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Home > U.S.-Korea Free Trade Agreement
U.S.-Korea Free Trade Agreement

How to Determine Tariffs Under the KORUS FTA

Step 4. Understanding when and how Tarriff-rate quotas are applied

If the Staging Category in Annex 2-B refers to Appendix 2-B-1 for Korea, then your product is subject to a tariff-rate quota (TRQ). Under a TRQ, a pre-established quantity may enter under a lower duty. Appendix 2-B-1 for Korea provides details on each of the 19 TRQ’s for U.S. products. For example, Annex 2-B indicates that Honey (0409000000) is subject to a TRQ.

Since the specific details for each TRQ differ, it is a good idea to refer to the language in Appendix 2-B-1 which applies to your product. It is important to keep in mind that many of the TRQ’s incorporate products from multiple tariff lines.

For example, paragraph 13 of Appendix 2-B-1 provides details for the TRQ on honey:

Subparagraph (c) indicates that only one tariff line is included in the TRQ. Subparagraph (a) indicates that 200 metric tons of honey will be eligible for duty-free entry on implementation of the Agreement (Year 1), and this amount will increase to 225 MT by year 5 (January 1, 2016). In each subsequent year, the zero-duty amount will increase by 3 percent. Subparagraph (b) indicates that once imports under the duty-free quantity have been reached in any given year, the tariff will revert to Staging Category X which is the base rate. For honey, this is 243 percent or 1,864 Korean won per kilo, whichever is greater.

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Agricultural Trade Office, American Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921