At SK Advisory Inc, we assist numerous clients in leveraging Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs).

 

Case Study - Importing to Japan

Client Profile:
A Japanese subsidiary of a UK-based oil manufacturer.

Situation:
The client sought to reduce tariff costs by using the Regional Comprehensive Economic Partnership (RCEP) when importing industrial lubricants from China and South Korea to Japan.

Solution:
As a professional FTA/EPA consultant, SK Advisory Co., Ltd. has extensive experience in applying RCEP preferential tariff rates for imports. We began by comparing the current import tariff rates with those under RCEP to determine the potential benefits. For this client, a tariff reduction of 3% to 5% was anticipated, representing significant cost savings given the large import volumes.

We conducted interviews with the client regarding their final products and manufacturing processes, collected the bill of materials, and prepared the necessary supporting documents. Multiple products were involved, and the RCEP origin rules required either a Change in Tariff Classification (CTC) or a Value-Added (VA) criterion. We prioritized CTC by examining the differences in HS codes between the final products and their components. For products without HS code changes, we calculated the origin qualification ratio based on FOB prices and cost information provided by the client.

When importing RCEP-origin goods to Japan, a specific Certificate of Origin from the exporting country is not required, and self-declaration by the importer is permitted. We prepared the self-declaration documents and supporting materials for customs submission, which were then provided to the client.

Outcome:
The client successfully achieved a tariff cost reduction of 3% to 5% when importing to Japan. We continue to provide ongoing RCEP import support services to this client, preparing the necessary documentation for each import to ensure the application of RCEP preferential tariff rates.

 

 

 

How SK Advisory Can Assist You

At SK Advisory Inc., we specialize in guiding clients through the application of FTA/EPA preferential tariff treatments. 

Our Process:

  • Client’s Responsibility: Provide us with detailed information about your export/import products.
  • Our Role at SK Advisory Inc: We lead the preparation of all necessary documentation for your FTA/EPA application, ensuring compliance and accuracy.

 

By partnering with SK Advisory, you entrust your FTA/EPA applications to seasoned customs professionals. This not only ensures peace of mind but also enhances your trade compliance and operational efficiency.

 

Clients SK ADVISORY
1. HS Code Confirmation for Import/Export Products
  • Provide product information.
  • Verify the appropriate HS Code.
2. Duty Rate Confirmation -
  • Check the standard duty rate.
  • Compare with EPA/FTA preferential duty rates.
3. Rule of Origin Confirmation -
  • Confirm the Product Specific Rule (PSR).
4. Documentation for FTA/EPA Preferential Tariff Treatment [Overview]

  • Bills of Materials for finished goods.
  • Manufacturing flow and assembly documents.

[CTC - Change in Tariff Classification]

  • Bill of material, parts information, and purchase price (if De minimis applies).

[VA - Value Added]

  • FOB price for exported goods.
  • Purchase price for used materials.

[Supplier Declaration]

  • Communication with suppliers
 [Overiew]

  • Planning of best approach

[CTC - Change in Tariff Classification]

  • Planning for grouping of materials.
  • HS classification for used materials.
  • Evidence documentation (HS Comparison Sheets).

[VA - Value Added]

  • Verify sales price for import goods and purchase price for materials.
  • Evidence documentation (Calculation Sheets).

[Supplier Declaration]

  • Preparation of Supplier Declaration format and explanatory notes for submission to Manufacturer or Exporter.
5. Application of FTA/EPA Preferential Tariff Treatment
  • Send prepared application documents to Forwarder or Customs Broker.
  • Support in responding to inquiries from Customs on behalf of the client.

 

 

Our Strengths

SK Advisory, specializes in customs-related services, including HS code classification, FTA origin management, and customs valuation. We provide accurate advice based on compliance with origin rules and other relevant regulations. With extensive experience advising numerous clients on FTA/EPA origin matters, we are familiar with common challenges and industry best practices, enabling us to offer practical recommendations and hands-on support tailored to each client's situation.

Examples of Our Achievements:

  1. FTA origin management process development for IT solutions.
  2. FTA origin management process development for domestic and overseas production sites.
  3. Support for establishing specialized origin management units.
  4. Obtaining Certificates of Origin and preparing supporting documents for JCCI.
  5. Preparation of self-declaration documents for exports and imports, and EPA application.