[ad_1]
British Prime Minister Boris Johnson will hold a press conference in Downing Street on the 24th (local time) after the negotiations on future Brexit relations between the United Kingdom and the European Union conclude. AP Newsis
As the UK and the European Union (EU) conclude negotiations on future relations on the 24th (local time), attention is also being paid to the impact on Korean businesses. Although the impact on domestic companies exporting directly to the UK or the EU is small, it appears that there is a need to prepare in advance as changes to certification or customs clearance regulations occur.
According to the Korea International Trade Association on the 25th, Korean companies exporting directly to the UK or the EU are expected to have little impact from the results of this negotiation. As the Korea-England Free Trade Agreement (FTA) was officially signed on August 22 last year, the preferential trade relationship of the FTA between the two countries continues.
Under the Korea-English FTA, exports through the EU are also recognized as ‘direct transport’ for a temporary period of 3 years, and preferential tariff benefits are granted if only the requirements are met. Korean companies producing in the EU and exporting to the UK may continue to be subject to the duty waiver when transacting in the EU and UK.
However, there may be cases where non-tariff preferential treatment is not received depending on whether the rules of origin are met under the agreement. A trade association official said: “Some items have to undergo an essential production process within the EU. It may not be possible. “
Consequently, to recognize the EU origin, it is necessary to consider a plan to convert the part purchased in Korea or outside the EU into domestic production.
When the implementation period ends at the end of this year, the customs clearance procedure between the UK and the EU is reactivated, so domestic companies should prepare for delays in customs clearance.
In the UK, EU imports worth € 3.022 billion (about 406 trillion won), representing 49.1% of total imports up to last year, will be converted to customs clearance in abroad. Also, when exporting to the EU and UK at the same time, separate shipments from transit countries are not recognized, so they must be packaged and shipped separately.
At the end of the implementation period, separate legal and regulatory frameworks apply for the UK and the EU. For this reason, the validity of existing certifications and certifications can be an issue depending on the location of the certification and testing institution.
In fact, the EU will not recognize the validity of the CE certification, which has been assessed by a British accredited body after the implementation period has ended. The UK also announced its own UKCA certification, which replaces CE certification, but plans to acknowledge the effectiveness of CE certification, which has been temporarily assessed by an EU-accredited body late next year. Accordingly, detailed changes need to be verified after the implementation period on the website of the EU and UK governments.
A trade association official said: “We are operating a ‘Brexit Response Support Desk’ in cooperation with KOTRA to support the export industry.” .
Kijoong kim reporter [email protected]
You can also watch the Naver Et news edited by Hankook Ilbo.
Issues that may interest you
[ad_2]
