• East Asian Economic Review
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• v.26 no.3
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• pp.227-253
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• 2022

Despite the proliferation of free trade agreements (FTAs), many exporting firms are still confronted with several challenges in utilizing the FTA preferential tariffs. Based on the Technology-Organization-Environment (TOE) framework, this study empirically examines the factors affecting the utilization of FTA schemes by exporting firms. To clarify the key factors influencing FTA utilization, this study develops a conceptual model from the perspective of the adoption of information technology innovations. Eight factors derived from the TOE framework are proposed to explore the determinants of FTA utilization in export. Partial least squares structural equation modeling is employed to analyze the data collected from 162 exporting small- and medium-sized enterprises in the South Korean textile industry. The findings reveal that compatibility and trading partner influence are positively associated with FTA utilization, while complexity is negatively related. Factors of organizational context do not show any relationship with FTA utilization. This study is the first to theoretically analyze and empirically test the determinants of FTA utilization from the perspective of technological innovation adoptions. By examining the relative importance of TOE factors in the utilization of FTA schemes, this study expects to advance a holistic understanding on the perceived factors that could potentially affect the utilization of FTA schemes.

• International Commerce and Information Review
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• v.13 no.4
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• pp.351-373
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• 2011

Certificates of Origin(C/O) are necessary to gain benefits from preferential tariff treatment under the Free Trade Agreement(FTA). The C/O can be issued by issuing authorities or by exporters themselves. Recently, due to signed FTA such as Korean-EU FTA, issuance of self-declared C/O by exporters is increasing. In order to be qualified to issue self -declared C/O, exporters are required to acquire Approved Exporter status. An Approved Exporter is only required to present an invoice to substitute the certificate. The invoice contains an Approved Exporter number and a declaration that states the goods comply with the origin requirements. Either certification or notarization is not necessary. In result, the exporters are responsible for application of a preferential tariff under the self-declared C/O which issued incorrectly, even if it is not intentional. Therefore, in this paper, we studied authorization for Approved Exporter status and the practical use of its status. If companies obtain more Approved Exporter status, the effects of FTA would be maximized due to application of a preferential tariff under the C/O.

• Korea Trade Review
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• v.42 no.1
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• pp.69-97
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• 2017

This study purpose to examine the importer's risks that may arise from origin investigation by Customs authorities. We have drawn the important factors affecting the application of FTA preferential tariffs and divided the stages from the conclusion of the contract for the importer to the undergoing origin investigation. In addition, we demonstrate empirically that the risks that arise in areas where importers are difficult to control exist. As a management method of the uncontrollable risk from the importer, we have provided the methods that the seller stipulated the seller's responsibility in the trade contract, prepared for situations in which no one was responsible, and formulated a friendly and cooperative supply chain. Even if the seller's liability is clarified in the contract for sale, the risk of the investigation into the origin of the imported goods is not completely eliminated. This is because, under the current agreement and system, there is no way for the customs authority of the contracting party of the FTA to claim compensation for damages incurred by importers due to breach of agreement such as not returning the result of the origin verification. Importers are subject to customs duties, but there may actually be situations in which no one is responsible for them.

• International Commerce and Information Review
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• v.14 no.4
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• pp.387-408
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• 2012

This paper have examined the descriptive and legal approaches to the comparison and analysis of major content of direct transport in FTA rules of origin and the primary judicial precedents that arose during the executing process of FTAs. Preferential tariff treatment shall be applied to a good satisfying the requirement of this agreement(annex, article etc.,) and which is transported directly between the territories of the exporting party and importing party. However, products may be transported through territories of non-parties, provided that they do not undergo operations other than unloading, reloading, splitting-up of consignments or any operation designed to preserve them in good condition. During this period the products shall remain under customs control in the country of transit. The low perception of firms on the rules of origin was found to lead to breaking the rule and thus taking up losses. The FTA major countries enacted penalty rules against the violation of the rules of origin and bring civil and criminal suits and administrative sanctions. The types and level of penalties are subject to their domestic laws of each of those nations. With better recognition of major content of direct transport in FTA rules of origin and well-prepared countermeasures, firms will be able to enhance competitive advantage while benefiting from preferential tariffs.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.19
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• pp.7-31
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• 2003

The governments of almost countries have the rules and procedures that the purchasing entities have to follow, in order to ensure that the best value for money spent is obtained in procuring goods and services. However, there are often some of important problems in their rules relating to government procurement. Namely, almost countries have a variety of discriminatory regulations for foreign suppliers in the government procurement laws with the object of national security, economic welfare, and protection of domestic market from international competition. For this reason, several advanced countries had reached the Plurilateral Agreement on Government Procurement during Tokyo Round(1973-1979) and Uruguay Round(1986-1994). However, the provisions of two agreements do not apply to all products made by the government but only to those made by purchasing entities specified by each member country in its list in the Appendix. Accordingly, the size of goods and services purchased from foreign suppliers were comparatively not large. As we know well, the United States have spent a large amount of money from federal and state government budget. But the portion of procurement from foreign suppliers is still small, compared with the portion of procurement from domestic suppliers. The main reason are that U.S. has applied for long time the so-called Buy American Act to government procurement positively and maintained many kinds of other domestic regulations which have discriminatory provisions for foreign goods and foreign suppliers. On the recognition of these points, this thesis deals with the Buy American Act and other U.S. domestic laws, regional and bilateral, and plurilateral agreements including WTO Agreement on Government Procurement. As a result, the author found that there are several concerns and problems in the U.S. regulations relating to government procurement. It include the provisions on priority procurement of U.S.-produced products, local contents requirements, set-aside procurement from small business, and exclusion of preferential procurement from the developing countries.

• Korea Trade Review
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• v.42 no.4
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• pp.93-114
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• 2017

Under the FTA agreement, preferential tariffs between FTA members will result in tariff reductions. In order to ensure the stable use of the FTA tariff system, it is necessary for the customs authorities to determine whether the origin goods are clearly applicable. This study analyzed the procedure of appeal according to the origin verification system based on the decision made by Korea Customs Service and Tax Tribunal. From this, we examined whether the rate of re-claiming a case rejected in the 'Review System of the Legality Before Taxation' differs. In addition, we carried out a quantitative analysis using bootstrapping technique in order to overcome the scarcity cases of verification of origin among FTA members. The implications of this paper are summarized as follows: First, we tested the hypothesis that the re-claiming rate of Western countries is higher. Second, some issues represented higher re-claiming rate. Third, there was no significant difference between the verification group and the re-claiming rate. Finally, even if an applicant makes a claim again, there is a possibility of being rejected again.