Import Customs Duty: De Minimis Thresholds and How to Calculate

Last updated: 2026-06-25

What Is the Import De Minimis Threshold

Importing means buying goods from an overseas store and bringing them into the country. In principle, all goods entering from abroad are subject to duty and VAT, but when an individual brings in a small quantity for personal use, taxes are waived up to a certain value. That benchmark amount is the de minimis threshold.

The de minimis threshold differs by sending country. Goods sent from the US are exempt up to an item value of USD 200 under the Korea-US Free Trade Agreement (FTA), while goods from countries other than the US (China, Japan, Europe, etc.) are exempt up to USD 150. The most important point is that the basis for judging exemption is the item value, excluding shipping.

What Happens When You Exceed the Threshold

The most common misconception when exceeding the threshold is the idea that "you only pay tax on the excess." In reality, that is not the case. Exceeding the threshold by even USD 1 removes the exemption itself, and duty and VAT apply to the entire item value. This is called full-value taxation.

For example, a USD 149 item from a non-US country is exempt, but a USD 151 item is taxed on the full USD 151, not on the USD 1 of excess. So when buying near the threshold, a difference of USD 1-2 can sharply change your tax burden - be careful.

How to Calculate Duty and VAT

Once taxable, you pay two taxes: duty and VAT. The order of calculation is as follows.

1. Determine the dutiable value - Add international shipping to the item value and convert to KRW. Exemption is judged on item value, but the dutiable value (the basis for tax) includes shipping.
2. Calculate duty - Multiply the dutiable value by the item's duty rate. Duty = dutiable value x duty rate.
3. Calculate VAT - Multiply the dutiable value plus duty by 10%. VAT = (dutiable value + duty) x 10%.
4. Total tax payable - The sum of duty and VAT is the tax you actually pay.

Duty Rates by Item

The duty rate is not the same for every item. Rates are set by customs classification (HS code), and even the same clothing can differ by material and type. The representative item duty rates are as follows (general reference levels; exact rates follow customs classification).

Electronics are mostly duty-free (0%), so there is no duty, but 10% VAT still applies once you exceed the threshold. Also, under agreements such as the Korea-US FTA and Korea-EU FTA, presenting a certificate of origin can secure a preferential rate (usually lower or 0%).

Calculation Example

Let's calculate clothing (8% duty rate) from a non-US country with an item value of USD 180 and shipping of USD 20 at an exchange rate of ₩1,350.

• De minimis check: item value USD 180 > USD 150 -> subject to full-value taxation
• Dutiable value = (180 + 20) x 1,350 = ₩270,000
• Duty = 270,000 x 8% = ₩21,600
• VAT = (270,000 + 21,600) x 10% = ₩29,160
• Total tax payable = 21,600 + 29,160 = ₩50,760

So about ₩50,000 in tax is added on top of the item value and shipping. To calculate it yourself, enter the item value, shipping, exchange rate, and duty rate into the import customs duty calculator.

List Clearance and Combined Taxation

Personal-use goods at or below USD 150 (USD 200 for the US) are cleared through a simplified process called list clearance. In this case, the items clear quickly and tax-free using just the invoice list, with no separate import declaration. However, health functional foods, medicines, some cosmetics, and hazardous goods are excluded from list clearance and must go through formal clearance (import declaration plus tax payment).

One more thing to watch is combined taxation. Multiple shipments from the same overseas seller arriving the same day are combined to judge the de minimis threshold. Even if you split your orders to chase the exemption, they may be combined and taxed if they arrive the same day.

Tips for Smart Importing

• Check the de minimis threshold - Factor US $200 and other $150 against item value in advance.
• Watch full-value taxation - Going slightly over the limit means the whole value is taxed, so near the limit it pays to adjust item or amount.
• Check the duty rate first - Electronics are duty-free, but clothing and shoes carry higher rates.
• Prepare your personal clearance code - Imports require a personal customs clearance code, so get one in advance.

Summary

• The de minimis threshold is US $200 and other $150, based on item value.
• Exceeding the limit taxes the entire item value, not just the excess.
• Duty = dutiable value (item + shipping) x duty rate, VAT = (dutiable value + duty) x 10%.
• Duty rates vary by item; electronics are mostly duty-free, clothing and shoes 8-13%.

This guide is reference information for general manufactured goods. De minimis thresholds, duty rates, and clearance rules can change, and items such as alcohol, tobacco, and health functional foods follow separate rules. Confirm exact details with the Korea Customs Service.

Last updated: 2026-06-25