Customs Clearance of Importing Chemicals 1. Introduction The procedure for customs clearance of chemicals (including single compound or mixture) for industrial use is governed under the Toxic Chemicals Control Law (“TCCL”). However, the following chemicals are managed by other laws and excluded from TCCL (Article 3 of TCCL). Radioactive substances defined under the Atomic Energy Law Pharmaceutical products, quasi-pharmaceutical products defined under the Pharmaceutical Affairs Law Narcotics defined under the Narcotics Law Cosmetics defined under the Cosmetics Law (Including raw materials of which safety review is necessary under Article 4, Paragraph of this Law) Pesticides defined under the Pesticide Chemicals Control Law Chemical fertilizers defined under the Fertilizers Control Law Foods and food additives defined under the Food Sanitation Law Animal feeds defined under the Feeds Control Law Gunpowder defined under the Gun, Sword and Gunpowder Control Law Toxic gases defined under the High-Pressured Gas Safety Control Law Under the former system before Jan. 1, 2006, for the customs clearance of chemical products importers had to obtain “Confirmation Certificate” from the Korea Chemicals Management Association (hereinafter referred to as “KCMA”), but under the new system enforced from Jan. 1, 2006, such Certificate is not required any longer. From Jan. 1, 2006, Korean Customs Office does not require importers any Certificate or Approval Number except the cases of prohibited or restricted chemicals (44 chemicals). For the cases of prohibited or restricted chemicals, the Approval Certificates issued from competent local environmental authority must be submitted to Customs Office. 1 From Jan. 1, 2006, under the amended TCCL all importers must submit “Confirmation Document on Chemical Substances” in electronic form or in document form for all importing products to KCMA. submitted once a year. This form per chemical product must be However, in case of Low Volume Exemption of new chemical, it must be submitted for every import. All components of chemical product to be imported (including single compound or mixture) should be reviewed on whether it contains new chemicals or regulated chemicals (i.e., Toxic Chemicals, Observational Chemicals, Restricted Chemicals or Prohibited Chemicals). However, the submission of components information is not required. The following process is performed for the submission of “Confirmation Document on Chemical Substances in electronic form by Korean importer: (1) Open KCMA’s website (www.kcma.or.kr) (2) Click “On-line service for chemicals(화학물질전자민원 온라인서비스)” on the top of right side (3) Log-in (4) Click “Public service(민원업무)” (5) Fill out all items in the form (6) Submit the completed form <Confirmation Document on Chemical Substances> Exhibit Form No.1 of Ministerial Decree of TCCL However, in case that a chemical product falls within any of the followings, additional process must be processed separately in addition to the aforesaid process. Case that new chemical is contained ----- -------------------See 2 Toxic Chemical -------------------------------------- --See 3 Observational Chemical ---------------------------------- See 4 Restricted or Prohibited Chemical 2 ------------------------ See 5 2. Case that new chemical is contained Even though any new chemical substance is contained in a product to be imported, the New Chemical Notification is not required for any of following cases: 1. Any new chemical of which the annual import amount is low volume of 100 kg or less (unless the importer provides data indicating the presence of a new chemical, the volume shall be determined based on the total weight of the product); 2. Any new chemical substance used in the limited site by the persons engaged in the test or research for the purpose of development of chemical substance or products containing chemical substance or of improvement of manufacturing process; 3. Any new chemical substance imported as contained in a machine or equipment or any chemical substance imported together with the relevant machinery or equipment for a test run; 4. Any new chemical substance contained in a product having certain function in a specific solid shape, which are not released during its use. 5. Any new chemical substance of which 10 ton or less per year is manufactured or imported for the export as a whole or any new chemical substance of which 10 ton or less per year is manufactured or imported for the production of the chemical substance to be exported as a whole; 6. Other new chemical substances recognized and announced by the Head of National Institute of Environmental Research (hereinafter referred to as the “NIER”) as chemical substances for which NIER deems Hazard Review is not necessary pursuant to Items 1 through 5; or - Polymers which are listed on the Existing Chemicals List. In this case, reactants or monomer of 2% or less are not considered. - Any block polymers of which all blocks are listed on the Existing Chemicals List - Graft polymers of which main stems and branches are listed on the Existing Chemicals List - Non-ionic polymer of which number average polymer is 10,000 or more (will be enforced from Jan. 1, 2007) - Non-ionic polymer of which number average polymer is 1,000 or more 3 and which meet the followings: (will be enforced from Jan. 1, 2007) Monomers should not be fallen within Toxic Chemical, Observational Chemical, new chemical, or epoxy compounds - Water solubility should be 5 mg/g or less Any chemicals which are not listed on the Existing Chemicals List, but are proved to have been manufactured or to have been imported to Korea before Feb. 2, 1991 (including the chemicals proved to have been exported from foreign countries to Korea before Feb. 2, 1991). In aforesaid cases, importer may apply for “Exemption Application from Hazard Review” to KCMA. The exemption application form per chemical product must be submitted once per year. However, for Low Volume Exemption of Item 1, it must be submitted for each import. <Application form for the Confirmation on Exemption from Hazard Review of Chemical Substance> Exhibit Form No.4 of Ministerial Decree of TCCL 3. Toxic Chemicals In case the chemical product to be imported falls under any of Toxic Chemicals designated under TCCL, importer must notify the import of Toxic Chemicals to KCMA submitting “Import Report of Toxic Chemical.” As mentioned Item 1, also “Confirmation Document on Chemical Substances” in electronic form must be submitted separately to KCMA. <Import Notice of Toxic Chemical> Exhibit Form No.11 of Ministerial Decree of TCCL 4 4. Observational Chemicals In case the chemical product to be imported falls under any of Observational Chemicals designated under TCCL, the importer must notify the import of Observational Chemicals to KCMA submitting “Import Notice of Observational Chemicals.” As mentioned Item 1, also “Confirmation Document on Chemical Substances” in electronic form must be submitted separately to KCMA <Import Notice of Observational Chemical> Exhibit Form No.28 of Ministerial Decree of TCCL 5. Prohibited or Restricted Chemicals In case a chemical substance is deemed likely to cause serious harm to human health or the environment, manufacture, import or use of the chemical substance may be prohibited through the consultation with the heads of the related central administrative bodies. Under the TCCL, the chemical substances falling under this category are called “Prohibited Chemicals.” However, manufacture, import or use of the chemical reagents for testing, research or experiment is not prohibited. A person who intends to import “Prohibited Chemicals” for this purpose must obtain the permission of import from the local environmental authority. In case a chemical substance is deemed likely to cause serious harm to human health or the environment, manufacture, import or use of the chemical substance may be restricted through consultation with the heads of the related central administrative bodies. substance. This is mainly to restrict for specific uses of the chemical Under the TCCL, the chemical substances falling under this category are called “Restricted Toxic Chemicals” 5 However, import, manufacture, or use for the chemical reagents for testing, research or experiment is not restricted. A person who intends to import “Restricted Toxic Chemicals” for the approved purpose must obtain permission of import from the local environmental authority. In order to import or use the “Restricted Toxic Chemicals” for the commercial purpose, the relevant company must obtain the business permit for import or use from the MOE. 6 [Exhibit Form No.1] (front page) Manufacturer (importer) □ Manufacture □ Import Confirmation Document on Chemical Substances ② Business entity Registration No. ④ Person in charge and contact point ① Company name ③ representative’ s Name ⑤ Address of business place (Tel : ) Information on manufactured (imported) product ⑥ Product name Information on provider of documents for confirmation ⑪ Method of confirmation ⑦ Exporting country ⑧ Estimated annual manufacture or import amount (kg) ⑨ HSK No. ⑩ Main use □ Certificate of Components □ Confirmation Certificate(Certificate No.: ) □ Other Document(s) for confirmation (Provider: ○ Manufacturer ○ Exporter ○ Person to whom the confirmation duty Is delegated) ⑫ Company name ⑬ Address Name Tel & Fax Division E-mail ⑭ Person in charge Item Item of confirmation Confirmation ⑮ New chemical Toxic chemical Contained None Hazard review □ Exemption from Hazard review □ Chemical name (CAS No.) Content or range of content (%) Observational Chemical Chemical name (CAS No.) Restricted or prohibited chemical Chemical name (CAS No.) Content or range of content (%) Content or range of content (%) 7 □ □ □ □ ⑯ Remark In accordance with Article 9, Paragraph (1) of the Toxic Chemical Control Law and Article 2, Paragraph (1) of the Ministerial Decree of the law, I hereby confirm the components of □ Manufactured □ Imported product Month Manufacturer day (importer) : year (Signature or seal) (back page) ※ Point for preparation 1. “ Manufacturer” shall mean a person who manufactures a chemical substance and “ Importer” shall mean a person who intends to import a chemical substance (a person who pays customs tax under Article 19 of the Customs Law) pursuant to TCCL. 2. In ⑥, product names shall be described separately according to manufacture or import case. 3. In ⑦, exporting country shall be described only in case of import. 4. In ⑧, estimated annual manufacture or import amount shall be described. 5. In ⑨, only in case of import, HSK No. (Harmonized System Korea Number) under Consolidated Classification on Customs Taxes and Statistics, shall be described. 6. In ⑩, main use of product shall be described. 7. In ⑪, the confirmation method used for confirmation result of ⑮ shall be described. 8. A person to whom the confirmation duty is delegated shall mean a person who performs the confirmation of chemical substances on behalf of manufacturer (importer). 9. In ⑮, the matter on whether new chemicals, toxic chemicals, observational chemicals, restricted or prohibited chemicals under TCCL are contained in a product, shall be checked on the relevant box. If toxic chemicals, observational chemicals, restricted or prohibited chemicals are contained in the product, chemical names, CAS No., contents or content ranges of such chemical substances shall be described. 8 ※ The application is processed as below Applicant Processing organization Association on chemicals management to which the duty is delegated by MOE pursuant to Article 56, Paragraph (2) of TCCL and Article 30, Paragraph (4) of the Ministerial Decree of the law, Confirmation Document Receipt Review Approval 9 [Exhibit Form No.4] □ Manufacture □ Import (front page) Application form for the Confirmation on Exemption from Hazard Review of Chemical Substance Processing Period 3 Days Applicant (7 days in case of specific reason) ⓛ Company name ② Business entity registration No. ③ Representative's Name ④ Person in charge and contact point ⑤ Address of business place ⑥ Product name ⑦ Exporting country ⑧ Main use ⑨ Manufacture or import amount at this time Items of Application ⑩ Chemical name or generic name ㎏ ⑫ Content in product or range of content (%) ⑪ CAS No. ⑬ Structural formula ⑭ Estimated annual manufacture (import) amount ⑯ The reason for application of exemption ㎏ ⑮ Application for confidentiality protection □ Applicable □ Not Applicable In accordance with Article 10, Paragraph (2) of the Toxic Chemicals Control Law and Article 4, Paragraph (1) of the Ministerial Decree of the law, we hereby apply for the confirmation on Exemption from Hazard Review of chemical substance Date Applicant (Signature or seal) To the Head of Korea Chemicals Management Association ※ Attachment A copy of document necessary for the confirmation on exemption from Hazard Review. 10 Application Fee 10,000 won (back page) ※ Point of preparation 1. In ⑥, the matter on manufacture or import shall be described for each product. 3. In ⑦, exporting country shall be described only in case of import. 4. In ⑧, estimated annual manufacture or import amount shall be described. ※ The application is processed as below Applicant Processing organization Association on chemicals management to which the duty is delegated by MOE pursuant to Article 56, Paragraph (2) of TCCL and Article 30, Paragraph (4) of the Ministerial Decree of the law, Confirmation Document Receipt Review Notice of Confirmation Result Approval 11 [Exhibit Form No. 11] Processing period Import Notice of Toxic Chemicals Immediately ① company name Applicant ② Representative's name ③ Business registration No. ④ Address (Business place) (Tel: ) Noticed Information ⑥ Product name (Trade name) ⑦Exporting country ⑧Main use ⑨ Estimated ⑩HSK annual No. import amount Information on Toxic Chemical ⑪Chemical name ⑫Toxic Chemical No. ⑬ Content or CAS No. Fee In accordance with Article 19, Paragraph (1) of TCCL and Article 16, Paragraph (1) of the Ministerial Decree of the law, we hereby notify you the import of Toxic 13,000 won per product Chemical. Date Applicant (Signature or seal) To the Head of Korea Chemicals Management Association 12 [Exhibit Form No. 28] Processing period □ Manufacture Notice of Observational Chemicals □ Import Immediately ① company name Applicant ② Representative's Name ③ Business registration No. ④ Address (Business place) (Tel: ) Noticed Information ⑥ Product name (Trade name) ⑦Exporting country ⑧Main use ⑨ Estimated ⑩HSK annual No. import amount Information on Observational Chemical ⑫ ⑪Chemical name Observational Chemical No. or CAS No. ⑬ Content Fee In accordance with Article 31, Paragraph (1) of TCCL and Article 31, Paragraph (1) of the Ministerial Decree of the law, we hereby notify you the import of 13,000 won per product Observational Chemical. Date Applicant (Signature or seal) To the Head of Korea Chemicals Management Association 13