Free Trade Agreement with Korea will provide real boost to exports and jobs growth, stated the Irish Exporters Association.

The EU and South Korea signed a Free Trade Agreement (FTA) that will help Irish companies expand exports to Korea. Last year Irish exports to Korea totalled  €357 million in goods. The FTA is expected to enable exports to Korea to increase by approx 50% in the coming years. This FTA is the most ambitious trade agreement ever negotiated by the EU and the first with an Asian country and  will come into effect on 1st July 201. Across the EU it is expected the Agreement will increase trade with Korea by €19 billion .

 

John Whelan, Chief Executive of the Irish Exporters Association stated today 9th May;

‘’The agreement between the EU and South Korea marks a significant achievement in improving our trade links. It will provide a real boost to jobs and growth in Ireland at this critical time. This wide-ranging and innovative deal is a benchmark for what can be  achieved in other trade agreements. The IEA urge the Government to become more pro-active in pushing for further FTA at the EU. In particular the IEA recommend that FTA should be a key focus of the Deptartment of Foreign Affairs and Trade.’’  

 

He went on to say ;

‘’The agreement tackles both the import tariff duties but also the more difficult non-tariff barriers to international trade. We expect the agreement will cut the costs of doing business with Korea by as much as €16 million per annum for Irish companies as the agreement will remove virtually all import duties between Ireland and South Korea as well as many non–tariff barriers. It will relieve exporters of industrial and agricultural goods from paying tariffs.

 

The IEA went on to advise of a key feature of the Agreement as follows;

Among the provisions contained in the EU – South Korea Free Trade Agreement is the adoption of a system of preferential treatment for originating goods, but an exporter must register to become an ‘approved exporter’ to fully avail of the benefits.

Under this system, an exporter can issue a declaration of preferential origin on an invoice for consignments up to the value of €6,000. Where an exporter has been authorised by the customs authorities to do so (“Approved Exporter”), invoice declarations can be issued for consignments of any value.

 

N.B.  The agreement provides that an invoice declaration is the only acceptable proof of preferential origin, i.e., exporters will not be able to issue EUR.1 Movement Certificates as proof of origin.

 

In order to become an “Approved Exporter”, an exporter should complete and submit the required application form, available on the below website

 

http://www.revenue.ie/en/customs/leaflets/procedure-issue-origin-documentation.html

 

or from:          Classification, Origin & Valuation Unit,

                        Customs Division,

                        Office of the Revenue Commissioners

                        Nenagh

                        Co Tipperary.

 

Phone: 067 63213

E-mail: origin&quotasection@revenue.ie

 

Exporters who are already approved to issue invoice declarations for goods being exported under one of the EU’s other preferential trade agreements can apply to have that approval extended to South Korea.

 

Full details of the EU – South Korea Free Trade Agreement can be found on the European Commission website:

http://trade.ec.europa.eu/doclib/press/index.cfm?id=443

 

 

 

 

Ends

 




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