'Beef, Infant Formula, Garlic' and Other Agricultural and Livestock Product Manufacturers Allowed to Enter Free Trade Zones if Entirely Re-exported

Amendment to the Free Trade Zone Act Approved at the State Council Meeting

Status of Designated Free Trade Zones (As of June 2020)

[Asia Economy Reporter Joo Sang-don] Starting as early as this December, manufacturers and processors of agricultural and livestock products such as beef, powdered milk, and garlic will be allowed to enter free trade zones if they meet conditions such as full re-export and establishment of inventory management systems. This aims to expand exports of high value-added processed agricultural and livestock food products by leveraging benefits like low rental fees and tariff deferrals available in free trade zones.

On the 8th, the Ministry of Trade, Industry and Energy announced that the amendment to the "Act on Designation and Operation of Free Trade Zones," which includes these provisions, was approved at the Cabinet meeting on the same day.

An official from the Ministry of Trade, Industry and Energy explained, "With the rapid growth of the Home Meal Replacement (HMR) market centered around China recently, there has been a need to expand exports of high value-added processed foods made from agricultural and livestock raw materials such as beef and powdered milk. This amendment opens the export path for processed agricultural and livestock food products within free trade zones."

Until now, manufacturers and processors of 63 tariff concession items including beef, powdered milk, and garlic were restricted from entering free trade zones. However, with this legal amendment, entry is permitted if conditions such as ▲full re-export ▲establishment of computerized inventory management systems ▲employment of bonded warehouse agents are met.

A system to prevent damage to farmers caused by domestic leakage of raw materials has also been established. Companies entering under the full re-export condition are prohibited from domestic removal of goods and raw materials manufactured or processed from tariff concession items, and manufacturing or processing work outside the free trade zones is not allowed.

An official from the Ministry said, "Before the law takes effect in mid-December this year, we will promptly complete necessary measures such as revising subordinate regulations and actively attract high value-added agricultural and livestock export companies to free trade zones to lead to increased exports."

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