Korea - Indonesia Comprehensive Economic Partnership Agreement

Country / jurisdiction: Korea · Year: 2023 · Status: In force · Level: National · Type: Voluntary

The Korea - Indonesia Comprehensive Economic Partnership Agreement builds on the Korea - ASEAN Free Trade Agreement (Indonesia is an ASEAN member state) to foster economic cooperation between the two countries by further lowering customs duties, encouraging investment, and providing other measures to support economic relations.

Items whose tariffs are additionally lowered or removed as a result of this Agreement include:

Imported into Indonesia Automobile components

Automobiles

High Voltage Cables

Steel wires, tubes, and other steel items

Copper Wires

Imported into Korea Copper wires

Passenger vehicles

Commercial vehicles

Automobile components

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 (applicable largely 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 largely to manufactured goods)

The investment provisions of the Agreement forbid performance requirements that require, as a condition of investment, export quotas, domestic content quotas, technology transfer, and other non-tariff barriers. It also carries national treatment and most-favored nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.

However, it does allow either party to provide additional benefits or advantages tied to such conditions. It also does not prevent either 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/ftaportalkor/cm/cntnts/cntntsView.do?mi=3314&cntntsId=6401