[FTA HONG] Summary of the Korea-EU FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)
The EU consists of 27 countries (with the United Kingdom leaving on January 1, 2021) and is the world's largest free trade agreement with a single economy.
The KOREA-UNITED KINGDOM FTA came into force January 1, 2021, due to the UK's withdrawal from the EU (Brexit).
EU is composed of Austria, Belgium, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Bulgaria, Romania, and Croatia. (27 countries)
As of 2022, the Korea-EU FTA has an export utilization rate of 87.0% and an import utilization rate of 79.4%. In exports, minerals have the highest level of utilization at 94.5% and miscellaneous products have the lowest level at 19.8%. For imports, agriculture, forestry, and fishery products have the highest utilization rate of 90.0% and minerals have the lowest utilization rate of 29.9%.
(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-EU FTA | 68,110,451 | 37,210,425 | 32,382,969 | 87.0 |
Import | 68,185,802 | 46,152,883 | 36,656,320 | 79.4 |
A brief summary of the provisions of the Korea-EU 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 | 2011. 07. 01. | |
Agreement other party | Austria, Belgium, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Bulgaria, Romania, and Croatia | |
Certificate of Origin | Issuing Modality C/O | Self - Issued |
Issuer | Exporter, Approved Exporter | |
Government Authorities | - | |
Form of Certificate | Invoice Declaration (invoice, a delivery note or any other commercial document) | |
Validity Period (yrs) | 1 | |
Submission Exemption | Case 1: Products sent as small packages from private persons to private persons (a) 1,000 US dollar(USD) for importation into Korea (b) 500 euro for importation into EU Party Case 2: forming part of a traveller’s personal luggage (a) 1,000 US dollar(USD) for importation into Korea (b) 1,200 euro for importation into EU Party | |
Value- Content Rule | Requirement | MC |
Product Price | Ex-works Price | |
Calculation Modality | - | |
Origin Verification | verification method | Indirect verification Request to the customs authority of the exporting party (The customs authority of the importing party is allowed to join the inquires.) (in exceptional cases)) |
Replied within | 10 months | |
Replied by | Customs authority | |
It is important to have the status of a Approved Exporter(AEX) for the Korea-EU FTA. This is because only Approved Exporter can utilize the Korea-EU FTA for exports over €6,000.
Article 3.16 (CONDITIONS FOR MAKING OUT AN ORIGIN DECLARATION) of the Korea-EU FTA PROTOCOL CONCERNING THE DEFINITION OF ‘ORIGINATING PRODUCTS’ AND METHODS OF ADMINISTRATIVE COOPERATION provides that:
ARTICLE 16: CONDITIONS FOR MAKING OUT AN ORIGIN DECLARATION
1. An origin declaration as referred to in Article 15.1 of this Protocol may be made out:
(a) by an approved exporter within the meaning of Article 17; or
(b) by any exporter for any consignment consisting of one or more packages
containing originating products whose total value does not exceed 6,000 euros.
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