3년의 혁신, 30년의 성장, 관세청 종합솔루션 YES FTA

ARTICLE 2.1: OBJECTIVE

The Parties shall progressively and reciprocally liberalise trade in goods over a transitional period starting from the entry into force of this Agreement, in accordance with this Agreement and in conformity with Article XXIV of GATT 1994.

ARTICLE 2.2: SCOPE AND COVERAGE

This Chapter shall apply to trade in goods between the Parties.

ARTICLE 2.3: CUSTOMS DUTY

For the purposes of this Chapter, a customs duty includes any duty or charge of any kind imposed on, or in connection with, the importation of a good, including any form of surtax or surcharge imposed on, or in connection with, such importation. A customs duty does not include any:

• (a) charge equivalent to an internal tax imposed consistently with Article 2.8 in respect of the like domestic good or in respect of an article from which the imported good has been manufactured or produced in whole or in part;
• (b) duty imposed pursuant to a Party’s law consistently with Chapter Three (Trade Remedies);
• (c) fee or other charge imposed pursuant to a Party’s law consistently with Article 2.10; or
• (d) duty imposed pursuant to a Party’s law consistently with Article 5 of the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement (hereinafter referred to as the “Agreement on Agriculture”).

ARTICLE 2.4: CLASSIFICATION OF GOODS

The classification of goods in trade between the Parties shall be that set out in each Party’s respective tariff nomenclature interpreted in conformity with the Harmonized System of the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on 14 June 1983 (hereinafter referred to as the “HS”).

ARTICLE 1: DEFINITIONS

For the purposes of this Protocol:

• (a) manufacture means any kind of working or processing including growing, fishing, raising, hunting, assembly or specific operations;
• (b) material means any ingredient, raw material, component or part, etc., used in the manufacture of a product;
• (c) product means the product being manufactured, even if it is intended for later use as a material in another manufacturing operation;
• (d) goods means materials, products or articles;
• (e) customs value means the value as determined in accordance with the Customs Valuation Agreement;
• (f) ex-works price means the price paid or payable for the product ex-works to the manufacturer in a Party in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or should be, repaid when the product obtained is exported;
• (g) value of the non-originating materials means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the EU Party or in Korea;
• (h) value of originating materials means the value of such materials as defined in subparagraph (g) applied mutatis mutandis;
• (i) chapters, headings, and subheadings mean the chapters (two-digit codes), the headings (four digit codes) and the subheadings (six-digit codes) used in the nomenclature which make up the Harmonized Commodity Description and Coding System, referred to in this Protocol as ‘the Harmonized System’ or ‘HS’;
• (j) classified refers to the classification of a product or material under a particular chapter, heading and subheading;
• (k) consignment means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
• (l) HS means the Harmonized Commodity Description and Coding System in force, including its general rules and legal notes; and
• (m) territories includes territorial sea.

ARTICLE 14: DRAWBACK OF, OR EXEMPTION FROM, CUSTOMS DUTIES

• 1. After five years from the entry into force of this Agreement, upon the request of either Party, the Parties shall jointly review their duty drawback and inward processing schemes. One year after entry into force, and subsequently on a yearly basis, the Parties shall exchange available information on a reciprocal basis on the operation of their duty drawback and inward processing schemes, as well as detailed statistics as follows:
• 1.1 Import statistics at the 8/10 digit level by country starting from one year after the entry into force of this Agreement shall be provided for imports of materials classified under HS 2007 headings 8407, 8408, 8522, 8527, 8529, 8706, 8707 and 8708, as well as export statistics for 8703, 8519, 8521 and 8525 through 8528. Upon request, such statistics shall be provided on other materials or products. Regular information shall be exchanged on the measures taken to implement limitations on duty drawback and inward processing schemes introduced on the basis of paragraph 3 of this Article.
• 2. At any time after the initiation of the above review, a Party may request consultations with the other Party with a view to discussing possible limitations on duty drawback and inward processing schemes for a particular product in case there is evidence of a change in sourcing patterns since the entry into force of this Agreement which may have a negative effect on competition for domestic producers of like or directly competitive products in the requesting Party.
• 2.1 The abovementioned conditions would be established on the basis of evidence provided by the Party requesting consultations that:
  • (a) the rate of increase of dutiable imports into a Party of materials incorporated into a particular product from countries with which no free trade agreement is in force is significantly greater than the rate of increase of exports to the other Party of the product incorporating such materials, unless the Party to which the consultation request is addressed establishes that, inter alia such increase in imports of materials is:
    • (i) essentially due to an increase in domestic consumption of the product incorporating such materials of the Party;
    • (ii) essentially due to use of imported materials in a product other than that covered by paragraph 2;
    • (iii) due to an increase in exports to countries other than the other Party of the product incorporating such materials; or
    • (iv) limited to imports of high tech/value components, not lowering the price of the export product of the Party; and
  • (b) imports from the Party into the other Party of the product incorporating such materials have significantly increased in absolute terms or relative to domestic production. Consideration shall also be given to pertinent evidence as regards the effect on conditions of competition for producers of the like or directly competitive products of the other Party.