Applying Multiple Preferential Tariff Rates (Korea-China FTA and APTA) Under a Single Bill of Lading Released

When multiple items are imported under a single Bill of Lading (B/L) with differing HS Codes, descriptions, and origins, it is fully permissible to apply different preferential tariff rates—such as the Korea-China FTA and the Asia-Pacific Trade Agreement (APTA)—by declaring them in separate lines on the import declaration.

The Principle of Separate Declaration Lines

Under customs regulations, items arriving under one B/L must be declared in separate "lines" if their characteristics differ. This requirement applies when there are variations in the HS Code, item description, brand, origin, or the specific tariff rate to be applied. Each line serves as an independent declaration unit, ensuring that accurate information and the corresponding duty rates are correctly assigned to each specific product.

Simultaneous Application of Different Agreements

In practice, it is common to have a shipment where some items are eligible for one agreement while others are eligible for another. For example:

• Korea-China FTA: Applied to items for which a valid Korea-China FTA Certificate of Origin has been obtained.
• APTA: Applied to items produced in an APTA member country (e.g., China) for which an APTA Certificate of Origin is provided.

Mandatory Documentation and Compliance

To benefit from preferential tariffs, a valid Certificate of Origin (C/O) specifically issued for the respective agreement is mandatory.

• Items under the Korea-China FTA must have a Korea-China FTA C/O.
• Items under APTA must have an APTA C/O.

Conclusion and Professional Advice

While applying multiple tariff rates within a single B/L is possible, it requires meticulous preparation of the Commercial Invoice and Packing List to clearly distinguish between the different items. Accurate classification and documentation are essential for customs brokers to determine the most advantageous rates and to avoid penalties, back-taxes, or surcharges resulting from erroneous declarations. Engaging a trade professional during the early stages of the import process is highly recommended to ensure full compliance and maximize tax benefits.