법무법인(유한) 율촌 | Yulchon LLC

Yulchon LLC successfully represented a global network equipment company in obtaining an Advance Customs Valuation Arrangement (“ACVA”) in favor of the client.

The ACVA refers to the system for obtaining advance agreement with the Korean customs authorities on the method for determining the customs value of the goods imported by such company from its overseas affiliate. The ACVA helps to ensure stability and predictability, as well as prevent exhaustive disputes. Yulchon LLC has successfully obtained ACVA for numerous multinational enterprises, including luxury brands and various distributors of diverse products.

This ACVA was particularly commendable, as it covered all product categories and transaction types (such as sales, internal spares, and others). The terms of the ACVA achieved by Yulchon LLC confirmed that the affiliate relationship did not influence transaction prices so that the transaction prices were fully and identically recognized as customs values. By proactively strategizing and preparing the procedure for ACVA approval in time for upcoming changes in the Company’s sales structures, Yulchon LLC was able to obtain favorable results while reducing any potential risk of challenges from the customs authorities.