Applying for FTA Preferential Tariffs Post-Importation with a Retrospectively Issued Certificate of Origin Released

Retrospective Application for FTA Preferential Tariffs

Yes, it is possible to apply for the retrospective application of FTA preferential tariffs even if the exporter did not issue a Certificate of Origin (C/O) at the time of export. According to Article 9 of the Special Act on the Customs Act for the Implementation of Free Trade Agreements (FTA Special Act), an importer who failed to apply for the preferential rate before the import declaration was accepted can still do so within one year from the date of import declaration acceptance. This rule applies even if the C/O is issued retrospectively after the goods have been imported.

Purpose of the Post-Importation Application System

The "Post-Importation Application for Preferential Tariffs" is a remedy designed for cases where immediate application is impossible due to delays in document issuance or administrative oversight. Since the core of FTA benefits lies in the proof of origin, this system provides flexibility in documentation timelines to encourage broader FTA utilization. However, the fundamental prerequisite is that the goods must substantially meet the rules of origin set forth in the respective FTA.

Retrospective Issuance Across Different FTAs

Retrospective issuance is a widely recognized practice across many FTAs. For instance, under the Korea-EU FTA, if a C/O (or origin declaration) was not issued at the time of export, the exporter can still issue it retrospectively upon proving the origin requirements are met. It is important to note that the specific timeframes and conditions for retrospective issuance may vary by agreement. Generally, the issuance must occur within the validity period of the certificate as specified in the relevant FTA.

Required Documentation for Application

To apply for retrospective preferential tariffs, the following documents must be submitted to the head of the customs office where the original import declaration was filed:

• Application for Preferential Tariff Treatment (Post-Importation): To be completed in accordance with the official customs form.
• Original or Copy of the Certificate of Origin: A valid C/O or origin declaration issued retrospectively by the exporter.
• Import Declaration Certificate: Used to verify the details of the original import entry.
• Commercial Documents: Including the commercial invoice and Bill of Lading (B/L) to prove the transaction and shipping details.
• Supporting Origin Documents (if requested): Customs may request additional evidence such as manufacturing process descriptions or raw material purchase records to verify the origin.

Key Procedures and Strict Deadlines

Upon receipt of the application, the customs office will review the documents to determine if the origin requirements are satisfied. Once approved, the difference between the general duty already paid and the FTA preferential duty will be refunded. The most critical factor is strict adherence to the one-year deadline from the date of import declaration acceptance. Failure to apply within this period will result in the loss of the right to claim the refund.

Please keep the following considerations in mind:

• Retrospective issuance does not guarantee automatic approval; customs will verify the validity of the document and may initiate origin verification procedures.
• Each FTA has unique rules regarding retrospective issuance and validity periods, so the specific agreement must be checked.
• While the duty difference is refunded, no interest is paid on the refunded amount.

Conclusion

In summary, importers can still claim FTA benefits retrospectively by obtaining a valid, retrospectively issued C/O and filing an application within one year of the import declaration date. Given the complexity of FTA regulations and the importance of precise documentation, consulting with a professional Customs Broker is highly recommended to ensure a smooth and accurate refund process.