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Jaeho JUNG FTA Implementation Division
Korea Customs Service
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ContentsContents
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33
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APTA Concept in Korea
The FTA Status in Korea
Korea FTA C/O Certification System
APTA Implementation Issue
55 YES FTA, Total Solution for FTA
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is one of RTA(PTA),But treated as one of FTA agreement in the view of the application and implementationas below; C/O certification system and procedures Preference application C/O verification, etc.
APTA Concept in KoreaAPTA Concept in Korea
FTA Status in Korea
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In Effect(11 FTAs 49 countries)
Concluded(4 countries)
Under Talks(23 countries)
Joint Study(20 countries)
Country
Chile, Singapore,EFTA(4), ASEAN(10),India, EU(28), Peru,
US, Turkey, Australia,Canada
Colombia,Australia,
ChinaViet Nam,
Indonesia,RCEP(16),
Korea-China-Japan,New Zealand
Japan, Mexico,Israel, Malaysia,MERCOSUR(4)
SIECA(6)GCC(6)
Trade Volume
('14)41.1% 3.9% 30.4% 15.0%
In Total('14) 41.1% 39.9% 70.3% 85.3%
EFTA(European Free Trade Association) : Swiss, Norway, Iceland, Liechtenstein RCEP(Regional Comprehensive Economic Partnership): ASEAN+6 (Korea, China, Japan, India,
Australia, New Zealand) SIECA(Central American): Panama, Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua MERCOSUR: Brazil, Argentina, Uruguay, Paraguay GCC: Saudi Arabia, Kuwait, Arab Emirate, Qatar, Oman, Bahrain
FTA Trend in KoreaFTA Trend in Korea
China, India, Sri Lanka, Bangladesh, Lao PDR + Mongolia
India, ASEAN(Lao PDR)China
APTA Member vs. FTA MemberAPTA Member vs. FTA Member
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Dec.2014
CHILE(Apr.04)
EFTA(Sep.06)
ASEAN(Jun.07)
INDIA(Jan.10)
EU(Jul.11)
PERU(Aug.11)
US(Mar.12)
TURKEY(May.13)
Export 84.2 81.8 40.5 53.7 82.3 89.0 73.9 73.5
Import 96.3 40.7 68.1 68.4 67.6 87.7 67.8 60.8
FTA Utilization RateFTA Utilization Rate
0
50
100
CHILE EFTA ASEAN INDIA EU PERU US TURKEY
84.2 81.8
40.553.7
82.3 8973.9 73.5
96.3
40.7
68.1 68.4 67.6
87.7
67.8 60.8
Export Import
ASEAN, India FTA has lower utilization rate for Korean Export and average for Korean Import
Utilization rate will be lowered due to FTA effect.
Needs to upgrade preference margin to the level of FTAs’,and widen membershipto come up with increasing FTAs
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Korea FTA C/O Certification System
FTA Certification of OriginFTA Certification of Origin
Exporters complete and sign the origin declaration of concerned
goods after confirming the origin, in conformity with
the methods and procedures of the agreement
Self-certification by exporter
KCS or Korea Chamber of Commerce & Industry(KCCI)
confirm the origin of concerned goods and issue the C/Os
C/O issued by Authorities
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Certification Type by AgreementCertification Type by Agreement
APTA ASEAN India Chile EFTA EU US Peru
Issuance type
Authority Authority Authority Self Self Self SelfAuthority + Self
Issuer
Customs,
Chamber of commerce
Customs
Chamber of commerce
Customs,
Chamber of commerce
Exporter ExporterExporter
(Approved Exporter)
Producer,
exporter, importer
Customs,
Chamber of commerce
FormUniform
Form
Uniform form
(Form AK)
Uniform form
Uniform form
Origin declaration
on commercial documents
Origin declaration on
commercial documents
None
• (Authority)Uniform form• (Self) Origin declaration on commercial documents
Validity period
1 year 1 year 12 months 2 years 1 year 1 year 4 years 1 year
C/O Application
Off-line (manual) : visit KCS or KCCI
On-line (electronic)- KCS : UNI-Pass(e-clearance system)
- KCCI : Website
C/O issued by authoritiesC/O issued by authorities
Korean C/O issuing authorities
Korea Customs Service(KCS)
Korea Chamber of Commerce and Industry(KCCI)
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Required documents for C/O applicationRequired documents for C/O application
Copy of Export declaration certification
Invoice or contract of transaction
Origin verification questionnaire
Origin supporting documents
Supporting documents (examples) :
goods that satisfy a change in tariff classification: documents proving parts purchase,
process specification etc.
RVC bases: documents proving costs and usage of originating materials by each
origin such as Bill of Material(BOM)
C/O application rulingC/O application ruling
Ruling criteria of issuing authorities
1. Qualification of C/O applicants
2. One year period of claims of origin after shipment
3. Applicable conventional tariff of the party
4. Qualification of origin criteria of the party
5. Proper completion of C/O application documents
※ (example) statement of HS Code of the other party
6. Keeping of documents for C/O application
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Obligations of C/O issuing authoritiesObligations of C/O issuing authorities
Maintenance of C/O issuance registry and documents for C/O
application for 5 years
Prompt notification of C/O application return for reasons of false
statements, illegal application, or non-qualification to KCS
commissioner
Training officials in charge of C/O issuance
tariff classification, calculating methods, origin criteria
① Signatory Registration
② C/O Application
④ Issuance of C/O
③ C/O Examination
APPLICANT
Exporter
ProducerFTA C/O Issuance menu
in Export Clearance
ASEAN CUSTOMS
C/O ReferenceFor data protection, the system requires user certification
& data encoding
For data protection, the system requires user certification
& data encoding
Web-based Issuance SystemWeb-based Issuance System
http://portal.customs.go.kr
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KCS Web(portal.customs.go.kr)KCS Web(portal.customs.go.kr)
Approved Exporter No.Approved Exporter No.
Exporter information Exporter information
Export Declaration No.Export Declaration No.
Producer information Producer information
Importer information Importer information
Validating Approved Exporter Registration No.
Validating Export Declaration No.
Application FormApplication Form
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Application of C/O (Applicant)
Details of InvoiceDetails of Invoice
Memo(Remarks)Memo(Remarks)
Attached DocumentsAttached Documents
Application FormApplication Form
Application of C/O (Applicant)
Description of Exported GoodsDescription of
Exported Goods
Description of Raw Material
Description of Raw Material
Application FormApplication Form
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On-site confirmationOn-site confirmation
Customs authority may conduct an On-site confirmation of manufacturing factory to confirm country of origin before issuance of C/O, as the following case;
1. Person without domestic manufacturing factory applied for a C/O for the first time
2. Person, who did not directly produce listed goods, applied for a C/O for the first time
3. Suspected case of illegal C/O application4. Person, who was asked to inspect from the other party’s customs
service, applied for a C/O 5. Case difficult to confirm country of origin from submitted documents 6. Person whose proportion of C/O application errors for the previous
year exceeded 5%7. Person who was penalized more than twice for violations of the
Customs Act, FTA exemption law for the previous year
On-site confirmationOn-site confirmation
All on-site confirmations are directly conducted by Customs If necessary, KCCI may request the customs to conduct
an on-site confirmation Customs has to notify the result to KCCI within 7 days after the
request
C/O issuance period
- 10 days, if an on-site confirmation is required
- 3 days, if an on-site confirmation is not required
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Penalty of illegal C/O issuancePenalty of illegal C/O issuance
Person who has acquired or issued a C/O by deceit or illegally
⇒ fine less than $20,000
Establishing immediate information sharing network between
C/O issuing authorities (KCS&KCCI)
prompt delivery of information about illegal C/O applicants
among issuing authorities
Illegal C/O issuance information sharing
Search for legal C/O issuanceSearch for legal C/O issuance
010-08-0007PlBuCbTmHf
http://english.customs.go.kr
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View all detailed information on the C/O as the same format
Compare consistency of C/O to the C/O submitted
Time-saving
Applicant
KCS
ASEANCUSTOMSNo cost
Swift-processing Efficient-storage
Swift-verification
Advantage of On-line C/O IssuanceAdvantage of On-line C/O Issuance
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complete signature, position, name, designated date
Applied FTAs Country of origin Name, telephone No. of exporter Signature of exporter
Issuance No., date Export declaration No., Acceptance date Description of goods, specification, HS, quantity Origin producer or supplier Origin criteria
C/O issuancesignature
3.3.
maintenance of C/O register4.4.
1.1.
Designation of signatory2
.2.
Placing signature
card
Self-certification Procedures Self-certification Procedures
Approved Exporter System
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Approved ExporterApproved Exporter
Exporters who are authorized by the competent governmentauthorities(Customs) of the exporting country to make outorigin declarations on commercial documents
Korea Approved Exporter system
Company-type(3-year Valid), Product-type(2-year Valid) Requirements
- origin verification questionnaire and supporting documents- origin management system(only for company-type)- origin declaration registry- origin manager(designated person in charge of origin management)
Benefits- Self-certification of origin- Exemption of required documents for C/O application
Search for legal Approved ExporterSearch for legal Approved Exporter
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APTA Implementation Issue
Implementation issueImplementation issue
In case of HS code discrepancy, origin criteria may not be satisfied
in a certain case, and it may bring the gap of FTA/APTA tariff.
HS Classification discrepancy
Member countries tend to do not accept a C/O with minor
discrepancies or with additional information on the C/O.
Verification of C/O
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For the purpose of direct transportation, Through B/L is requested.
But, there is not clear definition of “Though B/L”, and small
forwarder/shipper would/could not issue B/L covering all route
from exporting party to importing party via the 3rd
country.
Through B/L
Korea introduced post-importation Application for APTA to a
limited extent.
• In case, C/O was issued before importation declaration, but it
was lost and was not submitted at the time of importation.
Post-importation Application
YES FTAKorea Total Solution for FTA
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http://fta.customs.go.krhttp://fta.customs.go.kr
http://www.ftapass.or.krhttp://www.ftapass.or.kr
Origin System to help origin Determination & certification
PC Mode : download program from web
WEB Mode : access to web
Cost : free of charge
