U.S.-Korea Free Trade Agreement: Potential Economy-wide ... - USITC

Views of Interested Parties
In its report on the agreement, ITAC 14 (Customs Matters and Trade Facilitation) stated that
it supports the FTA. The report cited the agreement’s “fair and reciprocal” customs
provisions, market access opportunities for U.S. industry, and economic benefits to Korean
business. The report said that the FTA substantially meets the Committee’s objectives, in
particular its goals of consistency with customs chapters in other agreements, 27 and equity
and reciprocity in the area of customs administration. 28 The report notes that the agreement
adopts many of the current best practices in international customs administration, such as 48hour
release of goods, advanced publication of rules and regulations, confidentiality
protection, and the use of risk assessment principles. In addition, the report says that the
formation of a committee to administer the parties’ obligations raises the group’s confidence
that its objectives would be attained. The report characterizes as “ground-breaking” the
provisions that allow customs-related records to be maintained in any format, including
electronic. The report also says that while the Committee is pleased with the 4-hour release
period for express shipments, its goal is to reduce the time frame to one hour.
Other ITACs have also expressed their support for the customs administration provisions.
In its report, ITAC 11 (Small and Minority Business) said that it believes that “the chapter
on Customs Procedures will enhance these opportunities while affording protections to
small, medium, and minority businesses in the United States and Korea.” 29 The ITAC 10
(Services and Finance Industries) report includes supportive comments from the U.S. express
delivery industry, namely that “the Agreement contains important provisions to facilitate
customs clearance, which is critical to the efficient operation of express carriers, including
a targeted window of no more than four hours for clearance of most express shipments and
provisions allowing for electronic record retention.” 30 In its report, ITAC 4 (Consumer
Goods) said that the Agreement would “deliver important benefits to consumer goods firms
in terms of market access, regulatory transparency, and customs procedures.” 31 In its report,
ITAC 3 (Chemicals, Pharmaceuticals, Health Science Products & Services) cited the strong
customs administration provisions as “important to ensure that trade is not encumbered by
onerous and nontransparent customs procedures.” 32
The Advisory Committee for Trade Policy Negotiations (ACTPN) also expressed support
for the electronic and other modern provisions included in the agreement, which it said could
result in goods being cleared through customs before they arrive at the port or airport.
Furthermore, ACTPN said that it supports the provisions allowing advance comment on
changes in customs rules, and binding advance rulings on tariff classification, preferential
tariff treatment, and country of origin marking. 33
The Information Technology Industry Council (ITI) said that it believes that the customs
administration and trade facilitation commitments meet the needs of its members,
27 Committee objectives included transparency of rules and regulations and inclusion of a mechanism to
maintain “best practices” for the import and export process. ITAC (14) on Customs Matters and Trade
Facilitation, Advisory Committee Report, April 18, 2007.
28 ITAC (14) on Customs Matters and Trade Facilitation, Advisory Committee Report, April 18, 2007.
29 ITAC (11) on Small and Minority Business, Advisory Committee Report, April 26, 2007.
30 ITAC (10) on Services and Finance Industries, Advisory Committee Report, April 25, 2007.
31 ITAC (4) on Consumer Goods, Report, April 26, 2007.
32 ITAC (3) on Chemicals, Pharmaceuticals, Health/Science Products and Services, Advisory Committee
Report, April 24, 2007.
33 ACTPN, Report, April 26, 2007.
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