[FTA HONG] Summary of the Korea-ASEAN FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)
The ASEAN-Korea FTA is one of the most utilized FTAs, despite the fact that FTAs with various individual countries (Vietnam, Indonesia, and Cambodia) have entered into force since its entry into force.
The ASEAN-Korea FTA is a favorable agreement in terms of the economic impact of the FTA, given the high share of trade with Korea. As of 2022, the FTA export utilization rate is 58.1% and the import utilization rate is 84.4%.
The ASEAN is composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Vietnam, Thailand.
As of 2022, chemical industries are the most utilized products in the ASEAN-Korea FTA at 67.2%, while textiles are the least at 28.5%. On the import side, plastics, rubber and leather products have the highest utilization rate at 90.9%, while minerals have the lowest utilization rate at 42.8%.
(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-ASEAN FTA | 63,950,025 | 12,805,734 | 7,438,733 | 58.1 |
Import | 55,813,078 | 26,904,866 | 22,706,380 | 84.4 |
A brief summary of the provisions of the Korea-ASEAN FTA related to trade in goods is as follows. However, it is intended as a guide only and companies should refer to the Agreement for the exact Agreement-specific interpretation.
Category | Contents | |
into force date | 2007. 06. 01. | |
Agreement other party | Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Vietnam, Thailand | |
Certificate of Origin | Issuing Modality C/O | Authority - Issued |
Issuer | The producer and/or exporter of the good, or its authorised representative's application | |
Government Authorities | ASEAN (Government Authority) Korea (Customs and Chamber of Commerce and Industry) | |
Form of Certificate | AK Form | |
Validity Period (yrs) | 1 | |
Submission Exemption | US$ 200.00FOB(goods and post) | |
Value- Content Rule | Requirement | RVC(Regional Value Content) |
Product Price | FOB | |
Calculation Modality | Build-down Method, Build-up Method | |
Origin Verification | verification method | Principles : Indirect verification (Request to the issuing authority of the exporting party) Exceptions : Direct verification (Verification visit (in exceptional cases)) |
Replied within | 2 months (indirect), maximum period of six (6) months | |
Replied by | Customs authority (Korea) Issuing authority (ASEAN) | |
Information about the Government Authorities is as follows:
Country | Government Authorities |
Brunei | Ministry of Foreign Affairs and Trade |
Cambodia | Ministry of Commerce |
Indonesia | Ministry of Trade |
Laos | Lao National Chamber of Commerce and Industry (LNCCI) |
Ministry of Industry and Commerce | |
Malaysia | Ministry of International Trade and Industry |
Myanmar | Ministry of Commerce |
Philippines | Bureau of Customs |
Singapore | Singapore Customs |
Vietnam | Ministry of Industry and Trade |
Thailand | Ministry of Commerce (Department of Foreign Trade of Thailand) |
KOREA | Customs, KCCI(Korea Chamber of Commerce and Industry) |
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