[FTA HONG] Summary of the Korea-India CEPA (FTA(CEPA) utilization rate, FTA(CEPA) utilization by industry, and summary of highlights)
The Korea-India CEPA agreement, the first free trade agreement signed by a single country with a large economy, came into effect on January 1, 2010. The term Comprehensive Economic Partnership Agreement (CEPA), rather than Free Trade Agreement (FTA), is used to emphasize that the agreement covers all aspects of economic relations, including trade in services, investment, and economic cooperation, not just trade in goods.
CEPA is an agreement that covers all aspects of economic relations, including trade in goods, trade in services, investment, and economic cooperation. In essence, it is the same as an FTA, but compared to an FTA, which is mainly centered on the free trade of goods and services, CEPA is a broader concept.
As of 2022, the export utilization rate of the Korea-India CEPA is 79.5% and the import utilization rate is 55.2%. In terms of exports, steel and metal products have the highest level of utilization at 82.9% and miscellaneous products have the lowest level at 17.7%. In the import sector, miscellaneous products have the highest utilization rate of 90.3% and minerals have the lowest utilization rate of 5.9%.
(Unit: Thousands of dollars)
Category | CEPA | total amount | CEPA preference eligible exports and imports | Apply actual CEPA preferential tariffs | utilization rate(%) |
amount | amount | ||||
Export | Korea-India CEPA | 18,874,896 | 11,526,837 | 9,161,533 | 79.5 |
Import | 8,899,272 | 6,808,900 | 3,760,348 | 55.2 |
A brief summary of the provisions of the Korea-India CEPA 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 | 2010. 01. 01. | |
Agreement other party | India | |
Certificate of Origin | Issuing Modality C/O | Authority - Issued |
Issuer | The exporter or the producer of the goods | |
Government Authorities | India (1) Export Inspection Council of India) (2) Marine Products Export Development Authority (3) (Textiles committee) Korea (Customs, KCCI) | |
Form of Certificate | KIN Form | |
Validity Period (yrs) | 1 | |
Submission Exemption | Goods sent as small packages from private persons to private persons or forming part of travellers' personal luggage | |
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 issuing authority of the exporting party) Exceptions : Direct verification (Written questionaries, information request or verification visit (in exceptional cases)) |
Replied within | 3 months (indirect) 30 days or for such longer period as the Parties may agree (direct) | |
Replied by | Customs authority (Korea) Issuing authority (India) | |
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