Korea-EU FTA Part I: Custom Duties/Tariffs on Imports into Korea

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%)