Asean Korea Free Trade Agreement Rules of Origin

The ASEAN-Korea Free Trade Agreement (AKFTA) is an important trade agreement that promotes economic integration between the ten member states of ASEAN and South Korea. The agreement, which came into force in 2007, has created a free trade area with a combined population of over 600 million people and a GDP of over $2.8 trillion.

One key aspect of the AKFTA is the rules of origin. These rules are designed to ensure that goods traded between ASEAN and Korea are genuinely originating from these regions and not from third-party countries. This helps to prevent circumvention of the agreement and promotes a level playing field for businesses.

The rules of origin for the AKFTA are set out in Annex 6 of the agreement. They specify that a product can be considered as originating from ASEAN or Korea if it meets one of the following criteria:

– Wholly obtained or produced in ASEAN or Korea

– Produced in ASEAN or Korea using materials that are wholly obtained from either region

– Produced in ASEAN or Korea using materials that are not wholly obtained from either region, but have undergone sufficient processing or working in either region to qualify as originating from there

The rules of origin also specify the criteria for determining the proportion of non-originating materials that can be used in a product while still allowing it to be considered as originating from ASEAN or Korea. This proportion varies depending on the product and the nature of the processing or working that has been done in ASEAN or Korea.

To take advantage of the benefits of the AKFTA, businesses must comply with the rules of origin when exporting goods to ASEAN or Korea. This requires careful attention to detail and the ability to provide accurate and complete documentation to support the origin of their products.

In addition to promoting trade between ASEAN and Korea, the AKFTA also seeks to enhance economic cooperation in areas such as investment, intellectual property, and competition policy. The agreement has already helped to boost trade and investment flows between the two regions, and is expected to continue to play an important role in promoting economic growth and development in the years ahead.

In conclusion, the rules of origin are a critical component of the ASEAN-Korea Free Trade Agreement. By ensuring that products traded between ASEAN and Korea are genuinely originating from these regions, the rules promote fair competition and create opportunities for businesses to benefit from increased trade and investment flows. As such, it is important for businesses to understand and comply with these rules when exporting goods to ASEAN or Korea.