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.

This deal was led by partner Jeong Cheol Cho and Un Sang Jung of Yulchon's Customs Team and handled by senior customs consultant Chang hee Seo.