[FTA HONG] Summary of the Korea-EFTA FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)

 

The European Free Trade Association (EFTA) is an FTA between four countries in Western Europe that are not part of the European Union (EU), and is the first FTA to target a regional bloc. EFTA is composed of Switzerland, Norway, Iceland, and Liechtenstein.

 

As of 2022, the export utilization rate of the Korea-EFTA FTA is 61.4% and the import utilization rate is 75.7%. In terms of FTA utilization by industry, machinery is the highest at 94.2% for exports and miscellaneous products is the lowest at 0.0%. For imports, steel and metal products have the highest utilization rate of 92.4% and miscellaneous products have the lowest utilization rate of 17.8%.

(Unit: Thousands of dollars)

Category	FTA	total amount	FTA preference eligible exports and imports	Apply actual FTA preferential tariffs	utilization rate(%)
			amount	amount
Export	Korea-EFTA FTA	1,995,979	397,768	244,122	61.4
Import		5,241,187	3,959,127	2,998,094	75.7

Recently, the Korea-EFTA FTA underwent a major revision. the The Harmonized Commodity Description and Coding System (HS), which is used to determine PSR(Product Specific Rules) in the Korea-EFTA FTA, was changed from HS 2012 to HS 2017.

 

While the HS CODE is generally revised every five years, the FTA only revises the HS CODE through a bilateral revision process.

The amendment will take effect on June 1, 2023.

 

A brief summary of the provisions of the Korea-EFTA FTA related to trade in goods is as follows. However, this is for reference purposes only and you should check the agreement for the exact provisions.

 

Category		Contents
into force date		2006. 09. 01.
Agreement other party		Switzerland, Norway, Iceland, and Liechtenstein.
Certificate of Origin	Issuing Modality C/O	Self - Issued
	Issuer	Exporter
	Government Authorities	-
	Form of Certificate	Invoice Declaration
	Validity Period (yrs)	1
	Submission Exemption	Case 1: small packages sent form private persons to private persons (a) 1,000 US dollar(USD) for importation in Korea (b) 500 euro for importation in an EFTA State   Case 2: travellers’ personal luggage (a) 1,000 US dollar(USD) for importation in Korea (b) 1,200 euro for importation in an EFTA State
Value- Content Rule	Requirement	MC(iMport Content)
	Product Price	Ex-works Price
	Calculation Modality	-
Origin Verification	verification method	Indirect verification (Request to the customs authority of the exporting party (The customs officials of the importing party are allowed to be present as an observer.))
	Replied within	15 months
	Replied by	Customs authority

 

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