Goods produced in any bonded factory for manufacturing, processing or other similar work using foreign goods or domestic goods as raw materials or materials shall be interpreted to have been imported when such foreign goods are delivered to Korea from the bonded factory.

Goods produced in any bonded factory for manufacturing, processing or other similar work using foreign goods or domestic goods as raw materials or materials shall be interpreted as imported when such foreign goods are delivered to Korea from the bonded factory.

Article 2 of the Customs Act, Articles 110 and 109 of the former Customs Act

Kudong Petroleum Industry Corporation

Head of Busan Customs Office

Daegu High Court Decision 66Gu88 delivered on May 16, 1967

We reverse the original judgment.

The case shall be remanded to the Daegu High Court.

The grounds of appeal by the Plaintiff’s attorney are examined.

According to the former Customs Act (amended by Act No. 67 of Nov. 23, 1949) amended by Act No. 1688 of Mar. 19, 1965 (hereinafter referred to as the "former Customs Act"), customs duties are imposed on imported foreign goods according to the Acts and subordinate statutes effective on the date of import declaration (Articles 1 and 2 of the same Act), customs duties are imposed on imported goods according to the nature, quantity and value of the goods at the time of import declaration under Article 5 of the same Act. According to the proviso of Article 6 of the same Act, customs duties on warehouse goods which were inspected upon entry under Article 119 of the same Act are imposed on foreign goods at the time of entry into the bonded factory (see Article 5 and the proviso of Article 119 of the same Act, Article 2 of the former Customs Act are all exempt from customs duties on imported foreign goods at the time of entry into the bonded factory). According to Article 33 (1) 3 of the same Act and Article 18 of the Enforcement Decree of the same Act, goods are all or part of the imported goods at the bonded factory.

In this case, according to the facts established by the original judgment, the plaintiff was a person who operated the refining business of petroleum from around 1965 to the head of Busan Customs Office on July 8, 1965, and was granted a license for the establishment and operation of a bonded factory from July 8, 1965. The plaintiff reported 289,826 kigs and completed 26 petroleum storage tanks under the supervision of special frequency management belonging to the defendant, and with respect to steel plates 285,113 kigs used for the manufacturing of the above storage 285,113 kigs under Article 33 (1) 3 of the Customs Act as storage facilities, the import tax was exempted pursuant to Article 202 of the Ordinance of the Ministry of Finance and Economy of Article 33 (1) 3 of the Customs Act. Since the defendant inspected foreign goods shipped into the bonded factory under Article 113 of the Customs Act, the defendant received the detailed import and disposal of the goods.

Thus, it is reasonable to view that the steel board 26 materials of the above storage tank is not imported as steel board, but imported as a storage tank which is foreign goods manufactured in a bonded factory which is a bonded area, and that the storage tank is imported from the bonded factory. Accordingly, if the storage tank submitted an application under Article 18 of the Enforcement Decree of the former Customs Act by damaging it to the storage facility under Article 33 (1) 3 of the former Customs Act and removing it from the bonded factory, it shall be deemed that there is no room for application of Article 5 (6) of the former Customs Act on the imposition of customs duties.

Nevertheless, the court below rejected the plaintiff's claim for the original case on the ground that the steel board of this case in the original judgment cannot be deemed to fall under Article 33 (1) 3 of the Customs Act and Article 202 of the Ordinance of the Ministry of Finance and Economy regardless of the purpose of its use, and therefore, the defendant's disposition of imposing customs duties on the original case is justifiable. This does not constitute an error of law that affects the conclusion of the judgment by misunderstanding the legal principles of the above former Customs Act and failing to exhaust all necessary deliberations, and the judgment of the court below cannot be reversed without other grounds for appeal.

Therefore, by the assent of all participating judges, the original judgment is reversed, and the case is remanded to the Daegu High Court. It is so decided as per Disposition.

Supreme Court Judge Ma-dong (Presiding Judge) Ma-dong (Presiding Judge)