Suggested citations
AGLC4 | 무역법 2015 [Trade Law of the Democratic People's Republic of Korea (2015)] [tr Daye Gang].
Bluebook | Muyeogbeob 2015 [Trade Law of the Democratic People's Republic of Korea (2015)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/.
Adopted on December 10, Juche 86 (1997), as Decision No. 104 of the Standing Committee of the Supreme People’s Assembly
Amended and supplemented on February 26, Juche 88 (1999), as Directive No. 483 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on December 7, Juche 93 (2004), as Directive No. 807 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on March 27, Juche 96 (2007), as Directive No. 2195 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on July 21, Juche 98 (2009), as Directive No. 160 of the Presidium of the Supreme People’s Assembly
Amended on December 21, Juche 100 (2011), as Directive No. 2052 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on April 3, Juche 101 (2012), as Directive No. 2303 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on December 23, Juche 104 (2015), as Directive No. 849 of the Presidium of the Supreme People’s Assembly
CHAPTER I. BASICS OF TRADE LAW
Article 1 (Objectives of Trade Law)
The Trade Law of the Democratic People’s Republic of Korea shall serve to strictly adopt systems and order in trade work to expand foreign markets, guarantee trade balance and develop the national economy.
Article 2 (Basic principles of trade)
Developing trade is the consistent policy of the Democratic People’s Republic of Korea. The State shall improve export structure and trade method in conformity with the requirements of actual development, shall encourage export, and shall place large strength in vitalising regional trade.
Article 3 (Principle of diversification)
The diversification of trade is a foundational way to broadly do trade. The State shall do trade with many countries and companies as subjects, and in different forms and methods.
Article 4 (Principle of adherence to credit)
Keeping credit in trade is a prerequisite condition to develop trade relationships with other countries. The State shall guarantee the quality of export products and the fixed date for payment to correctly and in time fulfil its duty to pay.
Article 5 (Principle of adherence to trade plan, contractual regulations)
Trade in the Democratic People’s Republic of Korea shall be conducted according to the national economic plan and contracts. The State shall strictly abide by plans and contractual regulations in trade.
Article 6 (Principle of guidance for trade)
The State shall strengthen guidance over trade so that it can be conducted in a standardized way and in a balanced way.
Article 7 (Principle of most-favoured-nation treatment, preference to own citizens)
The State shall treat the other party to the arrangement with most-favoured-nation treatment or with preference to its own citizens from the principle of reciprocity, according to arrangements in the trade field.
Article 8 (Principle of reacting to sanctions, restrictions, or prohibitions)
The State may take corresponding measures for sanctions or discriminatory restriction and prohibition measures against our country in the trade field.
Article 9 (Principle of exchange and cooperation in the trade field)
The State shall develop exchange and cooperation in the trade field with many countries and international organizations of the world.
Article 10 (Trade order in special economic zones)
Trade work in special economic zones shall follow given regulations.
CHAPTER II. PARTIES TO TRADE DEALS
Article 11 (Institutions able to do trade deals)
Trade deals shall be done by institutions, enterprises and organizations that have received permission to operate from the central trade guidance institution.
Article 12 (Conditions for acquiring trade deal qualifications)
The conditions for acquiring trade deal qualifications are as follows.
1. Name and organisation
2. Bylaws
3. Type of business and indicators
4. Place of operation
5. Source of funding
6. Professionals required and guaranteed members
7. Product manufacturing base or technique or labour source capable of being realized in a foreign market
Article 13 (Application for permission to operate and issue of operating permit)
Institutions, enterprises and organizations seeking to do trade deals must submit an application document seeking permission to operate to the central trade guidance institution. The central trade guidance institution shall review the application document seeking permission to operate and must approve or reject it, and in cases where it has approved it, must issue an operating permit.
Article 14 (Rights and duties of parties to a trade deal)
Institutions, enterprises and organizations that have received permission to operate shall bear rights and duties as the parties in trade deals. Rights and duties as parties to a trade deal shall follow the given regulations.
Article 15 (Scope of trade deals)
Given institutions, enterprises and organizations must do trade deals within the scope of the permission to operate that has been received. They may not do trade deals for types of businesses or indicators for which they have not received permission.
Article 16 (Entry into trade contracts)
Given institutions, enterprises and organizations must enter into trade deals by correctly concluding contracts with the trading party. In cases where an important trade contract is sought to be concluded, the given contract must be submitted to the central trade guidance institution and it must be deliberated on.
Article 17 (Commissioned exports and imports work)
Given institutions, enterprises and organizations may receive the commission of a different institution, enterprise or organization for an approved type of business and indicators to do trade deals. In these cases, the contracts must be correctly concluded and fulfilled.
Article 18 (Trade of funds, payment methods)
Given institutions, enterprises and organizations shall trade funds through designated banks, and settlements must be done using the payment transfer method.
Article 19 (Trade deal prices)
The trade deal prices and freight charges for goods indicators planned for by State planning institutions shall receive approval from the central trade guidance institution. Trade deal prices and freight charges for other indicators shall be agreed between the given institution, enterprise or organization and the trading party themselves and registered with the authorities concerned.
Article 20 (Establishment of branch offices, offices, local offices)
Given institutions, enterprises and organizations may establish and operate branch offices, offices, and local offices related to trade deals inside the country or in other countries or areas. In these cases, the approval of the Cabinet must be received through the central trade guidance institution.
Article 21 (Change in type of business, indicator, name)
Institutions, enterprises and organizations seeking to change their type of business or indicator must apply to the central trade guidance institution to do an amended registration and must receive a confirmation on their operating permit. However, in cases where the name has been changed or their affiliated institution has changed, the procedure shall follow a separately determined order.
Article 22 (Prohibition on violation of intellectual property rights)
Given institutions, enterprises and organizations must not violate the copyright or industrial ownership rights of other institutions, enterprises, organizations, or citizens in the trade deals process.
Article 23 (Prohibition on prepayment, supply of products, techniques, labour)
Given institutions, enterprises and organizations may not do acts of providing prepayment or supplying products, techniques, or labour to the other party without receiving a legal guarantee document such as a bank guarantee.
Article 24 (Recovery of operating permits)
Central trade guidance institutions may recover the operating permits of an institution, enterprise, or organization that has done no actual exports for 3 years from the day the operating permit was received.
Article 25 (Limits of responsibility of institutions, enterprises and organizations)
Given institutions, enterprises and organizations shall be independent in trade deals. Debtor and creditor relationships arising in the trade deal process shall be the debtor and creditor relationships between the parties to the trade, and shall not become the responsibility of other institutions, enterprises and organizations or of the State.
Article 26 (Transfer of credit and debt)
The credit and debt of given institutions, enterprises and organizations shall be divided in conformity with the division of institutions, enterprises and organizations in cases where they are divided, and in cases where they are combined, shall be handed over to the institution, enterprise or organization created after being combined. The credit and debt of institutions, enterprises and organizations being dissolved shall be taken on and handled by the designated liquidator.
Article 27 (Repayment of operating permit)
In cases where given institutions, enterprises and organizations are combined or dissolved, their operating permit must be submitted to the central trade guidance institution. Institutions, enterprises and organizations that have submitted their operating permit may not do trade deals.
CHAPTER III. TRADE PLANS
Article 28 (Content of trade plans)
Trade plans are an important item of the national economic plan. Trade plans include things like export plans, import plans, export products and cooperative export products production plans, and trade cargo transportation plans.
Article 29 (Drafting and instructing trade plans)
Trade plans shall be adopted by state planning institutions. State planning institutions must instruct given institutions, enterprises and organizations on the trade plan for the next year every year within the designated time limit.
Article 30 (Method of planning for state planning institutions)
Given institutions, enterprises and organizations must submit the trade plan draft for the following year to the state planning institution, stating numbers in reserve and planned numbers.
State planning institutions shall plan only for the Statewide strategic indicators and restricted indicators, and other indicators must be planned for on the basis of exported and imported payment amounts. In these cases, the ratification of the Cabinet shall be received.
Article 31 (Method of planning for the given unit)
Given institutions, enterprises and organizations shall divide and draft by month the trade plan planned and instructed using goods indicators by state planning institutions, and other indicators shall be shall be planned for on their own within the scope of the exported and imported payment amounts planned for by the state planning institutions and executed by receiving the approval of higher level institutions. In these cases, monthly trade plans that have received the approval of the higher level institution shall be registered with the central trade guidance institution.
Article 32 (Results reporting and principle of setting exports and imports indicators)
Given institutions, enterprises and organizations must execute import indicators within the scope of total amount of exports and imports instructed by state planning institutions and in conformity with approved types of business, and export indicators shall be decided and implemented as the indicators produced in their own export bases with approved types of business, and those results must be reported in time to the state planning institutions and to given trade guidance institutions and statistics institutions.
Article 33 (Drafting of trade cargo transportation plans)
Given institutions, enterprises and organizations shall divide a draft trade cargo transportation plan by institution, by kind, by transportation method, and by section and adopt it by year, by period, and by month to submit to the state planning institutions.
Article 34 (Instruction of trade cargo transportation plan, entry into trade contracts for transportation of freight)
State planning institutions must adopt annual trade cargo transportation plans by period and instruct the traffic conveyance institution and authorities concerned. Given institutions, enterprises and organizations must conclude trade cargo transportation contracts based on the trade cargo transportation plan by month together with the traffic conveyance institution.
Article 35 (Change of trade plan)
Trade plans may not be changed without approval. In cases where given institutions, enterprises and organizations seek to change the trade plan due to inevitable reasons, they must submit the given documents to the state planning institutions.
CHAPTER IV. GUIDANCE FOR TRADE WORK
Article 36 (Trade work guidance institution)
Strengthening guidance over trade work is an important guarantee for correctly implementing the trade policy of the State. Guidance for trade work shall be done by the central trade guidance institution under the standardized guidance of the Cabinet.
Article 37 (Non-standing trade guidance committee)
A non-standing trade guidance committee shall sit within the central trade guidance institution to correctly do guidance for trade work. The non-standing trade guidance committee shall implement the trade policy of the State and must regularly consider issues to improve trade work and must adopt given measures.
Article 38 (Creation of foreign environment for trade development)
Central trade guidance institutions shall enter into trade agreements with many countries and areas, and must actively arrange a foreign environment profitable for trade development through membership of international and regional economic organisations.
Article 39 (Measures to expand trade deal)
Central financial guidance institutions, central customs guidance institutions, and the central trade guidance institution may take measures to expand trade deals such as rationally adjusting payments to the state or customs duties, or applying incentives. In these cases, the approval of the Cabinet shall be received.
Article 40 (Cases of restricting exports and imports)
Cases of restricting exports and imports are as follows.
1. In cases where domestic demand needs to be guaranteed or natural resources capable of generating wealth or the environment must be protected
2. In cases where interference can be caused to national economic development
3. In cases where the balance between the international balance of payments and the trade balance must be assured
4. In cases where exports and imports must be restricted according to a given treaty or agreement
Article 41 (Cases of prohibiting exports and imports)
Cases of prohibiting exports and imports are as follows.
1. In cases where the safety of the country and society and public order may be violated
2. In cases where damage can be caused to people’s lives
3. In cases where danger may be caused to environmental protection and to the growth and development of animals and plants
4. In cases where economic benefits are not guaranteed
5. In cases where exports and imports are to be prohibited according to a given treaty or agreement
Article 42 (Drafting of list of restricted exports and imports and prohibited items)
The drafting of a list of restricted exports and imports and prohibited items shall be done by the state planning institutions and the central trade guidance institution. State planning institutions and the central trade guidance institution shall draft a list of restricted exports and imports and prohibited items to receive the approval of the Cabinet, then must notify the authorities concerned. The central statistics institution and authorities concerned must normally send the materials required to draft the list of restricted exports and imports and prohibited items to the state planning institutions and central trade guidance institution.
Article 43 (Examination, quarantine, inspection of exported and imported products)
The authorities concerned must do examination, quarantine, and inspection of exported and imported products correctly and in time based on the pricing approval document, entry and exit approval document, export and import products inspection application document, hygiene and quarantine application document, and inspection application document.
Article 44 (Provision of bonuses and special favours)
In cases where the export products and cooperative export products production plan, export plan, and trade cargo transportation plan have been executed, a bonus shall be given. For units that have newly created an export base or pioneered a market by developing a high-tech product or a product with high competitiveness in the international markets, special favours shall be given.
Article 45 (Guarantee of convenience of trade deals)
The central trade guidance institution must simplify processes related to trade deals to assure comfort in doing trade deals.
Article 46 (Vitalising regional trade)
The central trade guidance institution and authorities concerned must resolve in time issues raised in trade work to vitalise regional trade, such as in creating export bases and pioneering markets.
Article 47 (Encouraging introduction of different systems)
Given institutions, enterprises and organizations must encourage the introduction of forms of trade deals such as transit trade, manufacturing trade, and the operation of bonded warehouses; credit loans for exports; the introduction of customs duty payment systems; and the introduction of product quality and environmental management certification systems.
Article 48 (Supervision and control over trade work)
Supervision and control over trade work shall be done by the central trade guidance institution and the given supervision and control institution. The central trade guidance institution and given supervision and control institution must normally supervise and control the state of trade deals, the production of export products and cooperative export products, the supply of imported goods, and trade cargo transportation
CHAPTER V. SANCTIONS AND DISPUTE RESOLUTION
Article 49 (Suspension of exports and imports activities, recovery of operating permit)
In cases where products where export and import is restricted have been exported or imported without approval, or prohibited products have been exported or imported, the trade deal shall be suspended or the operating permit shall be recovered.
Article 50 (Administrative or criminal responsibility)
Responsible workers of institutions, enterprises and organizations and individual citizens who have caused grave consequences to trade work by violating this law shall have administrative or criminal responsibility imposed depending on the gravity.
Article 51 (Dispute resolution)
Differences in opinion related to trade deals shall be resolved by method of agreement. In cases where they cannot be resolved by method of agreement, they may be raised and resolved in arbitration or in court.
Last updated 8 March 2021