• Korea Trade Review
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• v.43 no.1
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• pp.109-130
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• 2018

The cumulative standard is one of the criteria determining the origin of imported goods and is a provision that allows non-origin materials to be treated as origin goods when satisfying certain conditions. Regarding the Korea-Canada FTA, new cumulative standards were applied concerning cross accumulation of automobile products. It would benefit U.S. originating intermediate goods of HS code chapter 84, 85, 87, and 94 obtained into HS code heading from 8701 into 8706. We examine the effectiveness of crossover cumulative standards through the change in the import values of 84, 85, 87, 94, which are target items for cross cumulation. Only items designated for automobile parts were selected and analyzed. From the estimation results, significant changes appeared in 20 of the 35 items. It was found that the import amount increased significantly as of January 2015 or the rate of change in trend increases more than before. In addition, the estimation results show that Korean auto companies utilizing the cumulative standards through increased imports of auto parts form the U.S.