If you are a business owner that imports goods from South Korea to the United States, you may have heard of the “Certificate of Origin Korea US Free Trade Agreement Blanket Period.” But what exactly is it, and why is it important for your business?
Let’s start with the basics. The Korea-US Free Trade Agreement (KORUS FTA) is a trade agreement between the United States and South Korea that went into effect in 2012. It aims to eliminate barriers to trade and investment between the two countries, making it easier for businesses to do business with each other.
One of the key provisions of the KORUS FTA is the requirement for a “Certificate of Origin” for goods that are eligible for preferential tariff treatment under the agreement. This certificate is a document that attests to the origin of the goods, and is used by customs officials to determine whether the goods qualify for preferential treatment.
The Certificate of Origin is important because it allows eligible goods to be imported into the United States duty-free or at a reduced rate. This can result in significant cost savings for businesses that import goods from South Korea.
But what about the “Blanket Period” part of the Certificate of Origin Korea US Free Trade Agreement Blanket Period? This refers to a specific provision of the KORUS FTA that allows for a simplified process for obtaining Certificates of Origin.
Under the Blanket Period provision, an exporter can obtain a single Certificate of Origin that covers multiple shipments of eligible goods over a period of up to one year. This can save time and paperwork for businesses that make frequent shipments of eligible goods.
To take advantage of the Blanket Period provision, the exporter must first obtain approval from the customs authority in their home country (in this case, South Korea). Once approved, the exporter can then issue multiple Certificates of Origin using the same approved form, as long as the goods meet the eligibility requirements of the KORUS FTA.
In summary, the Certificate of Origin Korea US Free Trade Agreement Blanket Period is a provision of the KORUS FTA that allows for a simplified process for obtaining Certificates of Origin for eligible goods imported from South Korea to the United States. This provision can result in cost savings and reduced paperwork for businesses that make frequent shipments of eligible goods. If you are an importer of goods from South Korea, it is important to understand and take advantage of this provision to maximize the benefits of the KORUS FTA.