Items	EUCCK's Proposal	Comment
Licensing and Certification	This is outdated and should be amended to allow companies to obtain licenses based on skills and service quality rather than on asset ownership. It is not possible to obtain certification without heavy investment in facilities. The committee feels this should be changed to reflect international practice We feel that this should be changed to ensure the best quality of service through "survival of the fittest".	Acquisition of customs broker license and establishment of office have nothing to do with the ownership of certain assets. Score points allocated for facilities in the certification is only 6~15 of the total 100 (Companies need at least 70 points to be certified) The certification is divided into three: Companies focused on carriage, facilities, and service. Points allocated on facilities for carriage- and facilities-oriented companies are 15, and for service-oriented companies is 6. All ex/import declarations can be filed by owners and customs brokers in Korea. Anyone qualified for customs broker under the Customs Broker Act of Korea regardless of the ownership of certain assets can register as customs broker and start the business (regardless of nationality). If a corporation which runs the business of transportation, storage or loading/unloading wants to work as customs broker at the same time, KCS examines whether it meets certain requirements. But it is according to the corporation's choice and transportation, storage, loading/unloading, etc. are not requirements for customs brokers. The purpose of the certification is to guarantee the consignee of a company's capability to provide comprehensive logistics services. It is not a form of entry barrier that only enables certified companies to carry out comprehensive logistics services. <Current situation> Cargo volume for domestic express services that is closely linked to people's lives is increasing. However, additional supply (new approval) on cargo trucks for the service is limited since 2004. <Future plans> Increasing the number of domestic express cars is undesirable due to excessive freight car supply. Whether to approve additional supply will be determined following September 2009 deliberation on supply standards after analyzing supply and demand of the freight car conveyance market Policy is being established to convert idling pick-up trucks into domestic express cars.
Supply chain Security (including the Authorized Economic Operator Program)	Interested firms and industry bodies need to start engaging with the Korean government to ensure that the principle of securing and facilitating trade is understood and adhered to as early in the policy / regulation making process as possible	KCS has applied the AEO program of the WCO SAFE FRAMEWORK to its customs administration and implemented it starting April 13, 2009. KCS laid legal foundation for implementation of the AEO program by revising the Customs Act(Jan. 1, 2008) and the Enforcement Decree of the Customs Act(Feb. 14, 2009) and plans to implement the Notification on the Operation of the AEO Program starting Apr. 13, 2009. KCS conducted pilot projects with 11 companies to facilitate introduction of the AEO program(Sep. 2008 ~ Mar. 2009) and have faithfully complied with the AEO guideline. KCS plans to pursue mutual recognition of AEO status with other countries including the EU along with the full-fledged implementation of the AEO program in order to secure and facilitate trade.
Pallets	The European standard pallet size will become more and more important for Korea. Shortly there will be negotiations about a FTA between Korea and the EU. Standardization of packing units will greatly contribute to a active exchange and thereby lowering the cost structure for the future. The EUCCK committee still feels that it would benefit Korea to change to an international size pallet.	Due to changes in the logistics environment, Korea is planning to expand the standards to accept both 1.1mx1.1m and 1.2mx1m. Korea accepts 1.1mx1.1m for Unit Load System, and will expand the standard to accept 1.2mx1m as well. The adoption of 1.2mx0.8m, the EU standard, is unlikely since they do not fit into our logistics facilities
Tugboat Free Competition	The EUCCK advocates free competition in other main Korean ports as well and ask the government for soonest implementation in line with other international ports and practices.	The government never confirmed the subject matter Currently Ulsan Port uses the turn-based system Due to problems such as unpaid tugboat fees, provision of rebates, and cut-throat competition among tugboats, the private authority of Ulsan Port decided on its own to convert from competition system into turn-based system (May. 11 2008) A consultative body composed of tugboat users and private tugboat providers autonomously determine the tugboat allocation system. Therefore, the government has no right to change it. (Impossible to accept EU's request) There is no international standard on tugboat allocation and many ports in various other countries use the turn-based system. Turn-based system: Japan, Taiwan, Singapore, the UK, France *Competition base: The Netherlands, Hong Kong