Customs agency to ease rules on US crude routed through third countries
Oil prices are displayed at a gas station in Seoul, Sunday. Yonhap
Korea's customs agency said Tuesday it has simplified regulations to allow U.S. crude routed through third countries to remain eligible for benefits under the bilateral free trade agreement (FTA), in line with efforts to stabilize the supply amid tensions in the Middle East.
The Korea Customs Service said the new rule, effective Tuesday, will ease procedures for importers to receive benefits under the bilateral FTA for U.S. crude imported to Korea after being transshipped through third countries.
Previously, if crude oil was imported and additionally shipped through a third country, such as Mexico, it was not immediately eligible for preferential treatment under the FTA.
"We decided to proactively ease complicated procedures, under which importers were required to submit documents from transit countries to qualify for FTA benefits," the customs agency said.
The customs agency added it is consulting with Malaysian authorities to speed up the process for issuing certificates of origin, which currently takes around six months, in an effort to facilitate crude imports from the Southeast Asian nation.