Adjustment and In-Quota Tariffs for 2012

A Lastest News about Agriculture and Animal Husbandry in South Korea

Posted on: 15 Feb 2012

Korea recently announced changes to its 2012 tariff schedule opening tariff-rate quotas and adjusting tariffs for certain agricultural products to stabilize domestic consumer prices.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 1/31/2012 GAIN Report Number: KS1205 Korea - Republic of Post: Seoul Korea's Adjustment and In-Quota Tariffs for 2012 Report Categories: Agricultural Situation Approved By: M. Kathryn Ting Prepared By: Sunyoung Choi / Gerald Smith Report Highlights: Korea recently announced changes to its 2012 tariff schedule opening tariff-rate quotas and adjusting tariffs for certain agricultural products to stabilize domestic consumer prices. A zero-duty tariff-rate quota for 70,000 MT of fresh and frozen pork bellies and pork for processing is opened from January 1- March 31. Zero-duty TRQ’s are opened from January 1-June 30 for live swine, dried milk, dairy spreads, and fresh cheese (mozzarella and other fresh cheese among others, while the tariff on peanuts is dropped from 50 to 24 percent for up to 5,000 MT. The duty on raisins is also reduced from 21 to 8 percent; on soyoil from 5 to 2 percent; and on chocolate and confectionary from 8 to zero percent for this period. Zero or low duty TRQ’s are opened for the entire year for a number of products used for producing livestock feed. General Information: Adjustment Tariffs & Voluntary TRQs Announced for 2012 On December 28, 2011, the Ministry of Strategy and Finance (MOSF) published updated tariffs (Table I) and tariff-rate quotas (TRQs) (Table II, III & IV) for selected agricultural, forestry and fishery products. Revisions in Tables I & IV are effective through calendar year 2012, while those in Table II will be effective during the 1st quarter of 2012 (January 1 – March 31, 2012) and Table III will be effective for the first half of 2012 (January 1 – June 3, 2012). These changes are expected to facilitate continued imports of U.S. agricultural products, particularly feed grains and food ingredients. The most notable changes are listed below. Key highlights of Korea's Adjustment and In-Quota Tariffs for 2012 include: Pork/Hogs The price of pork belly meat – the most popular pork cut in Korea – generally increases during the Lunar New Year holidays. Thus, the Ministry of Strategy & Finance (MOSF) continuing its efforts to curb rising consumer inflation decreased the duties to zero on 70,000 MT of imported bellies and other pork cuts from January 1, through March 30. MOSF‘s intervention is also aimed at eliminating shortages as a result of the 2010 foot and mouth disease (FMD) outbreaks. Other notable changes were the tariff adjustments for breeding swine. The duty for breeding swine was lowered from 18 percent to zero from January 1 through June 30. Feed Feed demand has increased with the recovery of the livestock sector. Thus, the government decreased the quota tariff for important feed ingredients such as DDGS and soybean oil-cake from 3 percent to zero and 1 percent to zero respectively from January 1 through December 31. Cheese In addition, the Government of Korea imposes no import duties on 7,000 tons of fresh cheese including mozzarella, cream cheese, cheddar and Gouda (HSK 040610, 040690) from January 1, through June 30. Importers believe that additional quantities for cheese are warranted through the end of the year. Vegetable oils Vegetable oil quota tariff decreased items include sunflower seed oil, rape seed oil, maize oil, grape seed oil, and soybean oil. The in-quota tariff rate on an unlimited quantity of food grade soybean oil is now 2.5 percent down from the 5 percent base rate for the second half of CY 2011. Consumer-oriented (chocolate, peanuts, raisins) Other significant quota tariff decreased items include chocolate, ground nuts, and raisins. The government decreased the base tariff rate for unlimited quantities of dried grapes from 21 percent to 8 from January 1 through June 30. In addition, the government also announced a zero-duty on unlimited quantities of chocolate from January 1 through June 30, 2012. Table I. Adjustment Tariffs for CY 2012 (Effective as of January 1, 2012) HS N djustment Tariff o. Commodity WTO Bound R Aate 2011 2012 Changes Eel None 27 A/ 27 A/ - 0301 92 Sea-bream None 31 B/ 28 C/ -3 0301 0301 99 (Live) Sea bass None 31 28 -3 0301 99 Croaker None 28 28 - 0301 99 Alaska Pollack 0303 67 None 25 25 - 0303 69 0303 Saury, excluding horn fish (Frozen) None 28 28 - 0303 89 Croaker None 47 43 -4 0303 89 Salted or brine shrimp 0306 0306 26 None 42 D/ 38 E/ -4 030627 Squid (Frozen) 0307 None 22 22 - 0307 49 0709 0709 59 Oak mushroom 90 F/ 40 F/ 40 F/ - 0712 0712 39 Chinese vermicelli 1902 54 G/ 30 G/ 28 H/ -2 1902 19 Steamed or boiled rice 1904 1904 90 54 50 50 - 1904 90 Tomato Sauce 2103 54 45 45 - 2103 20 Gochujang (red pepper paste), Other 2103 54 45 45 - 2103 90 Mixed Seasonings 2103 54 45 45 - 2103 90 Mae Joo (fermented soybean) 2103 54 I/ 13 J/ 13 J/ - 2103 90 Plywood 4412 31 4412 4412 32 None 10 10 - 4412 39 4412 99 Source: Ministry of Strategy and Finance (MOSF) Note: A/ or 1,879 Won/kg, whichever is greater. B/ or 2,272 Won/kg, whichever is greater. C/ or 2,052 Won/kg, whichever is greater. D/ or 283 Won/kg, whichever is greater. E/ or 256 Won/kg, whichever is greater. F/ or 1,625 Won/kg, whichever is greater. G/ or 238 Won/kg, whichever is greater H/ or 222 Won/kg, whichever is greater I/ or 218 Won/kg, whichever is greater. J/ or 52 Won/kg, whichever is greater. Table II. Voluntary Tariff Rate Quota (TRQ) Quantities and In-quota rates for January 1 – March 30, 2012 Period HS B Quota Tariff Rate (%) ase Tariff Trade (Metric ton) No Commodity . Rate 2012 2012 Quota 2011 Total 2011 Imports 1/ (MT) 1/ Imports 2/ from U.S. 2/ Pork, fresh or frozen 0203 (pork belly) 22.5 0 15,920 5,257 0203 19 70,000 Pork, fresh or frozen (for 0203 processing) 22.5 0 461,568 139,567 020329 Garlic, fresh or chilled 0703 50 10 5,400 37,050 0 0703 20 Dried Pepper, not ground 0904 or crushed 50 10 6,185 15,415 0 0904 21 Source: Ministry of Strategy and Finance (MOSF), Korea Trade Information Service (KOTIS) Note: 1/ Quota and Tariffs will be applied for January 1 – March 31, 2012 Period 2/ Import data for January 1 – December 31, 2011 period Table III. Voluntary Tariff Rate Quota (TRQ) Quantities and In-quota rates for January 1 – June 30, 2012 Period HS Base Quota Tariff Rate (%) Trade (Metric ton) No Commodity Tariff . R 2012 2012 Quota 2011 Total 2011 Imports ate 1/ (MT) 1/ Imports 2/ from U.S. 2/ Live Swine Weighing less than 50 kg 0103 18 0 4,676 Heads 223 Heads 0103 91 5,000 Heads Live Swine 0103 Weighing 50 kg or more 18 0 3,608 Heads 1,551 Heads 0103 92 Mackerel 0303 10 0 10,000 60,606 1 0303 54 Milk and Cream, not concentrated nor containing added sugar or other 0401 sweetening matter 36 0 4,450 19,432 2,896 0401 40 0401 50 Milk and cream, concentrated or containing added sugar or other 0402 20 0 5,600 33,503 928 sweetening matter 0402 10 Milk and cream in powder, not 0402 40 0 650 5,284 1 containing added sugar or other sweetening matter 0402 21 0402 29 Butter 0405 40 0 2400 4,801 883 0405 10 Dairy spreads 0405 8 0 3,756 55 0405 20 Food preparations with a basis of 11,500 2106 butter 8 0 32,677 6,661 2106 90 Fresh cheese, mozzarella, cream 0406 cheese 36 0 44,277 19,168 0406 10 Oth 7,000 er fresh cheese, cheddar and 0406 gouda cheese 36 0 16,940 3,597 0406 90 Dried egg yolk 0408 27 0 100 250 2 0408 91 Guts and stomachs of animals (excludes fish), treated for sausage 0504 27 13 200 25,104 8,592 casing 0504 00 Manioc chips for alcohol 0714 20 0 144,000 74,761 0 0714 10 Grape, dried 0806 21 8 Unlimited 3,929 3,667 0806 20 Wheat and meslin, other for milling 1001 3 / 1.8 0 1,560,000 2,439,200 1,252,754 1001 99 Malting barley, other 1003 30 0 35,000 30266 0 1003 90 Maize for processing 1005 3 0 1,410,000 2,082,973 1,174,118 1005 90 Potato flakes, granules and pellets 1105 8 0 1,500 804 320 1105 20 Malt for beer brewing 1107 1107 10 30 / 27 0 138,000 197,010 0 1107 20 Manioc starch for paper 1108 manufacturing 8 4 12,600 20,561 0 1108 14 Other, starches of sweet potatoes 1108 8 7 22,200 25,552 0 1108 19 Soybean oil, crude oil for food 1507 5 2.5 Unlimited 275,158 25,370 1507 10 Olive oil, Virgin 1509 5 0 Unlimited 10,594 1 1509 10 Olive oil, Other 1509 5 0 Unlimited 2,812 8 1509 90 Sunflower-seed oil, crude oil 1512 11 1512 R 5 0 Unlimited 19,236 16 efined oil 1512 19 Rape oil (crude oil) 1514 5 0 Unlimited 104,279 0 1514 11 1514 91 Other fixed vegetable fats (crude oil) 1515 5 0 Unlimited 32,539 117 1515 90 (grape seed oil) Beet sugar, cane sugar and other cane sugar 1701 1701 12 3 0 Unlimited 1,627,093 5 1701 13 1701 14 Other sugar, containing added flavoring or coloring matter for food 1701 processing 30 0 100,000 19,977 1,435 1701 91 1701 99 Lactose 1702 1702 11 20 0 7,500 19,559 11,129 1702 19 Chocolate and chocolate 1806 confectionery 8 0 Unlimited 9,297 1,132 1806 20 Cocoa preparation 1806 8 0 2,500 8,988 381 1806 20 Ground nuts, excluding peanut 2008 butter 50 24 5,000 28,333 912 2008 11 Undenatured ethyl alcohol 2207 10 0 108,000 Kl 123,377 Kl 0 2207 10 Dextrins and other modified 3505 starches 8 4 24,000 60,005 1,145 3505 10 Sheets for veneering for plywood of thickness exceeding 0.4 mm 4408 10 4408 3 2 Unlimited 118,975 282 4408 31 4408 39 4408 90 Source: The Ministry of Strategy and Finance (MSOF), Korea Trade Information Service (KOTIS) Note: 1/ January 1 – June 30, 2012 period 2/ January 1 – December 31, 2011 period Table IV. Voluntary Tariff Rate Quota (TRQ) Quantities and In-quota rates for January 1 – December 31, 2012 Period HS Base Quota Tariff Rate (%) Trade (Metric ton) No Commodity Tariff . R 2012 2012 Quota 2011 Total 2011 Imports ate 1/ (MT) 1/ Imports 2/ from U.S. 2/ Whey for feed 0404 20 0 35,000 7,624 4,731 0404 10 Manioc chips for feed 0714 20 0 200,000 74,761 0 0714 10 Manioc pellets for feed 0714 7 0 900,000 254,536 0 0714 10 Rye for seed 1002 3 1 6,000 8,667 5,278 1002 10 Unhulled barley for feed 1003 5 4 50,000 23,090 0 1003 90 Oats for feed 1004 3 0 130,000 3,401 151 1004 90 Maize for feed 9,020,000 1005 3 0 5,667,111 4,843,236 1005 90 3/ Soybean for oil crushing & oil cake 1201 for feed 3 0 1,150,000 820,746 347,094 1201 90 Rape seeds for oil crushing & oil cake 1205 10 5 150,000 54 0 1205 10 1205 90 Cotton seeds for feed 1207 2 0 160,000 127,296 51,993 1207 29 Cereal straw and husks for 1213 mushroom farming 8 4 20,000 6,954 574 1213 00 Lucerne(alfalfa) meal and pellets for 1214 feeding 1 0 Unlimited 20,104 2,768 1214 10 Other lucerne(alfalfa) meal and 1214 pellets for feeding 1 0 Unlimited 165,453 159,403 1214 90 1214 1214 90 20 Fodder roots and other vegetables 510,000 0 852,478 617,160 2308 for feed 5 4/ 2308 00 Animal or vegetable fat for feed (excludes dehydrated castor oil and 1518 5 2 50,000 51,687 2,898 epoxidised soya oil) 1518 00 Glucose and glucose syrup 1702 8 6 2,200 49,427 15 1702 30 Molasses for feed 1703 1703 10 3 0 450,000 714,152 2 1703 90 Wheat bran for feed 2302 2 0 350,000 242,313 0 2302 30 Beet-pulp for feed 2303 5 2 170,000 145,260 6,452 2303 20 Brewing or distilling dregs & waste 2303 for feed 3 0 920,000 510,193 453,025 2303 30 Soybean Oil-cake for feed 2304 1.8 0 2,700,000 1,523,435 173,611 2304 00 Oil cake of cotton seeds 2306 2 0 165,000 21,673 2,621 2306 10 Coconut or copra oil cake 2306 2 0 200,000 366,557 0 2306 50 Oil cake of palm nuts or kernels 2306 2 0 200,000 694,006 0 2306 60 Cotton seed hulls for feed 2308 5 2 110,000 75,849 12,116 2308 00 Cotton yarn 5205 12 5205 5205 32 2 / 8 0 Unlimited 35,457 0 5205 33 Source: The Ministry of Strategy and Finance (MSOF), Korea Trade Information Service (KOTIS) Note: 1/ January 1 – December 31, 2012 period 2/ January 1 – December 31, 2011 period 3/ Consists of 9,000,000 MT for feed and 20,000 MT for mushroom growing 4/ Consists of 450,000 MT for feed and 60,000 MT for mushroom growing
Posted: 15 February 2012

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