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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 5. Understanding how Agricultural Safeguard Measures are applied


Annex 2-B indicates that the duty on popcorn (HSK 1005902000) is Staging Category F, which means the 630 percent duty will be reduced in seven equal stages: Year 1: 540 percent, Year 2: 450 percent; Year 3: 360 percent; Year 4: 270 percent; Year 5: 180 percent; Year 6: 90 percent; Year 7: no duty. However, Annex 2-B also indicates that popcorn is subject to a safeguard (indicated by note ‘See Annex 3-A’ in Safeguard column.) A safeguard establishes a quantity of imports, which once reached in any given year, will trigger an increase in the tariff applied under the KORUS FTA.

The details for each safeguard are contained in Annex 3-A Agricultural Safeguard Measures at the end of Chapter 3 of the Agreement. For example, paragraph 3 (n) of the Annex (page 3-13) provides details on the safeguard for popcorn.

For year 5 the safeguard trigger level is set at 10,224 metric tons. The note indicates that imports up to this amount would be assessed zero duty; however, on imports beyond this amount, the duty would be assessed the safeguard duty of 486 percent. Year 1 is a bit more complicated: up to 2,556 MT of U.S. popcorn would enter at zero duty; imports above 2,556 MT but below 5,112 MT would enter at a 55 percent duty. Imports above 5, 112 MT would enter at a 601 percent duty.

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Agricultural Trade Office, American Embassy - Seoul
Tel: 82-2-6951-6848 Fax: 82-2-720-7921
Email: atoseoul@state.gov