I'm exporting K-beauty products overseas, and I find the process of obtaining a certificate of origin to receive FTA benefits too complicated. Is it true that this procedure is being simplified? Released

Recently, the Korea Customs Service announced that it would significantly simplify the issuance procedures for Free Trade Agreement (FTA) certificates of origin to more actively support the export of K-beauty companies.

In particular, a total of 17 items, including six cosmetics items such as lipsticks and mask packs, have been newly designated as 'simplified origin verification items,' and this system is scheduled to be implemented from June 30.

This change was promoted to help small export companies that have sufficient marketability and export competitiveness but have struggled with the complex preparation of origin verification documents.

Previously, to apply for FTA preferential tariffs, eight types of documents proving that the goods were of Korean origin had to be submitted to customs (or the chamber of commerce) to obtain a certificate of origin. These included the origin statement, bill of materials (BOM), manufacturing process chart, raw material purchase statement, raw material ledger, cost calculation statement, supply contract, and origin verification document.

However, from now on, submitting just one 'domestic manufacturing (comprehensive) confirmation' will replace all eight types of documents.

Existing: Origin statement + 7 types of verification documents (bill of materials, manufacturing process chart, etc.) = Total 8 types of documents

Improvement: One type of domestic manufacturing (comprehensive) confirmation

With this simplification of procedures, utilizing FTAs will become much easier, and the export price competitiveness of our companies is also expected to improve significantly.

Since 2017, the Korea Customs Service has been designating items that can be verified as domestic manufacturing and processing due to the characteristics of the manufacturing process as 'simplified origin verification items' and has been simplifying the issuance procedures to enable our companies to utilize FTAs more actively.

In addition to the newly added 17 items (including six cosmetics items), 326 items have already been designated as 'simplified origin verification items.'

However, there is an important caution.

The FTA agreement applicable to each item may vary.

Therefore, export companies must check in advance whether the item they are exporting is subject to a specific FTA agreement.

Not all simplified verification items apply equally to all FTA agreements.