법무법인(유한) 율촌 | Yulchon LLC

Yulchon's Customs Team successfully concluded verification of origin project under Korea-US FTA with respect to U.S.-produced orange concentrate on behalf of C Company and received recognition that the origin of orange concentrate is the U.S.

The import duty rate for U.S.-produced orange concentrate was originally 54%, but this was reduced to 0% with the Korea-US FTA coming into effect on March 2012. However, the Korea Customs Service determined that some U.S. companies did not use 100% U.S.-produced oranges in their orange concentrate but used oranges from other countries including Brazil; accordingly, the Korea Customs Service required additional verification of origin, and also conducted a field audit by visiting the U.S. exporter.

In response to the Korea Customs Service's challenge, Yulchon prepared and submitted a trace map that substantiates all of the production process of orange concentrate from U.S.-produced oranges. Yulchon also submitted an Assurance from the U.S. Department of Agriculture that the orange concentrate was manufactured from U.S.-produced oranges. Based on these submissions, Yulchon successfully persuaded the Korea Customs Service that the origin of the orange concentrate was the U.S.