Preferential Tariff Rate
tariff rates applied pursuant to Free Trade Agreement entered into force.
With the FTA entered into force, goods are categorized into immediate tariff reduction, staging reduction, and non-scheduled products with a fixed duty rate
Under Korea-ASEAN FTA, goods are classified into Normal Track, Sensitive List, and the Highly Sensitive List
the most fundamental tariff rate established in accordance with the domestic laws
rates that represent the level of customs duty rate, used in negotiations for tariff reduction
MFN (Most Favored Nation) Rate
MFN applied duty rate that is granted to non-contracting parties
Reciprocal Tariff (Korea-ASEAN FTA)
- If the FTA partner country exports a product of sensitive track which maintains its either non-scheduled or high duty rate, the importing country will also apply the same rate even though the product in question is entitled to tariff elimination under the Agreement.
- Reciprocal duty rate corresponding with the ASEAN state’s will also apply in Korea if the duty rate applied on the product importedby the ASEAN State from Korea is no higher than 10%.
e.g. Malaysia designates the motorcycle exported by Korea as a sensitive list so the preferential duty rate is not applied.
In this light, Korea is to apply the currently applied rate of 8% rather than the preferential duty rate at 3%. However, the currently applied duty rate on the product in Malaysia accounts for 5 %. Hence, Korea also applies a 5% of duty rate on the motorcycles imported from Malaysia.