Korea abolish reporting requirement of Strategic Goods

On October 23, 2009, the amendment of export control law in Korea took place and a reporting requirement of Strategic Goods (NSG, AG, MTCR and Wassenaar controlled goods) was abolished according to the newsletter from Korean law firm in November.

The reporting requirement of Strategic Goods in Korea was to report to relevant government authority on manufacturing or on importation of the goods (not on every transaction, but on initial release of the goods) within 30 days. This requirement was introduced in April 2007 and was very unique system. Although this reporting requirement looks contributing to solid export compliance, it is no doubt the operational burden to traders are significant. So, abolished in 2 years and half.

As another new requirement in Korea export control, an approval of transit and of trans-shipment of Strategic goods are implemented. Prior to the amendment, the Korean government could only issue an order to stop the movement of Strategic Goods. A consignee or a career is responsible for obtaining this approval. This new requirement will certainly contribute to diversion risk to North Korea where many countries have trade sanction programs.