1. When AKFTA takes effect, does it mean tariff on all goods immediately become extinct?
The effectuation of FTA would not lead to the whole abolition of tariff all at once. Tariff is supposed to be exempted under tariff schedules of each country. Even if tariff on Normal Track is completely lifted starting 2012, the exemption on Sensitive Track will be carried out gradually until 2020.
2. Is it a must to take CO offline in the fixed form?
The case of Korea-made goods, a printed version of CO is allowed to use. But it must be printed out in color in order to avoid any possible disputes over its authenticity.
3. If tariff is prepared because CO of Korea-ASEAN FTA hasn’t been prepared prior to customs clearance, how to apply for the refund on preferential tariff afterward?
When you go through customs declaration for import, make sure to say you will claim a refund as stipulated in KOREA-ASEAN FTA and submit the CO within a year.
4. What are the products excluded from tariff reduction and elimination by Korea?
The products excluded by Korea are fish and aquatic invertebrates (29 tariff lines), prepared foodstuffs (21 tariff lines), meat and edible offal (18 tariff lines), edible vegetables and certain roots (11 tariff lines), edible vegetables and certain roots (11 tariff lines), and cereal, edible fruits and nuts, coffee and tea and products of milling industry (19 tariff lines). For a more detailed listing, check: http://www.aseansec.org/akfta.htm
5. What are the conditions exporters need to fulfill to enjoy the preferential tariff?
Compliance to Rules of Origin (ROO) is important in exporting products under the preferential trading arrangements. To qualify for preferential tariffs under AKFTA, exporters must meet two conditions: Regional Value Content (RVC) 40% or Change in Tariff Heading (CTH).
6. In the calculation of the RVC, can inputs or materials sourced from Korea be included? Can the same form of AKFTA be used to export to any one of the ASEAN member countries?
Cumulation includes all ASEAN countries and Korea. The Form AKFTA can be used for export to Korea as well as export to other ASEAN countries.
