Mobilization System Co., Ltd. (Law Firm Western, Attorneys Lee Jong-ho et al., Counsel for the defendant-appellant)

Head of Seoul Customs Office

October 1, 2010

1. The plaintiff's claim is dismissed.

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

The defendant's rejection of a claim for correction against KRW 3,380,450 and value-added tax imposed on the plaintiff on February 6, 2009 shall be revoked.

1. Details of the disposition;

A. From February 26, 2007 to June 18, 2007, the Plaintiff filed an import declaration by classifying ELAD projector (3 items, such as ELADr, report number omitted, etc.; hereinafter “instant goods”) from the U.S. National Assembly and the Kakao company located in Japan into No. 8528.69-000 (other projector, tax rate of 8%) of the Tariff Schedules, and paid customs duties of KRW 3,380,450 and value-added tax of KRW 338,040 (hereinafter “each tax of this case”).

B. On January 29, 2009, the Plaintiff asserted that the instant goods fall under the pro projector prescribed in Tariff Schedules 8528.61-000 (the automatic data processing system referred to in subparagraph 8471, a projector, tax rate of 0%) that is exclusively or mainly used for the automatic data processing system, and filed a claim for correction against the Defendant for the payment of each of the instant taxes.

C. On February 6, 2009, the Defendant rejected the claim for correction on the ground that the tariff classification for which the Plaintiff filed an import declaration was the first one (hereinafter “instant disposition”).

D. The Plaintiff appealed and filed a request for review to the Board of Audit and Inspection, but was dismissed on December 10, 2009.

【Ground of recognition】 The fact that there has been no dispute, entry of Gap Nos. 1 and 2, the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The instant goods can be operated with visual signals of peripheral devices, such as DVD, additionally, which are operated on a large screen with digital video signals of a computer, which is mainly an automatic data processing system. However, the interpretation of the International Customs Organization’s "International Convention on the Harmonized Commodity Description and Coding System (hereinafter “the HS Convention”)" and its explanatory notes, unlike monitors, can be seen as 8% of the transmission signals from the central processing system of automatic data processing machines (CPU), unlike the transmission signals from 1,024 x 768 (GA), which are used exclusively or mainly in the automatic data processing system, and thus, the instant goods can be seen as 8% of the technical characteristics of the automatic data processing system and 8% of the technical characteristics of the products, which are identical to those of the projector, and thus, the instant goods can be seen as 85% of the technical characteristics of the automatic data processing system and 6% of the product classification of the projector, different from those of the projector.

B. Relevant provisions

The provisions of the attached Table shall be as specified in the attached Table.

(c) Markets:

According to the Tariff Schedule of the Customs Act, a sub-classification 8528.61 [the automatic data processing system (computer) referred to in Article 8471] and 8528.69 (other) are established as sub-classification 8528.61 [the automatic data processing system (computer)] and 8528.61]. The rate of customs duty referred to in Article 8528.61 is 0% in accordance with the tariff schedule in attached Table 1 of the Tariff Schedule of the World Trade Organization Agreement, etc. and 8528.69% in tariff rates. The tariff classification of the Tariff Schedules is to be determined in accordance with the definitions in each of the following subparagraphs and related parts or categories. According to the General Rules on the Interpretation of Tariff Schedules, each sub-classification is in an exclusive relationship with each other under the system of the phrases and regulations. Whether certain goods are classified as 8528.61, which is the content of the provision, shall be determined exclusively based on the nature or nature of the goods to be used in accordance with the import declaration.”

As to whether the instant product has such characteristics, the overall purport of oral arguments is as to whether the instant product can be seen as having been carried out on the screen screen 2 and 7 or not. In light of the overall purport of oral arguments, the instant product is installed with sirens projector who can receive signals from video reproduction devices, such as computers, TV, and DV display, or output video and voice signals using other devices (monet: monitors; S-Vides et al.). Among the signals allowing entry, the instant product can be seen as including video signal (PA, SEC, NTSC, etc.) for the following reasons: The instant product is basically difficult to be seen as being used for the purpose of 0-1 and 5 video projector’s 10-1 and then, it is also difficult to view that the instant product is also used for the purpose of 10-2 and 5-1 and/or 5-1 of the instant product as a film projector’s digital film content, etc. as well as for the purpose of 10-1 and 6-2 of the instant product.

As such, insofar as the instant product does not fall under 8528.61, it shall be deemed to fall under 8528.69. Thus, the instant disposition rejecting the refund of the instant tax paid by the Plaintiff on the same premise is lawful.

3. Conclusion

The plaintiff's claim is dismissed for lack of reason.

【Attachment Related Provisions omitted】

Judges Lee Jae-ho (Presiding Judge)