CUSTOMS REGULATIONS FOR THE RASON
IN THE RASON ECONOMIC AND TRADE ZONE
Adopted by Decision No. 52 of the Cabinet on September 23, 2000
Chapter 1. General
Article 1. The purpose of these regulations is to establish
a customs order and preferential tariff system which are suitable for the management
of the Rason economic and trade zone, and to protect the interests of the State.
Article 2. The customs houses in the Rason economic and trade
zone (hereinafter called the Zone) shall be established at such places as the
customs clearance points on the border of the Zone, and the bonded area, bonded
factories, bonded warehouses and bonded exhibition (hereinafter called the bonded
district), airports and post offices. The Zone border covers the external border,
internal border and the port border.
Article 3. The customs houses of the Zone (hereinafter called
the customs) shall deal with the customs clearance and inspection of the baggage,
means of transport, postal matters and personal effects carried by the institutions,
enterprises and organizations of the DPRK (hereinafter called the institutions
and enterprises), foreign-invested enterprises and foreign enterprises (hereinafter
called the foreign investment-business enterprises), resident representative
offices of foreign enterprises (hereinafter called the resident offices), citizens
of the DPRK and foreigners (hereinafter called the individuals), and shall control
the storage, use, and the state of disposal of the goods brought into the Zone.
The institutions and enterprises, foreign investment-business enterprises, resident
offices and individuals shall provide necessary conditions for customs work.
Article 4. The customs shall exercise strict control and supervision
of such illegal cases as taking out or bringing in, or smuggling prohibited
goods such as arms, drugs and other articles which are harmful to national security,
social and moral life of the people, human life and growth of animals and plants.
The customs may investigate or examine documents related to the bringing in
or taking out of goods and to the payment of customs duty, and may search places,
means of transport and bodies of individuals under suspicion of smuggling.
Article 5. Customs registration and clearance, customs inspection
and control and customs duty and other fees in the Zone shall be subject to
Matter related to customs work which are not provided for in these regulations
shall be subject to the customs laws and regulations of the DPRK or the Zone.
Article 6. These regulations shall be applied to the institutions
and enterprises, foreign investment-business enterprises, resident offices and
the individuals that wish to take out or bring in cargoes, transportation means,
postal matter and personal effects.
Chapter 2. Custom Registration and Clearance
Article 7. Institutions and enterprises, foreign investment-business
enterprises and resident offices in the Zone shall register themselves with
the customs, appoint their respective customs declarer, and render cooperation
to customs work.
Where the business of taking out or bringing in goods is not a routine duty,
customs registration is unnecessary.
Article 8. Customs registration shall require submission of
application for registration to customs.
Application for customs registration shall be accompanied by a copy of the certificate
of business registration, an application for customs declarer and other documents
as may be required.
Article 9. The customs shall, within 15 days of receipt of
application for customs registration, conduct customs registration and the registration
of customs declarer, before issuing a certificate of customs registration and
a certificate of customs declarer. Any registered customs declarer shall be
replaced only under previous agreement with the customs.
Article 10. A customs declarer shall prepare documents of customs
declaration of the goods to be taken out or brought in, and shall be personally
responsible for customs clearance.
The customs declaration shall be accompanied by such documents as the export/import
licence or the letter of approval for goods to be taken out or brought in, the
documents issued by the city people’s committee in the Zone (hereinafter called
the Zone Administration), and invoice.
The legal responsibility for any declaration by a customs declarer shall be
borne by the relevant institution and enterprise, foreign investment-business
enterprise, or resident office.
Article 11. Approval for bonded materials to be brought into
the bonded district, transit cargoes, and the consumer goods to be taken out
or brought in by resident individuals in the Zone shall be given by the customs.
In case of bringing in bonded materials, the declaration of bonded materials,
and In case of transit cargoes, the declaration of transit cargoes and a copy
of contract shall be submitted to the customs.
Article 12. Customs clearance for the goods to be brought in
to or taken out of the Zone by a foreign investment-business enterprise in the
Zone, shall be done only within the category of business approved by the central
trade guidance organ, and no customs clearance for the goods to be taken out
or brought in by other enterprises shall be allowed.
Article 13. A resident office shall not go through customs
formalities for the goods to be taken out or brought in solely for the purpose
of gaining profit. In case of a resident office wishing to take out or bring
in goods as instructed by its parent company, it shall get an approval of the
Zone Administration, before submitting documents of customs declaration.
Article 14. Documents of customs clearance of the goods to
be taken out or brought in shall be submitted prior to the arrival of the goods
in question at a customs clearance point.
Where it is impossible to submit the documents of customs clearance in advance,
they shall be submitted as soon as the goods have arrived at the customs clearance
Article 15. In case of the institution and enterprise in the
areas outside the Zone wishing to bring into the Zone export goods as arranged
by plan or to take out import goods through the Zone to the areas of the DPRK
outside the Zone, they shall go through customs clearance only after they have
got approval of the central trade guidance organ.
Article 16. In case of bringing the goods into the zone or
taking them out to the areas of the DPRK outside the Zone according to State
plan for materials supply or to contract, such documents as may be required
by the customs shall be submitted prior to going through customs clearance.
Article 17. Customs declaration of a ship coming in and going
out of a trade port and of the cargo aboard it shall be made by its captain.
Article 18. Customs declaration of a train passing through
a customs clearance point shall be made by the relevant railway station.
The relevant railway station or the cargo owner shall submit documents required
by the customs as soon as the train arrives at the station.
Article 19. Customs declaration of the air cargo shall be made
by the relevant airport or chief pilot of the aircraft concerned.
The relevant airport or the chief pilot shall submit documents required by the
customs before take-off and after landing.
Article 20. Customs declaration of transit cargo shall be made
by either the cargo owner or his agent.
Article 21. In case an aircraft or a ship has landed or come
to anchor at a place where no customs house is located, due to unavoidable circumstances,
or in case an aircraft or a ship has jettisoned or unloaded its cargo for the
sake of its safety, the relevant operation institution or the chief of the relevant
means of transport shall immediately notify the customs of it.
Article 22. Customs declaration of postal matter shall be made
by the relevant post office or the owner. In case of the postal matter received,
the post office shall make a declaration to the customs, and In case of the
postal matter to be dispatched, the owner shall declare it.
Article 23. In case of an institution wishing to take bonded
materials out of the bonded district, it shall declare to the relevant customs
house 24 hours before packing or dispatching such materials.
Article 24. Where the bonded materials in the bonded district
are to be turned into import goods, the relevant institution shall get the approval
of the Zone administration before proceeding to necessary customs formalities.
Article 25. Bonded materials or goods may be taken out of the
bonded district temporarily for a period of 6 months for the purposes of repair,
processing, assembling, experiment, packing and so on, and customs clearance
shall be made for them, when they are to be brought back into the bonded district.
If bonded materials or goods taken temporarily out of the bonded district are
not able to be brought back within a specified period of time, due to unavoidable
circumstances, application may be submitted to the customs for extension of
this period to no longer than 3 months.
Article 26. Where work is to be done with cargo under the supervision
of the customs, the cargo owner or the relevant institution to do the job shall
obtain approval of the customs.
Article 27. Individuals, including the crew aboard a transportation
means, who pass through a customs clearance point, shall make declaration of
their personal effects.
Declaration of personal effects may be made in writing or orally as required
by the customs.
Article 28. Documents of customs clearance related to the goods
taken out or brought in shall be preserved for 5 years.
The documents of customs clearance for goods imported by the enterprises engaged
in tourist business, hotel service, commercial business and restaurant business
shall be preserved for 10 years.
Chapter 3. Customs Inspection and Control
Article 29. Cargoes, postal matter, transportation means
or individuals that enter or leave the Zone shall pass only through customs
clearance points and shall be subject to customs inspection.
If, for some unavoidable reasons, cargoes, postal matter or transportation means
are to be brought in or taken out through a place where a customs house is not
located, approval shall be obtained from the relevant institution and an application
for on-site inspection shall be submitted to the customs house nearest to the
place to undergo the inspection on the spot.
Article 30. Customs inspection of the goods to be brought in
or taken out shall be made at the customs control district or bonded district
on a customs clearance point, or at a designated place of arrival or dispatch.
Where it is impossible to make customs inspection of the goods to be brought
in or taken out at a customs control district on a customs clearance point,
the goods shall be transported under supervision from a customs house to another
in the Zone.
The customs shall, if need be, organize escort for the transportation of the
goods to be brought in or taken out.
Article 31. Goods to be brought in or taken out through the
areas of the DPRK outside the Zone shall not be inspected by the customs houses
in the areas outside the Zone, and the said goods shall be put under supervision
while being transported from the customs in the Zone to the customs in the areas
outside the Zone.
Bulk cargoes shall be inspected by the customs in the areas outside the Zone.
Article 32. During the transportation of cargoes under the
supervision of customs, it is forbidden to change the destination, discharge
the cargoes or load any other cargo in addition to the said cargoes.
Article 33. Where the goods to be brought in to or taken out
of the Zone are to be carried by lorries, they shall be carried by such type
of lorries as are equipped with facilities and conditions which are convenient
enough for the customs to supervise the transportation of cargoes.
Bulk cargoes may be carried by several-purpose lorries.
Article 34. The customs inspection of the goods to be brought
in or taken out of a trade port shall be made at the trade port concerned.
Article 35. Transportation means entering or leaving the Zone
shall be inspected at a customs control district on a customs clearance point.
The transportation means that has arrived at a customs control district shall
be prohibited from leaving without permission of the customs.
The institution operating transportation means or its agent shall give prior
notice to the customs of expected time of arrival or departure of the transportation
means so as to facilitate customs inspection.
Article 36. A post office shall neither deliver to the owner
nor dispatch out of the Zone any postal matter that has not been inspected by
Letters, printed matter, currencies, securities, etc., shall not be put in a
Article 37. Individuals who enter or leave the Zone and trade
ports shall be subjected to customs inspection on their personal effects, including
Article 38. Individuals may bring with them or send or receive
by mail the commodities within the limit of an amount required for their life
in and out of work.
Household goods to be moved or property inherited may be brought in or taken
out without limitation upon presentation of a certificate issued by the relevant
Article 39. Korean won shall not be taken out to or brought
in from a foreign country.
Korean won may be carried within the limit of an amount set by a relevant central
banking institution, through the customs clearance point on the internal border.
Article 40. Movement of foreign currency in cash, foreign exchange
securities, precious metals and jewellery that are personally carried by individuals
shall be subject to the following rules:
1. Foreign currency in cash and foreign exchange securities that are brought
in from or taken out to a foreign country shall be allowed without the bearer
having to make a customs declaration,
2. Precious metals and jewellery that are brought in from a foreign country
shall be allowed as the bearer makes a customs declaration,
3. Foreign currency in cash, foreign exchange securities, precious metals and
jewellery that are brought into the Zone through the areas of the DPRK outside
the Zone shall be allowed upon presentation of a certificate issued by a relevant
banking institution or a document confirmed by the customs at the time of their
entry into the territory of the DPRK,
4. Precious metals and jewellery that are to be taken out to a foreign country
shall be allowed upon presentation of a certificate issued by a relevant banking
institution or a document confirmed by the customs at the time of their entry
into the Zone, and
5. Foreign currency in cash, foreign exchange securities, precious metals and
jewellery to be taken out of the Zone to other areas of the DPRK outside the
Zone shall be allowed as the bearer makes a declaration.
Article 41. Transit cargoes to be brought in or taken out shall
only be supervised, without being subject to customs inspection.
Customs inspection on transit cargoes may be conducted when it is required by
any foreign cargo owner or when it is deemed necessary by the customs.
Article 42. Materials whose entry into the DPRK is limited
shall be brought in or taken out only through customs clearance points on the
border and port border within the Zone, and their storage and transportation
shall be undertaken under the supervision of the customs.
Article 43. The customs shall supervise the disposal of duty-free
materials and the products made of duty-free materials in the Zone so that they
are not disposed of illegally.
Article 44. Where the work of loading and unloading cargoes,
or carrying, storing, sorting, mingling or packing cargoes takes place at trade
port, and where the work is to be done in the Zone to handle the cargoes that
are placed under the supervision of the customs, on-site supervision shall be
conducted by the customs.
Article 45. Where a product is processed or assembled in a
bonded factory by using both the bonded raw and other materials and semi-products
and the local raw and other materials and semi-products, the factory concerned
shall report to the customs in writing about the mixing proportion and the production
Article 46. A bonded factory shall present a quarterly report
in writing to the customs within the 10th day of the first month of the next
quarter, describing the receipt, consumption and current stock of raw and other
materials and semi-products, as well as production, export and current stock
of finished products, and shall have the report cross-checked by the customs.
Article 47. No ordinary export or import goods other than bonded
goods shall be stored in a bonded warehouse.
The management institution of a bonded warehouse shall store or deliver only
such goods as have been approved by the customs, and shall, within the 5th day
of each month, report in writing to the customs on the receipt, delivery and
stock of bonded materials during the previous month and have the report cross-checked
by the customs.
Article 48. Any processing or assembling of bonded materials
is forbidden in a bonded warehouse.
Any movement of cargoes, re-packing, change of markings on the packing or sorting
of cargoes shall be undertaken under the supervision of the customs.
Article 49. If, during storage of bonded materials, it is found
that the actual quantity of materials is short of the recorded one or that any
of the materials have been destroyed, degenerated or damaged, the management
institution of the relevant bonded warehouse shall report in writing to the
customs thereof, and shall have the report certified by the customs.
The management institution of the bonded warehouse shall be responsible for
any shortage of quantity or damage to bonded materials (except for such loss
or damage as has been caused by an unavoidable circumstance).
Article 50. Cargoes for resale or transit trade shall be taken
out to other countries within 3 months from the date of their arrival at the
In case they cannot be disposed of within the fixed period, the period may be
extended for no longer than 1 month with the approval of the customs.
Article 51. The customs shall strengthen relations with quarantine
offices on customs clearance points.
Chapter 4. Customs Duty and Customs Fee
Article 52. The customs shall apply preferential tariff rates
to materials or goods that are imported into the Zone.
Article 53. No customs duty shall be imposed on the following
materials or goods:
1. Materials in the form of investment into the Zone,
2. Materials for production and management,
3. Materials to be processed in the Zone for re-export,
4. Reasonable quantity of office articles, office instruments, equipment, furniture
or transportation means and consumer goods brought in by an enterprise for its
5. Goods produced in the Zone for export to a foreign country,
6. Goods for resale and transit trade, and
7. Materials or goods listed otherwise by the State.
Article 54. Customs duty shall be imposed on the following:
1. Materials or goods to be sold in the Zone,
2. Materials or goods which have been produced in the Zone or those imported
to the Zone and which are to be sold either in the Zone or in any other areas
of the DPRK outside the Zone,
3. Materials that have been brought into the Zone for the purposes of processing
for hire, resale or transit trade and are to be sold either in the Zone or in
any other areas of the DPRK outside the Zone with the approval of the State,
4. Office articles, office instruments, transportation means and consumer goods
brought into the Zone in excess of actual needs, and
5. Personal belongings and postal matter brought into the Zone in excess of
duty exemption limits.
Article 55. Tonnage dues shall not be imposed on foreign ships
entering or leaving trade ports.
In case of the dissolution or withdrawal of the business within 10years after
the start of its operation, the customs duty reductions t has been favoured
with shall be returned to the customs.
Article 56. Duties shall be imposed on the commodities brought
in for tourist business, hotel service, commercial business and restaurant business
in the Zone.
Article 57. The products made of raw and other materials, accessories
and components that have been brought in without payment of customs duty shall
be exported on all accounts.
Where any of the export products are to be sold in the Zone or to any other
part of the DPRK outside the Zone with the approval of the State, customs declaration
shall be made thereof to the customs and the customs duty shall be payable for
such imported raw and other materials, accessories and components as have been
used to manufacture such products.
If the exact quantities and prices of the imported raw and other materials,
accessories and components that have been consumed to manufacture the products,
have not been declared, the customs shall impose customs duty, taking into account
the quantities and import prices of the relevant materials brought in.
Article 58. Where a foreign investment-business enterprise
wishes to purchase goods or materials in the areas of the DPRK outside the Zone
or to sell the products of the Zone to other parts of the DPRK outside the Zone,
the enterprise concerned shall pursue the purpose through a relevant trade institution
of the DPRK, and In case of purchase or sale of materials or goods, both the
enterprise and the relevant trade institution of the DPRK shall pay customs
Article 59. In case of purchasing materials in the Zone or
in the areas of the DPRK outside the Zone to export them without processing,
export duty shall be payable.
In case goods or commodities with an added value of more than 20 per cent are
produced for export by making use of the said materials, such goods or commodities
shall be deemed to have been produced in the Zone and, accordingly, no export
duty shall be imposed on them.
Article 60. Office articles, office instruments, equipment,
furniture, consumer goods and transportation means that have been brought in
from a foreign country for personal consumption shall not be sold either in
the Zone or to other parts of the DPRK outside the Zone.
In case they are to be sold due to unavoidable reasons, declaration shall be
made thereof to the customs, and the customs duty required of them shall be
Article 61. No customs duty shall be imposed during the bond
The bond period shall be 2 years for a bonded factory or a bonded warehouse,
and shall be as set by the customs for a bonded exhibition.
Where the bond period is to be extended for an unavoidable reason, an application
for the purpose shall be submitted to the customs 10 days before the expiry
of the bond period, and the customs, after examining the application, shall
reject it or extend the period for no longer than 6 months.
Article 62. In case of carrying bonded materials or goods out
of the Zone temporarily for the purposes of repair, processing, assembling,
experiment or packing, any security in cash or in kind equivalent in value to
the amount of customs duty, shall be placed in the custody of the customs.
If the said materials or goods have been carried back into the Zone within a
specified period of time, the security in cash or in kind shall be returned,
and if not, the security may be disposed of in lieu of the customs duty.
Article 63. In case the materials or goods to be brought into
the Zone are found in the course of customs inspection, to have been decomposed,
degenerated, damaged or missing, they, according to their current state, may
be partly or totally exempted from the customs duty.
Article 64. The standard price on the basis of which import
duty is imposed shall be the price of arrival at border, whereas that on the
basis of which export duty is imposed shall be the price of delivery at border.
The standard price on the basis of which customs duty is imposed on personal
belongings and postal matter shall be the corresponding retail price of the
article in question prevailing in the Zone.
Article 65. Amount of customs duty shall be calculated in Korean
won, pursuant to the tariff rates prevailing at the time when the materials
or goods in question are brought in or taken out, and the customs duty shall
be imposed in Korean won or foreign currency.
The exchange rate of Korean won against any foreign currency shall be such as
is made public by the trade banking institution in the Zone for the given time.
Article 66. Customs duty shall be paid according to the notice
of payment of customs duty issued by the customs. No materials or goods shall
be brought in or taken out of the Zone without payment of customs duty.
Article 67. In case the prices of the materials or goods to
be brought in or taken out are declared lower than their original prices, for
the purpose of tax evasion, the customs may have the prices of such goods re-evaluated
through a relevant institution and impose such customs duty as is required.
Article 68. The customs shall collect customs fee for customs
registration and for customs clearance, supervision and on-site customs inspection
with regard to transit cargoes.
Customs fee shall be paid to the customs according to the notice of payment
of customs fee given by the customs.
The standard of customs fee shall be such as is determined by the relevant State
Article 69. Where the customs duty and customs fee have been
overpaid, a request may, within 1 year from the time of payment, be made of
the customs concerned to refund any surplus amount paid.
Article 70. Where the customs has failed to collect full amount
of customs duty and customs fee with regard to any goods or materials brought
in or taken out, it may collect the appropriate amount of such customs duty
and customs fee within 3 years from the date of customs clearance for the goods
or materials in question.
Article 71. Where a foreign-invested enterprise wishes to dissolves
its business, the enterprise concerned shall notify the customs of its dissolution
within 5 days from the date of approval by the screening institution of the
incorporation of enterprises.
The customs, upon receipt of notice of dissolution of the enterprise concerned,
shall send to the liquidation committee a document claiming for the customs
duty and customs fee overdue, and the liquidation committee shall satisfy the
claim of the customs for payment on a priority basis.
Chapter 5. Sanctions and Petition
Article 72. The central customs guidance institution shall
undertake tight control and supervision of the customs to prevent occurrence
of any deviation.
Article 73. Where bonded materials or goods have not been disposed
of within a fixed period of time, the materials or goods in question shall be
delivered to a relevant institution for disposal by means of sale, and from
the money earned by the sale, an appropriate amount shall be disposed of as
customs duty and the rest shall be delivered to the management institution of
the bonded warehouse for disposal.
In case the bonded materials or goods cannot be disposed of by means of sale,
an appropriate amount of the materials or goods concerned, equivalent to customs
duty, shall be delivered for disposal as customs duty.
Article 74. In case of breach of these regulations, such administrative
punishment as confiscation of the certificate of customs declarer, suspension
of customs clearance for goods to be brought in or taken out, cancellation of
customs registration, detaining of the transportation means and the goods to
be brought in or taken out, or fining, shall be imposed depending on the severity
of offence, and, if the violation proves to be severe, criminal punishment shall
Article 75. Contraband goods shall be seized immediately on
the spot and, depending upon the severity, vehicles and other means used for
smuggling them shall be seized.
Where it is impossible to seize the smuggled goods, the amount of money corresponding
to the value of the goods in question shall be paid by the institutions and
enterprises, foreign investment-business enterprises or individuals that have
committed smuggling or cooperated in smuggling.
Article 76. Prohibited goods such as arms, drugs and other
articles which are harmful to national security, social and moral life of the
people, human life and growth of animals and plants, and Korean won to be taken
out to or brought in from a foreign country shall be seized.
Article 77. The seized goods shall be disposed of as required
by the laws and regulations on the disposal of confiscated property.
Article 78. Petition may be filed with regard to any complaint
about customs clearance, inspection, or payment of customs duty and customs
The petition shall be settled within 30 days of its receipt.