In order for an importer/exporter to benefit from the lowered tariff rates under the Korean-European Union FTA, the product must be recognized as a product either from Korea or an EU member nation.
Article 2 of the Protocol to the Korea-EU (the “Protocol”) provides that in order for a product to be recognized as a product under the Protocol , the product must either:
- “Wholly Obtained” within the territory of the Party; OR
- Has undergone “substantial transformation” within the territory of the Party.
Protocol Article 4 notes that “wholly obtained” means, in summary,:
- Minerals extracted and vegetables grown and harvested in the territory of the Party;
- Seafood taken from the territorial waters of the Party;
- Products made from (2) seafood on “factory ships;”
- Scrape and Waste derived from the manufacturing or processing in the territory of the Party.
A “factory ship” “vessel” must be registered in the territory of the Party, sail under their flag and 50% of the shares must be owned by a national within the territory of the Party.
Protocol Article 6 notes that “insufficient” to classify as a “substantial transformation” includes, in summary, mere:
- Preservation techniques for transport;
- Painting and polishing;
- Husking of cereals and rice, peeling of fruits, removal of seeds;
- Sifting, screening, sorting, classifying, grading or matching of products;
- Slaughter of animals;
- Assemble and disassemble of products.
- U.S. Imposes Steel Tariff on Korean Imports
- Australia Beef-Livestock Hit by Korea-U.S. FTA: Will Korea pen a FTA with Australia?
- Korea International Trade Orgaizations Chair calls for FTA with China
- Korean Intellectual Property Protection Strategies in Korea: Trademark Law Korea
- Positive Effects of Korea-EU FTA on Korean Car Brands? No Says Korean Car Lobby
- South Korean Act on International Judicial Mutual Assistance in Civil Matters: Obtaining Evidence via Korean Courts and the Korean Government for use in Proceedings Abroad
- Saenuri Party Maintains Control of Korean National Assembly. Philippine-born has been elected to the National Assembly
- The Death of Samsung by Tom Coyner
- Embezzelment, Tax Evasion and Bribery easier in Korea?
- Korea-US FTA to be Effective as Of March 15, 2012