Promotion of SME FTA Utilization Support Consulting Project... Origin Certification, Authentication, and China-Specialized Consulting

Ministry of Industry to Promote 2020 FTA Utilization Support Consulting Project

[Asia Economy Reporter Moon Chaeseok] The government announced that it will enhance the export competitiveness of small and medium-sized enterprises (SMEs) and mid-sized companies through support for utilizing Free Trade Agreements (FTAs).

On the 4th, the Ministry of Trade, Industry and Energy announced that it will promote the "2020 FTA Utilization Support Consulting Project," which includes origin certification, certification, and customized consulting for China.

The project consists of ▲ OK FTA comprehensive consulting ▲ China Desk consulting ▲ Visiting FTA service ▲ Third-party verification of origin confirmation documents.

FTA utilization refers to applying preferential FTA tariffs to export goods through origin certification when exporting to FTA partner countries. Origin certification is the act of proving that export goods are made within the region.

OK FTA comprehensive consulting is a project that provides customized in-depth consulting by visiting companies for three to a maximum of ten days. The mandatory course is "origin management consulting," and the optional course is "certification and intellectual property consulting."

Consulting is divided into three types?comprehensive (package), improvement (upgrade), and preliminary (starter)?based on the company’s situation, providing customized support on origin certification and certification for up to ten days.

However, companies must pay a contribution fee ranging from 0 to 50% depending on their previous year's sales. Companies with sales under 2 billion KRW receive the service for free, while companies with sales over 100 billion KRW must pay up to 2 million KRW.

According to the Ministry, 638 companies applied for this consulting last year. The Ministry plans to support about 650 companies with customized on-site consulting on origin management and other areas this year as well.

However, on-site visit consulting will be conducted considering the developments of the COVID-19 pandemic.

China Desk consulting is a China-specialized program to support the utilization of the Korea-China FTA. Experts visit companies to assist with origin management and resolve difficulties related to non-tariff barriers (overseas certification, intellectual property rights).

Last year, 97 companies were supported. The Ministry plans to provide consulting to about 100 companies this year.

The Visiting FTA project offers free consulting on difficulties through the 1380 call center and visits to local companies for one to three days.

The Ministry plans to consult with about 2,500 companies this year as well, following last year, and will hold education sessions and briefings.

The third-party verification of origin confirmation documents is a service provided by regional FTA utilization support centers (mainly located in local chambers of commerce and industry) that reviews the validity of origin confirmation documents written by partner companies of exporters and issues a result report. It helps enhance trust between exporters and partner companies and supports origin certification.

The Ministry announced plans to support about 1,000 regional companies this year as well, following last year.

An origin confirmation document is a document that determines the origin of raw materials (components) supplied to verify the origin of various export goods, issued upon the request of the recipient by the supplier of the raw materials.

An official from the Ministry said, "This year, we plan to actively promote various 'FTA Utilization Support Consulting Projects' targeting SMEs and mid-sized companies facing difficulties in origin management and FTA utilization to contribute to enhancing export competitiveness."

Korea currently has FTAs with 56 countries covering 16 agreements (based on those in effect). The Ministry provides consulting through the FTA Comprehensive Support Center and 18 regional FTA utilization support centers.

As of this month, FTA utilization support institutions include the FTA Comprehensive Support Center (within the Korea International Trade Association), 18 regional FTA utilization support centers, and 15 overseas FTA utilization support centers (within KOTRA trade offices).

This content was produced with the assistance of AI translation services.