Guidelines for Importing Salted Squid under Korea-China FTA Tariff Rate Quotas (TRQs): Recommendation Agencies and Procedures Released

The item you inquired about, Salted Squid (HSK 1605.54-2091, Seasoned Squid), is subject to Tariff Rate Quotas (TRQ) under the Korea-China FTA. The TRQ system is a dual-rate mechanism where a lower preferential duty rate is applied to a specific volume (quota) of imports, while a higher duty rate is imposed on quantities exceeding that limit. To benefit from a rate significantly more favorable than the standard FTA rate, you must not only obtain a Certificate of Origin but also secure an import recommendation from a government-designated agency and strictly follow specific declaration procedures.

1. Import Recommendation Authority and Importance of HS Classification

The most critical requirement for applying the Korea-China FTA TRQ is obtaining an Import Recommendation from the Ministry of Oceans and Fisheries or its delegated authority. For marine products including salted squid, this task is typically managed by the Korea Fisheries Association. Importers must monitor the association's public notices to be allocated a portion of the quota and must possess a recommendation letter issued within that allocation to qualify for the lower duty rate.

Furthermore, it is essential to verify that the product precisely matches HSK 1605.54-2091 (Seasoned Squid). The HS Code may vary depending on the cooking method, processing style, and ingredients. If the HSK code on the recommendation does not match the actual imported goods, the TRQ application may be rejected. Therefore, it is highly recommended to seek a professional HSK classification review in advance.

• Issuing Agency: Ministry of Oceans and Fisheries or Korea Fisheries Association
• Applicable Item: HSK 1605.54-2091 (Seasoned Squid, etc.)
• Required Documents: Korea-China FTA Certificate of Origin (C/O), Application for Import Recommendation, Import Contract, etc.

2. Submission Timing and Procedural Compliance during Customs Declaration

Once the import recommendation is obtained, it must be properly utilized during the customs clearance process. The most important rule is that the recommendation must be submitted to the Customs Service before the import declaration is accepted. According to the Customs Act and the Special Act on the FTA, TRQ rates are only applicable if a valid recommendation is presented at the time of declaration acceptance. Even if you have the document, you generally cannot claim the lower rate retrospectively once the declaration is finalized.

Additionally, even with a TRQ allocation, a Korea-China FTA Certificate of Origin (C/O) remains mandatory. While the TRQ manages the 'quantitative limit' of the tax benefit, the C/O verifies the 'eligibility' of the goods as Chinese origin. Importers must satisfy the following three conditions simultaneously:

• First: Remaining quota must be available for the current year.
• Second: A valid Import Recommendation must be submitted before the import declaration is accepted.
• Third: A valid Korea-China FTA Certificate of Origin issued in China must be provided.

Lastly, TRQ volumes are managed on a first-come, first-served or planned allocation basis, meaning quotas may be exhausted early in the year. It is vital to stay updated with notices from the Korea Fisheries Association to track remaining volumes and ensure the recommendation remains valid at the time of import. Diligent adherence to these procedures will ensure you successfully benefit from significant duty savings.