2. The costs of lawsuit shall be borne by the Plaintiff.

The plaintiff is a company that is a Spanish corporation B (hereinafter referred to as "B") and a company that is jointly established by C Co., Ltd. (B's equity ratio: 80%, C's equity ratio: 20%), which is engaged in the import and sale of clothing.

On February 1, 2010, the Plaintiff entered into a contract with D, a Netherlands corporation (hereinafter referred to as “D”) with which B has a stake of 100% (hereinafter referred to as “D”) under which B made payment to D of the amount equivalent to 7% of the sales revenue (hereinafter referred to as “the instant contract”). As a result, the Plaintiff paid D of the amount equivalent to 7% of the sales revenue (hereinafter referred to as “the instant royalty”).

The Plaintiff imported the clothing, musical stories, and shoes with a trademark attached to E (hereinafter “instant imported goods”) and sold them in Korea. At the time of filing an import declaration, the Plaintiff reported the instant royalty without adding the royalty to the dutiable value.

As a result of corporate assessment against the Plaintiff, the Defendant determined the royalty portion (140 related to F, etc.) generated during the period from April 30, 2010 to June 30, 2013 as the royalty pursuant to Article 30(1)4 of the Customs Act, and notified the Plaintiff prior to taxation, on February 20, 2014, imposing a total of KRW 9,817,725,128, including customs duties, etc.

On March 21, 2014, the Plaintiff filed a request for review as to the legality of the taxation prior to taxation, and on August 1, 2014, the Commissioner of the Korea Customs Service rendered a decision to re-examine the assessment of the dutiable value by re-auditing the royalty subject to taxation so that only the portion related to the imported goods can be added to the total amount of the royalties paid to him/her, as well as the trademark rights related to the imported goods.”

In accordance with the above re-audit decision.