Are there exceptions under KORUS FTA regulations where importer information is not mandatory if a US exporter is unaware of the importer's identity when issuing a Certificate of Origin due to a third-party invoice transaction? Released

You have inquired about whether importer information must be included when issuing a Certificate of Origin (CO) under the Korea-U.S. Free Trade Agreement (KORUS FTA). This is an important issue that can arise when importer information is uncertain in complex transaction structures, such as those involving third-party invoicing. To provide a conclusion first, under KORUS FTA regulations, stating the importer's information on the Certificate of Origin is not a mandatory requirement and is specified to be applied flexibly under certain conditions. This should be understood not as an exception clause, but rather as a flexibility provision included within the scope of the essential data elements specified in the agreement.

「Article 6.15 (Claims for Preferential Tariff Treatment), Paragraph 2 of the KORUS FTA」 specifies eight minimum essential data elements that must be included in a Certificate of Origin. Among these, the information for the 'importer of the good' is clearly accompanied by the proviso 'if known.' This provision considers the complexity of the actual trade environment, reflecting situations where the exporter may not directly know the final importer, particularly in cases such as triangular trade, drop shipments, or when goods are shipped through a logistics warehouse before the final importer is determined.

The following are the eight items that must be included in a KORUS FTA Certificate of Origin. This list will help you clearly understand the context in which importer information is classified as 'optional.'

• Name of the certifying person (including contact information or other identifying information, if necessary)
• Importer of the good (if known)
• Exporter of the good (if different from the producer)
• Producer of the good (if known)
• HS tariff classification and description of the good
• Information demonstrating that the good is originating (e.g., origin criteria)
• Date of the certification
• Period of the certification (in the case of a blanket certification)

As such, the KORUS FTA Certificate of Origin is fundamentally a 'self-certification' system where the exporter, producer, or importer certifies the origin themselves; therefore, meeting the rules of origin is the most critical factor. Even if importer information is absent, as long as the core information—such as the HS code and data proving the item satisfies the origin criteria set by the agreement—is correctly recorded, it can be recognized by Korean Customs as a valid certificate for the application of preferential tariffs. The key is to clearly prove that the goods imported into Korea satisfy the origin criteria under the KORUS FTA.

However, I would like to point out a few things that may occur during the import clearance process in Korea if importer information is not provided. Even if the importer is not specified on the Certificate of Origin, the party declaring the import (the importer) has the right to apply for tariff preference. Customs will undergo a verification process by cross-checking the information on the Certificate of Origin with the information in the import declaration documents (import declaration certificate, commercial invoice, shipping documents, etc.). During this process, additional clarification may be required to clarify the connection between documents due to the absence of importer information.

If importer information is missing, customs authorities may request additional documents such as purchase contracts, shipping documents, and payment records to understand the business relationship between the exporter and the Korean importer, as well as the actual distribution route of the goods. This is a procedure to more reliably verify compliance with the rules of origin, and the Korean importer must maintain relevant documents thoroughly to prepare for such requests. In particular, the importer, as the final entity applying for origin preference, is responsible for proving that the submitted Certificate of Origin is valid and that the goods meet the rules of origin.

In conclusion, since importer information on a KORUS FTA Certificate of Origin is an optional item to be recorded 'if known,' there is no issue with the validity of the Certificate of Origin even if that information is not included when the importer is unknown. However, for smooth customs clearance and to prepare for any potential requests for additional verification from customs, it is important to clarify all possible relevant information and maintain supporting data well. This helps minimize unnecessary clearance delays or the possibility of customs audits.