The free trade agreement between the European Union and South Korea cuts the customs duty on cars to zero. But this doesn't apply to every car bought in Korea. Whether you pay 0% or 10% duty depends on the country of manufacture and one document.
Where 0% duty comes from
The EU-Korea trade agreement has been in force since 2011. Thanks to it, goods made in Korea, cars included, enter the Union duty-free. The standard duty on passenger cars from outside the Union is 10%, so for a car worth PLN 100,000 the difference is about PLN 10,000 - and that's before we count VAT, which is also calculated on the amount including duty.
When 0% duty applies
Two conditions must be met:
- The car was made in Korea. This covers most Hyundai, Kia, Genesis and KGM (formerly SsangYong) models bought on the Korean market.
- The origin is confirmed by a document. Customs clearance requires a statement on origin issued by the exporter. Without it, the customs officer charges the standard 10% duty, even if the car was made in Korea.
We take care of the document - we check it before the car is shipped, not only at the port.
When you pay 10% duty
- Cars made outside Korea - for example, a BMW or Mercedes-Benz bought in Korea comes from factories in Germany or the USA, so the agreement doesn't cover it.
- No proof of origin - when the seller can't issue it, or the details in the document don't match the car.
We check the country of manufacture by the VIN before the purchase, so you know which duty rate to assume in the quote.
0% duty doesn't mean the car is exempt from other charges. You still pay VAT at customs clearance (23% in Gdynia or 21% in Rotterdam) and excise duty in Poland. All of these items are in our quote from the start.
What it means in practice
Take a car whose customs value (the price with transport to a port in the Union) is PLN 100,000:
- with 10% duty: duty of PLN 10,000, and VAT calculated on PLN 110,000,
- with 0% duty: no duty, and VAT calculated on PLN 100,000.
On duty and VAT alone you save more than PLN 12,000. That's why cars of Korean brands from Korea are such good value.
You can read more about costs on the page Costs of importing a car from Korea, and we describe the whole process in the Korea car import process.
