▲Samsung Electronics’ semiconductor process. Photos have nothing to do with the content of the article. (Photo courtesy of Samsung Electronics)
In the future, follow-up management of the ultrapure water supply device for semiconductor manufacturing will be omitted.
The Korea Customs Service announced that from the 20th of this month, follow-up management of ultrapure water supply devices will be omitted in order to stimulate facility investment in the semiconductor industry.
Follow-up management is a system in which an importer assumes duties related to imported goods for a certain period of time after import and receives customs management for imported goods to which a low tariff rate is applied on the premise that they will be used for a specific purpose.
Ultrapure water supply equipment, which is essential industrial water of high purity (organic content less than 0.01ppm) used to clean various by-products and contaminants on the surface of semiconductors, is an essential plant facility for the semiconductor manufacturing process.
Currently, when imported under conditions used in semiconductor manufacturing, a lower tax rate (0%) than the basic tariff rate (3%) is applied. Instead, importers have received follow-up management from the Korea Customs Service to ensure that they are used for their intended purposes for up to three years after import. It had to bear complex follow-up management obligations.
The Korea Customs Service revised the notice on follow-up management to resolve such inconveniences in the industry and promote facility investment in the semiconductor industry, and designated ultrapure water supply devices as items subject to ‘omit follow-up management’.
Previously, the Korea Customs Service had previously excluded alfalfa (grass for livestock feed) from follow-up management at the request of the feed industry.
With this system improvement, it is expected that 46 companies will not only be able to reduce follow-up management costs, but also contribute to preemptive facility investment in the domestic semiconductor industry.
Jeon Seong-bae, head of the Fair Trade Inspection Team at the Korea Customs Service, said, “We listened to the difficulties of the industry and through on-site due diligence, quickly determined that the goods were not likely to be used for other purposes, so we skipped follow-up management.”