• Journal of Korea Trade
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• v.23 no.3
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• pp.84-104
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• 2019

Purpose - This paper explains why free trade agreements (FTAs) are more popular than customs unions (CUs) in respect of tariff coordination. Design/methodology - This paper employs an equilibrium theory of trade agreements with tariff coordination. I set up three-country partial equilibrium model with competing exporters. Domestic and exporting firms decide their optimal production under given tariffs and each country levies its tariff under the trade agreements. I found stability of implicit tariff coordination and preference of each country between an FTA and a CU. Findings - I demonstrate that two FTA members can keep their external tariffs higher than separately decided external tariffs by keeping the status-quo. This implicit tariff coordination can benefit each member through trade diversion. In a CU, each member country must have a common optimal external tariff and it must incur costs because each country may seek different external tariffs for their own national welfare. The benefit of implicit coordination in an FTA and the cost of explicit coordination in a CU account for the popularity of the FTA. Originality/value - This paper uses the idea of implicit tariff coordination in trade agreements. In a CU, tariff coordination is explicit and mandatory. All member countries must have a single common external tariff for each good. On the other hand, in an FTA, each country establishes its external tariff with the goal of maximizing its own welfare. However, each country can also coordinate "implicitly" by keeping the status-quo after establishing an FTA.

• Journal of Korea Port Economic Association
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• v.21 no.3
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• pp.19-34
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• 2005

The purpose of this paper is to introduce the new way of location choice for free trade zone in Busan area by using Obata and Ishii(2003) model of preference discrimination score. And also, this paper investigates the result of Choi, Bong-ho(200l) that deals with the choice of tariff free area in Busan area. Empirical main results are as follows: First, the North Port(Sinsundae)and the New Busan Port are efficient. Final winer of location choice for free trade zone is the North Port(Sinsundae). Second, the ranking result of this paper for 10 potential sites of free trade zone shows the almost similar to that of Choi, Bong-ho(200l). Policy planner for location choice of free trade zone should introduce the preference discrimination score method by Obata and Ishii(2003), because this method shows the very positive empirical results like questionaire method by expert groups and common people in Busan which should cause the much time and much money.

• International Commerce and Information Review
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• v.12 no.4
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• pp.509-535
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• 2010

This paper examines the Spaghetti bowl effect that different tariffs and rules of origin in multiple FTAs have resulted in increasing the significantly additional burden for business when it comes to apply for the use of FTA preference. The wide spread of FTAs in the several years, from 2003 to 2010, has been the most important trade policy development in economically important Korea. Korea presently has 5 FTAs in effect, and made 3 additional agreements which will be expected to take effect in next year. With the study result and expecting a growing number of FTAs in Korea in a next decade, the international trading firms will face rise of transaction costs for enterprises, particularly small- and medium-sized enterprises(SMEs) to cope with multiple tariffs and rule of origins in FTAs. To help mitigate negative effects and facilitate a more SEMs to use the FTA preference, providing new computer programs system, increasing the awareness of FTA provisions, improving business participation in FTA consultations, and SME support in light of education, and financial support are needed.

• 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.

• Journal of Navigation and Port Research
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• v.26 no.4
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• pp.363-372
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• 2002

Recently, mutual economy cooperation in Northeast Asia has leaded steady growth among main countries of it and rather promoted a single economy circle. In this region, Busan container port competes with min container ports in China, Taiwan and Japan in it for attracting transshipment container traffic of north-Shanghai in China and for-east Russia. Therefore, this paper aims to suggest competitive strategies for Busan container port to attract container traffic in Northeast Asia To do so, it evaluates the preference of important ports in the competitive situation and competitiveness edgy of important ports in Northeast Asia, and finally proposes the relative order of important factors. Based on the evaluation of it, first, the Busan ports hue tn strengthen port facilities to attract more traffic and in detail, reinforce the number of berth, yard areas and handling equipment Second, they also have to provide high quality of services to deliver cargos in time, not being damaged and swiftly response to shipowner and shipper's claim, Third, they need to review the strategy to adopt flexible tariff policy and to invest the profit from tariff in port service and facilities, as providing higher port tariff level by a regular rate.

• 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.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.239-258
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• 2018

The purpose of this study is to examine the legal standards of agreements on the origin of liability and the relevant laws in Korea, to suggest implications for custom authorities and traders wishing to benefit from preferential tariff via FTA, citing the excluded cases of related FTA preferences (court cases and administrative judgments). In order to examine the provisions related to supporting evidence of the origin of liability in FTA, we examined FTAs agreed between Korea and EU, EFTA, ASEAN, U.S., and India relevant to FTA Special Customs Act, court cases and administrative judgements. If verifying the origin to protect the fair trade order impedes to promote utilizing FTA, solutions will need to be suggested. If FTA preference is exempted due to verifying the origin by the import customs authorities, the importer shall pay the income tax calculated in accordance with the general tax rate. This is because the certificate of origin confirmed during verification process is different from the actual origin. In most agreements, the exporter (the producer) shall issue the certificate of origin and since the importer has no other option than obtaining the certificate of origin from the exporter, it may face consequences such as declined credibility from the custom authorities in addition to being disqualified for FTA preferential, if the certificate of origin received from the exporter has flaws. On the other hand, the exporter cannot help but being punished by the customs authorities due to issuing defective origin certificates, but it doesn't have conventionary liabilities for damages incurred to the importer. As a result, importers are forced to pursue legal proceedings to claim damages to exporters or to give up FTA preference. As FTA is increasingly utilized, the number and amount of origin verification in Korea has continuously been increasing while administrative judgements indicates other FTA exporters doesn't seem to gain any support in utilizing FTA like Korea does. It has been 8 years since full-scale supports in FTA launched and now is the time to introduce more efficient and intensive FTA support system In this regard, it is desirable to conduct comprehensive verification on export Next, an institutions that assures FTA-based exports should be established in order to compensate the importer's damages that may occur from disqualified certificate of origin issued by the exporter.