January 04, 2021 13:02
Korea's free trade agreement with the U.K. went into effect on New Year's Day, the same day that Britain finally left the EU.
The FTA signed in August 2019 consists of essentially the same terms as the Korea-EU FTA.
An official with the Ministry of Trade, Industry and Energy here said Friday. "There'll be no change at all in trade terms and conditions with the U.K. in post-Brexit deals."
But trade volume between the two countries amounted to just US$8.68 billion last year, a mere one percent of Korea's total trade volume.
But while the terms are more or less the same for businesses, ordinary consumers must submit a certificate of origin through an online shopping mall or a delivery service if they want to benefit from tariff exemption for purchases of clothes or bags made in the U.K. If they fail to do it, they have to pay taxes if the amount exceeds the duty-free limit.
Now the U.K. has wound up negotiations with the EU on their future relations, Korean businesses will not have to worry about tariffs for products they are making in the EU for export to the U.K.
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