[Safety Management Lawyer] The first step towards safe imports, legal review of supply contracts.

Law firm Veat received a request from accessory franchise company A (hereinafter referred to as the "client") to review the supply contract for goods to be imported from overseas and sold domestically.

As the global market expands, more and more companies are increasing in number who want to import goods from overseas and sell them domestically. Especially, daily commodities like metal jewelry have relatively high demand, but several legal criteria and procedures must be complied with when importing.

For example, you must comply with the requirements specified in relevant laws such as the ‘Electrical Appliances and Living Goods Safety Management Act’ and the ‘Chemical Substances Management Act’. Failure to do so may result in the imported product receiving a determination of non-sale in the domestic market or the risk of legal issues.

‘Electrical Appliances and Living Goods Safety Management Act’, ‘Chemical Substances Management Act’

According to the ‘Electrical Appliances and Living Goods Safety Management Act’, importers of daily commodities subject to safety standards must be able to import only products that meet all safety standards, including KS and KC certifications. If the imported products do not meet the KS and KC certifications, they may not be sold domestically or may receive a recall order.

KS certification means Korean Industrial Standards, which is a standard for guaranteeing the quality, performance, and safety of products. For daily commodities, items related to consumer safety are included as a must. KC certification is a national integrated certification mark, proving that a specific product meets domestic safety standards. This certification is essential for imported products in the domestic distribution process.

Also, importers must not only confirm that the imported goods meet safety standards but must also verify that the products they intend to import do not violate the ‘Chemical Substances Management Act’. Products such as metal jewelry often use various chemicals, and some of these may be restricted by the ‘Chemical Substances Management Act’. Products using restricted substances must have a clear purpose for the substance and must obtain permission to import the restricted substance. For example, if chemicals used in metal jewelry are designated for restricted use in Korea, separate permission is required.

Law firm Veat thoroughly reviewed the criteria for whether the goods were suitable for safety standards according to the ‘Electrical Appliances and Living Goods Safety Management Act’ and the ‘Chemical Substances Management Act’, and whether they were being treated for restricted substances, and supported the client to prepare the imported goods according to domestic law.

Supply contract

Another key element in the import process is the supply contract. If the contract between the importer and the exporter is not properly prepared, there is a high possibility of disputes arising from quality issues or delays in delivery. To prevent this, Law firm Veat thoroughly reviewed the supply contract between the client and the exporter and added necessary content.

First, the contract stipulated that the exporter should export only products that meet the safety standards specified in Korean law. Even if products that do not meet the standards are imported, a legal device can be established to claim compensation based on the contract.

Second, the inspection by the client was included in the delivery conditions. By stipulating that delivery is completed only after the client has inspected the imported goods, the importer can confirm and respond to quality issues in advance. This provision prevents the client from suffering unnecessary losses due to defective products or products that do not meet legal standards.

By establishing clear obligations for the exporter to comply with regulations and stipulating inspection procedures that are beneficial to the client based on related laws such as the ‘Electrical Appliances and Living Goods Safety Management Act’ and the ‘Chemical Substances Management Act’, legal stability was increased and support was provided to effectively manage import and export related legal risks.

Law firm Veat proactively resolves potential legal issues that may arise during the import process and supports clients to operate their businesses stably. For companies to meet domestic laws and reduce unnecessary legal risks when importing products from overseas, expert legal advice is essential.

If you need advice on imports, exports, supply contracts, the Electrical Appliances and Living Goods Safety Management Act, or the Chemical Substances Management Act, please feel free to contact Law firm Veat.

The case study of this matter can also be checked on the Law firm Veat blog below.

- [Safety Management Lawyer] The First Step to Safe Import, Legal Review of Supply Contract

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Law firm Veat