The Tariffs on Eight Agricultural, Livestock and Fishery Products Will Be Lowered to Ease Cost Burdens from Edible Products
The government held the 22nd Cabinet meeting presided over by the Prime Minister on May 30 and decided to cut tariffs on seven items including agricultural, livestock, and fishery products from early June to ease the burden of living costs on households stemming from increased food prices.
The major subject items are pork and mackerel, which are popular food products, sugar and raw sugar, which are widely used as food ingredients, and crude alcohol, the main ingredient of Korean liquor soju. As these items have experienced price hikes affected by short-term supply shortages or rising international prices, this move is anticipated to significantly ease the burden of food prices placed on households. In addition, it is expected that livestock farmers and the feed industry will be able to benefit from the lowered prices of dried distillers grains and palm oil meal that are used in the production of compound feed.
Apart from the revision of the act on the quota tariff (Presidential Decree) discussed at the Cabinet meeting, the government will also work to amend the act on the Tariff Rate Quotas (Ordinance of the Ministry of Economy and Finance) to increase the amount of imports that can be subject to low tax rates for ginger, whose price has recently soared.
The government will do its best to ensure that policy effects occur in the near term by carrying out necessary measures without a hitch such as the allocation of imports according to the revised quota tariff rules and TRQ rules.
Details of Tariff Cuts in Each Subject Item
|
Item |
Measures |
Current tax rate |
Modified tax rate |
Effective period / quota (t) |
Expected effect (Billion won) |
|
Pork |
– Extension of quota tariff period -Expansion of export quotas |
22.5/25% → 0% |
0% |
Until Dec 31 / Up to 45,000 |
25.7 |
|
Mackerel |
– Reapplication of quota tariffs – Expansion of subject items |
10% |
0% |
Until Aug 31 / 10,000 |
3 |
|
Sugar |
– Additional reduction in quota tariff rates |
30% → 5% |
0% |
Until Dec 31 / 105,000 |
4 |
|
Raw sugar |
– New application of quota tariffs |
3% |
0% |
Until Dec 31 / Entire imports |
2.3 |
|
Crude alcohol |
– Extension of quota tariff period – Expansion of export quotas |
10% → 0% |
0% |
Until Dec 31 / Up to 86,000 kl |
8.8 |
|
Palm oil meal |
– New application of quota tariffs |
2% |
0% |
Until Dec 31 / 45,000 |
0.2 |
|
dried distillers grains |
– New application of quota tariffs |
2% |
0% |
Until Dec 31 / 150,000 |
1.3 |
|
Ginger |
– Expansion of TRQs |
20% / 377.3% |
– |
Until Sep 30 / 1,500 |
2 |
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Source: Ministry of Economy & Finance, Republic of Korea (Source)
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