Definitive guide to shipping from Australia to South Korea

With its strong economic ties to Australia and growing demand for various Australian products, South Korea presents a lucrative market for Australian companies. If your business is looking to tap into this promising market,  this guide will explore how to send packages and parcels to Korea and how DHL Express can help you manage your shipping logistics for sustainable success.

Australia and South Korea enjoy a robust bilateral relationship characterised by shared strategic interests and the complementary nature of their economies. This is especially true in trade, with Australia's exports to South Korea in 2024 reaching US$19.87 billion¹.

The diversity of Australian exports that are shipped to South Korea is vast. The top imports from Australia to South Korea are raw materials and commodities. This includes mineral fuels, oils, distillation products, ores slag and ash1. There is also a wide variety of consumer goods that are gaining popularity in the market, like meat, wine, dairy products, and healthcare products.

Is there a free trade agreement between Australia and South Korea?

Yes, there is. The Korea-Australia Free Trade Agreement (KAFTA) is a bilateral trade deal that aims to strengthen the economic relationship between both countries.

With the KAFTA, over 99% of local goods shipped to Korea are eligible to enter duty-free or with preferential access². Since its enforcement in December 2014, 84% of Australian exports to South Korea have had zero tariffs. This figure has risen to 95.7% by 2025 and 99.8% once KAFTA is fully implemented³, playing an instrumental role in further streamlining trade between both countries by eliminating tariffs on nearly all Australian exports to South Korea. 

Notably, tariffs of up to 300% are being progressively eliminated for various Australian agricultural products exported there⁴. Among these are items like beef, sugar, wheat, dairy, wine, horticulture, and seafood, all of which are high-demand products in Korea.

Meanwhile, tariffs on resources, energy, and manufactured goods are also being removed, thereby protecting and boosting the competitive edge of Australian businesses in the competitive South Korean market. 

At the same time, the breadth of goods covered under the KAFTA also diversifies the opportunities for Australian businesses looking to capitalise on this market. It provides preferential tariff treatment, making Australian products more competitive in the South Korean market.

However, to benefit, your products will need to meet 'rules of origin' requirements and provide a Certificate of Origin (COO), which the exporter or producer can self-certify. Australian exporters can also obtain a COO from an authorized body, such as:

• Australian Industry Group (Ai Group)
• Australian Chamber of Commerce and Industry (ACCI)
• International Export Certification Services (IECS)
• TradeWindow Origin (TWO)

For the most updated and comprehensive information, you can refer to the Department of Foreign Affairs and Trade's page on exporting and importing under the KAFTA.

Partner with DHL Express to expand your business

DHL Express provides a global network and extensive experience to help Australian businesses confidently enter and succeed in the South Korean market. We provide a full suite of essential services, including customs services, tracking, insurance, and more, to ensure a smooth and secure shipping process.

Successfully navigating South Korea’s customs and regulations

If you are keen to export from Australia to South Korea, it’s crucial to note that doing business varies from country to country. Taking time to understand the customs regulations and duty rates can go a long way in ensuring smooth clearance and international shipping operations.

1. Prohibited and restricted goods

But before getting down to the detailed procedure for sending packages from Australia, a key question to clarify is whether your goods can be exported to South Korea. Generally, most products are permitted unless they fall within this list of items banned from import into Korea or are subject to stringent trade restrictions.

Prohibited items:

• All weapons, including replicas and decorations (e.g., guns, swords, explosives and toxins).
• Illegal drugs (e.g., opium, marijuana/cannabis and cocaine).
• Wildlife protected under the Convention on International Trade in Endangered Species (CITES) and products made from these animals (e.g., ivory, medicine, bags and wallets).
• Materials that violate public peace and constitutional orders.
• Items containing confidential government or intelligence information.
• Counterfeit or fake money, bank notes, bonds, and securities.

Additionally, there are restricted exports that will require special permits or licenses before shipping is possible. You must apply for and obtain the necessary import permits from the relevant South Korean government bodies, such as the Ministry of Food and Drug Safety (MFDS) or the Animal and Plant Quarantine Agency (APQA).

Restricted exports:

• Goods regulated under waste management laws.
• Agricultural and forestry products.
• Animal products, including meat, skin, fur, livestock, and animal fodder.
• Precious metals (excluding daily-use jewellery) and securities.

2. Customs duties and taxes

Besides this, business owners will also benefit much from understanding how import tariffs, or customs duties imposed on foreign goods, are calculated in South Korea. This is because an incorrect declaration not only increases one’s cost of exporting abroad but can also result in shipment delays that have negative long-term implications on one’s business reputation.

Fortunately, the KAFTA reduces such trade barriers in this regard by simplifying the tax procedures for Australian business owners into three straightforward steps:

• Determine your tariff classification: You can use the Korean Customs Service Tariff Database Inquiry to search for your product by name. If you are unsure of your HS classification, it is advisable that you contact the Korea Customs Service to request an advance ruling.
• Find out how your goods will be treated under KAFTA: You can check South Korea's tariff schedule to understand the tariff elimination process. Categories range from '0' (immediate elimination) to '20' (gradual elimination over 20 years), with further explanation for each category detailed in Annex 2-A Section B: Tariff Schedule of Korea. 
• Determine if your goods meet 'rules of origin' (ROO) requirements: Your goods must originate in Australia or South Korea to be eligible for KAFTA’s preferential duty rates. This can be through production in these countries or by using materials from or outside of these countries that meet specific rules.

Goods that do not meet the ROO requirements stipulated in Chapter 3: Rules of Origin and Origin Procedures and Annex 3-A: Schedule of Product Specific Rules will be subject to the general rate of duty instead. Additionally, a 10% Value Added Tax (VAT) is applied to most shipments to South Korea.

However, certain goods and specific eligible services are zero-rated. These include basic life necessities, duty-exempt goods and services related to unprocessed foodstuffs and agricultural products, medical, health services, financial, insurance and international transportation.

You can also save on some costs by taking advantage of South Korea’s de minimis limit of US$150, which exempts you from customs duties if the package you ship has a value below this amount.

3. Documentation requirements

Once you’ve determined that your exports qualify for preferential tariff treatment under KAFTA, you will need to present the COO. This document can be obtained from the authorized bodies mentioned above. Alternatively, you can prepare the document by yourself using KAFTA Annex 3D as a reference. 

The certificate will be able to cover a single shipment or multiple shipments of goods with the same description for at least two years. However, a COO is not always necessary if the total customs value of your goods is US$1,000 or less. 

Nevertheless, it is always a good practice to check with the relevant customs authorities in South Korea for the most current information. Besides the COO, other essential shipping documents include:

• Commercial invoice;
• Packing lists;
• Product-specific certification.

4. Packaging and labelling requirements

With your documents in order, the final step to ensure compliance and avoid delays is to meet the packaging and labelling requirements stipulated by the Korean government.

For starters, all international commercial shipments to South Korea must include a country of origin label. You can refer to the list of country of origin labelling requirements provided by the Korean Customs Service (KCS) by searching with your Harmonised System (HS) code. Additionally, the information on the English labels must match the Korean labels.

Further labelling is also required for pharmaceutical exports to meet the standards set by the respective government agencies. Meanwhile, you will also need a Korea Certification (KC Certification) when shipping consumer goods, children’s products, or electronic products to prove that your products conform to Korean safety standards.

Step-by-step guide to shipping from Australia to South Korea

Here's a summary of how to send packages and parcels from Australia to Korea for any local e-commerce business:

Step 1: prepare your shipment & documents

Properly pack and label your goods to ensure they are secure for the journey. Prepare all required paperwork, such as commercial invoices and any specific permits, to prevent customs delays.

Step 2: choose a reliable logistics partner

Selecting the right international courier is essential for a smooth process. Choose a partner, like DHL Express, with expertise in South Korean customs, efficient transit times, and comprehensive tracking capabilities.

Step 3: clear customs & manage duties

Ensure your shipment complies with all necessary customs procedures and regulations. It is also crucial to understand all applicable duties and taxes to avoid unexpected costs and delays.

Step 4: Final Delivery

Rely on your chosen carrier to ensure secure and timely delivery to your customers in South Korea. An expert logistics partner, such as DHL Express, will ensure your products arrive safely and on time.

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