KCS to Turn FTA Into Golden Business Opportunity

By Lee Hyo-sik

Staff Reporter

South Korea should make the best use of free trade agreements (FTAs) with its trading partners to help local companies expand their presence overseas and attract foreign investment, transforming itself into a major worldwide business hub, the nation's top customs officer said Tuesday.

In an interview with The Korea Times, Korea Customs Services (KCS) Commissioner Yoon Young-sun said he will make every effort to make customs clearance and other customs-related operations more business-friendly in a bid to help Korean firms more easily engage in international commerce in an increasingly globalized world.

``Korea's business territory has expanded dramatically over the past few years in line with a growing number of free trade accords it has signed. We have and will continue to provide local exporters with customer-oriented services in customs administration,'' Yoon said.

FTAs with 16 countries have gone into effect and the pacts with the European Union and the United States are expected to take effect in the near future. Korea is currently negotiating with Peru and several other countries.

The commissioner said with free trade pacts in place, tariff rates are expected to go down and customs procedures will be simplified, adding the extent and content of these changes are different from country to country.

``To enable domestic companies to better cope with changes in the global business environment and customs procedures of the nation's FTA partners, we will offer them one-stop services. We also plan to set up a global FTA center from which businesses can obtain all types of customs-related information concerning countries that have signed agreements with Korea,'' Yoon said.

With the nation's growing international trade and other rapidly changing trade environment, the customs chief said he will turn the customs agency into a more open and efficient entity. ``We need to become more global-minded and look beyond our border. Collecting duties and sorting out customs reports are the thing of the past, thanks to the electronic state-of-the art customs procedure system. What 4,500 KCS employees should do now is to find better ways to help local businesses display their full potential overseas.''

The commissioner said the meeting of customs agency heads in the Asia-Pacific region is important to the KCS's efforts to expand cooperation with its overseas counterparts

The KCS is the chair of the 33 members of the World Customs Organization (WCO) in the Asia-Pacific this year and will host the 13th WCO Asia Pacific regional heads of Customs Administration Conference in Seoul from April 27 through 30.

``Besides discussing ways of boosting cross-border trade and simplifying customs procedures, we will promote Korea's image among the 80 participants. I will take on a ``Korea sales'' mission during the four-day meeting,'' Yoon said.

He plans to hold a series of bilateral meetings with his counterparts from 13 countries, including China, Japan and India, in a bid to bolster cooperation and better resolve customs-related difficulties facing domestic firms in host countries.

``Through face-to-face encounters, I will build up close relationships with Asia's top customs officials. Among many issues, I will promote the introduction of ``authorized economic operator'' (AEO) certificate to help domestic companies ship their goods overseas in an easier and more convenient manner,'' KCS head said.

The KCS introduced the AEO certificate in April 2009 to aid local exporters in dealing with stricter customs measures against imports in the United States and Europe in the aftermath of the 9/11 terrorist attacks.

The WCO recognized the AEO in 2005 and has been promoting its adoption by member nations as a way to deal with strengthened customs inspections.

It allows products made or handled by accredited operators to pass through customs checkpoints with fewer or no inspections, giving companies the benefit of faster export and import processing and enabling customs officials to concentrate on shipments from lesser-known businesses.

``We have been informing local firms of the AEO and its benefits, urging them to obtain the certificate as soon as possible to take advantage of the eased customs clearance. It will save logistics time and costs, and improve their corporate image as a safe and responsible member of the community,'' the customs chief said.

The KCS has been trying to reach an accord with the U.S., Canada and Singapore, Yoon said, adding the agency will soon be able to sign a pact with the three countries.

The commissioner also said he will make every effort to export the home-developed electronic customs clearance system, ``UNI-PASS,'' to as many developing countries as possible.

So far, the agency has sold the system to Mongolia and four other developing countries, earning $40 million. It is currently in negotiations with Argentina and four other nations valued at $82 million.