Korea in this text refers to South Korea only.

Transcription

Korea in this text refers to South Korea only.
Trade in Goods Guide to using ASEAN-KOREA FTA / KOREA-SINGAPORE
FTA to export to Korea
Korea in this text refers to South Korea only.
Step1 : Knowing your HS Code
Check for the Korean HS (Harmonised System) Code of your product. Korean HS code
will be required to find out your product’s import duty1 or tariff concession rate2 when
importing to Korea. You may check with either the Korean Customs Authority or your
importer in Korea to find out your product’s HS Code in Korea.
To find Singapore’s HS code of your product, please refer to Singapore Customs.
http://www.customs.gov.sg/leftNav/trad/per/Classification+of+Goods.htm
Step 2 : Getting the MFN and Tariff Concession Rates
With the HS code, check for
1) Korean import duty or MFN rate for your product.
2) Tariff concession rates given to your product
You can check with the Korean Customs Authority or Korean importing party for the
latest MFN rates.
Note: If the product has 0% import duty, FTA may not be beneficial to you in terms of
tariff savings.
For a quick check on both MFN rates and Tariff Concession rates, Please refer to the
following:
Singapore FTA website (Korea’s Preferential Tariff Rate and Rules of Origin):
http://www.fta.gov.sg/tariff_calculator.asp
Korea Customs website (Korea’s Import Duty):
http://english.customs.go.kr/kcsweb/user.tdf?a=user.customtariff.CustomTariffApp&c=1
001&mc=ENGLISH_INFORMATION_KOREA
ASEAN-Korea FTA Integrated information Services:
http://www.akfta.net/
The Legal Text for ASEAN-Korea FTA Tariff Reduction and Elimination can be found
in the link below.
http://www.fta.gov.sg/akfta/article3.pdf
1
Import Duty refers to the tax payable for the purpose of importing a product into a country.
Tariff Concession Rate refers to the import duty which would be applicable to a product which is
imported under a specific FTA.
2
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.
The Legal Text for Korea-Singapore FTA Tariff Elimination Schedule can be found in
the link below.
http://www.fta.gov.sg/ksfta/annex%203a%20-%20tariff%20elimination%20schedule.pdf
Step 3 : Compare MFN and Tariff Concession Rates.
Compare MFN and Tariff Concessions Rates to find out if you will be able enjoy a lower
Tariff rate by using any of the FTAs.
Step 4: Check the Rules of Origin for the FTA which is beneficial to you
To qualify for the Tariff Concessions Rates, check that the product satisfies the Rules of
Origin (ROO).
For ASEAN-Korea Free Trade Agreement (AKFTA):
To be considered as Originating Goods under AKFTA,
1. Your product will be considered originating if it is Wholly Obtained or
Produced in Singapore according to Rule 3 under AKFTA Rules of Origin
Legal Text. Please refer to Rule 3 of http://www.fta.gov.sg/akfta/annex3rulesoforigin.pdf.
2.
If your product is not Wholly Obtained,
a. Check if your product falls under Product Specific Rules under “Letter
of Understanding for the Amendment of Product Specific Rules”
http://www.fta.gov.sg/akfta/lou_akfta_amendment_psr.pdf.
Your
product will have to follow the specific Rules of Origin defined if it
falls under this agreement.
b. If your product does not fall under Product Specific rules, your product
will have to either meet the Regional Value Content of 40% FOB price
or Change in Tariff Headings (first 4 digit of HS Code). Please refer to
Rule 4 of http://www.fta.gov.sg/akfta/annex3-rulesoforigin.pdf.
Please take note that Operations and Processes as specified according to:
1. Rule
8
under
AKFTA
Rules
of
Origin
Legal
Text
http://www.fta.gov.sg/akfta/annex3-rulesoforigin.pdf and,
2. Non-qualifying operations for Textile & garment under explanatory Notes to
Annex 3 http://www.fta.gov.sg/akfta/annex_3_appendix_3.pdf
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.
3. Singapore
Customs
Minimal
Operation
http://www.customs.gov.sg/NR/rdonlyres/01FDFC8A-F652-4BDD-A8A361D7A5AAA07B/12922/MinimalOP.doc
will not be taken into account when determining the Rules of Origin.
For Korea-Singapore Free Trade Agreement (KSFTA):
To be considered as Originating Goods under KSFTA,
1. Your product will be considered originating if it is Wholly Obtained or
Produced in Singapore according to Article 4.1 under Rules of Origin Legal
Text.
http://www.fta.gov.sg/ksfta/koreasingapore%20free%20trade%20agreement%20(ksfta)_chap4.pdf
2. If your product is not Wholly Obtained, it will be subjected to the Product
Specific Rules as stated in Annex 4A: Specific Rules of Origin. Please refer to
http://www.fta.gov.sg/ksfta/annex%204a%20%20specific%20rules%20of%20origin.pdf
Please take note that Operations and Processes as specific according to Article
4.16 under Rules of Origin Legal Text will not be taken into account when
determining the Rules of Origin. http://www.fta.gov.sg/ksfta/koreasingapore%20free%20trade%20agreement%20(ksfta)_chap4.pdf
Step 5: Comply with the documentation procedures
If your product is able to benefit from the Preferential Concessions and meet the Rules of
Origin, you may start the documentation procedures to apply for relevant Preferential
Certificate of Origin.
1)
2)
3)
Register your factory with Singapore Customs.
Submit Manufacturing Cost Statement for approval.
Apply for Preferential Certificate of Origin for each shipment.
For information on the above 3 documentation procedures, please refer to
http://www.customs.gov.sg/leftNav/trad/Certificates+of+Origin.htm
Step 6: Sent product and Preferential Certificate of Origin to Importer
Once you have completed the above 5 steps, your product would be ready to enjoy the
preferential concessions. Send your product and Preferential Certificate of Origin for that
shipment to your importer.
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.
Your importer will be able to enjoy the preferential concessions upon showing Korean
Customs the Preferential Certificate of Origin when clearing the product.
Please keep all your documents for any post verification according to the period stated
below:
For AKFTA = 3 Years
For KSFTA = 5 Years
Legal Texts
Legal Texts for both FTAs are available for detailed information.
AKFTA Legal Texts can be found at the link below.
http://www.fta.gov.sg/fta_akfta.asp?hl=3
KSFTA Legal Texts can be found at the link below.
http://www.fta.gov.sg/fta_ksfta.asp?hl=22
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.
General Steps in use Singapore’s FTA with Korea
for Exports (Flowchart)
Steps to using Singapore’s FTA with Korea
Step 1: Know your product’s HS Code
Step 2: Find out normal import duty rate (MFN Rates) and
your product’s concession rate for intended FTA *
No
Step 3: Compare if there is
monetary benefit in using FTA
No monetary
Benefit
Yes
Step 4: Check and meet the
Rules of Origin for your
product **
No
Cannot Use
Yes
Step 5: Comply with documentation procedures
Step 6: Sent product and Preferential
Certification of Origin to Importer
* For a quick check, you can make use of the following:
Singapore FTA website (Korea’s Preferential Tariff Rate and Rules of Origin):
http://www.fta.gov.sg/tariff_calculator.asp
Korea Customs website (Korea’s Import Duty):
http://english.customs.go.kr/kcsweb/user.tdf?a=user.customtariff.CustomTariffApp&c=1001&mc=ENGLISH_IN
FORMATION_KOREA
** For Rules of Origin on Korea-Singapore Free Trade Agreement or ASEAN-Korea Free Trade Agreement, Please refer
to respective flow chart.
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.
ASEAN Korea Free Trade Agreement
Rules Of Origin for Exports (Flowchart)
AKFTA Rules of Origin (ROO)
Is your product Wholly
Obtained or manufactured
within Singapore?
Yes
May Qualify
No
Yes
Does your product falls under
Product Specific Rules? *
Your product has to meet
the Rules as stated *
No
Does your product meet
Regional Value Content of 40%
FOB price? **
Yes
May Qualify
No
Does the first 4-digit of your
product’s non-originating materials
HS Code defers from the first 4-digit
of your product HS Code? ***
Yes
May Qualify
No
Does not qualify
* Please refer to http://www.fta.gov.sg/akfta/lou_akfta_amendment_psr.pdf for the list of products and their
criteria under Product Specific Rules.
** Regional Value Content =
x 100%
*** Non-originating materials are materials which do not qualify under the specific FTA which your product
would be exported under.
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.
Korea Singapore Free Trade Agreement
Rules Of Origin for Exports (Flowchart)
KSFTA Rules of Origin (ROO)
Is your product Wholly
Obtained or manufactured
within Singapore?
Yes
May Qualify
No
Does your product falls under
Product Specific Rules? *
Yes
Your product is to
meet the Rules as
stated *
No
Does not qualify
* Please refer to http://www.fta.gov.sg/ksfta/annex%204a%20-%20specific%20rules%20of%20origin.pdf for
the list of products and their criteria under Product Specific Rules.
All information is provided by IE Singapore to you in good faith, without any representation or warranty, and does not
constitute professional advice. IE Singapore or its employees shall not be held responsible for any consequence arising
from your reliance on any information provided by us. You are advised to consult your own professional advisors.