Korea Customs Service Temporarily Applies 'FTA Preferential Clearance' Without Certificate of Origin

A flowchart of the procedure for applying preferential tariff under the agreement when the issuing authority of the certificate of origin in the trading partner country is closed. Provided by Korea Customs Service

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Temporary support for preferential tariff clearance under Free Trade Agreements (FTAs) will be applied to companies that have difficulty obtaining certificates of origin due to the closure of issuing institutions in FTA partner countries.

On the 27th, the Korea Customs Service announced that it plans to support the use of FTAs through proactive administration, as Korean import companies face difficulties applying for preferential tariffs due to the spread of the novel coronavirus disease (COVID-19).

First, for companies unable to obtain certificates of origin because the issuing institutions in FTA partner countries were closed due to COVID-19, the Korea Customs Service will extend the payment deadline for customs duties and other charges by up to one year during import clearance.

This measure allows goods to be cleared first without the financial burden of paying customs duties, and preferential tariffs can be applied once the issuance of certificates of origin resumes.

Additionally, for companies whose application period for retroactive preferential tariff application (within one year from the date of import declaration acceptance) expired during the suspension of certificate issuance and thus cannot receive retroactive preferential tariffs, the application period will be extended by up to one year.

The Korea Customs Service will also allow companies that could not obtain certificates of origin under general preferential agreements such as the Asia-Pacific Trade Agreement (APTA) to export goods before the acceptance of import declarations while deferring payment of customs duties and taxes during import clearance.

In this case, the companies must submit the certificate of origin within 30 days from the date the issuing institution in the partner country resumes operations to receive preferential tariff treatment.

However, the Korea Customs Service’s FTA clearance support measures are temporary responses to the COVID-19 outbreak, focused on alleviating the burden on domestic companies struggling due to the pandemic by enabling the application of preferential tariffs under FTAs and general preferential agreements despite the suspension of certificate issuance.

For details on the supported agreements, application methods, and other information, please visit the Korea Customs Service FTA portal website.

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