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  • KITA Held “Seminar on Rules of Origin for Automobiles and Automotive Parts in North Americas”
    2020-07-22 hit 672

                   KITA Held Seminar on Rules of Origin for Automobiles and

                           Automotive Parts in North Americas

    -    KITA’s Center for Trade Studies and Cooperation provides consultation service for USMCA’s rules of origin  -

     

    The Korea International Trade Association (Chairman: Kim Young-ju) announced that it held a Seminar on Rules of Origin for Automobiles and Automotive Parts Exporters in the North Americas on July 22nd.

     

    The seminar provided Korean companies that had entered into the North American region or were included in the supply chain in the region with information on new rules of origin for vehicles and automotive parts under the United States-Mexico-Canada Agreement (USMCA), which went into effect on July 1st.

     

    In particular, the rules of origin for automobiles and parts were explained focusing on actual cases that are applied to the companies along with the interpretation of the agreement and received a great response from the participants.

     

    Je Hyun-jung, director of the Center for Trade Studies and Cooperation of the Korea International Trade Association, said, Since USMCA is not an agreement signed by Korea, it is difficult for Korean companies to obtain relevant information in Korea, and added, The Korea International Trade Association plans to actively support Korean companies that have expanded into North American region through ‘Consultation Service for USMCA Rules of Origin’.

     

    Byeon Jae-taek at the Ministry of Trade, Industry and Energy said, USMCA's rules of origin for automobiles have strengthened regional value content and labor value content in order to attract jobs in the automobile industry to North America, especially the United States, and advised, The companies expanding into North Americas need to build investment plans for the future by thoroughly comparing the costs incurring during the supply chain adjustment process to meet the requirements for country of origin labeling and the benefits such as preferential tariffs when satisfying requirements."

     

    Ahn Hee-joon, a customs broker at Samjong KPMG, said, The United States, Mexico and Canada have clarified the scope of application and calculation rules in regard to automotive rules of origin, including regional value content requirements, labor value content requirements, and the purchasing requirements for steel and aluminum through the USMCA Uniform Regulations. He also stated, It is important for companies to apply regulations in accordance with the precise classification of parts when determining country of origin under USMCA.



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