• International Commerce and Information Review
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• v.17 no.3
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• pp.203-222
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• 2015

Papers in FTA research have mostly focused on the legal interpretation of the FTA treaties. In this research, more focus was put on the customs laws and related cases delivered in the U.S. federal courts, by which we can analyze the Korea-U.S. FTA in more practical manner to derive the enterprises' solutions to cope with the disputes of FTA preferential duty. The Tariff Act of 1930 is the U.S. customs law to govern FTA preferential duties. The administrative practices with customs duties are coordinated with the FTA rules. The most controversial issue in the U.S. customs law lies in the classification of imported goods for imposition of the customs duties, based on Harmonized Tariff Schedule of the United States. It was found that the U.S. federal courts had been quite favorable to the CBP(U.S. Customs and Border Protections) in litigation with the private importers and exporters. The reason seems to be that the CBP has been dealing with the customs cases so many times, accumulating much experience in execution of the U.S. customs laws, which is likely to make their decisions on customs duties almost free of errors. Therefore, the Korean exporters need to collect the CBP's past cases on the denial of preferential treatment on imported goods and be fully informed of the CBP's policies on the FTA preferential duty treatment.

• 한국디지털정책학회:학술대회논문집
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• 2007.06a
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• pp.33-40
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• 2007

The Customs Administration, unlike other administrative service, should respond to constantly changing external environment. The Customs has to actively adapt itself to government policy changes, economic changes and international environment changes to facilitate the flow of trade logistics and maintain trading relations wi th other countries. The purpose of this paper is to explain policy directions of the Korea Customs Service which enforces various policies related to tariff and non-tariff barrier elimination for the trade liberalization while the Korean government is pursuing FTAs on a multi-track basis. This paper aims to seek ways to apply FTA policies to the Korean society and economy in a smooth manner. First of all, this paper examines changes in Customs administration brought by the proliferation of FTAs to such areas as FTA negotiations, import/export management, duties and taxes collection, drawback reduction/exempt ion of duty application area of preferential tariff rate and country of origin management. Then, the paper sets FTA missions of "supporting Customs Administration to lead the new trend of free trade environment" after analyzing the environment changes. To achieve the FTA mission mentioned above, the KCS designated 4 strategies and 40 implementation tasks. The 4 strategies are named "4C Strategies" taking initial letters from Client-oriented, Customized procedures, Cooperation and Constitution. "4C" also refers to Foresee(strategies to foresee the successful establishment of FTA policies) or For C(Customer or Customs). The KCS will continue to create new tasks through various channels and monitor their implementation process, and to help FTA regime successfully take root in Korea.

• Korea Trade Review
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• v.42 no.1
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• pp.69-97
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• 2017

This study purpose to examine the importer's risks that may arise from origin investigation by Customs authorities. We have drawn the important factors affecting the application of FTA preferential tariffs and divided the stages from the conclusion of the contract for the importer to the undergoing origin investigation. In addition, we demonstrate empirically that the risks that arise in areas where importers are difficult to control exist. As a management method of the uncontrollable risk from the importer, we have provided the methods that the seller stipulated the seller's responsibility in the trade contract, prepared for situations in which no one was responsible, and formulated a friendly and cooperative supply chain. Even if the seller's liability is clarified in the contract for sale, the risk of the investigation into the origin of the imported goods is not completely eliminated. This is because, under the current agreement and system, there is no way for the customs authority of the contracting party of the FTA to claim compensation for damages incurred by importers due to breach of agreement such as not returning the result of the origin verification. Importers are subject to customs duties, but there may actually be situations in which no one is responsible for them.