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
- U.S. Imposes Steel Tariff on Korean Imports
- Smuggling in Korea (밀수출입죄)
- Part-time Worker Annual Paid Leave Obligations under the Korean Labor Standards Act
- Korean Tax Incentives for 2020: Korean Tax Law Updates
- Tax Incentives May Decrease for Foreign Companies doing Business in Korea: Tax Law Updates
- Amendment to Korea’s Intellectual Property Registration System: Korea IP Law Updates
- Korean Year-End Tax Settlement: Common Errors & Omissions
- Is Korea Heading into a Recession? A Winnowing out Process by Tom Coyner
- Is Samsung Doomed? No Innovation Price Trap
- Expanding your business into Asia? Use Korea as a Test Bed