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The nation’s customs agency on Thursday again put off raising the limit on the duty free allowance for travelers coming from overseas, citing economic uncertainties inside and outside of the country.
Under the current law, Korean travelers are required to report their overseas purchases in excess of $400, an amount fixed in 1996.
Among 32 OECD countries, South Korea has the third-lowest duty free limit, behind only Singapore and Mexico. The allowable limit is $2,400 in Japan, $564 in EU countries and $750 in China.
Amid growing complaints among soaring overseas travelers, Korea Customs Service had been considering a moderate increase in a study with Korea Institute of Public Finance.
Given the increased GDP and expansion of free trade partners, the state-run institute proposed an adjustment to between $600 and $1,000. However, “now is not the right timing,” the customs agency said.
“We found the higher duty free limit would not help stimulating domestic spending while benefiting only specific groups of citizens who travel frequently,” said a customs agency official.
Despite the 15-year-old allowance limit, there is no sign of decrease in the number of travelers who bring in items purchased abroad in excess of $400.
During the special crackdown period at Incheon International Airport between July 18 and Aug. 31, a total of 5,538 people were caught failing to voluntarily report their purchase of luxury designer bags worth $2,500-3,000 on average.
The number of detected cases was an 18 percent increase from the same period last year.
By Lee Ji-yoon (jylee@heraldcorp.com)
Under the current law, Korean travelers are required to report their overseas purchases in excess of $400, an amount fixed in 1996.
Among 32 OECD countries, South Korea has the third-lowest duty free limit, behind only Singapore and Mexico. The allowable limit is $2,400 in Japan, $564 in EU countries and $750 in China.
Amid growing complaints among soaring overseas travelers, Korea Customs Service had been considering a moderate increase in a study with Korea Institute of Public Finance.
Given the increased GDP and expansion of free trade partners, the state-run institute proposed an adjustment to between $600 and $1,000. However, “now is not the right timing,” the customs agency said.
“We found the higher duty free limit would not help stimulating domestic spending while benefiting only specific groups of citizens who travel frequently,” said a customs agency official.
Despite the 15-year-old allowance limit, there is no sign of decrease in the number of travelers who bring in items purchased abroad in excess of $400.
During the special crackdown period at Incheon International Airport between July 18 and Aug. 31, a total of 5,538 people were caught failing to voluntarily report their purchase of luxury designer bags worth $2,500-3,000 on average.
The number of detected cases was an 18 percent increase from the same period last year.
By Lee Ji-yoon (jylee@heraldcorp.com)
