Korea Free Trade Agreement (KORUS)
The Korea Free Trade Agreement (KORUS) went into effect on March 15, 2012. Most Korean industrial and consumer goods currently enter the United States free of duty and the merchandise processing fee (MPF) and by 2016 that figure will grow to over 95 percent. Information for U.S. Exporters is available through the Department of Commerce at: 2016.export.gov/FTA/index.asp
To learn more about how to claim preference on these goods, select the following:
If you have filled out a certification of origin but cannot substantiate the originating status of the goods therein, you are required to notify all recipients of said certification and the country of export.
This document provides the most relevant information in HTSUS General Notes 33 and 19 CFR Subpart R.
Any claim for preferences under the Korea Free Trade Agreement must be supported by a Certificate of Origin attesting to the imported product’s originating status. This link provides a PDF template demonstrating how such a Certificate of Origin can be structured. The template is fillable, and users may elect to use it. Its use, or adherence to its structure, is in no way compulsory. Nevertheless, pursuant to the relevant regulations, all of the data elements specified therein must still be provided upon request to CBP in connection with a claim for preferential tariff treatment.
Data Elements for the Korea FTA Certificate of Origin - 19 CFR 10.1004
As an alternate to the Certification of Origin template, a free-form certification can be used by Korean producers and exporters, and US importers, when attesting that their goods meet the requirements of the Korea FTA.
Harmonized Tariff Schedule of the United States (HTSUS) - Korea FTA General Notes 33
A current link to the general note, including the General Rules of Origin, Definitions, Value (including Regional Value Content and De Minimis), Sets, Packing and Packaging Materials, Indirect Materials, Recordkeeping and the all-important Product Specific Rules of Origin.
NOTE: On the USITC link, select the “General Notes; General rules of Interpretation; General Statistical Notes,” link, followed by “General Notes 33”.
The following Korea FTA goods may be subject to a reduced tariff rate quota (TRQ): dairy, tobacco, fabric and apparel. Click here for an overview of quota. Go to the Commodity Graph Report for current fill levels. Go to the TPL Threshold to Fill List to see almost closed and closed quotas.
Use this tool to learn the duty that your Korean goods will pay upon importation into the United States both today and in future years.
The Reconciliation Prototype is an alternate method of submitting on-going, high-volume post-importation Korea FTA claims. Like standard 19 USC 1520(d) claims, they must be made within one-year of importation and all preference program requirements and responsibilities remain in effect.
Additional Resources and Regulations:
Korea FTA Frequently Asked Questions: Answers to the most common questions with respect to importing into the U.S. under the Korea FTA.
Korea FTA Text: The complete text of the agreement.
Korea FTA Regulations: A current link to the e-CFR website including: Import Requirements, Filing a Claim, Regional Value Content (RVC) Certification, Post-Importation Refunds, Rules of Origin, Origin Verifications, Transshipment, and Penalties.
USITC Publication 4308 : This publication includes the modifications to the HTSUS, the Duty Phase-Out Schedule and other important information.
Korea FTA Implementation Act: Pub. Law No. 112-41, 125 Stat. 428 and codified at 19 USC 3805 Note
Presidential Proclamation 8783: This document enacting the Korea FTA was published in the Federal Register on March 9, 2012.