How to make the most out of the Korea-Australia Free Trade Agreement (KAFTA)

19.02.2018 Heath Baker

Using KAFTA is making a big difference for Australian exporters in Korea. Getting the benefits from the agreement can be easier than you think.

This guide gives you a quick summary of how to use the agreement, and how you can get the most benefit out of it, by addressing the below questions:

For goods exporters

  • Does KAFTA enable my exports go into Korea at lower tariff rates?
  • How do I export to Korea with lower tariffs?
  • What are rules of origin?
  • How do I get a Certificate of Origin?
  • Do lower tariffs only benefit the importer?
  • What does the importer need to do to access lower tariffs?
  • What else do I need to do? 

For service exporters

  • How to utilise KAFTA for services

Where do I go for help with using KAFTA?

There is no one place to go to get a comprehensive understanding of how to utilise all the benefits of KAFTA. However, there are people who can help, such as:
  • your importer
  • Australian Government agencies (DFAT, Austrade and DAWR)
  • industry bodies such as the Export Council of Australia.
A good starting point for you will be your importer. They will generally be experienced in importing goods into Korea, and with Korea’s large network of FTAs, they will most likely already be importing under FTAs. While they may not know the details of KAFTA, they should know what to look for.

Australian Government agencies, particularly their representatives in-market, will be able to identify KAFTA’s general requirements, even if they may not be able to give the full details. DFAT’s Free Trade
Agreement Portal is a very valuable resource for finding out tariff preferences and high-level information on rules of origin. DAWR’s MiCOR system is an important, if not always accurate, resource for understanding protocols, processes and documentation requirements for importing agricultural and food products into Korea. The ECA has provided insights on doing business with Korea on ANZ’s Be Trade  Ready website, including an overview of documentation required.

Industry bodies, such as the Export Council of Australia, have deep practical experience in helping exporters utilise FTAs. Even if we do not have immediate answers to detailed questions about each individual FTA, we have the right connections—from both the government and private sector—to find the answers.
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