Korea - Philippines Free Trade Agreement

The Korea - Philippines Free Trade Agreement builds on the Korea - ASEAN Free Trade Agreement (the Philippines is a member state of the ASEAN) to further reduce or eliminate customs duties. The agreement was signed in 2023 and is expected to come in effect during the first half of 2024. The agreement needs to be ratified by the Korean National Assembly and the Filipino Senate in order to come into effect.

Items whose tariffs are additionally lowered or removed as a result of this Agreement include:

• Imported into the Philippines
  • Commercial Vehicles
  • Passenger Vehicles
  • Copper wire
  • Automobile components
• Imported into Korea
  • Commercial vehicles
  • Passenger vehicles

The Agreement also includes rules of origin and local content provisions. Goods are counted as originating from each country if:

• wholly produced or obtained in the country (applicable largely to minerals, raw materials, and waste and scrap materials)
• meeting requirements included as provisions to the agreement including the following (applicable largely to manufactured goods):
  • RVC not less than 40%
  • Change of the HS code at a four-digit level
  • Any additional provisions specified for each good

Want to know more about this policy ? Learn more (Korean)