[FTA HONG] Summary of the Korea-Türkiye(Turkey) FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)
As a geopolitical hub connecting Europe, Asia, and the Middle East, Türkiye(Turkey) is an important FTA for Korea's exports and imports.
Korea used the name Korea-Turkey FTA when the FTA entered into force, but as Turkey changed its name to "Türkiye," Republic of Korea government decided to follow suit.
Therefore, businesses can now use both Turkey and Türkiye.
For example, when filling out a Declaration of Origin, a valid Declaration of Origin is accepted even if the documentation for goods imported from Türkiye (formerly Turkey) lists the changed country name ("Türkiye", with ü being an umlaut).
As of 2022, the export utilization rate of the Korea-Türkiye FTA is 75.5% and the import utilization rate is 67.9%. In terms of FTA utilization by industry, textiles are the highest at 84.3% for exports and minerals are the lowest at 38.2%. For imports, plastic rubber and leather products have the highest utilization rate of 95.9%, while textiles have the lowest utilization rate of 32.5%.
(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 | 7,722,912 | 5,926,984 | 32,382,969 | 87.0 |
Import | 1,389,210 | 764,298 | 36,656,320 | 79.4 |
A brief summary of the provisions of the Korea-Türkiye 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 | 2013. 05. 01. | |
Agreement other party | Türkiye | |
Certificate of Origin | Issuing Modality C/O | Self - Issued |
Issuer | Exporter | |
Government Authorities | - | |
Form of Certificate | Invoice Declaration (e invoice, the delivery note or another commercial document) | |
Validity Period (yrs) | 1 | |
Submission Exemption | Case 1: Products sent as small packages (a) 1,000 US dollar(USD) for importation into Korea (b) 500 euro for importation into Türkiye Case 2: forming part of traveller’s personal luggage (a) 1,000 US dollar(USD) for importation into Korea (b) 1,200 euro for importation into Türkiye | |
Value- Content Rule | Requirement | MC |
Product Price | Ex-works Price | |
Calculation Modality | - | |
Origin Verification | verification method | Principles : 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 | 10 months | |
Replied by | Customs authority | |
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