In contrast to the past efforts of multilateral trade systems under GATT(General Agreement on Tariffs and Trade) and WTO(World Trade Organization) to create a borderless global market, a regionalism has been spreading across the world rapidly as an increasing number of nations adopt FTA(Free Trade Agreement).
Korea has already been maintaining effective FTAs with 16 countries since the country's first FTA with Chile came into effect in 2004. The Korea-US FTA was executed by Washington and Seoul respectively and it was scheduled to be ratified by the congresses of the two nations. The Korean government is working on FTA with various countries.
Particularly, Korean companies need to be authorized as "Approved exporters" in order to obtain preferential tariffs on their shipments of products priced 6,000 EURO or more to the EU market as the Korea-EU FTA comes into effect in July 2011. However, only a few Korean firms have been authorized because of the lack of interests among CEOs and poor origin verification system.
Therefore, the necessity of "Approved exporters" system and benefits from authorisation under the Korea-EU FTA will be examined in three aspects from the perspective of customs office.
First of all, the government's promotional plan is proposed to be composed of the expansion of customs administration system to meet the growing administrative demand on FTA, authorisation of companies approved for other FTAs as "Approved exporters" to EU, proactive authorisation of high-priority companies, and expansion of authorisation through administrative guides and cooperation with relevant agencies in sequence.
The measures to support exporters are proposed to be composed of the early completion of authorizing companies as "Approved exporters to the EU market, business-friendly examination of authorized exporters and better follow-up managements, simplification of origin certification procedure and integrative administration, and plans to expand prior origin verification service for exporters and resolve troubles on customs clearance.
Lastly, the administrative supports of government and customs office are proposed to prevent Korean exporters from being excluded from preferential tariffs and levied penalties through providing guides on the authorisation of exporters in preparation for tax audits from the EU authorities, aiming to help Korean exporters for the EU market better understand and utilize the authorisation system.