Korea - China Free Trade Agreement

Country / jurisdiction: Korea · Year: 2015 · Status: In force · Level: International · Type: Voluntary

The Korea - China Free Trade Agreement provides for the elimination of tariffs for the following goods:

Electric generation equipment

Mechanical equipment including pumps, appliances, and other advanced machinery

Electric motors, transformers, batteries, and capacitors

Mineral ore and processed products including graphite, manganese, copper, aluminum, and nickel

Various products manufactured using above minerals and metals such as sheets, powders, bars, and plates

Photovoltaic cells

Tariffs for motor vehicles (including passenger vehicles and electric vehicles) are not eliminated ; while tariffs for key components (including vehicle frames, shafts, transmission, and lithium ion batteries) are.

The Agreement also includes rules of origin. Goods can benefit from preferential tariff treatment if:

wholly produced or obtained in the country (applicable to minerals, raw materials, and waste and scrap materials)

meeting requirements included as provisions to the agreement, mainly through having undergone manufacturing processes that warrant a change in the HS code or meet regional value content requirements (applicable to manufactured goods)

The Investment provisions of the Agreement carries national treatment and most-favoured nation treatment provisions that require investors from a foreign party to be treated equally with both domestic investors or those from any other nations.  It, however, does not prevent a party from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.

Official source: https://fta.go.kr/cn/doc/1/