Standard Terms and Conditions of Overseas Purchase

(for Shipping Agency Service)

Standard and Terms and Conditions No. 10074 of KFTC

[Enacted on 2016.10.14]

Article 1 (Purpose)These terms and conditions seek to define the rights, duties and responsibilities of the business operator and the users concerning the shipping agency services (hereinafter, “services”) provided by the XX company (hereinafter, “the company”.)

Article 2 (Definition)The terms used in these terms and conditions shall be defined as follows:

①     Mall shall mean a virtual store setting up to trade services, etc., using ICT facilities and networks in order for the company to offer its services to the users. It also shall mean the company that operates the said mall.

②     Users shall refer to members or non-members provided with the services offered by the company based on these terms and conditions when they access the mall.

③     Overseas business operator shall pertain to the business entity which has a non-Korean nationality or has business registration, corporate entity, operating network, host server, etc., in countries other than Korea.

④     Shipping agency service shall mean the service that the company provides the user with the delivery of the subscribed goods, etc., (hereinafter, “shipment’) from its overseas warehouse facilities to his/her domestic address. International freight forwarding and import customs clearance in connection with the subject shipment shall be also included in the service.

⑤     Overseas warehouse facilities shall mean the local domiciles that the company owns abroad and offers to the user as a reception point of the shipment in case he/she intends to purchase the subject shipment.

⑥     Shipping Agency Service Application shall mean the document that the user is required to submit to the company filled with the information of the subject shipment, domestic recipient address, etc., so as to conclude the shipping agency service contract.

⑦     Inspection shall mean the service performed by the company, based on its own standards, in order to check omission, defects, damages, etc., in the shipment subscribed by the user.

Article 3 (Provision of services)The company may perform the following businesses:

①     Providing information concerning the service;

②     Receiving, storing, inspecting and transferring the shipment purchased abroad by the user;

③     Signing the shipping contract for the shipment purchased abroad by the user;

④     Executing agency works related to import and customs clearance;

⑤     Executing agency works related to international return shipping for exchange or refund, etc.; and

⑥     Executing other works concerning the shipping agency service

Article 4 (Limitation of service use)

①     The company may refuse the user’s subscription request in any of the following cases, discard the subject shipment with the user’s consent (or after it notifies him/her of such intention in case it is impossible to get the user’s consent), or return the subject shipment to overseas business operator with the payment for the return shipping charges by the user;

1.       If the subscription details include fraudulent information, omission of, or mistaken information;

2.       If its acceptance of the subscription is deemed to cause significant technical impediment to the company;

3.       If the company views the user commits illegal acts or uses the service for unjustifiable purposes;

4.       If the shipment contains animal, gold/silver bar, currency, medicine, weaponry, human body parts, pornography, fine metal, stone, refrigerated goods, cold or frozen storage-needed goods, explosives, flammables, etc.;

5.       If the shipment is subject to the trade embargos by export, import and/or transit countries concerned; and

6.       If trade of the shipment is prohibited by the conditions of carriage of freight forwarders.

②     In case it refuses the user’s subscription request pursuant to Paragraph 1, the company shall notify him/her of the reason and logical ground for the refusal.

③     Regardless of the user’s subscription request for the service pursuant to each subparagraph of Paragraph 1, he/she shall compensate for the company’s damages in case the user has written any fraudulent information in the Shipping Agency Service Application and such wrong-doing has made the company fined, punished or damaged, etc.

Article 5 (Shipping Agency Service Application)

①     When making the shipping agency service contract, the user shall fill out the Shipping Agency Application with the following information;

1.       Address of overseas warehouse facilities for receipt of the shipment;

2.       Information about overseas vendor (store name, e-commerce site, etc.) of the subject shipment;

3.       Order and freight tracking number issued by the subject overseas e-commerce site;

4.       Model and brand name of the goods, overseas business operator, product category, purchase price, quantity, color, size;

5.       Overseas surtaxes and shipment charges as well as purchase price after discount (if any);

6.       Options for repackaging and supplemental packaging as well as choices for opening and inspection of the shipment;

7.       Domestic reception address of the shipment as well as name and contact number of the recipient;

8.       Personal Customs Code issued by the Korean Customs Service; and

9.       Other articles required for the shipping agency service

②     When making the shipping agency service contract, the company shall explain the followings to the user;

1.       Price of the shipment written in the Shipping Agency Service Application shall be used as a standard for measuring the company’s liability in case it falls into default;

2.       Limit of the company’s liability may vary with the price of the shipment if it is under surcharge or insurance coverages; and

3.       In connection with the withdrawal, cancellation or termination of the subscription (hereinafter, “the subscription withdrawal”) for the buying contract of the shipment, the user shall, independently, deal with the overseas business operator concerned.

Article 6 (Constitution of contract)

①     When the user submits the Shipping Agency Service Application, the company shall notify him/her of its receipt of such application. The acceptance confirmation by the company shall include information concerning contents of the shipping agency service request, changes or cancellation, etc., in the application (if any).

②     The shipping agency service contract shall be deemed to have been concluded at the time the user is notified of the company’s acceptance confirmation for the user’s subscription.

③     The user may request for a change to or withdrawal of his/her shipping agency service subscription immediately upon the receipt of the notice from the company if he/she finds any discrepancy in expression of intention. The company shall, without delay, process the user’s request. Note, if the payment for the service has already been made, the company shall follow the provision concerning the subscription withdrawal under Article 13.

④     When the shipping agency service contract is concluded and the shipment subscribed by the user arrives at its overseas warehouse facilities, the company shall initiate the service pursuant to the contract.

Article 7 (Billing for the shipping agency commission and storage fees)

①     The user is obliged to submit the Shipping Agency Service Application to the mall before the shipment arrives at the company’s overseas warehouse facilities.

②     When the shipping agency service contract is concluded and the subject shipment arrives at the company’s overseas warehouse facilities, the user shall pay for the service commission within seven days from the date the company requests him/her to do so. In case of additional shipping charges incurred, the company shall notify the user of the reason and the subsequent amount.

③     If the user fails to pay for the shipping agency service commission as stated in Paragraph 2, the company shall not perform any transportation service in connection with the subject shipment. In such cases, additional storage fees for the subject shipment shall be charged until the full payment for the service commission made by the user. The company shall post the reason and the criteria for charging additional storage fees on its internet homepage, etc., in advance, and notify the user of such fact in detail when it requests him/her to pay for the service commission.

Article 8 (Inspection)

①     The company may open or inspect the shipment arrived at its overseas warehouse facilities so as to check the sameness, defects or damages in the subscribed shipment, and verify their compliance with the export/import laws of the countries concerned. In such cases, the company shall notify the user of the criteria and scope of the inspection in advance.

②     If it finds discrepancies, defects or damages in the subscribed shipment, the company shall notify the user of such fact and follow his/her directions for disposal of the subject shipment. If the shipment has performance defects or functional flaws which are beyond in its inspection capabilities, however, the company shall not be liable for the user’s losses.

③     If it finds abnormalities such as bad smell, liquid leakage, etc., in the shipment during the inspection, the company shall notify the user of such incident and may take provisional actions against the subject shipment including keeping it in separate custody, etc. In case the said provision actions have caused the user to suffer damages, the company shall not liable for such damages unless the damages have resulted from its intentional or significant negligence.

④     In case of Paragraph 3, the company shall follow the user’s direction for disposal of the shipment. If its faults have caused the user to suffer damages, the company shall be liable for such damages and pay for the disposal of the subject shipment. Note, if the troubles in the shipment have been caused by its own defects or have not been from the company’s negligence, however, the user shall pay for the disposal of the subject shipment.

Article 9 (Repackaging and supplemental packaging)

①     With the user’s consent, the company may repack the subject during the inspection pursuant to Article 8.

②     If it views the packaging of the shipment is inappropriate for transportation, the company, with the user’s consent, may repack the shipment in consideration of possible impact during the transportation. In case additional expenses are incurred during the repackaging, the company may charge the user for such expenses.

③     In case of Paragraph 1 and 2, the company shall notify the user of the fact that the repackaging may cause his/her return or refund request for the subject shipment to be refused by overseas business operator.

④     If he/she has not agreed to repackage the shipment as stated in Paragraph 2, the company shall not be liable for the user’s damages caused by the aforesaid inappropriate or poor packaging condition. Note, however, the company shall not be exempt from the liability in case its intentional or substantial negligence is acknowledged.

Act 10 (Posting and notification of shipment status) The company shall post the shipping status of the shipment on the mall and notify the user of the shipping information including incoming, outgoing, loading, etc., of the subject shipment. Yet it shall be noted that the shipping status may vary with logistics situation, airfreight flow, etc., at the timeframe given.

Act 11 (Customs)

①     By obtaining qualification for import of the shipment, the company, via its consigned freight forwarder or customs broker, shall perform the customs clearance. In such cases, the user or a receiver of the shipment shall pay for the customs duties and import surtaxes. If the user defaults in payment, the company shall not deliver the subject shipment.

②     The company shall abide by relevant laws including the customs regulations of the export/import countries concerned, but shall not handle any prohibited goods, or cooperate with the user’s request for illegal action including split shipping, false invoicing, etc.

③     The company shall not guarantee that certain goods will be cleared under the customs regulations of the export/import countries concerned.

Act 12 (Emergency Measures)

①     Due to the causes attributable to the user, a government body may ask the company to hand over the shipment. When it happens, the company shall comply with the government body’s justifiable request based on relevant laws and notify the user of such fact without delay.

②     Even if the measures mentioned in Paragraph 1 have caused the user to bear losses, the company shall not be liable for such losses. In such cases, however, the user’s obligation to pay for the shipping agency service commission and other expenses concerning the subject shipment shall subsist.

③     If the government body aforesaid in Paragraph 1 returns the subject goods, etc., the company shall, without delay, keep fulfilling its obligation against the user in accordance with the shipping agency service contract made.

Article 13 (Withdrawal of subscription, etc.)

①     If the user withdraws his/her subscription of the shipping agency service contract before the shipment to his/her domestic address begins, the company, as directed by the user, shall return the subject shipment to overseas business operator and the user shall pay for the return shipping charges.

②     If the shipment to his/her domestic address has been already initiated, the user shall not be allowed to withdraw his/her subscription of the shipping agency service contract and the company shall fulfill its obligations under the service contract by delivering the subject shipment to the user’s domestic address. In such cases, the user shall not ask the company to refund the shipping agency service commission.

③     If the user requests the company to return the shipment to the overseas business operator after the subject shipment has been delivered to his/her domestic address, the company may serve his/her return request. In such cases, the user shall pay for the international return shipping charges.

④     The user’s subscription withdrawal shall not be limited if the company has failed to indicate the fact that his/her subscription withdrawal for the shipping agency service contract would be restricted in a conspicuous spot in advance.

Article 14 (Indemnification)

①     If the subscribed shipment by the user has been lost or damaged during the transportation from the company’s overseas warehouse facilities to the user’s domestic address, the company shall compensate for his/her damages unless it or its consignee proves to use the best efforts in order to safeguard the receipt, transfer, storage and transportation of the subject shipment. Note, however, the limit of the company’s liability may vary with the price of the shipment if it is under surcharge or insurance coverages.

②     If the shipment has been lost, the user shall furnish the company with the freight tracking number obtained from the freight forwarder hired by the overseas business operator. In such cases, the company shall be liable for the lost shipment only if the freight tracking information provided confirms the arrival of the subject shipment at its overseas warehouse facilities.

③     The company shall compensate for the user’s damages realized but its liability shall be limited to the sum of purchase expenses, shipping agency services fees, customs duties and surtaxes written in the Shipping Agency Service Application. In case the damages of the shipment have been caused by its intentional or significant negligence, however, the company shall compensate for all the damages the user suffered.

④     If the user’s damages have been attributable to his/her incorrect information, the company shall not be liable for such damages unless the damages have been caused by its intentional or significant negligence.

⑤     The company may change the address of its overseas warehouse facilities. Yet it shall notify the user of such change not less than one month before and after the change of address has been made. If the subject timeframe has elapsed, the company shall not be liable for the loss of the shipment delivered to its prior warehouse address.

⑥     Despite Paragraph 1, 2 and 5, the company shall be liable for the user’s damages if such damages have been caused by the company’s intentional or significant negligence.

Article 15 (Force Majeure)

①     The company shall not be liable for losses or damages, etc., of the shipment caused by act of God or other events of force majeure.

②     The company shall not ask the user to pay for the shipping agency service commission when the act of God or other events of force majeure have caused the losses or damages of the shipment. If the payment for the service commission and other expenses has been already made, the company shall refund such payment to the user.

Article 16 (Limitation of liability)

③     The company’s liability for omission or damage of the shipment shall become extinct unless the user notifies the company of such fact within ten days from the date he/she has received the subject shipment.

④     Even if the company assumes the liability pursuant to Paragraph 1, its liability shall become extinct after one year from the date the user has received the shipment. Note, in case the shipment has been lost, however, the extinction date of the liability shall be based on the date the company has notified the user of such loss.

⑤     In spite of Paragraph 1 and 2, the company’s liability for the user’s damages shall subsist until five years from the date he/she or his/her consignee has received the shipment in case it has intentionally concealed the aforesaid defects and delivered the shipment to the user.

Article 17 (Settlement of disputes)

①     The company shall establish and operate an organization in order to compensate for the user’s damages while reflecting the justifiable opinions or complaints raised by him/her.

②     The company shall preferentially handle complaints or opinions filed by the user. If it has difficulty in handling the complaints swiftly, however, the company shall, without delay, notify the user of the cause and schedule.

③     The company may follow the mediation awarded by the Fair Trade Commission or a dispute mediation agency entrusted by mayors or governors when a user files a request for remedy of damages in connection with a dispute between the company and the user who is a Korean national or has a business domain in Korea.

Article 18(Court jurisdiction and governing law)

①     Any lawsuit filed in connection with any dispute between the company and the user, who is a Korean national or has a business domain in Korea, shall be referred exclusively to a court having jurisdiction over the user’s address or to the district court having jurisdiction over the area where the user resides if he/she does not have a registered address. If the user’s address or place of abode is not clear, or the user is a foreigner, however, such lawsuit shall be filed with a court having jurisdiction as determined under the Civil Proceedings Act.

②     The Korean law shall apply to any lawsuit filed in connection with the transactions between the company and the user, who is a Korean national or has a business domain in Korea.