Determining tariffs, duties and fees of imported goods into South Korea
Import tariffs
After determining the HS code of a product according to Korea's HS system, the importer can identify the import tariff rate applicable to that product. Most tariffs are calculated based on a percentage of the customs value of the goods.
For Vietnamese goods imported into South Korea, there are 04 tariff options, each option corresponding to a certain tariff rate and conditions for enjoying it. Importers will base on the specific conditions of the goods to choose the most appropriate and beneficial tariff for themselves. Specifically:
• MFN tariff: This is the tariff rate that South Korea imposes on imported goods from WTO member countries. The tariff rate is determined by South Korea in compliance with its commitments in the WTO, and is applied to goods from WTO member countries without any conditions on origin. Vietnam is a WTO member, so Vietnamese goods naturally enjoy this tariff rate without having to meet any conditions.
• AKFTA tariff: This is a preferential tariff rate that South Korea imposes on goods from member countries of ASEAN-Korea Free Trade Agreement (AKFTA). The preferential tariff rate shall be determined by South Korea, but in no case shall be higher than the tariff rate committed in the AKFTA. To enjoy the preferential tariff rate under the AKFTA Agreement, Vietnamese goods must meet the AKFTA’s rules of origin and have AKFTA certificate of origin.
• VKFTA tariff: This is a preferential tariff rate that South Korea imposes on goods from Vietnam under Vietnam-Korea Free Trade Agreement (VKFTA). The preferential tariff rate shall be determined by South Korea, but in no case shall be higher than the tariff rate committed in the VKFTA. To enjoy the preferential tariff rate under the VKFTA Agreement, Vietnamese goods must meet the VKFTA’s rules of origin and have VKFTA certificate of origin.
• RCEP tariff: In RCEP, South Korea has a separate Schedules of Tariff Commitments for goods from ASEAN member countries (including Vietnam). The preferential tariff rate under RCEP shall be determined by South Korea, but in no case should be higher than tariff rate committed in RCEP. To enjoy the preferential tariff rate under the RCEP Agreement, Vietnamese goods must meet the RCEP’s rules of origin and have RCEP certificate of origin.
Businesses can look up the tariff rates applicable to their goods at the following link: https://www.customs.go.kr/ftaportalkor/ad/ftaCnvn/txrtInfo.do?mi=3526
Other taxes and duties
In addition to import tariffs, goods imported into South Korea are also subject to other taxes, such as:
• Value added tax (VAT): Goods imported into South Korea are subject to a 10% VAT - this rate applies to all goods imported into South Korea.
• Excise Tax: Certain types of luxury goods and durable consumer goods are subject to excise tax of 10% to 20% when imported into the Korean market. (For example, jewelry, precious metals, golf, fur, yachts, etc. are subject to excise tax of 20%; refrigerators, washing machines, televisions, etc. are subject to 15%, and beverages and health products are subject to 10%)
Anti-dumping, anti-subsidy, and safeguard duties: Some imported goods are investigated and imposed anti-dumping, anti-subsidy or safeguard duties by South Korea. Goods that are subject to such measures will be levied these duties.
Source: Center for WTO and International Trade
