Korea Customs Service Conducts Planned Inspection of FTA Origin for Export Goods to the US
The Korea Customs Service announced on the 25th that it will conduct planned verifications of origin for high-risk item groups that are likely to disguise their origin as Korean among goods exported to the United States using the Korea-US Free Trade Agreement (FTA).
Origin verification is an administrative procedure to confirm whether export and import goods traded under the FTA meet the origin determination criteria and requirements such as maintaining origin documentation as stipulated in the agreement. If the regulations are violated, the preferential tariff rates under the FTA will be excluded.
The planned verification is conducted as a preventive measure to ensure that the credibility of the origin of Korean export goods does not decline and that domestic export companies do not suffer damage.
The Korea Customs Service plans to analyze export-import customs clearance details focusing on items subject to US anti-dumping duties with a high possibility of origin circumvention and key origin verification items by US customs authorities, with a focus on examining the possibility of FTA regulation violations by exporters.
Typical cases of regulation violations include circumvention of the original state export, simple processing (cutting, assembly, etc.) of non-originating parts, and failure to meet FTA origin determination criteria.
The Korea Customs Service intends to take strict measures against companies that damage national credibility by improperly obtaining certificates of origin for non-originating goods and then exporting them disguised as Korean origin.
However, if the FTA regulations were misunderstood or certificates of origin were mistakenly issued due to simple errors, individual consulting will be provided to the relevant companies to prevent recurrence and help strengthen their capabilities.
Additionally, the Korea Customs Service will regularly post export verification trends of major FTA partner countries such as the United States and the European Union (EU) on its website to help domestic companies quickly grasp overseas trends and prepare in advance.
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Ko Gwang-hyo, Commissioner of the Korea Customs Service, stated, “Considering the increasing uncertainty due to the US tariff policy, it is important for companies exporting goods to the US to accurately comply with FTA origin regulations to prevent future disadvantages. The Korea Customs Service will prevent FTA regulation violations by exporters to the US through planned verifications and actively support companies in strengthening their origin management capabilities.”
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