South Korea Import Duty Rate for Passenger Cars
HS 8703 · Motor vehicles for transport of persons
South Korea MFN Import Duty Rate
8%
KORUS/Korea–EU: 0%
MFN 8% on passenger vehicles. 0% under KORUS (US) and Korea–EU FTA.
How duty is calculated
CIF value
Product cost + international freight + insurance
Import duty (8%)
Applied to CIF value. EU, UK, and most countries use CIF.
VAT (10%)
Applied to CIF value + duty. Collected at customs.
Use our Landed Cost Calculator to compute the full cost including freight, brokerage, and last-mile delivery.
Worked example: passenger cars worth US$10,000
A commercial shipment invoiced at US$10,000 with US$900 of international freight and insurance. South Korea charges duty on the CIF value (goods + freight + insurance), so the duty base is US$10,900. Customs converts the amount to KRW at the official exchange rate on the day of import.
| Charge | At 8% |
|---|---|
| Import duty | $872 |
| VAT (10%) | $1,177 |
| Total paid at the border | $2,049 |
VAT is usually recoverable for a registered business, so the cost that stays with you is the duty. Excise, anti-dumping duties and broker fees are not included.
Classifying passenger cars correctly
Heading 8703 covers motor cars and other vehicles principally designed to carry people, split by engine type and size: petrol, diesel, hybrid and fully electric (8703.80).
- Pick-ups and vans built mainly for goods go to 8704
- Electric vehicles have their own subheading and often a different rate or incentive
- Vehicles shipped as CKD kits may qualify for lower assembly rates
Compliance. Cars must meet the destination's homologation and emissions rules (EU whole-vehicle type approval, US FMVSS and EPA certification) before they can be registered.
Importing into South Korea: what you need
The Korea Customs Service (KCS) clears goods through UNI-PASS; rates are in the Customs Act tariff schedule.
Registration. A business registration number and customs registration; individuals buying from abroad need a Personal Customs Clearance Code (PCCC).
Low-value shipments. Personal-use purchases worth US$150 or less (US$200 from the US under KORUS) are exempt from duty and VAT; commercial imports pay from the first won.
Documents customs will ask for
- Import declaration in UNI-PASS
- Commercial invoice and packing list
- Bill of lading or air waybill
- Certificate of origin or origin declaration for FTA rates
- KC certification for electrical and children's products
Charges on top of duty
- VAT 10% on CIF value + duty
- Individual consumption tax on cars, jewellery and other luxury items
- Education and rural development taxes on some goods
Watch out. Korea's FTA network is wide — KORUS, the EU and UK FTAs, RCEP and the Korea–China FTA cut many rates to 0%, but each needs its own origin document.
Frequently asked questions
What is the import duty rate for Passenger Cars in South Korea?
The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in South Korea is 8% on the CIF value. MFN 8% on passenger vehicles. 0% under KORUS (US) and Korea–EU FTA.
Is VAT charged on Passenger Cars imports to South Korea?
Yes. South Korea charges VAT at 10% on the CIF value plus any import duty. This applies to virtually all commercial imports.
Are there FTA rates available for Passenger Cars in South Korea?
Yes. KORUS/Korea–EU: 0%. KORUS (US), Korea–EU FTA, Korea–UK FTA, RCEP, Korea–ASEAN FTA, Korea–China FTA (CKFTA) are the key agreements — verify origin requirements with your customs broker.
How is import duty calculated for Passenger Cars entering South Korea?
Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 8% is applied to this value. VAT (10%) is then applied on the duty-paid value.
Verify this rate
Duty rates change. Always verify the current rate at the official tariff schedule before importing.
Korea HS (KHS) — K-PASS Tariff System official database ↗Quick facts