Voluntary Report - public distribution

**Date:** 6/26/2006

**GAIN Report Number:** KS6069

KS6068

**Korea, Republic of**

**Agricultural Situation**

**2006 Special Emergency Tariffs on 44 Agriculture, Livestock Products**

**2006**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Sun Young Choi

**Report Highlights:**

On December 30, 2005, the Ministry of Finance and Economy (MOFE)
announced CY 2006 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
is effective as of January 1 and will remain in place until December 31,
2006. This report provides changes of basic trigger volumes and
emergency tariffs for 2005 and 2006.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Seoul \[KS1\]

\[KS\]

On December 30, 2005, the Ministry of Finance and Economy (MOFE)
announced CY 2006 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
is effective as of January 1 and will remain in place until December 31,
2006. This report provides changes of basic trigger volumes and
emergency tariffs for 2005 and 2006.

Comparison Table for Basic Trigger Volumes for Special Emergency Tariffs
on Agricultural, Forestry and Livestock Products

+-------------+--------------------------+--------+--------+----------+
| H.S. Code   | Commodity                | Basic  |        | Special  |
|             |                          | T      |        |          |
|             |                          | rigger |        | E        |
|             |                          | Volume |        | mergency |
|             |                          | (      |        | Tariffs  |
|             |                          | Metric |        | (%)      |
|             |                          | tons)  |        |          |
|             |                          |        |        |          |
|             |                          | 2/     |        |          |
+-------------+--------------------------+--------+--------+----------+
|             |                          | CY     | CY     |          |
|             |                          | 2005   | 2006   |          |
+-------------+--------------------------+--------+--------+----------+
| 0           | Other mung beans         | 33,052 | 33,308 | 810      |
| 713.31.9000 | (excluding for seed)     |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 0           | Other red beans          |        |        | 561      |
| 713.32.9000 | (excluding for seed)     |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Buckwheat                | 3,443  | 3,360  | 341      |
| 008.10.0000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other cereals (excluding |        |        | 1067     |
| 008.90.0000 | buckwheat, millet,       |        |        |          |
|             | canary seed)             |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other cereal flour       | 636    | 288    | 1067     |
| 102.90.9000 | (excluding rice, rye,    |        |        |          |
|             | corn, wheat, meslin or   |        |        |          |
|             | barley flour)            |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Groats and meal of wheat |        |        | 384      |
| 103.11.0000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Groats and meal of oats  |        |        | 739      |
| 103.19.2000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Groats and meal of other |        |        | 1067     |
| 103.19.9000 | cereals (excluding       |        |        |          |
|             | wheat, oats, corn, rice  |        |        |          |
|             | or barely)               |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Pellets of wheat         |        |        | 384      |
| 103.20.1000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Pellets of other cereals |        |        | 1067     |
| 103.20.9000 | (excluding wheat, rice,  |        |        |          |
|             | barely)                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Rolled or flaked grains  |        |        | 739      |
| 104.12.0000 | of oats                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Rolled or flaked grains  |        |        | 1067     |
| 104.19.9000 | of other cereals         |        |        |          |
|             | (excluding rice, barely, |        |        |          |
|             | oats)                    |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other processed grains   |        |        | 739      |
| 104.22.0000 | of oats                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other processed grains   |        |        | 1067     |
| 104.29.1000 | of coicis semen          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other processed grains   |        |        | 1067     |
| 104.29.9000 | of other cereals         |        |        |          |
|             | (excluding barely, oats, |        |        |          |
|             | corn or coicis semen)    |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Flour, meal and powder   | 165    | D      | N/A      |
| 105.10.0000 | of potato                |        | eleted |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Flakes, granules and     |        |        | N/A      |
| 105.20.0000 | pellets of potato        |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Wheat starch             | 2,028  | 1,772  | 67       |
| 108.11.0000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other starches           |        |        | 1067     |
| 108.19.9000 | (excluding wheat, corn,  |        |        |          |
|             | potato, manioc and sweet |        |        |          |
|             | potato)                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Inulin                   |        |        | 1067     |
| 108.20.0000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Soybeans (whether or not | 3      | 3      | 649 1/   |
| 201.00.9000 | broken, excluding        | 25,323 | 45,439 |          |
|             | soybean oil and oil      |        |        |          |
|             | cake)                    |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | In shelled ground-nuts   | 4,845  | 2,542  | 307      |
| 202.10.0000 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Shelled ground-nuts      |        |        | 307      |
| 202.20.0000 | whether or not broken    |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Raw ginseng              | 41     | 50     | 297      |
| 211.20.1100 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Major root of white      |        |        | 297      |
| 211.20.1210 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Ginseng tail of white    |        |        | 297      |
| 211.20.1220 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Minor root of white      |        |        | 297      |
| 211.20.1240 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Major root of red        |        |        | 1005     |
| 211.20.1310 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Ginseng tail of red      |        |        | 1005     |
| 211.20.1320 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Minor root of red        |        |        | 1005     |
| 211.20.1330 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Red ginseng powder       |        |        | 1005     |
| 211.20.2210 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Tablet or capsule of red |        |        | 1005     |
| 211.20.2220 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other red ginseng powder |        |        | 1005     |
| 211.20.2290 | (excluding tablet or     |        |        |          |
|             | capsule)                 |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Leaves and stems of      |        |        | 1005     |
| 211.20.9100 | ginseng                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Ginseng seed             |        |        | 1005     |
| 211.20.9200 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other Ginseng (excluding |        |        | 1005     |
| 211.20.9900 | root, powder, leaves,    |        |        |          |
|             | stems or seed)           |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Red ginseng extract      |        |        | 1005     |
| 302.19.1210 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Red ginseng extract      |        |        | 1005     |
| 302.19.1220 | powder                   |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 1           | Other red ginseng        |        |        | 1005     |
| 302.19.1290 | extract (excluding red   |        |        |          |
|             | ginseng extract or       |        |        |          |
|             | powder)                  |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 2           | Red ginseng tea          |        |        | 1005     |
| 106.90.3021 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 2           | Other processed red      |        |        | 1005     |
| 106.90.3029 | ginseng products         |        |        |          |
|             | (excluding red ginseng   |        |        |          |
|             | tea)                     |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 3           | Oleoresin of red ginseng |        |        | 1005     |
| 301.90.4520 |                          |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 2           | Flours, meals and        | 20,327 | 16,162 | 12       |
| 301.10.1000 | pellets of meat or meat  |        |        |          |
|             | offal                    |        |        |          |
+-------------+--------------------------+--------+--------+----------+
| 2           | Other mixed feeds of     | 6,879  | 8,958  | 94       |
| 309.90.1091 | milk replacer (excluding |        |        |          |
|             | for swine, poultry, fish |        |        |          |
|             | and bovine)              |        |        |          |
+-------------+--------------------------+--------+--------+----------+

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

Note 2/ The base trigger volume refers to the volume obtained by
multiplying the coefficient classified in each of the following
subparagraphs (hereinafter referred to as " base trigger coefficient")
by the average import quantity of the preceding three years for which
data are available and by summing up the changed quantity in comparison
with the domestic consumption of the relevant goods during the preceding
year. If the base trigger volume is below 105 percent of the average
import quantity of the preceding three years, the base trigger volume
shall be 105 percent of the average import quantity of the preceding
three years.

1.  If the percentage of the import quantity in the 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 percent: 125 percent

2.  If the market share is above 10 percent and below 30 percent: 110
    percent

3.  If the market share exceeds 30 percent: 105 percent and

4.  If the market share is incalculable: 125 percent

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

# Imposition of Special Emergency Tariff on Goods for Which Import Prices are Below Basic Trigger Prices 

(Unit: Korean Won / Kilogram)

+------------+-----------------------------+-------+------------------+
| H.S. Code  | Commodity                   | Basic | Special          |
|            |                             | Tr    |                  |
|            |                             | igger | Emergency Tariff |
|            |                             | Price | Amount (Krw)     |
+------------+-----------------------------+-------+------------------+
| 07         | Other mung beans (excluding | 313   | The tariff       |
| 13.31.9000 | for seed)                   |       | amounts depend   |
|            |                             |       | on Clause 4 of   |
|            |                             |       | Article 90 in    |
|            |                             |       | the Enforcement  |
|            |                             |       | Decree of the    |
|            |                             |       | Customs Act      |
+------------+-----------------------------+-------+------------------+
| 07         | Other red beans (excluding  | 288   |                  |
| 13.32.9000 | for seed)                   |       |                  |
+------------+-----------------------------+-------+------------------+
| 10         | Buckwheat                   | 221   |                  |
| 08.10.0000 |                             |       |                  |
+------------+-----------------------------+-------+------------------+
| 10         | Other cereals (excluding    | 132   |                  |
| 08.90.0000 | buckwheat, millet, canary   |       |                  |
|            | seed)                       |       |                  |
+------------+-----------------------------+-------+------------------+
| 11         | Wheat starch                | 604   |                  |
| 08.11.0000 |                             |       |                  |
+------------+-----------------------------+-------+------------------+
| 11         | Sweet potato starch         | 425   |                  |
| 08.19.1000 |                             |       |                  |
+------------+-----------------------------+-------+------------------+
| 11         | Other starches (excluding   | 132   |                  |
| 08.19.9000 | wheat, corn, potato, manioc |       |                  |
|            | and sweet potato)           |       |                  |
+------------+-----------------------------+-------+------------------+
| 11         | Inulin                      | 132   |                  |
| 08.20.0000 |                             |       |                  |
+------------+-----------------------------+-------+------------------+
| 12         | Soybean (whether or not     | 198   |                  |
| 01.00.9000 | broken, excluding soybean   |       |                  |
|            | oil and oil cake)           |       |                  |
+------------+-----------------------------+-------+------------------+
| 12         | In shelled ground-nuts      | 638   |                  |
| 02.10.0000 |                             |       |                  |
+------------+-----------------------------+-------+------------------+
| 12         | Shelled ground-nuts whether |       |                  |
| 02.20.0000 | or not broken               |       |                  |
+------------+-----------------------------+-------+------------------+
| 23         | Flours, meals and pellets   | 252   |                  |
| 01.10.1000 | of meat or meat offal       |       |                  |
+------------+-----------------------------+-------+------------------+
| 35         | Other modified starches     | 658   |                  |
| 05.10.9000 | (excluding                  |       |                  |
|            |                             |       |                  |
|            | 1\. Soluble starch:         |       |                  |
|            | amylogen                    |       |                  |
|            |                             |       |                  |
|            | 2\. Roasted starches        |       |                  |
|            |                             |       |                  |
|            | 3\. Pre-gelatinised or      |       |                  |
|            | swelling starch             |       |                  |
|            |                             |       |                  |
|            | 4\. Etherified or           |       |                  |
|            | esterified starches         |       |                  |
+------------+-----------------------------+-------+------------------+

Source: MOFE (Ministry of Finance and Economy)