Whether a person who re-purchases goods manufactured using goods, the customs duties of which have been reduced or exempted, through normal commercial transactions, can re-collect the reduced or exempted customs duties on such goods to the person if the goods are not used for the original purpose.

Article 28-4 (1) of the former Customs Act (amended by Act No. 3666 of Dec. 29, 1983) provides that customs duties shall be reduced or exempted on condition that the imported goods be used for a specific purpose, and where customs duties reduced or exempted are collected from Article 28-4 (8) of the same Act, it shall be limited to the time when the person to whom the customs duties have been reduced or exempted pursuant to the above paragraph (1) of the same Article or the goods manufactured using the same are not used for the purpose of the reduced or exempted, or are transferred to the person to whom the goods manufactured using the same for the purpose of the normal commercial transaction through the goods for which the reduction or exemption of customs duties has been granted, if the person who purchases the goods manufactured through the normal commercial transaction does not use the goods for the purpose of the

Articles 28-4(1) and 28-4(8) of the former Customs Act (amended by Act No. 3666 of Dec. 29, 1983)

[Defendant-Appellee] Plaintiff 1 and 2 others

The Head of Daejeon Customs Office

Seoul High Court Decision 86Gu506 delivered on February 24, 1987

The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

Article 28-4 (1) of the Customs Act (amended by Act No. 3666 of Dec. 29, 1983) provides that customs duties may be reduced or exempted on the goods publicly notified by the Minister of Finance and Economy among raw materials, etc. used for manufacturing pesticides, etc. at a factory designated by the head of the relevant customs office under the conditions as prescribed by the Presidential Decree. Paragraph (8) of the same Article provides that where the goods for which customs duties have been reduced or exempted pursuant to the above paragraph (1) or the goods manufactured using the goods are not used for the reduced or exempted purpose or are transferred to a person who uses them for the purpose other than the reduced or exempted purpose, customs duties shall be reduced or exempted, and Paragraph (1) of the same Article provides that where customs duties are reduced or exempted on the condition that the importer uses them for the specific purpose, and Paragraph (8) of the same Article provides that where customs duties are reduced or exempted on the condition that they are reduced or exempted on the condition that they are to be used for the specific purpose, the person who purchased the goods for the purpose other than the reduced or exempted purpose.

Nevertheless, the court below erred in the misapprehension of legal principles as to the reduction or exemption of customs duties under Paragraph (8) above, which affected the conclusion of the judgment by misapprehending the legal principles as to the reduction or exemption of customs duties under Paragraph (8) above, which affected the conclusion of the judgment, on the ground that the non-party dong Agrochemicals Co., Ltd., which operates a manufacturing plant of agricultural chemicals designated by the head of customs office, imports agricultural chemicals from raw materials to manufacture them and then re-purchase them to sell agrochemicals to ○○ (○○○) and then re-use them for the purpose not using them to use them for the original purpose. Accordingly, the court below erred in the misapprehension of legal principles as to the reduction or exemption of customs duties under Paragraph (8) above, which affected the conclusion of the judgment.

Therefore, the judgment of the court below is reversed, and the case is remanded to the court below for a new trial and determination. It is so decided as per Disposition by the assent of all participating Justices.

Justices Park Jong-dong (Presiding Justice)