S. Korea to lower, scrap duties on most Indian products next year

SEOUL, Nov. 12 (Yonhap) -- South Korea will lower or scrap import duties on most
Indian products as of Jan. 1 in accordance with a newly ratified free trade pact,
the government said Thursday.
The Ministry of Strategy and Finance said measures will affect 11,054 products or
most goods covered by the so-called Comprehensive Economic Partnership Agreements
(CEPA).
CEPA is a form of a free trade agreement that aims to facilitate trade by doing
away with tariffs. The two sides agreed to cut duties on 85-90 percent of all
goods traded in the next eight years.
"Import duties on such manufactured goods as naphtha, ferroalloys and beans will
go down next year," an official said.
He said that in exchange New Delhi will lower its duties on South Korean made
cars, ships, diesel fuel and other products.
The official, however, said that while duties will be lowered, the bilateral
trade deal permits both sides to implement special safeguard measures to protect
businesses from sudden surges in imports.
The ministry in charge of levying the country's taxes and overseeing economic
policies said all Indian products wanting to benefit from the agreement must
receive country-of-origin certificates from the Export Inspection Council of
India.
The certification is important as it can prevent products made in other countries
from being passed of as having been made in India.
Seoul and New Delhi started CEPA negotiations in March 2006 and signed a deal in
February. South Korea's National Assembly ratified the accord late last week.
yonngong@yna.co.kr
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