• Title/Summary/Keyword: FTA and country of origin

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A Study on FTA-related Administrative Efficiency Measures for Verifying the Origin (FTA 원산지검증행정의 효율화 방안에 대한 연구)

  • Chung, Jae-Wan
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.55
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    • pp.243-264
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    • 2012
  • This study is aimed to analyze problems related to FTA country of origin of goods verification which is increasing from 2006 and thereby to grope for solution of such problems and seek adequate FTA performance administration. It is found, through comparative analysis and statistics of last 8 FTAs so far Korea has concluded that there are major problems such as excessive verification processing due to complicated country of origin regulation etc. This paper suggests following policies of country of origin administration ; (1) Simplification of FTA country of origin rules (2) reciprocal cooperation between each country's Customs Authorities based on trust (3) rational measurement against corresponding country's Customs Authorities' misbehavior (4) enhancement of transparency in relation to processing rule of country of origin verification (5) securing FTA country of origin verification experts. For these improvements, upcoming FTA shall rule country of origin reasonably, simplification and transparency of rule is needed for established FTAs in relation to FTA performance administration with corresponding countries. Also it is necessary to revise FTA preferential tariff law and its related laws, and carry forward policies in accordance with medium and long term plan.

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A Study of Improvement of Issuance Authorities Choice for efficiency of FTA Certificate of Origin (FTA 원산지증명서 운용 효율화를 위한 발급기관 선정의 개선에 관한 연구)

  • Choi, Jun-Ho
    • International Commerce and Information Review
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    • v.10 no.1
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    • pp.155-174
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    • 2008
  • This study wished to inspect about certificate of origin issuance authorities subject in certificate of origin issuance mode by spread of FTA, and investigate about improvement plan of current certificate of origin issuance authorities choice for smoothness trade business our country in FTA age to be expanded gradually. Fundamental purpose and meaning of FTA strengthen industry competitive power of two countries because expand trade and investment between the agreement conclusion country, and is expected to esteem agreement target department's estimation at FTA certificate of origin issuance subject choice because is meaning that strengthen trade competitive power, and raise trade company's convenience. Therefore, our country FTA representative authorities is recognized authoritativeness and stability from trade company and trade connection authorities, and is suitable in legal application or institution that can propel with consistency about policy propelled hereafter has to be chosen, FTA agreement country is representative authorities that recognize, and to issue from customs services which is a government agency which can progress business is place of origin issuance business and the place of origin examination, is expected to become more and more effective.

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A Study on the Implication and Comparative Analysis of Criteria to Determine Origin under Korea's FTA with USA, EU and ASEAN (한국의 주요 FTA별 원산지 결정기준의 비교와 시사점)

  • Jung, Jae-Woo;Lee, Kil-Nam
    • International Commerce and Information Review
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    • v.13 no.3
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    • pp.143-166
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    • 2011
  • This paper describes the characteristics and outline of rules of origin among Korea and USA, EU, ASEAN. The main focus of this paper is to conduct comparative analysis on rules of origin. Rules of origin are used to determine the country of origin of a product for purposes of international trade. There are two common types of rules of origin depending upon application, the preferential and non-preferential rules of origin Non-preferential rules of origin are used to determine the country of origin for certain purposes. The basis for the non-preferential rules originates from the Kyoto convention which states that if a product is wholly obtained or produced completely within one country the product shall be deemed having origin in that country. For a product which has been produced in more than one country, the product shall be determined to have origin in the country where the last substantial transformation took place. To determine exactly what was the last substantial transformation, three general rules are applied : Change of tariff classification(on any level, though 4-digit level is the most common), Value added-rule.(ad-valorem), and Specific process rule. While criteria of wholly obtained or produced in one country is almost similar to those of theses area and countries, in compliance with value percentages of Substantial Transformation, sufficient working or processing, Korea-US FTA adapts 'Regional Value Content', meanwhile Korea-EU FTA adapts 'Import Content' rule. Finally, Korea-US FTA and ASEAN FTA adapt FOB price for the calculation value added, on the other hand Korea-EU FTA adapts EXW price.

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A Study on the Improvement of the Origin Marks Issues in the Korea Foreign Trade Act (대외무역법 원산지표시제도 쟁점사항 개선방안)

  • Park, Kwang So
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.57
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    • pp.221-241
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    • 2013
  • Country of origin is very important in terms of consumers right to know, protection of producer, national finance and tariff preference etc. The principal issues related to country of origin are breaches of origin mark, determination of origin of OEM products, domestic products using imported raw materials, exports products, and fairness of penalties. This study focus origin mark issues on key components and set products which have not been treated so far. First, Origin mark issues on key components need to introduce multiple countries of origin for the same products. Some specific products, which are considered important key components or materials, has to mark multiple country of origin in terms of portion and significance. Next, Origin mark issues on set products need to expand the objects from 15 listed items of Korea Foreign Trade Act to all items of HS tariff schedules of Korea Customs Act. A set products which below 15% of components can mark single country of origin like FTA agreement such as Korea-EU FTA, Korea-EFTA, Korea-US FTA and Korea-Peru FTA.

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Development plans of FTA Experts in Product Areas (상품분야 FTA 전문 인력 양성 방안)

  • LIM, Mok-Sam;CHOI, Mi-Soo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.70
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    • pp.159-179
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    • 2016
  • Companies do not be resolved by the FTA services of external aid should be operational by assigning dedicated personnel inside the company. FTA is a choice, not an essential trade agreement requirements. If the exporter contracts to provide a certificate of origin in trade agreements, it shall issue a certificate of origin of goods originating management is performed. When considering the future trend of spreading wide FTA, it should be extended to one year to take advantage of the FTA Certificate of Origin environments utilizing a comprehensive environment for regional countries that require proof of origin between certain countries, such as current. FTA utilization of the future is to utilize the GVC(Global Value Chain) efficiently. In other words, the expansion of the consumer market and take advantage of an efficient production base across borders. These environmental changes are needed development of the FTA utilization promotion and FTA experts. The experts studying how to procure raw materials or intermediate goods exports in a variety of regional foreign countries, to meet the rules of origin is required for a successful FTA utilization. One of the objectives of Origin managers are qualified experts in the country of origin can take advantage of the FTA plan. Therefore, managers of origin shall collect their ability to expand the understanding and information about the industry as an international business perspective beyond the Certificate of Origin. In addition, it should be in their best learning expertise for the introduction and development of country of origin control system in an effort to effectively perform its international FTA utilization. Once the FTA is more widespread in the future and build a common origin information it must not be disconnected until the export enterprises from terminal manufacturers systematically. Therefore origin management is preferred by expanding the knowledge base of teaching and learning in the common sense to the universal subject of specialization from professional schools to promote the relevant departments so that they can be opened in a college or university. An FTA hub linking East and West, also need the confidence that in order to become a center of Glabal Supply Chain Using an FTA Certificate of Origin and stable environment for importers to import products from the country offers. Certificate of Origin and all of them thoroughly exporters and companies related to the administration of origin and should create an atmosphere that can effectively respond to the origin verification. Korea shall endeavor to elicit a geopolitical value (FTA Hub), as well as securing a competitive advantage in the global industry leverage, trading at a reasonable price competitive products thereby enhancing production and economic growth through the FTA.

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A Comparative Study on the Rules of Origin and Origin Implementation Procedure in KORCHINA FTA and Main Korea's Existing FTAs - Focused on KORUS·KOREU·KORASEAN FTA - (한·중 FTA와 기(旣)체결 주요 FTA의 원산지 규정과 절차 비교연구 - 미국·EU·ASEAN FTA 중심으로 -)

  • LIM, Mok-Sam;LIM, Sung-Chul
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.69
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    • pp.589-616
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    • 2016
  • The reviewing of an analysis of the Korea-China FTA due to guidance introduced for the new regulations or exceptional regulations compared to the KORUS, Korea-EU, Korea-ASEAN FTA. Commodity sectors in the Korea-China FTA and the KORUS, Korea-EU, Korea-ASEAN FTA(the majority in the country and trade criteria analysis result) compared and analyzed the results, rules of origin and the customs clearance procedures of origin, preferential tariff rate of origin and the origin preferential specific rules are somewhat difference, but customs and trade facilitation regulations are already quite consistent with the Korea customs system. Relatively important research results were as follows. First, the calculation of the regional value content in KORCHINA FTA is that I'm to use the deduction method can comprehensively reflect a regional value ratio, with respect to the materials acquired originating status as the FTA in the US and EU use the product non it's not to consider the value of the originating materials originating materials can be utilized for intermediate goods. Second, even if a non-treaty country in the middle with the exception of direct transport rules, and acknowledge the country of origin are under customs control, there are provisions for the period are temporarily stored in a non-treaty countries separately, that period goods imported into the non-treaty countries and up to three months from the day. If the situation of the occurrence of force majeure be greater than three months, but has so exceed six months. Third, the materials acquired originating status in the Korea-China FTA not to consider the value of non-originating materials used in its products as the KORUS FTA and Korea-EU FTA, that can be utilized originating materials for intermediate goods. It is expected that higher utilization of rules of origin. Meanwhile, Korea-China FTA has provisions to allow requests for preferential tariff applied on imports Customs declaration of intention to apply pre-condition for a preferential tariff applied to the importer. In other words, if the import customs tariff preference when applying post-intention not to advance is to be noted that any preferential treatment to prevent the later application.

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Analysis on Factors Determining Reliability of FTA Origin Certificate : Focusing on Characteristics of Firm, Product and Country (FTA 원산지 증명 신뢰성 결정 요인 분석 : 수출기업, 물품, 수출국가 특성을 중심으로)

  • AN, Yong-soon;CHO, Hyuk-soo
    • The Journal of shipping and logistics
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    • v.35 no.2
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    • pp.245-264
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    • 2019
  • With the first agrement in 2004, Korea(ROK) has been one of the most active countries participating in FTA. Companies should meet some requirements to use preferential tariff benefits of FTA. For example, it is required for firms to fulfil the origin criteria and direct transportation principles. This study is designed to provide important factors determining reliability of FTA Origin Certificate. In specific, characteries of firm(trade experience, professional expertise), country (FTA participation, economic development) and product(processing level, value pricing) are investigated as determinants of how trust FTA origin certificate. According to the theoretical foundation and previous studies, this study made 6 hypotheses. SEM(Structural Equation Modeling) was used to test empirically the hypothesized relationships among variables. The empirical findings show that trade experience, professional expertise and FTA participation are important determinants. In other words, firms can trust more FTA Origin Certificate by trading partners with more trading experiences and professional expertises located in countries where participate actively in FTA.

A Comparative Study on Rules of Origin of FTA signed by Korea and China (한·중 각국이 체결한 FTA협정의 원산지 규정 비교 연구)

  • Kim, Hyoung-Cheol;Kim, Hee-Cheol;La, Kong-Woo
    • Korea Trade Review
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    • v.41 no.1
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    • pp.139-158
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    • 2016
  • In this study, we analyze South Korea and China have already concluded FTA rules of origin. By comparison and analysis of the relevant provisions in the country of origin of signed FTA, we obtained the necessary implications of origin on the FTA negotiations that will be concluded in the future. FTA between Korea and China's opening level is much lower than the already concluded FTA's, and Korea and the ASEAN FTA has already been signed with similar concessions. However, in understanding the rules of origin in China, it is important for us that China is the first trading partner of the trade. Korean companies are well aware of the rules of origin in China, and it should be noted to prevent damage caused due to the rules of origin in the process of expanding trade with the Contracting Parties.

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A Study on the Rules of Origin Review and Rules of Origin Judgement (원산지의 제반이론과 규정 분석 그리고 원산지 판정에 관한 연구)

  • Lee, Je-Hong
    • International Commerce and Information Review
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    • v.9 no.2
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    • pp.351-371
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    • 2007
  • This study article is a study on the rules of origin review and rules of origin judgement. and The purpose of this article shall be studies to korea foreign law and Korea American FTA in origin country regulation. this article are two most important elements in determining market access in a FTA. that is the coverage of tariff elimination and rules of origin. The rule of origin in a FTA greatly influences the creation of economic profit and distribution. Therefor, The Result of the article is review to protection of domestic customers and domestic industries in rules of origin. This study contributes to a understanding of judgement of rules of origin and extend level of generalization of exchange law, WTO, FTA Regulations by review interaction relation.

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An Analysis of Research Trend on Risk Management in FTA (리스크관리 측면에서 FTA 연구동향 분석)

  • LIM, Mok-Sam;CHOI, Mi-Soo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.78
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    • pp.119-143
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    • 2018
  • This research aims to review every important academic research on risk management in FTA and to suggest a future area for further research. This research area seems to focus on conceptual study or fact finding rather than on theory development or empirical research on causal relationship or theory testing. The National Assembly Digital Library analyzed the results of 3,576 researches on thesis and journals fromthe results of the FTA. Research on FTA is analyzed in four major themes. First, there have been previous studies on business performance such as FTA export performance and economic effect. Second, analyzed the effects of FTA in product and service. The products are classified into agricultural, marine products, manufacturing, textiles and clothing, medicinal pharmaceuticals, cosmetics, and others. Services are classified into educational and cultural contents, service industry and financial industry. Third, research on the risk management of FTA Origin is broadly classified into the use of country of origin and the verification of origin, and the use of origin includes the study of rules of origin and systems of origin and management. Origin verification was divided into origin verification and origin risk management. Fourth, study on the conclusion area of the FTA, studies were conducted on areas such as Korea-US FTA, Korea-China FTA, Korea-EU FTA, Korea-Japan FTA, Korea-Chile FTA, and Korea-ASEAN FTA. Search results through the FTA, focused on analyzing the FTA area and concept research by research purpose. In addition, research methods are mainly focused on documentary survey, and research areas are concentrated on specific countries such as China and USA. This implies a necessity for a future development in that research area. Other areas for future research may include case research on actual failures in FTA, proactive risk management strategy, and integrated risk management for export companies. Risk management in FTA may help investment expansion, and that is why research on the issue matters.

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