luxury goods in Europe sharply increased after the Korea-EU free trade agreement took effect in July, the customs agency said Sunday.
A total of 1,056 people were stopped by customs officials last month as they were found to have purchased items worth more than the $400 duty-free allowance, according to the Korea Customs Service.
The figure was a 34 percent increase from 791 cases a year earlier. Considering the 11 percent increase in travelers leaving for EU countries compared to last year, the surge may have originated from the “FTA effect,” the agency said.
Starting July 1, Korean travelers can enjoy an 8-15 percent tax exemption if they verify the EU origin of purchased products worth less than $1,000.
Among luxury brand goods, the purchase of watches soared the most at 157 percent, followed by purses (100 percent), clothes (67 percent), sunglasses (57 percent) and leather bags (49 percent).
Wines, however, showed no change as local importers have already lowered domestic prices following the free trade pact, the agency said.
“When it comes to leather bags and watches, even though the duty has been abolished after the Korea-EU FTA, their prices are still cheaper in Europe and there are more items,” said a customs official.
“It appears the growing trend will continue for some time, despite variables such as foreign exchange rates and the economic outlook in the coming months.”
The agency has strengthened its customs checkups at airport during the summer holiday season, scheduled to continue by Aug. 31.
The agency advised that despite the new tax exemption, travelers are still required to report their overseas purchases in excess of $400 for other domestic taxes such as 10 percent of value added tax, warning against excessive shopping abroad.
By Lee Ji-yoon (jylee@heraldcorp.com)
The number of travelers purchasing luxury goods in Europe sharply increased after the Korea-EU free trade agreement took effect in July, the customs agency said Sunday.
A total of 1,056 people were stopped by customs officials last month as they were found to have purchased items worth more than the $400 duty-free allowance, according to the Korea Customs Service.
The figure was a 34 percent increase from 791 cases a year earlier. Considering the 11 percent increase in travelers leaving for EU countries compared to last year, the surge may have originated from the “FTA effect,” the agency said.
Starting July 1, Korean travelers can enjoy an 8-15 percent tax exemption if they verify the EU origin of purchased products worth less than $1,000.
Among luxury brand goods, the purchase of watches soared the most at 157 percent, followed by purses (100 percent), clothes (67 percent), sunglasses (57 percent) and leather bags (49 percent).
Wines, however, showed no change as local importers have already lowered domestic prices following the free trade pact, the agency said.
“When it comes to leather bags and watches, even though the duty has been abolished after the Korea-EU FTA, their prices are still cheaper in Europe and there are more items,” said a customs official.
“It appears the growing trend will continue for some time, despite variables such as foreign exchange rates and the economic outlook in the coming months.”
The agency has strengthened its customs checkups at airport during the summer holiday season, scheduled to continue by Aug. 31.
The agency advised that despite the new tax exemption, travelers are still required to report their overseas purchases in excess of $400 for other domestic taxes such as 10 percent of value added tax, warning against excessive shopping abroad.
By Lee Ji-yoon (jylee@heraldcorp.com)
