Customs Agency Intensifies Efforts to Secure Petrochemical Raw Materials Amid Middle East Tensions

The Customs Agency has launched on-site inspections to address the instability in the supply of petrochemical raw materials resulting from prolonged tensions in the Middle East.

On May 11, Lee Jin-hee, Director of the Customs Agency, visited the SK Geo Centric plant located in the petrochemical complex in Ulsan to evaluate the supply situation of key petrochemical raw materials such as naphtha and toluene, and to listen to the industry's concerns.
 
This visit was organized to verify the effective implementation of the Customs Agency's customs and tax support programs in light of the increasing volatility in raw material supply due to the ongoing situation in the Middle East.

The petrochemical industry is particularly sensitive to supply chain disruptions in the Middle East, given its high dependence on crude oil and naphtha imports.
 
During the visit, a representative from SK Geo Centric explained that the blockade of the Strait of Hormuz has led to increased shipping costs due to the use of alternate routes, and that managing certificates of origin has become more burdensome during the diversification of supply chains.

In response, Director Lee stated, "We can alleviate cost burdens by actively utilizing tax relief measures, such as excluding increased shipping costs from taxable prices, post-application for FTA tariff rates, and extending customs payment deadlines."
 
He also focused on ensuring that recently implemented customs support policies, including 24-hour customs assistance for urgent demand items and pre-import customs clearance, are being appropriately utilized in the field.

The Customs Agency plans to expand on-site inspections, particularly for items with unstable domestic supply, and to strengthen communication with the industry to enhance supply chain response capabilities.
 
Director Lee emphasized, "In the current supply chain environment, it is crucial not only to secure quantities but also to ensure a swift connection to production. We will operate the system flexibly around businesses to prevent delays in the customs process and will listen to feedback from the field to make immediate improvements where necessary."

He added, "The stable supply of petrochemical raw materials is directly linked to the maintenance of national industries, so we will strengthen cooperation with relevant ministries to minimize factors contributing to supply instability."