Voluntary Report - public distribution

**Date:** 2/7/2005

**GAIN Report Number:** KS5006

KS5006

**Korea, Republic of**

**Agricultural Situation**

**2005 Special Emergency Tariffs on 44 Agriculture, livestock products**

**2005**

**Approved by:**

![](media/image1.wmf)Larry M. Senger

U.S. Embassy

**Prepared by:**

Sunyoung Choi/ Stanley S. Phillips

**Report Highlights:** On December 27, 2004, the Ministry of Finance and
Economy (MOFE) announced revised CY 2005 emergency tariffs for 44
imported agriculture and livestock products including mung beans, red
beans, soybeans, etc. The announcement noted that emergency tariff rate
revisions are intended to prevent surges in imports from hurting local
industries. This revision went into effect on January 1, 2005 and will
remain in place until December 31, 2005. This report provides changes in
basic trigger volumes and emergency tariffs for 2004 & 2005.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Seoul \[KS1\]

\[KS\]

On December 27, 2004, the Ministry of Finance and Economy (MOFE)
announced revised CY 2005 emergency tariffs for 44 imported agriculture
and livestock products including mung beans, red beans, soybeans, etc.
The announcement noted the emergency tariff rate revisions are intended
to prevent surges in imports from hurting local industries. This
revision went into effect on January 1, 2005 and will in place until
December 31, 2005. This report provides changes of the basic trigger
volume and emergency tariffs for 2004 & 2005.

Comparison Table for the Basic Trigger Volumes of the Special Emergency
Tariffs on Agricultural, Forest and Livestock Products

+------------+-------------------------+--------+-------+------------+
| **H.S.     | **Commodity**           | *      |       | *          |
| Code**     |                         | *Basic |       | *Special** |
|            |                         | T      |       |            |
|            |                         | rigger |       | *          |
|            |                         | Volume |       | *Emergency |
|            |                         | (      |       | Tariffs    |
|            |                         | metric |       | (%)**      |
|            |                         | tons)  |       |            |
|            |                         | 2/**   |       |            |
+------------+-------------------------+--------+-------+------------+
|            |                         | CY     | CY    |            |
|            |                         | 2004   | 2005  |            |
+------------+-------------------------+--------+-------+------------+
| 07         | Other mung beans        | 32,264 | 3     | 810        |
| 13.31.9000 | (excluding for seed)    |        | 3,052 |            |
+------------+-------------------------+--------+-------+------------+
| 07         | Other red beans         |        |       | 561        |
| 13.32.9000 | (excluding for seed)    |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 10         | Buckwheat               | 4,685  | 3,443 | 341        |
| 08.10.0000 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 10         | Other cereals           |        |       | 1067       |
| 08.90.0000 | (excluding buckwheat,   |        |       |            |
|            | millet, canary seed)    |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Other cereal flour      | 451    | 636   | 1067       |
| 02.90.9000 | (excluding rice, rye,   |        |       |            |
|            | corn, wheat, meslin or  |        |       |            |
|            | barley flour)           |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Groats and meal of      |        |       | 384        |
| 03.11.0000 | wheat                   |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Groats and meal of oats |        |       | 739        |
| 03.19.2000 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Groats and meal of      |        |       | 1067       |
| 03.19.9000 | other cereals           |        |       |            |
|            | (excluding wheat, oats, |        |       |            |
|            | corn, rice or barely)   |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Pellets of wheat        |        |       | 384        |
| 03.20.1000 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Pellets of other        |        |       | 1067       |
| 03.20.9000 | cereals (excluding      |        |       |            |
|            | wheat, rice, barely)    |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Rolled or flaked grains |        |       | 739        |
| 04.12.0000 | of oats                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Rolled or flaked grains |        |       | 1067       |
| 04.19.9000 | of other cereals        |        |       |            |
|            | (excluding rice,        |        |       |            |
|            | barely, oats)           |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Other processed grains  |        |       | 739        |
| 04.22.0000 | of oats                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Other processed grains  |        |       | 1067       |
| 04.29.1000 | of coix seed            |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Other processed grains  |        |       | 1067       |
| 04.29.9000 | of other cereals        |        |       |            |
|            | (excluding barely,      |        |       |            |
|            | oats, corn or coix      |        |       |            |
|            | seed)                   |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Flour, meal and powder  | 106    | 165   | 405        |
| 05.10.0000 | of potato               |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Flakes, granules and    |        |       | 405        |
| 05.20.0000 | pellets of potato       |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Wheat starch            | 7,746  | 2,028 | 67         |
| 08.11.0000 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Other starches          |        |       | 1067       |
| 08.19.9000 | (excluding wheat, corn, |        |       |            |
|            | potato, manioc and      |        |       |            |
|            | sweet potato)           |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 11         | Inulin                  |        |       | 1067       |
| 08.20.0000 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Soybean (whether or not | 3      | 32    | 649 1/     |
| 01.00.9000 | broken, excluding       | 41,721 | 5,323 |            |
|            | soybean oil and oil     |        |       |            |
|            | cake)                   |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | In shelled ground-nuts  | 3,369  | 4,845 | 307        |
| 02.10.0000 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Shelled ground-nuts     |        |       | 307        |
| 02.20.0000 | whether or not broken   |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Raw ginseng             | 708    | 41    | 297        |
| 11.20.1100 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Major root of white     |        |       | 297        |
| 11.20.1210 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Ginseng tail of white   |        |       | 297        |
| 11.20.1220 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Minor root of white     |        |       | 297        |
| 11.20.1240 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Major root of red       |        |       | 1005       |
| 11.20.1310 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Ginseng tail of red     |        |       | 1005       |
| 11.20.1320 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Minor root of red       |        |       | 1005       |
| 11.20.1330 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Red ginseng powder      |        |       | 1005       |
| 11.20.2210 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Tablet or capsule of    |        |       | 1005       |
| 11.20.2220 | red ginseng             |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Other red ginseng       |        |       | 1005       |
| 11.20.2290 | powder (excluding       |        |       |            |
|            | tablet or capsule)      |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Leaves and stems of     |        |       | 1005       |
| 11.20.9100 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Ginseng seed            |        |       | 1005       |
| 11.20.9200 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 12         | Other Ginseng           |        |       | 1005       |
| 11.20.9900 | (excluding root,        |        |       |            |
|            | powder, leaves, stems   |        |       |            |
|            | or seed)                |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 13         | Red ginseng extract     |        |       | 1005       |
| 02.19.1210 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 13         | Red ginseng extract     |        |       | 1005       |
| 02.19.1220 | powder                  |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 13         | Other red ginseng       |        |       | 1005       |
| 02.19.1290 | extract (excluding red  |        |       |            |
|            | ginseng extract or      |        |       |            |
|            | powder)                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 21         | Red ginseng tea         |        |       | 1005       |
| 06.90.3021 |                         |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 21         | Other processed red     |        |       | 1005       |
| 06.90.3029 | ginseng products        |        |       |            |
|            | (excluding red ginseng  |        |       |            |
|            | tea)                    |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 33         | Oleoresin of red        |        |       | 1005       |
| 01.90.4520 | ginseng                 |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 23         | Flours, meals and       | New    | 2     | 12         |
| 01.10.1000 | pellets of meat or meat |        | 0,327 |            |
|            | offal                   |        |       |            |
+------------+-------------------------+--------+-------+------------+
| 23         | Other mixed feeds of    | 13,985 | 6,879 | 94         |
| 09.90.1091 | milk replacer           |        |       |            |
|            | (excluding for swine,   |        |       |            |
|            | poultry, fish and       |        |       |            |
|            | bovine)                 |        |       |            |
+------------+-------------------------+--------+-------+------------+

Note 1/ 649% or 1,274 Won/kg, whichever is greater.

Note 2/ The base trigger volume refers to the volume obtained by
multiplying the coefficient as determined below (hereinafter referred to
as the " base trigger coefficient") by the average import quantity of
the preceding three years for which data are available and by summing up
the annual quantity changes in domestic consumption of the relevant
goods as compared with the preceding year for the recent years in which
data are available. If the base trigger volume is below 50/100 of the
average import quantity of the preceding three years, the base trigger
volume is 105/100 of the average import quantity of the preceding three
years.

1.  If the ratio of the import quantity to total domestic consumption of
    the relevant goods for the preceding three years in which data are
    available (hereinafter referred to as " market share") is below
    10/100, the base trigger coefficient is 125/100

2.  If the market share exceeds 10/100 but is below 30/100, the base
    trigger coefficient is 110/100

3.  If the market share exceeds 30/100, the base trigger coefficient is
    105/100, and

4.  If the market share is incalculable, the base trigger coefficient is
    125/100

(Source: Article 90, Enforcement Decree of Customs Act)