Knowledge NO.

【E-0000009】

Contents / Question

Country of origin certificate issue rules for tax exemption purposes in KGSP direct shipment 

(Supplier → Subsidiary or Dealer)

Machine model

ALL

Destination

ALL

Answer

Currently, there are following types of direct KGSP shipment.

1. KGSP direct shipment among 3-countries commercial
   

【Supplier】－【KCM】－ 【Subsidiary , or Dealer*】

* Commission fee is paid from KCM to subsidiary based on the agreement

2. KGSP direct shipment among 4-countries commercial
   

【Supplier】－【KCM】－ 【Subsidiary】－ 【Dealer】

・ In the case of KGSP direct shipment from Korea, “Form AK” is used 

as proof to country of origin. However, in the commercial distribution 

between the 4-countries（case 2）, it can’t possible to apply

the necessary information for tax exemption on site.

 Therefore, in case 2, Form AK can’t be issued for tax exemption purposes.

■Supplement: 

  ・For tax exemption, the description as following must be needed in Form AK/Form E.

IV number / company information between subsidiary and dealer.

・When applying and issuing for Form AK, company information that pays to the supplier is required as third-party information. (1 company @ KCM)

However, Form AK only allows third-party information for 1 company,

  and it isn’t possible to apply information between subsidiary and dealer that corresponds to the second company.

Please refer to the attachment for the difference from Form E （issued in China）.