A think tank claims that South Korean exports could become subject to merchandise processing fees when entering the U.S. if the free trade agreement between the two nations is renegotiated.
The Korea Institute for Industrial Economics and Trade delivered the prediction on Friday in a report on the envisioned renegotiation of the South Korea-U.S. trade pact and its impact on South Korea’s trade with the U.S.
The institute forecast that renegotiations will result in either the trade pact’s abolition, a partial revision, or preservation of its original form.
While predicting a partial revision as the most realistic scenario, the institute said that South Korean goods could no longer be exempt from the U.S,’ merchandise processing fees.
Merchandise processing fees refers to charges, other than duties, the U.S. levies on imports during customs clearance. The fees range from at least 25 U.S. dollars to as much as 485 dollars per invoice.
Currently, South Korea is exempted from merchandise processing fees in accordance with its free trade agreement with the U.S.