Preannouncement of Legislation for 2024 Korea’s Flexible Tariffs Plan
The government preannounces the 2024 Korea’s Flexible Tariffs Plan that covers details on regular flexible tariffs (quota tariffs, adjusted duties, tariff rate quotas expansion, and special emergency tariffs) for a week starting today. The operational plan has been developed based on prior consultations and the Tariff Deliberative Committee’s review (November 21) reflecting the demands of relevant ministries and stakeholders. The plan will come into effect from January 1, 2024 after going through necessary administrative procedures.
Above all, quota tariffs for next year aim to enhance industry competitiveness and achieve price stability. In order to shore up the policy effects, tariff reduction will be imposed on 76 items in consideration of comprehensive factors such as price trends and utilization of FTAs.
In an effort to strengthen industry competitiveness across sectors, the plan will support raw materials for new growth engine industries such as quartz glass substrates (semiconductors) and lithium nickel cobalt manganese oxides (secondary batteries); raw materials for traditional major industries such as aluminum alloys (automobiles) and nickel pig iron (steel); vulnerable industry-related items such as disperse dyes (fibers) and feed corn (feed). In addition, aiming to stabilize prices, it will support food and food ingredients such as sugar and chicken; industrial and power generation raw materials prone to supply instability due to fluctuations in global oil prices such as LNG and LPG (butane and propane), and crude oil (for naphtha and LPG usage). However, in the case of fuel-related items such as LNG, LPG, and naphtha, the scope of support will be decided in the first half of next year, with the reassessment on whether to extend the support slated for the second half of the year.
As for adjusted duties, the plan is to maintain the same level of tariff rates as that of this year for 13 items including red chili paste and sea breams in order to protect the domestic industries.
An increase in tariff rate quotas (TRQs) will be applied to 13 items including sesame and soybeans, with a slightly larger quota increase compared to that of this year. Processed peanuts, which have been subject to the expanded TRQs this year, will be excluded from the list, as they are planned to receive larger support next year through quota tariffs due to recent price surges.
The special emergency tariffs on agricultural, forest, and livestock products will be applied to the same items as this year. However, the quotas of cereal grains are planned to be adjusted upward, from 464,422 tons to 654,995 tons, taking into account recent market expansion.
Please refer to the attached files.
