| Is your company trading goods between China and Korea? |
简体中文版 |
The Asia Pacific Trade Agreement (APTA) provides for enhanced economic cooperation in relation to trade in goods between China and Korea.
With effect from 1 September 2006 the list of goods that can enjoy lower preferential tariffs has been expanded.
Subject to qualification per the Rules of Origin, and confirmation in the form of a Certificate of Origin, a company can now trade goods between China and Korea with lower customs duties assessed.
Companies moving duty-paid products between China and Korea should study this development as it is an opportunity to lower the effective customs duty rate that is assessed. This will reduce the costs of goods sold and increase profitability.
Selected Examples:
Importing into China?
|
Product |
Tariff Reduction |
|
Chemicals (Chapter 38) |
6.5% reduced to 6% |
|
Plastics/Polymers (Chapter 39) |
10% reduced to 7% |
|
Mechanical Items (Chapter 84) |
10% reduced to 7% |
|
Electrical Items (Chapter 85) |
30% reduced to 21% |
|
Automotive (Chapter 87) |
12% reduced 10.8% |
Exporting to Korea?
|
Product |
Tariff Reduction |
|
Compounds (Chapter 28) |
Current tariff reduced by 50% |
|
Clothing (Chapter 62) |
Current tariff reduced by 37% |
|
Tools (Chapter 82) |
Current tariff reduced by 15% |
|
Mechanical Items (Chapter 84) |
Current tariff reduced by 50% |
|
Electrical Items (Chapter 85) |
Current tariff reduced by 30% |
How can we help?
We can identify the amount of customs duty saving:
- We can quantify and forecast the annual customs duty savings, per the preferential tariff list for your products and the Margin of Preference.
- We can evaluate whether your products qualify for a lower customs duty rate, per the Rules of Origin.
- We can advise as to whether changes in the existing supply chain might be needed in order to enable qualification.
If exporting to Korea, then we can assist with:
- Obtaining China factory registration with CIQ (or waiver).
- Obtaining the product specific Certificates of Origin from CIQ that should be shipped with the goods to Korea.
- Training employees about the application requirements, procedure steps and best practices.
- Preparing supporting product costing information for the Certificate of Origin.
- Meeting with government in order to obtain approvals.
If importing into China, then we can assist with:
- Our Korea office can assist the Korean supplier to obtain the Certificates of Origin from the Korean government and ensure that this is shipped with the goods.
- Our China office can meet with China Customs to solve any problems that arise upon importation.
APTA is a low risk and efficient way to lower effective customs duties. | 