Gov't to exempt tariffs on increased shipping costs for Hormuz reroutes
A handout picture released by the Marine Nationale (French Navy) on May 6 shows the French Navy's Carrier Strike Group that includes the flagship aircraft carrier Charles de Gaulle (unseen) and its escort transiting the Suez Canal en route to the southern Red Sea to preposition for a possible mission to restore navigation in the Strait of Hormuz. AFP-Yonhap
Korea will exempt additional shipping costs from tariffs on imports rerouted due to the closure of the Strait of Hormuz, customs authorities said Friday.
The measure will apply retroactively to imports reported since March 1 that have already faced sharp increases in shipping costs, according to the Korea Customs Service (KCS).
The measure is aimed at easing supply chain disruptions as the key Middle Eastern shipping route has effectively been closed since U.S.-Israeli strikes on Iran in late February.
Eligible shipments include vessels from the Middle East using alternative routes that bypass the Strait of Hormuz, emergency air cargo transport and ships stranded in the strait due to the conflict, the KCS said.
The exemption will cover not only standard freight charges, but also demurrage fees and transportation insurance premiums, it added.