Korea has implemented FTAs or like agreements with Chile, EFTA, ASEAN, Chile, India and now the EU. The Korea-EU FTA was implemented on July of 2011. I have already seen an increase in interest in entry by Europeans into the Korean market.
Korea is Europe’s fourth largest export destination behind the United States, Japan and China.
This is the first in a multipart article on the Korea-European Free Trade Agreement.
Custom Duties/Tariffs under the Korea-EU FTA for Items Entering Korea
- Cosmetics: Year 5: Duty Free (Presently 8%)
- Pharmaceuticals: Year 3: Duty Free (Presently 6% average)
- Medical Devices: Year 7: Duty Free (Presently 5% average)
- Agricultural: Year 3: 45% of Products Duty Free; Year 5: 65% of Products Duty Free; Year 10: 85% of Products Duty Free;Year 18: 95% of Products Duty Free. Tariffs High at Present and Vary Greatly Based on Product. Rice is protected.
- Chemicals: Year 5: Duty Free (Presently 6.2% average)
- Car Parts: Day 1: Duty Free (Presently 8%)
- Railroad Items: Year 5: Duty Free (Presently 5%)
- Large-Mid Cars: Year 3: Duty Free
- Small Cars: Year 5: Duty Free
- Textiles: Day 1: Nearly all Duty Free
- Iron/Steel: Year 3: Duty Free (Presently 7.2% average)
- Industrial Items: Year 5: Nearly All Duty Free
- Electronics/Machines: Day 1: 88% Duty Free (Presently 7.2% Average): Year 3: 97% Duty Free; Year 5: Nearly All Duty Free; Year 7: Duty Free
- Beer: Yearly Reduction of 3.7% over 7 years (Presently 30%)
- Whisky: Yearly Reduction 5% over 3 years (Presently 20%)
More good information on KorEU FTA to come. Links will be HERE.
Other articles that may be of interest:
- The British are Coming: U.K. Law Firms in Korea
- Korea-EU FTA: Country of Origin under the Kor-EU FTA
- Why are American Cars not Popular in Korea?: Decrease in Duties from FTA has not Helped Market Share
- Benefits to Korea in Free Trade Agreements with EU, ASEAN, US and Chile?
- Sales of Imported Cars Increase in Korea: American Cars Still Not Popular in Korea
- Korea Fair Trade Commission To Investigate European Car Makers
- Positive Effects of Korea-EU FTA on Korean Car Brands? No Says Korean Car Lobby
- Importing and Selling Wine in Korea Just got a Little Easier
- Camry Prices in Korea May be Cheaper from Next Year: Customer Benefits of the KORUS FTA
- Exit Ban of Foreigners in Korea for Not Paying Taxes, Custom Duties or Violation of Law: Immigration Law Basics
- Korea inks FTA with China
- U.S. Imposes Steel Tariff on Korean Imports