This is a system designed to exempt importers of the Materials from their obligation of supplying the materials for export purposes. This shall be applied only under unavoidable circumstances. In this case, importers should acquire approval from a mayor or a provincial governor or the head of a the Management institution of agricultural and fisheries products. Sanctions An importer of the Materials and buyers of raw materials made from imported materials in Korea shall use or supply them for export purposes. As stated above, those who want to transfer the materials or use them for other purposes shall apply for the exemption of the Management in due course. People who are subject to sanctions are as follows : People subject to sanctions A person who fails to comply with foreign currency acquisition obligation A person who changes the purpose of use or transfers or takes over the materials in a fraudulent manner A person who uses the materials for other purposes or transfers and takes over the materials without approval Notification of non-compliance When there is no declaration of implementation 50 days after the due date, a bank in charge of the Management shall notify the head of the NITQ via the Korea International Trade Association of non-compliance within 80 days after the set date. Non-compliance with obligations for agricultural and fisheries products shall be reported to the head of relevant administrative agencies. Specific sanctions Violator shall be fined up \30million or be sentenced up to three years in prison.. Exemption of the Management The following cases are exempted from the Management Minor non-compliance Case where non-compliance ratio for individual items is less than 10% (every quarter) Case where non-compliance ratio accounts for less than 10% of the total income and the amount is less than $20,000 The approval of a change in the purpose of use due to unavoidable situations Case where foreign currency acquisition is impossible under unavoidable circumstances like natural disaster . Case where imported materials cannot be used due to the development of new products stemming from technological innovations and changes in customers' preferences . Case where imported materials cannot be used due to changes in their nature Applicants shall submit the following documents to the head of an institution in charge of the Management: Three applications for the approval of transfer between trading firms (Form 4-11) A contract document of transfer and takeover Certificates of import declaration or tax payment for raw materials TAn institution in charge of the approval : a mayor or a provincial governor [Required documents] Four applications for approval of a change in the purpose of use Documents verifying the reasons for a change in the purpose of use A document verifying the quantity of materials for the approval A document verifying the reasons for the application Other documents required by the head of an institution in charge of the approval Transfer and takeover between foreign business firms Institutions in charge : Institutions in charge of the import approval of the Materials [Required documents] Three applications for the approval of transfer of the Materials A contract document of transfer and takeover Certificates of import declaration or tax payment for raw materials