Korea - ASEAN Free Trade Agreement

Country / jurisdiction: Korea · Year: 2007 · Status: In force · Level: International · Type: Voluntary

The Korea - ASEAN (Association of South East Asian Nations) Free Trade Agreement aims to foster trade relations between Korea and the ASEAN member nations by reducing or eliminating tariffs on goods.

The following countries have signed bilateral free trade agreements with Korea:

Viet Nam

Cambodia

Singapore

Indonesia

the Philippines (not yet in force)

For countries that have not signed further bilateral FTAs with Korea, the Agreement covers, among others, 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

Motor vehicles (for import into Brunei and Korea)

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

The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if:

wholly produced or obtained in the country

there was a change to the HS code applicable to the good at the four-digit level (CTH)

the good has a regional value content (RVC) over 40%

the good has a RVC over a value specified for that good.

For any item produced in two or more ASEAN nations and no specific rules of origin provision is provided, the good must have an RVC value of at 40% to count towards the tariff agreements set in the FTA.

The Investment provisions of the Agreement carry 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://www.customs.go.kr/download/ftaportalkor/_down/trty/Kor-asean-00-Eng-Total.pdf