• 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.