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Total 69 Cnt (Page 5 / 7)

QuestionRules of origin on a (blanket) certificate of originating status
How is the origin of a good determined on a (blanket) certificate of originating status?
Answers○ A (blanket) certificate of originating status can be regarded as a certificate of origin (C/O) for any good traded in Korea. Therefore, since the origin of a good traded in Korea must also be determined in the same manner as it is in the FTA so that the origin determination for a final export good may be correctly confirmed, the origin of a good must be determined in accordance with the respective criteria and methods for the determination of origin prescribed by FTA and by item when making out a (blanket) certificate of originating status.
Enforcement Rule of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements
(2) A material or final good producer, etc. who continuously supplies the material or final good used for an export good repeatedly to the same export good producer or exporter may complete and provide a (blanket) certificate of originating status (referring to the first certificate of originating status, including an electronic document, that can be used repeatedly within a period not exceeding 12 months) upon request from the said producer or exporter.
(3) A certificate of originating status or a blanket certificate of originating status pursuant to paragraphs 1 and 2 shall conform to attached Form No. 2. Article 12 (Certificate of Originating Status) (1) A person who produces or supplies a material or final good used for an export good (hereinafter referred to as a “material or export good producer, etc.”) may provide the producer or exporter of such export good with a document made out after confirming the origin of such final good (including an electronic document, hereinafter referred to as a “certificate of originating status”) upon request from the said producer or exporter.
Question(FTA-PASS) Standard origin management system
What is the FTA-PASS System?
Answers○ (Overview) A system for making preparations even for the determination of origin and any origin verification to be conducted by the FTA partner country as an origin management program developed by the Korea Customs Service and being distributed free of charge (since Sep. 2010) for small and medium-sized enterprises which have much difficulty utilizing FTAs because of the burden of dealing with manpower and costs
○ (Download) Search for “FTA-PASS” in a search portal system > get connected to the FTA-PASS Website > join as a member > use the Web services or download the program for personal computers
※ FTA-PASS Website: http://www.ftapass.or.kr
○ (How to use)
(1) Common: Get connected to the FTA-PASS Website, join as a member and attach a copy of your business registration certificate > obtain approval of your membership.
(2) Log-in (Web-based): Account for joining the Website (common).
(3) Program installation: (Web-based) Use the Website directly / (PC-based) download and install the program.
(4) Education: Familiarize yourself with how to fill in basic information through the educational materials and examples.
(5) Starting to use: Start to enter your basic information after registering yourself as a user/person authorized to sign.
Question(Korea-US) Conditions for using preferential tariffs
What are the conditions for using preferential tariffs under the Korea-US FTA?
Answers○ The following procedures must be gone through in order to use an FTA preferential tariff by exporting any US-made or Korean-made good to the other Party to the Agreement (in case the effect of a tariff reduction can be achieved):
(1) (Requirements for the trading parties) Both the exporter and the importer must be located in the territories of the Parties to the Agreement (i.e. in the territories of Korea and the United States).
* Relevant provisions: Article 1.4 (territory) of Section B. Definitions of the Korea-US FTA
(2) (Originating product) The product for which the benefit of preferential tariff treatment is sought must be the one produced in the United States or in Korea and satisfy the criteria for origin determination.
* Relevant provisions: Annex 6-A or 6-B of Chapter Six (Rules of Origin and Origin Procedures) and Chapter Four (Textiles and Apparel) of the Korea-US FTA
(3) (Certificate of origin) A certificate of origin prescribed in the Korea-US FTA is required.
* Relevant provisions: Article 6.15 (Claims for Preferential Tariff Treatment) of the Korea-US FTA
(4) (Exception to direct transport) The Korea-US FTA does not contain any provisions governing direct transport just as in the case of the Korea-Chile FTA, and thus direct transport is not required between the Parties. However, it must be proved that when being transshipped in the territory of a third country, the relevant product remained under the control of its customs authorities without being worked additionally.
* Relevant provisions: Article 6.13 (Transit and Transshipment) of the Korea-US FTA
Question(Korea-US) Person authorized to issue certificates of origin
Who is authorized to issue certificates of origin under the Korea-US FTA?
Answers○ Instead of requiring certificates of origin to be issued by issuing authorities, the Korea-US FTA implements a self-certification system which allows not only exporters and producers but also Korean importers to issue certificates of origin. (*Importers are not authorized to issue a certificate of origin under other free trade agreements.)
○ When an importer self-issues a certificate of origin, such importer is required to hold all the necessary information for determining whether a good is originating so that the importer may be able to submit it immediately upon request from a customs office.
○ In addition, the relevant customs office may require the importer to present a translation of the submitted certificate of origin in English.
* Relevant provisions: Article 6.15 (Claims for Preferential Tariff Treatment) of the Korea-US FTA
Question(Approved exporters) Benefits for approved exporters
What benefits will an exporter be provided with if designated as an approved exporter?
Answers○ (Significance) A system where the customs authorities provide any exporter approved as capable of proving the origin of the goods with such benefits as simplified procedures for the issuance of certificates of origin, omission of the submission of attached documents, etc.
○ (Reason for introduction) This system has been introduced to provide support for time and cost savings at the time of issuing a certificate of origin as an increasing number of countries have signed free trade agreements.
○ Although even an exporter not designated as an approved exporter may issue a certificate of origin under the Korea-US FTA, it is recommended that exporters should be authorized as approved exporters in order to use the status of approved exporter for correct origin management and proof of origin also under other free trade agreements* and reduce any risks ensuing from origin management.
* Korea-EU FTA: In the case of the exportation of any consignment consisting of originating products whose total value exceeds 6,000 euros, only an approved exporter can self-issue a certificate of origin.
* Korea-ASEAN FTA, Korea-India FTA, Korea-Singapore FTA, Korea-China, Korea-Vietnam: Submission of attached documents may be omitted when applying for the issuance of a certificate of origin.
* Korea-EFTA FTA: When an exporter self-issues a certificate of origin, such exporter’s signature may be omitted.
* Korea-Peru FTA: In the case of the exportation of any consignment consisting of originating goods whose total value exceeds 2,000 U.S. dollars, permission is given to both the issuance of a certificate of origin by an issuing authority and the self-issuance of a certificate of origin by an exporter. (These two methods of issuing a certificate of origin will be unified into the self-issuance system on August 1, 2016 five years after the entering force of this Free Trade Agreement.)
※ Reference: FTA Portal of KCS (http://fta.customs.go.kr/kor_portal.html) > Export Utilization > Approved Exporter System
Question(Korea-US) Certificate of origin forms and effective periods
What kinds of Korea-US FTA certificate of origin forms are used and how long are they valid?
Answers○ The Korea-US FTA does not prescribe any particular form but provides that a certificate of origin shall be prepared by including the following 8 items of information in it (Article 6.15 of the Korea-US FTA):
(1) the name of the certifying person, including as necessary contact or other identifying information;
(2) the importer of the good;
(3) the exporter of the good (if different from the producer);
(4) the producer of the good;
(5) tariff classification under the Harmonized System and a description of the good;
(6) information demonstrating that the good is originating;
(7) date of the certification; and
(8) in the case of a blanket certification issued as set out in paragraph 4(b), the period that the certification covers.
○ However, in order to ensure the smooth implementation of the Korea-US FTA, Korea has established and is currently utilizing recommended forms in the Enforcement Rule of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements.
※ Reference: FTA Portal of KCS (http://fta.customs.go.kr/kor_portal.html) > Data Room > Collection of Forms > Issuance of Certificates of Origin
○ A certificate of origin is valid for four years from the date of issuance.
- However, none of the following periods are counted when computing the period of validity of the certificate of origin [paragraph 5 of Article 4 (Applications for Preferential Tariffs) of the Enforcement Decree of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements]:
1. Where the relevant good has arrived at the port of importation before the period of validity of the certificate of origin expires: the period from the day immediately following the date such good has arrived at the port of importation to the filing date of an application for preferential tariff treatment;
2. Where the transportation of the relevant good has been delayed due to force majeure events, including natural disasters, or other similar circumstances have occurred, the period from the occurrence of the relevant circumstance to the date of termination thereof.
Question(Korea-US) Reasons for exemption from the requirement of origin certification
In what case are goods exempt from the requirement of a certificate of origin?
Answers○ Any imported good whose customs value does not exceed 1,000 U.S. dollars is exempt from the requirement of origin certification.
- Travelers’ personal effects, postal items or express shipments whose customs value does not exceed 1,000 U.S. dollars are exempt from the submission of a certificate of origin regardless of whether they are intended for commercial use.
* A preferential tariff may be granted to a product after simply confirming its origin through the purchase receipt, the country of origin marking, etc. of such product.
- However, if the importation of a good is planned for the purpose of evading compliance with the Party’s laws or the imported good is utilized as part of a series of importations planned in advance, such good is not exempt from the insurance of a certificate of origin.
* Article 6.16 (Waiver of Certification or Other Information) of the Agreement
Question(Korea-US) Whether preferential tariff treatment is granted to any goods which re-enter Korea after being repaired or altered in the United States
Is a customs duty imposed on the repair cost regarding any goods which re-enter Korea after being repaired or altered in the United States?
Answers○ If any goods re-enter Korea after being repaired or processed in the counterparty country, as far as their essential characteristics remain unchanged, such goods are exempt from customs duty regardless of their country of origin. Even in case their value has increased as a result of repair or processing, they are also exempt from customs duty with respect to such value increase.
* (1) or (2) mentioned below is a process which exceeds the scope of repair or manufacture:
(1) A process which destroys a good’s essential characteristics or creates a new or commercially different good; or
(2) A process which transforms an unfinished good into a finished good.
* Relevant provisions: Article 2.6 (Goods Reentered after Repair or Alteration) of the Korea-US FTA
Question(Korea-US) Application for ex post facto preferential tariff treatment
Is it possible to receive the benefit of FTA preferential tariff treatment even after the import clearance?
Answers○ If you did not apply for preferential tariff treatment for imported goods recognized as originating at the time of importation, you must make claims for preferential tariff treatment within one year from the date of import declaration acceptance.
○ In this case, you must present a copy of the certificate of origin and any other documents required by the relevant customs office in addition to the application for preferential tariff treatment.
* Relevant provisions: Article 6.19, paragraph 5, of the Korea-US FTA Article 11 of the Enforcement Decree of the Act on Special Cases of the Customs Act for the Implementation of Free Trade Agreements
Question(Korea-US) Direct consignment
Even in case a shipment of goods is transported to Korea through a third country, are such goods also eligible for preferential tariff treatment under the Korea-US FTA?
Answers○ The Korea-US FTA does not contain any provisions governing direct consignment. Accordingly, the Agreement does not require that goods should be transported directly between the Parties.
If a shipment of goods is transported to Korea by passing through the territory of a non-Party (United Kingdom) (transit and transshipment), unless it satisfies the requirements for allowing the shipment to pass through the territory of a non-Party (refer to the provisions below), it violates the transport requirements under the Agreement, and thus such goods are not eligible for FTA tariff benefits.
In other words, 1) in case an actual processing operation was performed on the relevant goods instead of simple unloading of the goods or any other work necessary for the preservation or transportation of the goods in a third country, not in Korea or the United States or 2) in case the relevant goods were not under the control of the customs authority in the country of transit, they are not recognized as originating goods, and thus preferential tariff treatment under the Korea-US FTA cannot be granted to such goods.
If while passing through a third country or during transshipment there, the relevant goods were under the control of its customs authority without any actual (additional) processing operation, such situation must be proved by relevant documents.
[Relevant provisions] Chapter Six (Rules of Origin and Origin Procedures) of the Korea-US Free Trade Agreement
Article 6.13 (Transit and Transshipment) Each Party shall provide that a good shall not be considered to be an originating good if the good:
(a) undergoes subsequent production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or
(b) does not remain under the control of customs authorities in the territory of a non-Party.
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