TRQs for Agricultural Products for 2nd Half of 2012

A Lastest News about Agriculture and Animal Husbandry in South Korea

Posted on: 29 Jul 2012

On June 25th, 2012, the Ministry of Strategy and Finance (MOSF) announced tariff-rate quotas (TRQ) for the second half of 2012 on 28 agricultural products.

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: 7/9/2012 GAIN Report Number: KS1234 Korea - Republic of Post: Seoul Korea's TRQs for Agricultural Products for 2nd Half of 2012 Report Categories: Trade Policy Monitoring Approved By: M. Kathryn Ting Prepared By: LeeKyung Shim / Soo Hyun Kim / M. Kathryn Ting Report Highlights: On June 25th, 2012, the Ministry of Strategy and Finance (MOSF) announced tariff-rate quotas (TRQ) for the second half of 2012 on 28 agricultural products, in order to stabilize rising food prices and to increase competitiveness of Korean industry. The government extended TRQs on 26 items, which expired on June 30th 2012. Two items which had recent dramatic increase in price, orange juice and hides and skins, are also added to the TRQ list. The duty on hides and skins was reduced from 3 to 1 percent and on frozen orange juice (HS 2009. 11) from 50 to 35 percent for 10,000 Metric ton (MT). (The juice TRQ extends until Sept 30th.) The annual TRQ on Lucerene bale (alfalfa) was increased from 510,000 MT to 660,000 MT. General Information: Adjustment Tariffs & Voluntary TRQ Announced for 2012 Some TRQs in the first half of the year, including live swine and dried grapes are no longer applied. Meanwhile, tariff rates on products, such as fresh cheese and soybean oil, have changed. Further information about TRQ in the first half of the year can be found in KS1205. General Information General Information is cited from the announcement by Ministry of Strategy and Finance (MOSF). Pork belly Consumer preference is high compared to domestic output, thus supply is chronically insufficient. Taking into consideration the expected rise in demand for pork belly during the upcoming summer vacation season, TRQ on pork belly has been extended. Dried pepper TRQ on dried pepper will be extended in order to stabilize supply and demand under the possibility of poor harvests due to climate change. However, since the harvest season (August) is approaching, TRQ will be applied flexibly depending on domestic price. Sugar In order to stabilize price levels through promoting competition, usage restriction regulation on imported sugar will be rescinded after the 1 year extended regulation period which ends in June 2013. The usage restriction regulation which limited imported sugar usage to food processing will be rescinded, allowing it to be sold directly to customers in large scale retail markets. (TRQ amendment, take effect from June 5th) Orange juice The item will be added to the TRQ list following the rise in import prices. However, TRQ will be in effect temporarily until September considering the domestic tangerine shipment period. Lucerene bale The numbers of livestock farming such as cow and pig are sharply increasing after the FMD situation. Accordingly, allocated supply of lucerene bale for feeding will be raised. (450 -> 600 MT, 150 MT increase) The Schedule and expected effect TRQ regulation proposal was announced on June 26th and went into effect from July 1st. This will lower the tariff rate, will stabilize price levels of related items and also contribute to harmonizing supply and demand. Table I. Updated Voluntary Tariff Rate Quota (TRQ) Quantities and In-quota rates applied until Dec. 31st 2012 Tariff Rate (%) HS Quo 2012 No Commodity Base Tariff ta Tariff . R Quota ate Rate (MT) 1/ Fresh or chilled swine (pork belly) 0203 22.5 0 0203 10 50,000 Frozen swine (pork belly) 0203 25 0 0203 20 Mackerel 0303 10 0 20,000 0303 54 Processed Butters 0405 0405 20 8 4 10,000 2106 90 Fresh cheese, mozzarella cream cheese and other fresh cheese, cheddar and gouda cheese 0406 36 10 7,000 0406 10 0406 90 Guts and stomachs of animals (excludes fish), treated for 0504 sausage casing 27 13 300 0504 00 Manioc chips for alcohol 0714 20 0 105,000 0714 10 Dried Pepper, not ground or crushed 0904 50 10 10,000 0904 21 Wheat and meslin, other for milling 1001 1.8 0 1,350,000 1001 99 Malting Barley, other 1003 30 0 29,500 1003 90 Maize for processing 1005 3 0 1,300,000 1005 90 Potato flakes, granules and pellets 1105 8 0 1,500 1105 20 Malt for beer brewing 1107 1107 10 30 0 136,000 1107 20 Manioc starch for paper manufacturing 1108 8 6 15,000 1108 14 Other, starches of sweet potatoes 1108 8 7 20,000 1108 19 Lucerene (alfalfa) meal and pellets for feeding 1214 20 0 1214 90 Oth 600,000 er Lucerne (alfalfa) bale for feeding 1214 1 0 1214 90 Soybean oil, crude oil for food 1507 5 3 Unlimited 1507 10 Olive oil, virgin and other 1509 1509 10 5 3 Unlimited 1509 90 Sunflower-seed oil, crude oil, refined oil 1512 10 1512 5 3 Unlimited 1512 11 1512 19 Rape oil (crude oil) 1514 10 1514 1514 11 5 3 Unlimited 1514 90 1514 91 Grape seed oil 1515 5 3 Unlimited 1515 90 Rice bran oil 1515 5 3 Unlimited 1515 90 Lactose 1702 1702 11 20 0 7,000 1702 19 Cocoa preparation 1806 8 0 2,500 1806 20 Ground nuts, excluding peanut butter 2008 50 24 5,000 2008 11 Undenatured ethyl alcohol 100,000 2207 10 0 2207 10 Kl Hides and skins 4101 3 1 Unlimited 4101 20 Table II. Updated Voluntary Tariff Rate Quota (TRQ) Quantities and In-quota rates applied until June. 30th 2013 Tariff Rate (%) HS Quo 2012 No Commodity Base Tariff ta Tariff . R Quota ate Rate (MT) 1/ Other cane sugar 1701 3 0 Unlimited 1701 14 Other sugar, containing added flavoring or coloring matter for food processing 1701 30 0 300,000 1701 91 1701 99 Table III. Updated Voluntary Tariff Rate Quota (TRQ) Quantities and In-quota rates applied until Sep. 30th 2012 Tariff Rate (%) HS No. Commodity 2012 Quota Base Tariff Rate Quota Tariff Rate (MT) 1/ Frozen orange juice 2009 50 35 10,000 2009 11 Reference: Sunyoung Choi/ Gerald Smith, 2012. Korea’s Adjustment and In-Quota Tariffs for 2012, FAS USDA Available at: [Accessed 29 June 2012]
Posted: 29 July 2012

See more from Agriculture and Animal Husbandry in South Korea

Expert Views    
Livestock and Products Annual 2012   By Foreign Agricultural Service
Grain and Feed Annual   By Foreign Agricultural Service
Biotechnology Annual Report 2011   By Foreign Agricultural Service
Hot Tips    
Agricultural Sectors of South Korea   By U.S. Commercial Service South Korea
Latest News    
Measures to Increase Pork Belly Imports   By Foreign Agricultural Service