Split Import Declaration for Partial Plant Quarantine Failure under a Single Bill of Lading (B/L) Released

Yes, splitting the Bill of Lading (B/L) for import declaration is permitted under Korea Customs Service (KCS) regulations. According to the relevant guidelines, split declarations are authorized when "some items pass inspection or quarantine while others fail, or when a declaration is filed for only the portion of goods that have completed the inspection/quarantine process."

Therefore, you may proceed with customs clearance by separating the items that passed plant quarantine from those that failed, filing them under different import declarations.

Q1) What are the specific procedures for filing a split B/L declaration?

To declare a split B/L, you must follow these administrative steps:

• Drafting Split Import Declarations: You must prepare separate import declarations for the passed and failed goods. Each declaration must clearly indicate the split B/L number and the specific reason for the split.
• Document Preparation: You will need the original B/L, the Notice of Plant Quarantine Failure, and standard import documentation such as the commercial invoice and packing list.
• Submission to Customs: Submit the split declarations and supporting documents to the competent customs office. Depending on the customs officer's assessment, additional steps may be required.

Q2) Are there any precautions to consider when splitting a B/L?

Yes, several regulatory requirements must be met to split a B/L:

• Minimum Tax Collection Threshold: Under Article 37, Paragraph 1 of the Enforcement Decree of the Customs Act, the duty amount for each split declaration must not be less than 10,000 KRW. If the tax amount for a split entry falls below this threshold, B/L splitting is not permitted.
• Prevention of Abuse: Split declarations are only allowed for legitimate reasons. Splitting B/Ls to evade legal obligations or to unfairly obtain tax exemptions is strictly prohibited.
• Feasibility of Inspection and Valuation: Splitting the B/L must not interfere with the ability of customs to inspect the goods or accurately determine the customs value for each item.

Q3) How should items that failed plant quarantine be handled?

In principle, items that fail plant quarantine are suspended from clearance. The importer must choose one of the following actions:

• Reshipment (Return): Returning the failed items to the country of origin or an overseas supplier.
• Destruction: Disposing of the items under the supervision of customs and quarantine authorities.

The appropriate course of action is determined by relevant laws and customs directives, often requiring consultation with plant protection agencies.

Q4) Can the items that passed quarantine be cleared immediately?

Yes. Items that have successfully passed plant quarantine can proceed through standard import declaration and clearance procedures. By utilizing the split B/L declaration process, you can clear the compliant goods separately while the failed goods remain pending.

Q5) Are there any additional documents required for B/L splitting?

Customs may request supplemental documentation on a case-by-case basis. This might include evidence verifying the reason for the split or a detailed breakdown of the failed versus passed items. It is highly recommended to consult with your customs broker or the competent customs office to confirm the exact requirements before filing.

Reference: KCS Guidelines on B/L Splitting and Consolidation

While the standard rule is one import declaration per B/L, splitting is permitted in the following circumstances:

• When splitting does not hinder cargo inspection or customs valuation.
• When only a portion of the shipment is permitted for clearance while the rest is suspended.
• When there is a partial pass/fail result in inspection or quarantine.
• When separating items subject to deferred payment from those that are not.

Note: B/L splitting is prohibited if the tax amount per split is under 10,000 KRW, or if the split is intended to circumvent the Customs Act or unfairly claim small-sum duty exemptions.