[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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