Korea applies tariff differentials to RCEP partners/groups of partners. In addition to the separate Tariff Commitment Schedules for each partner/group of partners, in Annex I of the RCEP’s Full Text, Korea also has an additional Appendix regulating the list of goods which are subject to tariff differentials and must comply with additional rules of origin (in addition to the general rules of origin).   

This means that imported goods on The List of Appendix not only have to meet the rules of origin prescribed for those goods (stated in Annex 3A - Product-specific rules of Chapter 3 on Rules of Origin) but also need to satisfy the "Additional Rules of Origin" stated in the Appendix.

Additional rules of origin of Korea

"Additional rules of origin" are regulated the same among RCEP members applying tariff differentials under the RCEP (including Korea). In particular, this rule requires that the value content of the exporting country (value of originating materials, labor, profits, etc.) must account for 20% or more of the total value of goods.

Korea applies "additional rules of origin" from year 1 (2022) onwards. For two products with HS codes 3926.90.10.00 and 7007.21.10.00, the period for applying additional rule of origin is 20 years, then it is lifted (see detailed period for applying Korea's additional rules of origin in Korea's Appendix in Annex I).

Preferential Tariff Rate

-    If the goods meet both condition (i) and (ii): 

(i)    The goods are significantly processed in the exporting country where the goods are produced entirely from materials originating from RCEP members (only minimal processing steps – as specified in the Agreement – are carried out in other member countries, if any); and 

(ii)    The goods meet the "Additional rules of origin" as specified in the Appendix of Korea's Tariff Schedule. 

In this case, the applicable preferential tariff rate is the tariff rate that Korea grants to the RCEP exporting member.

-    If the goods DO NOT MEET either of condition (i) and (ii):

In this case, preferential tariff rate will be the tariff rate imposed by Korea on the RCEP country contributing the highest value of originating materials used in the production of goods.

Source: Center for WTO and International Trade

Documents are attached below:

• Annex 3A. Product Specific Rules
• Tariff Differentials of Korea

• Korea’s tariff commitments on imported goods under RCEP
• Korea's certification of origin mechanism under RCEP
• Korea’s Commitment on opening service market under RCEP
• Opportunities from RCEP for exporting Vietnamese goods to the Korean market