• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.267-286
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• 2013

Origin verification is regarded most essential for FTA performance administration. This administration is divided into direct and indirect system where Korea has adapted indirect system to Korea-EU FTA while direct system to Korea-USA FTA. A comparative analysis was conducted on the system of origin verification and provisions contained in preferential tariff law of each countries. The study finds that Korean origin verification system is a bit lack of procedural provision resulting in less protection of domestic trader's rights. Another point is that Korean Customs Authority is weak, in respect of organization and man power, to protect illegal bilateral tariff application by counter part FTA countries. And therefore this study suggests the policy makers to arrange detailed FTA origin verification procedures with earliest meeting with counter part FTA countries, and further stress that make up of organization and man power for origin verification in a timely manner.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.55
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• pp.243-264
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• 2012

This study is aimed to analyze problems related to FTA country of origin of goods verification which is increasing from 2006 and thereby to grope for solution of such problems and seek adequate FTA performance administration. It is found, through comparative analysis and statistics of last 8 FTAs so far Korea has concluded that there are major problems such as excessive verification processing due to complicated country of origin regulation etc. This paper suggests following policies of country of origin administration ; (1) Simplification of FTA country of origin rules (2) reciprocal cooperation between each country's Customs Authorities based on trust (3) rational measurement against corresponding country's Customs Authorities' misbehavior (4) enhancement of transparency in relation to processing rule of country of origin verification (5) securing FTA country of origin verification experts. For these improvements, upcoming FTA shall rule country of origin reasonably, simplification and transparency of rule is needed for established FTAs in relation to FTA performance administration with corresponding countries. Also it is necessary to revise FTA preferential tariff law and its related laws, and carry forward policies in accordance with medium and long term plan.

• International Commerce and Information Review
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• v.18 no.4
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• pp.115-141
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• 2016

The purpose of this study is to examine the status of FTA origin verification for exported goods in Korea and analyze the cases of major origin verification to seek origin management strategies that enables exporters to actively satisfy origin verification requirements. The case analysis demonstrates that it is important to meet not only the substantive, but also formal and procedural requirements of origin verification. We identified origin management strategies including: develop internal origin management experts and origin management system, utilize external expertise and related support institutions, strengthen networking with supplier companies, consider origin management at the contract stage and continue origin management after export.

• International Commerce and Information Review
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• v.17 no.2
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• pp.201-223
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• 2015

Concerning post-verification which is after the application of FTA preferential tariffs, in cases such as Korea-EFTA and Korea-ASEAN, the growing trend of post-verifications was restricted and there was no active research concerning this; whereas with Korea-EU FTA which adopted indirect verification for post-verification, the demand for post-verification has been rising constantly each year; and for Korea-US FTA which has adopted direct verification, a new approach to post-verification research is needed as it began genuine post-verification regarding many national enterprises only after a year and a half since the agreement. This study will consider the counter measures that can be taken for post-verification, through case of studies on the factors influencing violation of determining the country of origin for export company regarding verification of FTA. Result of this case study regarding the determining a violation of origin, The main cause of the violation factors on the essential & general principles(goods wholly obtained, value added criteria) are lack of understanding agreement & manpower. but Violation of the parties to a transaction & the origin certification are lack of advanced preparation and effected violation of principle of good faith. Finally, In this study help countermeasures of export company through the Detailed analysis of the type & implications deriving from verification of origin.

• International Commerce and Information Review
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• v.16 no.5
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• pp.295-315
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• 2014

This paper attempts to reveal the relationships between vulnerability, FTA barrier, verification factors and origin performance. According to precedent studies, Our study analysed 104 cases from Korean companies which adopted a rules of origin and then developed a structural equation model. As a result of the model test, this empirical study found that vulnerability have a negatively significant influence on origin verification. Second, there was a positive relationship among origin verification and origin performance. Through the results of this study are the first company in order to enhance competitiveness, improve understanding of the rules of origin, must go to deal jointly with partner companies. Second, to establish a process for the origin of the goods to prove this systematic and should be managed in an orderly fashion. Country of origin verification system of corporate -level internal factors and external factors, separated by a study to assess the level of the enterprise for internal and external is determined that you need.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.78
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• pp.119-143
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• 2018

This research aims to review every important academic research on risk management in FTA and to suggest a future area for further research. This research area seems to focus on conceptual study or fact finding rather than on theory development or empirical research on causal relationship or theory testing. The National Assembly Digital Library analyzed the results of 3,576 researches on thesis and journals fromthe results of the FTA. Research on FTA is analyzed in four major themes. First, there have been previous studies on business performance such as FTA export performance and economic effect. Second, analyzed the effects of FTA in product and service. The products are classified into agricultural, marine products, manufacturing, textiles and clothing, medicinal pharmaceuticals, cosmetics, and others. Services are classified into educational and cultural contents, service industry and financial industry. Third, research on the risk management of FTA Origin is broadly classified into the use of country of origin and the verification of origin, and the use of origin includes the study of rules of origin and systems of origin and management. Origin verification was divided into origin verification and origin risk management. Fourth, study on the conclusion area of the FTA, studies were conducted on areas such as Korea-US FTA, Korea-China FTA, Korea-EU FTA, Korea-Japan FTA, Korea-Chile FTA, and Korea-ASEAN FTA. Search results through the FTA, focused on analyzing the FTA area and concept research by research purpose. In addition, research methods are mainly focused on documentary survey, and research areas are concentrated on specific countries such as China and USA. This implies a necessity for a future development in that research area. Other areas for future research may include case research on actual failures in FTA, proactive risk management strategy, and integrated risk management for export companies. Risk management in FTA may help investment expansion, and that is why research on the issue matters.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.77
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• pp.239-258
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• 2018

The purpose of this study is to examine the legal standards of agreements on the origin of liability and the relevant laws in Korea, to suggest implications for custom authorities and traders wishing to benefit from preferential tariff via FTA, citing the excluded cases of related FTA preferences (court cases and administrative judgments). In order to examine the provisions related to supporting evidence of the origin of liability in FTA, we examined FTAs agreed between Korea and EU, EFTA, ASEAN, U.S., and India relevant to FTA Special Customs Act, court cases and administrative judgements. If verifying the origin to protect the fair trade order impedes to promote utilizing FTA, solutions will need to be suggested. If FTA preference is exempted due to verifying the origin by the import customs authorities, the importer shall pay the income tax calculated in accordance with the general tax rate. This is because the certificate of origin confirmed during verification process is different from the actual origin. In most agreements, the exporter (the producer) shall issue the certificate of origin and since the importer has no other option than obtaining the certificate of origin from the exporter, it may face consequences such as declined credibility from the custom authorities in addition to being disqualified for FTA preferential, if the certificate of origin received from the exporter has flaws. On the other hand, the exporter cannot help but being punished by the customs authorities due to issuing defective origin certificates, but it doesn't have conventionary liabilities for damages incurred to the importer. As a result, importers are forced to pursue legal proceedings to claim damages to exporters or to give up FTA preference. As FTA is increasingly utilized, the number and amount of origin verification in Korea has continuously been increasing while administrative judgements indicates other FTA exporters doesn't seem to gain any support in utilizing FTA like Korea does. It has been 8 years since full-scale supports in FTA launched and now is the time to introduce more efficient and intensive FTA support system In this regard, it is desirable to conduct comprehensive verification on export Next, an institutions that assures FTA-based exports should be established in order to compensate the importer's damages that may occur from disqualified certificate of origin issued by the exporter.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.60
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• pp.257-279
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• 2013

Nine FTA like Korea-Chile FTA, Korea-Singapore FTA, Korea-EFTA FTA, Korea-ASEAN FTA, Korea-India CEPA, Korea-EU FTA, Korea-U.S.A. FTA, Korea-Peru FTA and Korea-Turkey have been concluded and implemented in 46 countries as of May, 2013. In addition to these nine FTA, Korea has been negotiating FTA or CEPA(Comprehensive Economic Partnership Agreement) with China and Vietnam and Indonesia. Now Korean government is about to conclude FTA agreement with Indonesia which is one of crucial trading partners in Asian countries so the objective of this paper is to suggest how to design ROO schemes properly in such upcoming FTA agreement since more activation of trade and more utilization of FTA can be depend on the details of ROO schemes. As a result, this paper suggests well-design of ROO schemes as follows ; First, self-issuance origin proof system can be considered because authority-issuance origin proof system may reduce the utilization ratio of FTA. Second, combination of indirect and direct verification system in terms of origin verification system will be more preferable because this will be more fitting to Asian countries as considering trading environments and characteristics of Asian market. Third, criteria to determine origin can be based on wholly obtained plus substantial transformation system which contains CTC plus VC along with some percentage of de minimis. In addition to this, the number of products stipulated in PSR should be minimized and applied similar manner to avoid complexity of deciding origin.

• Korea Trade Review
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• v.42 no.2
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• pp.297-318
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• 2017

This study reviews the origin verification system of China via literature research and analyzes cases of Korean exports origin disapproved of Chinese customs clearance, to provide origin verification strategy recommendations for Korean companies exporting to China under Korea-China FTA. We reviewed the provisions of Chinese rules of origin and analyzed origin disapproved cases gathered from various presentations. The main results of the study have the following implications; First, the customs authority needs to establish a consultation channel with the customs authority of China, and origin certification issuing agencies should provide exporters with consulting services in the certificate issuing stage to reduce verification risk. Second, exporters need to pay attention to the formal requirements of the proof of origin, utilize the advance rulings program of differences in classification of items between Korea and China, and monitor regulatory change in China.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.70
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• pp.159-179
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• 2016

Companies do not be resolved by the FTA services of external aid should be operational by assigning dedicated personnel inside the company. FTA is a choice, not an essential trade agreement requirements. If the exporter contracts to provide a certificate of origin in trade agreements, it shall issue a certificate of origin of goods originating management is performed. When considering the future trend of spreading wide FTA, it should be extended to one year to take advantage of the FTA Certificate of Origin environments utilizing a comprehensive environment for regional countries that require proof of origin between certain countries, such as current. FTA utilization of the future is to utilize the GVC(Global Value Chain) efficiently. In other words, the expansion of the consumer market and take advantage of an efficient production base across borders. These environmental changes are needed development of the FTA utilization promotion and FTA experts. The experts studying how to procure raw materials or intermediate goods exports in a variety of regional foreign countries, to meet the rules of origin is required for a successful FTA utilization. One of the objectives of Origin managers are qualified experts in the country of origin can take advantage of the FTA plan. Therefore, managers of origin shall collect their ability to expand the understanding and information about the industry as an international business perspective beyond the Certificate of Origin. In addition, it should be in their best learning expertise for the introduction and development of country of origin control system in an effort to effectively perform its international FTA utilization. Once the FTA is more widespread in the future and build a common origin information it must not be disconnected until the export enterprises from terminal manufacturers systematically. Therefore origin management is preferred by expanding the knowledge base of teaching and learning in the common sense to the universal subject of specialization from professional schools to promote the relevant departments so that they can be opened in a college or university. An FTA hub linking East and West, also need the confidence that in order to become a center of Glabal Supply Chain Using an FTA Certificate of Origin and stable environment for importers to import products from the country offers. Certificate of Origin and all of them thoroughly exporters and companies related to the administration of origin and should create an atmosphere that can effectively respond to the origin verification. Korea shall endeavor to elicit a geopolitical value (FTA Hub), as well as securing a competitive advantage in the global industry leverage, trading at a reasonable price competitive products thereby enhancing production and economic growth through the FTA.