On Thursday, March 15, the U. S. government implemented the Korea – U.S. Free Trade Agreement. This agreement will relieve duties on items directly traded between the US and South Korea. U.S. Customs has advised that until their system is fully updated to handle the duty free treatment of items under this agreement, full duties and taxes will need to be submitted with all entries and a post entry amendment will have to be submitted for the retroactive refund of duties paid on these entries.
The duty free treatment of items is being implemented in stages. Items that were added as a part of “Group A” received reduced or free treatment immediately. Subsequent groups will be added in the future. In addition, items will need to meet all eligibility requirements of the Korea Free Trade Agreement, which are specific to the product. Some items will require a tariff shift, others must meet minimum regional value content requirements, and some will require both. Given these complexities, it is best to seek professional advice to find out if your products are currently or will be eligible for treatment under the Korea Free Trade Agreement.
This blog was written by Damon Piatek, President & CEO of Welke Customs Brokers USA.