Guide to Utilize RCEP
in Korea
RCEP Webinar, marking the 2nd year of EIF
21st December 2023

KOREA CUSTOMS SERVICE

Contents

Ⅰ. RECP Overview
Ⅱ. Import & Export Datautilizing RCEP
Ⅲ. RCEP Implementation in Korea

KOREA CUSTOMS SERVICERCEP Overview
01. Korea’s FTA Conclusion

Ⅰ

02. EIF of RCEP
03. Significance of RCEP
04. Expected Effects of RCEP

KOREA CUSTOMS SERVICE

01. Korea’s FTA Conclusion
EIF
Agreements /Countries

21A / 59C

Accumulative
Proportion(%)

78.3

Concluded

Under Negotiation

Under Research

4A / 4C

6A / 14C(Philippines, Central
America(Guatemala)Ecuador, UAE)

(KR-CN-JP), MERCOSUR,
Russia, Malaysia, Uzbekistan,
GCC)(EAEU, PA, Mexico, Georgia)

80.1

88.2

90.3

4A /10C

KOREA CUSTOMS SERVICE02. Entry into Force of RCEP
◈ What is RCEP (Regional Comprehensive Economic Partnership) ?
• The largest multilateral trade agreement concluded among 15 countries including 10
ASEAN , China, Japan, Australia, New Zealand, and Korea in pursuit of free trade in the region.
• The 1st Trade Agreement between Korea and Japan
RCEP Parties
RoK, 10 ASEAN (Brunei, Cambodia,
Laos, Malaysia, Myanmar, Philippines,
Singapore, Thailand, Vietnam, Indonesia),
China, Japan, Australia, New Zealand

KOREA CUSTOMS SERVICE02. Entry into Force of RCEP
Date of EIF of each Party

Parties

Date of EIF

Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, Australia, New Zealand1st January 2022

Korea

1st February 2022

Malaysia

18th March 2022

Indonesia

2nd January 2023

Philippines, Myanmar

Under process

Tariff Reductions Schedule

Parties

Implementing Year

Japan, Indonesia, Philippines- The first year : period from the date of EIF until the following 31 March- Each subsequent year : 12-month period starting on 1 April of that year

Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam,
China, Australia, New Zealand, RoK, Malaysia- The first year : period from the date of EIF until the following 31 December- Each subsequent year : 12-month period starting on 1 January of that yeare.g.) As of 21st December 2023 :(Korea) the 2nd Year after EIF, (Japan) the 3rd Year after EIF
KOREA CUSTOMS SERVICE

03. Significance RCEP
(1) Mega FTA of the world’s largest economic scale
Population

Trade

GDP
RCEP
30.8%

RCEP
29.7%

RCEP
31.9%

(2) The 1st FTA with Japan◈ Elimination of customs duties of Korea & Japan : within 20 years, 83.0% of the entire products* bilateral import amount in average, during 2012-2013

Concession of Korea
Number of ProductConcession of Japan

Amount of Import fromJapan

Number of ProductAmount of Import from
Korea

Number

Proportion

Value($)*

Proportion

Number

Proportion

Value($)*

Proportion

10,15883.0%

472.8 billion

76.0%

7,548

83.0%

290.5 billion

78.0%

KOREA CUSTOMS SERVICE

04. Expected Effects of RCEP
Integrated
Supply Chain

1

Expanded export is expectedthanks to Unified Origin
Criteria, integrated raw
material supply chain frommultilateral accumulation

2

RCEP

Able to select 1
preferable Agreement
among multiple
Agreements when tradingwith China or ASEAN

3
Streamlined
Procedure

ExpandedExport to JapanAs the 1st FTA with Japan,

RCEP will strengthen export
competitiveness of Korean
goods when entering JapanesemarketMultiple Agreementswith 1 Partner
Country

4

Streamlined procedurethrough self-certification by
Approved Exporter helps
reduce trade cost forbusinesses and provide
convenience for utilizing
FTA

KOREA CUSTOMS SERVICE

Import & Export
Data utilizing RCEPⅡ

01. Korea’s Import $ Export data utilizing RCEP
02. Each Party’s RCEP Utilization – Export & Import
03. RCEP Utilization by Products – Export & Import
04. Korea’s Import $ Export data with Japan under RCEP

KOREA CUSTOMS SERVICE

01. Korea’s Import $ Export data utilizing RCEP
(Unit: million $, case)

PeriodExportAmountImportCases

AmountCases

Feb – Dec, 2022 (11 months)

3,319

39,998

5,628

77,837

Jan – Oct, 2023 (10 months)

3,139

41,7496,143

114,795• (Export Utilization) The number of RCEP C/O issued by the issuing authorities(Customs and KCCI)※ Self-issued certificates by Approved Exporters are not reported to Customs authority and notcounted for utilization rate.

• (Import Utilization) Data of import applied with preferential tariff under RCEP
KOREA CUSTOMS SERVICE02. Each Party’s RCEP Utilization - Export(Period: Jan~Oct 2023, Unit: million$, %)
Party

China

29.7%

Japan
60.8%

Amount Proportion

1

Japan

1,909

60.8

2

China

933

29.7

3

Thailand

138

4.4

4

Viet Nam

65

2.1

5

Singapore

34

1.1

6

Indonesia

28

0.9

7

Australia

20

0.6

8

Malaysia

9

0.3

9

Philippines

1

0.0

10

New Zealand

0.1

0.0

3,139

100

Total

KOREA CUSTOMS SERVICE02. Each Party’s RCEP Utilization - ImportSingapore 1%

China
38.8%

Others 1.6%

Japan
50.6%

(Period: Jan~Oct 2023, Unit: million$, %)Party

AmountProportion

1

Japan

3,108

50.6

2

China

2,386

38.8

3

Thailand

489

8.0

4

Singapore

64

1.0

5

Viet Nam

40

0.6

6

Indonesia

37

0.6

7

Malaysia

14

0.2

8

New Zealand

3

0.1

9

Cambodia

2

0.0

10

Philippines

0.1

0.0

6,143

100

Total

KOREA CUSTOMS SERVICE

03. RCEP Utilization by Products - Export(Period: Jan~Oct 2023, Unit: million$, %)No.

HS 6 digits

Description

12841.90

Lithium oxide (for battery)

695.0

22.1

2

2833.24

Nickel sulphate (for battery)

126.1

4.0

3

3902.30

polymers of propylene (plastic)

95.5

3.0

4

2710.19

Petroleum oil preparations

94.5

3.0

5

3920.62

PET plate, PET sheet

85.6

2.7

6

8529.90

Other electrical apparatus and its part

70.0

2.2

7

7606.12

Aluminum alloys plate·sheet·strip

56.4

1.8

8

3907.40

Polycarbonates

48.0

1.5

9

3901.40

Ethylene-alpha-olefin copolymers (solar battery)

47.5

1.5

10

3907.61High viscosity PET raw material (plastic)

46.4

1.5

Total amount of top 10 items

1,365

45.3

Total sum

3,139

100

AmountProportion

KOREA CUSTOMS SERVICE

03. RCEP Utilization by Products - Import(Period: Jan~Oct 2023, Unit: million$, %)No.

HS 6 digits

Description

12825.20

Lithium oxide 〮 hydroxide (for battery)

1,711.527.9

22710.19

Petroleum oil preparations(lubricating)

531.9

8.7

3

2707.30

Xylene (solvent for rubber・plastic)

196.4

3.2

4

6204.62

Cotton suit・pants for women

158.1

2.6

5

2825.90

Inorganic salts・metallic oxides

152.1

2.5

6

6110.30

Man-made knitted or crocheted fabrics

137.7

2.2

7

3004.90

Other medicaments for retail

92.6

1.5

8

6907.21

Ceramic flags・tile

88.4

1.4

9

3815.19

Iron, titanium catalyst

75.4

1.2

10

3815.11

Nickel catalyst

70.4

1.1

Total amount of top 10 items

3,215

52.3

Total sum

6,143

100.0

AmountProportion

KOREA CUSTOMS SERVICE

04. Korea’s Export Data with Japan under RCEP
(Period: Jan~Oct 2023, Unit: million$, %)No.

HS 6 digits

Description

12833.24

Nickel sulphate (for battery)

126.1

6.6

2

3902.30

Polymers of propylene (plastic)

92.8

4.9

3

3920.62

PET plate, PET sheet

80.0

4.2

4

7606.12

Aluminum plate, sheet

56.5

3.0

5

3907.61High viscosity PET raw material (plastic)

46.4

2.4

6

3906.90

Acryl polymers (paper, cosmetics)

41.3

2.2

7

3901.40

Ethylene-alpha-olefin copolymers (solar battery)

36.0

1.9

8

5603.11

Nonwovens

34.0

1.8

9

2710.19

Petroleum oil preparations (lubricant)

32.9

1.7

10

5503.20

Polyesters fiber

32.6

1.7

Total amount of top 10 items

579

30.3

Total sum

1,909

100.0

Total

AmountProportion

KOREA CUSTOMS SERVICE

04. Korea’s Import Data with Japan under RCEP
(Period: Jan~Oct 2023, Unit: million$, %)No.

HS 6 digits

Description

12707.30

Xylene (solvent for rubber・plastic)

2

2710.1933004.90

Petroleum oil preparations(for lubricant)
Other medicaments for retail43815.19

5AmountProportion

196.4

6.3

158.8

5.1

92.5

3.0

Iron, titanium catalyst

75.4

2.4

2906.12Cyclohexanol, methylcyclohexanols anddimethylcyclohexanols (varnish)

69.9

2.2

6

3815.11

Nickel catalyst

69.4

2.2

7

7410.11

Foil of refined copper (electric apparatus)

65.9

2.1

8

2825.20

Lithium oxides and hydroxides (battery)

59.6

1.9

9

2825.90

Hydrazine and hydroxylamine and their oxides

52.0

1.7

10

7403.19

Other refined copper alloys

50.3

1.6

Total amount of top 10 items

890

28.6

Total sum

3,108

100.0

Total

KOREA CUSTOMS SERVICERCEP Implementationin Korea
01. FTA implementation policy

Ⅲ- C/O issuance ∙ Approved Exporter ∙ Origin advance ruling

02. Administrative procedure to utilize FTA- Applying for C/O∙Preferential tariff treatment

03. Origin Verification- Procedure for export & import goodsᆞrequirement reviewᆞpost
actionᆞtaxpayer’s right)

KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification① C/O Issuance for export goods
Authority issued C/OIssuerAgreements

Notes

Customs Offices,

Self issued C/O
Exporter, Producer or Importer(KORUS) CompleteᆞIssue

Korea Chamber of Commerce & Industry (KCCI)Singapore, ASEAN, India, Viet Nam, China, RCEP,
Cambodia, Israel, Indonesia• (EFTA) C/O for Swiss cheese is issued by theFederal Office of Agriculture of Switzerland

Chile, EU, EFTA, Peru, USA, Turkiye, Canada, New
Zealand, Colombia, Australia, Central America, UK, RCEP,
Cambodia, Israel
Only Approved Exporters are eligible for issuing C/O ofexporting goods, when the value of goods exceeds certain
amount stipulated in the Agreement• (EU,UK) 6,000 Euro• (Israel) 1,000 US$• (RCEP, Cambodia) Regardlessof the amount,only Approved
Exportersare eligible for certifyingthe originof goods

KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification② Procedure for issuing C/O by authority• Submit an application for C/O along with supporting documents to Customs or KCCI before shipment
Category

Supporting Documents▪ a copy of Export Declaration Certificate
Issuance▪ Invoice description or Contracts regarding export transactions▪ Origin Statement or its replacements (Customs may ask additional supporting documents, if needed)※ Submission of above documents are not a must for Approved Exporters

Reissuance

Correction▪ Explanatory statement for reissuance▪ Initially issued original C/O (copy is allowed on condition that the original will be submitted
within 30 days)▪ Supporting documents for correction▪ Explanatory statement for correction
KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification② Procedure for issuing C/O by authority▪ Eligibility of an applicant to apply for a C/ODocumentary
Review▪ Whether the date of application is valid (within 1 year from the date of shipment)▪ Whether origin criteria is satisfied▪ Whether application form is duly completed▪ Whether supporting documents are attached
Time and Costfor issuance▪ Up to 3 days (within 10 days when further examination is required)※ Less than 1 hour automated issuance for persons subject to exemption of
documentary review▪ 7,000 Korean won (free for customs issued C/O)

◈ Person subject to exemption of documentary review (renewed every year)
1. Approved Exporters
2. High-ranked enterprises in Law Compliances (AEO AA and higher)
3. Enterprises with ‘no issue’ from the origin investigation against exported
goods of a recent year
KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification
OnlineGo to
UNI-PASS or
homepage of
KCCIRegister assystem user

Log in withe-certification

Complete anapplication
for C/O
issuance

Review andapprovalC/O Issued(Print out)

③ Procedure for self issuing C/O• Exporter, producer or importer completes a C/O by himself as stipulated in the Agreement based on
the Origin Statement or other origin proving documents.
• Manage the history of self issuing C/O
PrepareSignature Card

Designate
Signatories

Complete C/O
and Sign

Make a ledger forthe self issued C/O

Self

Attachment toCustoms Act

Signature,
department,
position, name,date/reason for
designation,
termination
date/reason• Name of Agreement• Country of Origin / Origin Criteria• Name of exporter• Exporter’s contact ∙ fax• Signature of exporter• Date of Signature• Serial number• C/O signature date
• Number of im/export declaration &acceptance date
• Description∙HS∙quantity/value• Country of origin∙other party of contract• FTA∙Origin criteria

KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification④ Questions & Answers[Q&A1] Tariff rate application priority

Q. While checking the application of RCEP preferential tariff, ICT tariff rate other than MFN
is also checked. What is tariff rate application priority in Korea?
A. If ICT rate is lower than MFN rate, then ICT rate is firstly applied.
If RCEP rate is same or higher than ICT rate, ICT rate is firstly applied.

However, when RCEP rate and ICT rate is the same, importer can apply RCEP rate.

KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification④ Questions & Answers[Q&A2] Different HS Code
Q. There is a case where HS Code required by importing country (Korea) is different from what isindicated on a C/O issued by issuing authority of exporting country. How can it be dealt within exporting country? Does Korea have any regulations with regard to HS code discrepancy?
A. 1) When ‘HS Code’ is not a mandatory field on a C/O (ex, Korea-EU FTA, etc.)-> Apply Preferential Tariff

2) When ‘HS Code’ is a mandatory (ex, AK FTA, RCEP, etc.)(1) If origin criteria according to HS Code indicated on a C/O meets the origin criteria
according to HS code indicated in import declaration -> Apply Preferential Tariff(2) or decided on a case-by-case basis
KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (1) Origin Certification④ Questions & Answers
Case-by-Case Decision
Apply
Preferential
Tariff① Correct C/O and apply preferential tariff
Satisfy② If C/O correction is not accepted by the issuing authority ofexporting country, apply preferential tarifff and thenUnsatisfied
request origin investment to the Customs that has control
Unidentifiable
over the case.
ExampleOrigin Criteriaof HS CodeIn C/O

Origin Criteriaof HS Code in
Import Declaration

WO

WO or
RVC or CTH

The goods is originating as it was wholly obtained in theexporting country

RVC 40%

RVC 35%

The goods is originating as it exceeds RVC 35%

RVC 40%

RVC 40% or CTH

Reason for Determination

The goods is originating if it satisfies either RVC or CTH
KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (2) Approved Exporter① Approved Exporter• Approved Exporter is a system where Customs authority offers the right to issue C/O to exporters who are
certified to able to prove and manage country of origin (Korea-EU, Korea-U.K., RCEP); or curtail requirements ofsupporting documents for authority-issued C/OCompany specific Approved Exporter

Product specific Approved Exporter

Scope of benefit

Every items of all Agreement

For certified Agreement, HS 6 digits

Term of validity

5 years

5 years

Certifying
authority
Requirements

Main Customs Offices – Incheon AirportᆞSeoulᆞBusanᆞIncheonᆞDaeguᆞGwangju andPyeongtaek Customs

Origin proving ability and law compliancefor each FTA partner countries

Origin proving ability and law compliance fordifferent HS 6 digits
KOREA CUSTOMS SERVICE1. FTA Implementation policy – (2) Approved Exporter② Benefits for Approved Exporter stipulated in different Agreements
Agreements

Korea-EU FTA , Korea-U.K. FTA
Korea-ASEAN, Korea-Singapore,
Korea-India, Korea-China, Korea-Vietnam

After authorized as Approved Exporter▪Become entitled to self-issue D/O provided that the value of export goods
is above 6,000 euros▪Do not need to submit attached documents when issuing C/O by authority▪ Exempted with Customs’ on-site check before issuing C/O▪ Offered with a right to self issue D/O

RCEP, Korea-Cambodia FTA▪ Do not need to submit attached documents when issuing C/O byauthority▪ Exempted with Customs’ on-site check before issuing C/O▪ offered with a right to self issue D/O provided that they export goods of

Korea-Israel FTA

which the value is above 1,000 US$▪Do not need to submit attached documents when issuing C/O by authority
KOREA CUSTOMS SERVICE

01. FTA Implementation policy – (3)Origin Advance Ruling
Key Contents of Advance Ruling

ApplicantExporter or Importer

Apply toKorea Customs Service

Items subject toadvance ruling

Products in question and raw materials used in the
production of the product

Country of origin;
Matters with regard to

Tariff classification, value or cost determination;
How to calculate added value generated in the production,
processing or manufacturing of the goods

KOREA CUSTOMS SERVICE02. FTA Utilization Process for Export

Requirement
Check

1

2

TariffClassification

Check tariff concession
and tariff rate

Prepare retroactive
origin verification

Keep thedocuments8

7

3
Check origin criteria

4Prepare origin
documents

C/O
Issuance

Origin Verification
Preparation

Issue C/O
Determine country(authorityᆞself)of origin

6

5

KOREA CUSTOMS SERVICE02. FTA Utilization Process for Import

Preferential Treatment
Requirement
Check

1

2

Tariff classificationof imported goods

Check tariff concession
and tariff rate

3

Import Declaration &Apply for preferential tariff
treatment with required
documents

Apply forPreferential Treatment

Prepare retroactive
origin verification
Keep
Documents

7

Keep
the documents

6

Acceptanceof import declaration& approval on
preferential treatment

5

Customs examination

4

KOREA CUSTOMS SERVICE02. FTA Utilization Process for Import◈ Application for Preferential Tariff Treatment• Submit an application with an import declaration before acceptance of import declaration(Post-importation application is possible within 1 year from the acceptance of importdeclaration)• You have to own the origin supporting documents when applying for preferential tariff
treatment and submit to the Customs upon request.

◈ ◈ Minor errors in C/O• Minor errors in C/O do not affect the integration and validity of C/O itself unless theerrors influence the significant matters such as country of origin of goods.

• If these minor errors can be checked with commercial invoice or trade contract, the C/O
is not requested to be corrected.
KOREA CUSTOMS SERVICE

03. Origin Verification(1) Origin Verification Process for Imported Goods
Domestic Investigation

Data Analysis•

Data compiling, Information
analysis•

Select the subject of origin
verification•

Certificate of Origin (formal requirement)•

Documents kept by importer (shipping
requirement)•

Post Actions•

Reply with the investigation result•

Notify the investigation result(charging or admit preferential
treatment)

Origin questionnaire (origin requirement)International Investigation•••

Written investigation on exporter (send an
inquiry)
Visit investigation on exporter (international
on-site)Request investigation to the other party(international indirect)

KOREA CUSTOMS SERVICE

03. Origin Verification(2) Origin Verification Process for Exported Goods
1.Notify exporterof written
investigation

2. Exporter
provides requested
documents

3. Review thesubmitted
documents

4. Notify
exporter of theinvestigation result

5. Notify the otherParty of theinvestigation result(3) Requirements to be verified•

Parties concerned✓ Applied with preferences under the bilateral trade Agreement•

Product✓ Subject to tariff concession(HS Code)•

Procedural✓ Conformity to the procedures stipulated in the Agreement•

Country of origin✓ Satisfaction of origin criteria•

Shipping✓ Direct consignment not through the 3rd country

KOREA CUSTOMS SERVICE

03. Origin Verification(4) Follow-up Actions of Origin Verification

KOREA CUSTOMS SERVICE

03. Origin Verification(5) Taxpayers’ rights in the process of Origin Verification

KOREA CUSTOMS SERVICETHANK YOU
Korea Customs Service
FTA Implementation Division
Jeong ,Goo Chun

KOREA CUSTOMS SERVICE