The South Korean government announced new initiatives Thursday to enhance its tariff-rate quota system, focusing on preventing exploitation and unfair practices by importers.
These measures were presented at a ministerial task force meeting dedicated to stabilizing consumer prices, specifically those impacting everyday living costs. Finance Minister Koo Yun-cheol presided over the meeting.
The tariff-rate quota system enables reduced tariff rates for specific import volumes within a set limit. This system allows tariffs on designated goods, primarily food products, to be lowered by up to 40 percentage points.
Investigations revealed that certain importers have been abusing the tariff-rate quota system. Instances included companies importing goods at reduced rates, storing them in warehouses, or delaying customs declarations, only to sell them later at inflated prices.
To combat this, the government will designate goods with a high risk of irregularities as “intensive management items” to increase monitoring efforts, according to the finance ministry.
Furthermore, importers will now be required to provide proof of distribution performance, ensuring the swift distribution of imported goods within the domestic market.
Customs authorities will also conduct thorough investigations into businesses obtaining tariff-rate quota recommendations through fraudulent means.
“We will not tolerate anyone profiting from collusion or unfair practices that impact essential foodstuffs and the prices affecting people’s daily lives,” stated Minister Koo.
