[FTA HONG] Summary of the Korea-United States(U.S.) FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)

 

The Korea-U.S. FTA agreement with the United States, the world's largest economy, will secure Korea's stable trade base with the US market and improve our economic and social systems.

 

As of 2022, the export utilization rate of the Korea-U.S. FTA is 85.9% and the import utilization rate is 70.1%. In terms of FTA utilization by industry, machinery is the highest at 93.7% and miscellaneous products is the lowest at 0.0% in the export sector. In the import sector, miscellaneous products is the highest utilization rate of 94.9% and minerals is the lowest utilization rate of 51.6%.

 

(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-U.S. FTA	109,809,718	60,864,852	52,296,351	85.9
Import		81,771,641	49,672,740	34,825,155	70.1

 

 

A brief summary of the provisions of the Korea-U.S 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.

 

For the Korea-US FTA, there is no format for the Certificate of Origin. However, there is a recommended form for the Republic of Korea.

In addition, the Korea-US FTA may utilize the Net Cost (NC) Method for some items when determining origin under the RVC.

The following items are eligible : Heading 8407.31 through 8407.34 (engines), 8408.20 (diesel engines for vehicles), 84.09 (parts of engines), 87.01 through 87.05 (motor vehicles), 87.06 (chassis), 87.07 (bodies), and 87.08 (motor vehicle parts).

 

Category		Contents
into force date		2012. 03. 15.
Agreement other party		The United States
Certificate of Origin	Issuing Modality C/O	Self - Issued
	Issuer	importer, exporter, or producer
	Government Authorities	-
	Form of Certificate	N/A (Korea : Recommended form available)
	Validity Period (yrs)	4
	Submission Exemption	the customs value of the importation does not exceed 1,000 U.S. dollars or the equivalent amount in the currency of the importing Party, or such higher amount as may be established by the importing Party
Value- Content Rule	Requirement	RVC(Regional Value Content)
	Product Price	Adjusted Value
	Calculation Modality	Build-down Method, Build-up Method, Net Cost Method
Origin Verification	verification method	General : Direct verification (Written questionaries, Information request or verification visit) Exceptions : Indirect verification (Request to the customs authority of the exporting party (only for textile or apparel goods))
	Replied within	30 days (Direct) 12months (Indirect)
	Replied by	Exporter, etc. (direct) Customs authority (indirect)

 

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