[FTA HONG] Summary of the Korea-Cambodia FTA (FTA utilization rate, FTA utilization by industry, and summary of highlights)
The Korea-Cambodia FTA was concluded in the shortest period of time (7 months) and was the first FTA negotiation in which the entire negotiation process was conducted non-face-to-face. This is likely due to the fact that Korea and Cambodia already had ASEAN-Korea FTAs in place.
In particular, the FTA with Cambodia, which has great growth potential as a hub in the Mekong region connecting Vietnam, Thailand, and Laos, is significant in solidifying market access within ASEAN.
The Korea-Cambodia FTA went into effect on December 1, 2022, so there is no data on FTA utilization in 2022.
However, as of the first quarter of 2023, the export utilization rate of the Korea-Cambodia FTA is 24.0% and the import utilization rate is 25.0%. In terms of FTA utilization by industry, machinery is the highest at 65.2% for exports and miscellaneous goods is the lowest at 0.0%. In imports, only 34.7% of household goods and 25.6% of textiles are utilized, and most industries are not utilized.
(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-Cambodia FTA | 689.346 | 81,506 | 19,583 | 24.0 |
Import | 566,208 | 32,709 | 8,166 | 25.0 |
A brief summary of the provisions of the Korea-Cambodia 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 | 2022. 12. 01. | ||
Agreement other party | Cambodia | ||
Certificate of Origin | Issuing Modality C/O | Authority – Issued or Self - Issued | |
Issuer | Authority – Issued | an exporter, a producer, or their authorized representative | |
Self - Issued | Approved Expoer | ||
Government Authorities | Cambodia(Ministry of Commerce) Korea (Customs and Korea Chamber of Commerce and Industry(KCCI)) | ||
Form of Certificate | Authority – Issued | Uniform Certificate | |
Self - Issued | contain information which meets the minimum information requirements as set out in Annex 3-C | ||
Validity Period (yrs) | 1 | ||
Submission Exemption | the customs value of the importation does not exceed US$ 200 or the equivalent amount in the importing Party’s currency or any higher amount as the importing Party may establish | ||
Value- Content Rule | Requirement | RVC(Regional Value Content) | |
Product Price | FOB | ||
Calculation Modality | Build-down Method, Build-up Method | ||
Origin Verification | verification method | Direct or Indirect verification (a written request for additional information to the issuing body or competent authority of the exporting Party – Indirect) (the written request for information, a verification visit - Direct) | |
Replied within | (receipt of the written request for information) 30 and 90 days, (exporter, producer,or the competentauthority to consent orrefuse the request for a verification visit) 30 days | ||
Replied by | the customs authority of the exporting Party (indirect) importer, exporter, or producer (direct) | ||
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