[FTA HONG] Summary of the Korea-China FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)
The Korea-China FTA, which took effect in 2015, made South Korea the first Asian country to form a free trade zone with the world's three largest economies - the US, EU, and China.
The South Korean government made a lot of efforts to get the Korea-China FTA into effect, including airing advertisements on mainstream TV news programs to expedite the ratification process for the Korea-China FTA.
The reason for this is China's enormous trade volume. China is the world's number one trading partner and our number one trading partner. (The United States is second).
As of 2022, China is South Korea's first largest trading partner, and according to statistics from the Korea International Trade Association (KITA), South Korea exported about $155,789,389,000 to China and imported about $154,576,314,000.
As of 2022, Korea-China FTA export utilization rate is 63.3% and import utilization rate is 88.5%. When looking at FTA utilization by industry, minerals are the highest at 95.0%, while electronic and electrical products are the lowest at 26.6%. In terms of imports, chemical industrial products have the highest level at 95.2%.
(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-China FTA | 155,777,675 | 42,544,016 | 26,912,775 | 63.3 |
Import | 154,572,546 | 68,797,382 | 60864,673 | 88.% |
A brief summary of the provisions of the Korea-China 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 | 2015. 12. 20. | |
Agreement other party | China(Excludes Hong Kong and Macau) | |
Certificate of Origin | Issuing Modality C/O | Authority - Issued |
Issuer | producer or exporter or, under its responsibility, by its authorized representative | |
Government Authorities | China (General Administraion of Customs of the People’s Republic of China(GACC), China Council for the Promotion of Internationnal Trade(CCPIT)) Korea (Customs and Chamber of Commerce and Industry) | |
Form of Certificate | Uniform Certificate | |
Validity Period (yrs) | 1 | |
Submission Exemption | 600 U.S. dollars FOB or such higher amount as the importing Party may establish | |
Value- Content Rule | Requirement | RVC(Regional Value Content) |
Product Price | FOB | |
Calculation Modality | Build-down Method | |
Origin Verification | verification method | Principles : Indirect verification (Request to the customs authority of the exporting party) Exceptions : Direct verification (Verification visit (in exceptional cases)) |
Replied within | 6 months (Indirect) | |
Replied by | Customs authority (indirect) | |
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