A. General Information
1. Title
FTA KOREA PLUS - KOREA's FTA ORIGIN DETERMINATION SERVICE
2. Implementation period of the project/service:
4. Geographical coverage
Global
Participating countries: Australia, Canada, Chile, China, Colombia, India, New Zealand, Peru, Singapore, Türkiye, United Kingdom of Great Britain and Northern Ireland, United States of America
Hub Point: Republic of Korea
5. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
The Ministry of Trade, Industry and Energy of Korea
Other participating agencies/entities
KTNET KOREA (service provider)
b. Operational stage
Lead agencies/entities (op)
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Other participating agencies/entities (op)
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6. Main stakeholders/beneficiaries of the service
Traders (big enterprises)
Traders (SMEs)
Other Government Agencies (OGAs)
7. Business process category of the service
Commercial Transactions
Forwarding and cargo handling
Regulatory/official control
B. Lessons Learned
8. Summary description of the project/service
Brief Summary
The Ministry of Trade, Industry and Energy of Korea supported the implementation of the FTA Trade Agreement Rule of Origin Determination Service to increase the SMEs’ utilization rate of FTAs
a. Objective(s)
FTA PLUS KOREA enables the streamlined process of origin determination using AI and data compliance.
Main Functions:
FTA Information:
Rules of Origin information by FTAs
-RoO of RCEP and 17FTAs in effect
HS code search
Base Information Management
Product management
Customer Management
Bill of Materials management
Purchase/Sales ledger
Declaration of Origin Management
Origin Determination
Origin Verification Questionnair
Issuing Declaration of Origin (D/O)
Preferential Certificate of Origin
Post-Determination Management
P-C/O and D/O Signature register
Due diligence
b. Business need for the service (background)
Complicated RoO: 88% of trading SMEs interviewed complained about the origin determination; Challenges in Complicated RoO, difficult issuing process, and lack of knowledge and experts.
High Cost: The application and verification of RoO by Authority is a growing barrier ‘at the border’ in some countries. Sometimes, the total cost of utilizing FTA is higher than the tariff benefit of FTA.
Compliance: It is necessary to prepare for the risk of additional customs duties due to errors in the determination of origin and incomplete determination documents.
Administration burden: Responding to the customer's request for a Country of Origin Management is necessary. It is needed to prepare for due diligence.
c. Business process covered*
d. Overall architecture and functionalities*
e. Relevant document/figure
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9. Documents and data exchanged via the service
10. Data models/databases, proprietary solutions, hybrid approaches
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11. Main challenges faced during the service
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12. Lessons learned from the service
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13. Main benefit(s) of the service
Enhanced regulatory compliance*
Transaction Cost savings*
Transaction Time savings
Simplified process
13A. Elaborations/detailed description on benefits gained
14. Technical/financial/capacity building/other assistance
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15. Future plan for expansion of the service
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16. Other information or relevant references on the service
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17. Relevant document regarding the service
C. Relevant Standards
18. Name(s) of any international, national legal instrument underpinning the service
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19. Electronic message standard
19A. Electronic message standard supporting the service
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19B. Type of standard for electronic message applied for the service
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20. Technical communication standard
20A. Technical communication standard supporting the service
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20B. Type of technical communication standard applied for the service
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21. Security-related standards*
21A. Security-related standard supporting the service
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21B. Type of security-related standard applied for the service
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22. Other Technical Information
22A. Interface developed for data exchange with an internal system
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22B. Other technical implementation information
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