MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
Embargo: When released Release Date: November 17, 2010 14:00
Contact Information : Gweon Gi-joong (02-2150-4451/ Multilateral Tariff Cooperation Division)
THE NUMBER OF ITEMS ELIGIBLE FOR PREFERENTIAL TARIFFS FOR LEAST-DEVELOPED COUNTRIES WILL BE INCREASED
On November 18, 2010, the Ministry of Strategy and Finance made a preliminary announcement about a bill to amend the “Presidential Decree on Preferential Tariff for Least-Developed Countries (LDCs).”
Under the amendment, the number of items eligible for preferential tariffs for 49 LDCs is increased to be applied next year.
* LDCs are designated at the United Nations General Assembly on the basis of low national income, low levels of human development, economic vulnerability and other criteria.
Preferential tariffs have been granted to the specific items among LDCs’ exports to Korea in the way that tariffs or quotas are not applied. Total 4,294 items, which account for 85% of all items subject to tariffs are designated to be granted preferential tariffs.
Korea, being the member of the international community to support LDCs and being commensurate with its economic power, has gradually increased the number of items eligible for preferential tariffs every year.
* Items for preferential tariffs have been continuously increased since 2007.
2008(75%) 2009(80%) 2010(85%) 2011(90%) 2012(95%)
In 2007, 93 items were granted preferential tariffs, 1.8% of the items subject to tariffs.
The Ministry of Strategy and Finance, through discussions with related government agencies, will add 253 items to the list of items eligible for preferential tariffs and the amended list would be reflected to the “Presidential Decree on Preferential Tariff for Least-Developed Countries.”
The additional items include non-sensitive agricultural and fisheries products such as flowers, spice (peppers, etc.), oil and fat (olive oil, etc.) and textiles, garments, instruments and other industrial products.
When the additional items are determined, the number of preferential tariff items for LDCs will amount to 4,547, about 90% of the items subject to tariffs.
After the preliminary announcement aimed to collect and respond to public opinions, the amendment on the “Presidential Decree on Preferential Tariff for Least-Developed Countries” will be declared and come into effect on and after January 1, 2011.
