KOTRA Publishes Practical Guide for Korea-UK FTA Implementation

"Note Changes in Details of Korea-UK FTA After Brexit"

[Asia Economy Reporter Kim Ji-hee] Since June 1st, the Free Trade Agreement (FTA) between Korea and the United Kingdom has newly come into effect, allowing Korean companies to continue exporting to the UK. In response, KOTRA announced on the 4th that it has published a practical guide for utilizing the Korea-UK FTA.

The Korea-UK FTA maintains the same level of market opening and trade rules in areas such as goods, services, and investment as the Korea-EU FTA, but there are changes in the details. To apply the preferential tariffs under the Korea-UK FTA, a separate application for Korea-UK FTA Authorized Exporter is required, distinct from the existing Korea-EU FTA Authorized Exporter. However, for Authorized Exporters certified by company rather than by product, no separate notification is required until the validity period of the certification expires.

Under the agreement, the Korea-UK FTA applies only to products directly transported between the two parties or via the EU. In cases of transit through the EU, direct transport recognition is temporarily allowed for three years from the effective date of the agreement. Transshipment or temporary storage in a warehouse is permitted, but the goods must not be removed from the country for distribution. It is also important to note that if additional processing is performed, direct transport will not be recognized.

This practical guide for the Korea-UK FTA was created to help Korean companies better understand and utilize the FTA system. Notably, the guide presents the FTA utilization method step-by-step, including ▲checking HS codes ▲confirming tariff benefits ▲verifying rules of origin ▲origin determination ▲preparing certificates of origin ▲applying for FTA tariff benefits ▲keeping related documents ▲and origin verification.

Cho Young-soo, head of KOTRA London Trade Center, stated, “Since Brexit, we have secured the safety and continuity of exports to the UK through the Korea-UK FTA,” adding, “We will do our best locally to reduce difficulties for exporting companies.”

The Korea-UK FTA practical utilization guide can be downloaded for free from the Overseas Market News website. Additionally, as inquiries regarding local customs clearance and logistics have recently increased, KOTRA is monitoring trends centered on the Korea-UK FTA Overseas Utilization Support Center.

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