(a) Whether the domestic goods, which are the raw materials, have been shipped into the free export zone after obtaining confirmation from the head of customs office, in order to manufacture, process or assemble the goods for the purpose of export from the free export zone; and

(b) Whether it is subject to the imposition of customs duties because it falls under the case where the wastes, by-products, etc. derived from the process of goods carried in as raw materials within the exporting zone are brought into a customs zone again;

1. In light of the provisions of Article 9 subparag. 1, Article 8(5), and Article 13(2) of the Act on the Establishment of Free Export Zones, in case where a company located in the free export zone of Masan brings domestic goods (North Korean name arrested in the high seas by vessels of Korea) that are their raw materials into the free export zone after obtaining confirmation from the customs collector in order to manufacture, process, or assemble the goods for the purpose of export, it is reasonable to view that the goods have been exported if the company entered the goods into the free export zone of Masan with the confirmation from the customs collector.

2. In light of the provisions of Article 14 of the Act on the Establishment of Free Export Zones and Article 2(1)2 of the Customs Act, if waste-by-products, etc. derived from the manufacturing process of the goods carried in within the free export zone as raw materials are re-exported into a customs zone, it shall be deemed that the goods for which the export license was obtained are obtained are obtained, and it shall be subject to the imposition of customs duties in accordance with Article 3 of the Customs Act.

[Defendant-Appellee] Kim Jong-ok, Counsel for defendant-appellant-appellee

Head of Masan Customs Office

Daegu High Court Decision 76Gu9 delivered on May 28, 1976

The appeal shall be dismissed. The costs of appeal shall be borne by the plaintiff.

The grounds of appeal Nos. 1, 2, 3, and 4 of the Plaintiff’s Attorney are also examined.

In light of the provisions of Articles 8(5) and 13(2) of the Act on the Establishment of Free Export Zones and Article 9(1) of the same Act, if the Plaintiff, an occupant enterprise in the free export zone of Masan, ships of Korea, ships of Korea, brings domestic goods into the free export zone after obtaining confirmation from the head of the customs office to manufacture, process or assemble such goods for the purpose of export, it is reasonable to see that the export of such goods has been granted a license, and the above provisions are nothing more than that of the free export zone. The judgment of the court below is just in light of the legal principles as to the import of domestic goods under Article 14 of the Act on the Establishment of Free Export Zones and Article 13(2) of the same Act, and as to the import of domestic goods under Article 2 of the Act on the Establishment of Free Export Zones, and as to the import of domestic goods under Article 3 of the Act on the Establishment of Free Export Zones, it is no matter of law as to the import of domestic goods under Article 2 of the Act on the Establishment of Free Export Zones and the Customs Act.

Therefore, the appeal is dismissed. The costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Lee Il-young (Presiding Justice)