Importing alpaca toys from Peru into South Korea

The South Korean import duty on alpaca stuffed animals from Peru is 0% under the Korea-Peru Free Trade Agreement, when the importer claims it with a valid certificate of origin. Without that claim the basic rate for toys of textile materials in heading 9503.00 is 8%.

The agreement entered into force on 1 August 2011. In Korea's tariff schedule under the agreement, the toy codes of textile materials in heading 9503 carry a base rate of 8% and the staging category EIF, which means the duty was removed entirely on the day the agreement took effect. Alpaca toys therefore do not wait for a phase out: the preferential rate has been 0% from the start.

Korea classifies goods with 10 digit HSK codes, and the exact code for a stuffed alpaca of fur and textile is for your customs broker to confirm. Korea assesses duty on the CIF value: the price of the goods plus insurance and freight to Korea. Rates and extra charges can differ or change with recent tariff measures, so have your broker check the current rate before you order.

Alpaca toys from Peru need the Korea-Peru FTA certificate of origin to clear at 0% duty in South Korea: a form in English, completed and signed by the exporter or the producer in Peru. Since 1 August 2016 it is self certified, so no chamber of commerce or ministry issues it.

• The form. It follows the specimen in Annex 4B of the agreement and may be printed or electronic. It names the exporter, the producer, the goods with their HS code and the origin criterion.
• Validity. The certificate is valid for one year from the date it was issued in Peru and must reach Korean customs within that year. One certificate can cover a single shipment, or repeat shipments of identical goods to the same importer for up to 12 months.
• Small shipments. No certificate is needed when the customs value of the import is no more than US$1,000.
• Transport papers. The goods must meet the agreement's direct transport rule, and the importer keeps the transport documents that show it, next to the certificate.

To qualify, a toy of heading 9503 must be made from materials of another heading, which is the case for an alpaca handmade in Peru from alpaca fur. With Tubi you ask for the certificate of origin when you request your quotation, and it is arranged with the export papers.

Alpaca toys imported into South Korea pay 10% VAT, worked out over the customs value plus the duty. Korea has one flat VAT rate for imported and domestic goods alike, and with the 0% duty under the agreement the VAT is simply 10% of the CIF value.

Duties and taxes are paid in Korean won within 15 days after the goods clear customs. Because the VAT is calculated on the CIF value, the freight and insurance to Korea count in the base, not only the invoice price. Your broker can tell you how the VAT paid at import is settled in your own tax return.

Alpaca stuffed animals sold in South Korea fall under the Special Act on the Safety of Products for Children, which puts toys under safety confirmation: each model is tested by a laboratory designated by the government, reported, and marked with the KC mark before it is sold. The Act covers products used by or for children aged 13 and under, and it is run by the Ministry of Trade, Industry and Energy through its standards agency, KATS.

• Test per model. The manufacturer or the importer submits each model to a designated laboratory, such as KTC, which tests it against the Korean safety standards for toys and the common standard for children's products.
• Report. The result is reported under the Act. A safety confirmation stays valid for five years from the report, and the documents that show the model conforms must be kept.
• KC mark. Every confirmed model carries the safety confirmation mark with its product information, together with the caution and warning text the rules prescribe. The text for Korean shoppers can be added in Korea after arrival.
• No mark, no sale. The Act forbids selling, importing for sale or displaying a toy under safety confirmation without the mark.

The English translation of the Act calls this step "safety verification"; laboratories and buyers usually say safety confirmation or KC certification. The Act also lets a designated laboratory recognise tests by other institutions it has an agreement with, so ask your laboratory early which results it can use.

The South Korean importer of alpaca toys from Peru clears the goods, claims the FTA rate, and holds the KC safety confirmation for each model it sells. Under the Act the importer is one of the two parties that may obtain safety confirmation, and for a toy made abroad it is usually the importer who does it.

• Customs. The import declaration is normally prepared by the importer in Korean, often through a licensed customs broker, with the commercial invoice, the packing list and the transport document.
• The FTA claim. Make the written statement in the customs declaration and have the certificate of origin in hand when you do.
• Origin marking. Korea requires the country of origin to be marked on commercial shipments at customs clearance; other Korean labels may be attached after arrival.
• KC per model. Book the test with a designated laboratory before you sell, keep the confirmation and the test records, and put the KC mark and the required Korean text on each piece.

Plan the test into your first order: the laboratory tells you how many pieces of each model it needs. Tubi puts the age label on its alpacas itself; the KC mark and the Korean text come from your own safety confirmation. The page for importers covers buying for resale in more than one market.

Every Tubi alpaca stuffed animal is tested the same way by an independent accredited laboratory: mechanical safety to EN 71-1 and ASTM F963, flammability to EN 71-2 and metals to EN 71-3, and every one passes. The test results can always be shown, and sent on request to confirm.

Those results are a strong starting point, but the KC safety confirmation is a Korean step: it is done by a laboratory designated in Korea, in your name as the importer, and Tubi does not hold a KC confirmation for you. Share the EN 71 and ASTM results with your laboratory, and it decides what it still needs to test.

The fur itself is natural alpaca with no lanolin, the wax in sheep's wool. The tests are the same for every collection, so a mixed order of shades and sizes rests on one set of results. Every standard Tubi works to is listed on the compliance page, and are alpaca stuffed animals safe explains what each test checks.

To order alpaca toys wholesale from Tubi for South Korea, you place your order naming Korea, pay half to start production, and the alpacas ship with the commercial invoice, packing list and certificate of origin. Tubi has shipped to South Korea before.

1. Choose your mix from the collection: any collection, shade and size, from $350.00 for the whole order. Name South Korea on the order form and ask for the certificate of origin and, if you want them, the EN 71 and ASTM results for your laboratory.
2. Within 24 hours the quotation comes back with the price, the ready date, the HS code for your broker and the delivery terms: DAP, delivered to your door, or ex works, collected by your own forwarder.
3. Half the amount starts production and the order is ready in 2 to 8 weeks. The other half is paid before shipping.
4. Your broker clears the alpacas with the papers below and claims the 0% rate; your designated laboratory handles the KC confirmation, and the KC mark and Korean text go on before sale.

With DAP the freight to your address is arranged and you handle the Korean clearance. The general steps for any country are in how to import alpaca toys from Peru, and prices and terms in the wholesale buyer's guide.