Simplification of FTA Origin Certification Procedures for K-Beauty Exports Released

The Korea Customs Service recently announced a significant simplification of the procedures for issuing Free Trade Agreement (FTA) Certificates of Origin. This measure is designed to proactively support the global expansion and export competitiveness of K-Beauty enterprises.

Notably, 17 items—including six key cosmetic categories such as lipsticks and facial masks—have been newly designated for 'Simplified Origin Verification.' This policy is scheduled to take effect on June 30.

This initiative aims to assist small and medium-sized enterprises (SMEs) that possess high-quality products but struggle with the administrative burden of preparing complex evidentiary materials for origin verification.

Transition from 8 Evidence Documents to a Single Certificate

Previously, to obtain a Certificate of Origin for FTA preferential duties, exporters were required to submit up to eight types of documents to the Customs Office or the Chamber of Commerce to prove the Korean origin of their goods. These included:

• Statement of Origin
• Bill of Materials (BOM)
• Manufacturing Process Chart
• Raw Material Purchase Records
• Raw Material Ledger
• Cost Accounting Records
• Supply Contracts
• Confirmation of Origin

Under the new simplified procedure, all eight documents can be replaced by a single 'Confirmation of Domestic Manufacture (Inclusive).'

• Old System: Statement of Origin + 7 types of evidentiary data = 8 Documents total
• Improved System: 1 Type of 'Confirmation of Domestic Manufacture'

By streamlining these procedures, FTA utilization will become much more accessible, which is expected to significantly enhance the price competitiveness of Korean exports.

Expanding the Scope of Simplified Origin Verification

Since 2017, the Korea Customs Service has designated items that are inherently recognized as produced or processed domestically due to their manufacturing characteristics as 'Simplified Origin Verification Items.'

In addition to the 17 newly added items (including 6 cosmetic categories), there were already 326 items benefiting from this simplified issuance process. This expansion demonstrates the government's commitment to facilitating smoother international trade for domestic manufacturers.

Critical Precautions for Exporters

Despite the simplification, there is an important caveat: Applicable FTA agreements may vary by product.

Exporters must confirm in advance whether their specific item qualifies under the relevant FTA for their target market. Simplified verification does not apply uniformly across every FTA agreement, so professional verification of the specific rules of origin (PSR) for each destination country remains essential.