Korean Companies Apply FTA Preferential Tariffs Using 'Copy of Certificate of Origin' for ASEAN Exports

[Sejong=Asia Economy Reporter Son Sunhee] Korean companies exporting to the Association of Southeast Asian Nations (ASEAN) can now receive preferential tariff treatment under the Free Trade Agreement (FTA) by submitting only a copy of the certificate of origin.

According to the Ministry of Economy and Finance on the 6th, the government reached a provisional agreement with ASEAN on this export companies' customs clearance improvement plan at the '27th Korea-ASEAN FTA Customs and Origin Subcommittee' held on September 29. Both sides recently finalized the agreement through the final joint statement.

Due to delays in international delivery of certificates of origin caused by the recent spread of COVID-19, export companies have faced difficulties in utilizing preferential tariffs. In response, Korea proposed mutual recognition of certificate copies until the COVID-19 situation stabilizes, which all 10 ASEAN countries accepted. The termination date for the use of copies will be discussed later, taking into comprehensive consideration the COVID-19 situation. Additionally, rejections due to minor formal errors or discrepancies in the certificate of origin will be prevented.

ASEAN, consisting of 10 Southeast Asian countries including Vietnam, accounts for 17.4% of Korea's total export volume, making it the second largest trading partner after China. Last year's trade volume totaled $143.8 billion.

The Ministry of Economy and Finance stated, "Through this agreement, we expect the inconveniences faced by approximately 40,000 Korean companies exporting to ASEAN in applying FTA preferential tariffs to be alleviated," and added, "The government will continue to actively resolve any export-related difficulties faced by our companies and support the promotion of exports utilizing free trade agreements."

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