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Tariff Response 119 Webinar Video: Expert Lecture Key Summary

Tariff Response 119 Webinar: Expert Lecture Key Summary

As the United States' high-tariff policies took full effect in 2025, Korean exporters began feeling the real impact of tariff shocks. In response, KOTRA's Tariff Response 119 organized an emergency expert webinar — a 2-hour 30-minute session (254MB video) featuring five specialists including customs brokers, clearance experts, and trade attorneys. With more than 500 corporate representatives attending live and over 50 Q&A items addressed in real time, this article summarizes the webinar's core content session by session.

In the first half of 2025, the United States' reciprocal tariff on Korea (10%) took effect alongside Section 232 measures on steel and aluminum, a 25% tariff on automobiles, and semiconductor-related export controls — all converging at once. The estimated direct annual impact on Korean exports has been projected at up to USD 20 billion. The webinar classified these overlapping tariff issues by type and presented countermeasures companies can implement immediately.

150 min
Lecture Duration
2.5-hour video
5
Instructors
Tariff & trade experts
500+
Participants
Live attendance
50+
Q&A Items
Real-time answers
254MB
Video File
Download available
5
Tariff Types Covered
232/301/reciprocal etc.
₩500B+
Gov't Support Budget
2025 relief fund
$20B
Korea Export Impact
Annual est. max

Session 1: US Tariff Policy Outlook and Impact Analysis

The first session provides an overview of the full landscape of US tariff policy. It analyzes the legal basis and expansion paths of Section 301 (tariffs targeting China), Section 232 (steel and aluminum), the 25% automobile tariff, and reciprocal tariffs, as well as their sector-by-sector impact on Korean exports. The session especially emphasizes that the Trump administration's tariff philosophy of "Reciprocity" will serve as a key variable in future negotiations.

US Tariff Types and Impact on Korea (2025 Basis)
Tariff TypeLegal BasisRateAnnual Impact on Korea ExportsExpansion Outlook
Reciprocal TariffModified Section 30110% (base)$5B+ direct impactItem-by-item negotiations
Steel & AluminumSection 232 Trade Expansion Act25% / 10%$3B export impactQuota system maintained
Auto & PartsSection 232 Trade Expansion Act25%$12B US-bound exportsParts expansion under review
China Section 301Section 301 Trade ActUp to 100%Indirect (supply chain disruption)More items under review
Semiconductor Export ControlsEAR/ITARRestricted (license req'd)Indirect (equipment exports)Ongoing tightening

The instructor highlighted the "dual pressure" facing Korean companies. While tariffs are imposed on direct exports to the United States, indirect export routes via China — supplying intermediate goods destined for the US market — are also blocked by Section 301 and export controls. The lecture argued that supply chain restructuring is no longer optional but a mandatory strategy.

Sessions 2–3: Rules of Origin and Tariff Drawback Practice

Sessions 2 and 3 cover the most operationally focused content: rules of origin determination, optimal FTA utilization, three types of tariff drawback, and the use of US Foreign Trade Zones (FTZs). These sessions also generated the highest concentration of participant Q&A throughout the webinar.

01
Rules of Origin Fundamentals — HS Code and Substantial Transformation
Determining the origin of exported goods is the starting point for any tariff response. Companies must verify whether the "Substantial Transformation" standard recognized by US Customs (CBP) is met — specifically, a change at the HS 6-digit tariff classification level and a value-added ratio exceeding the threshold (typically 35% or more). If goods processed in third countries such as Bangladesh and then re-exported fail to meet this standard, Korean-origin status is retained and tariff exemption cannot be obtained.
02
FTA Strategy — KORUS, RCEP, and Korea-EU
Analyzing KORUS FTA origin compliance rates is critical. To maintain zero-tariff benefits under the Korea-US FTA, companies must verify Korean component ratios and pre-issue FTA Certificates of Origin. Applying RCEP cumulation rules allows processes performed in RCEP member countries such as Bangladesh and Vietnam to be counted toward Korean-origin content, strategically raising overall compliance rates.
03
Three Types of Tariff Drawback
① Drawback (Refund): Recover up to 99% of duties paid on imported raw materials when finished goods are subsequently exported. Maintaining documentation that links imports to corresponding exports is the key. ② Overpaid Tariff Refund (Protest): Claim refunds for overpayments resulting from CBP classification errors or rate mistakes; applications must be filed within 180 days of the import date. ③ Retroactive FTA Application: Even if FTA treatment was not applied at the time of import, a retrospective application filed within one year of the import date allows recovery of the tariff differential.
04
FTZ (Foreign Trade Zone) Utilization
Companies operating within any of the 196 FTZs across the United States can defer or eliminate customs duties. FTZ tenants benefit from: ① duty deferral on imported raw materials, ② tariff inversion — choosing the lower rate when the finished goods tariff is lower than the raw material tariff, and ③ full duty exemption on re-exports. This is particularly effective for auto parts, where the 25% raw material tariff exceeds the applicable finished goods rate.
05
Practical Checklist
① Review HS codes (verify 6-digit accuracy) → ② Calculate FTA rules-of-origin compliance rates → ③ List items eligible for drawback claims → ④ Trace past import transactions with potentially overpaid duties → ⑤ Conduct a feasibility assessment for FTZ entry. Experts recommend developing a roadmap executable within six months in collaboration with a licensed customs broker.
FTA Rules of Origin Comparison (Korea Export Basis)
FTAOrigin CriteriaCumulationKey Utilization Point
KORUS FTAHS tariff shift or 35%+ value addedIntra-regional cumulation availableCore mechanism for Korea-US zero-tariff maintenance
Korea-EU FTAHS tariff shift or 40%+ value addedIntra-regional cumulation availableExport diversification to European markets
RCEPTariff shift or 40% value addedCumulation across 15 member statesCount BD/Vietnam processes as Korean-origin
GSP (BD→US)LDC preference; some items 35%+ value addedLimited cumulationFor Bangladesh re-export routing evaluation

Sessions 4–5: Corporate Response Strategies and Government Support Programs

The final sessions synthesize tailored response strategies by company size and sector, along with a comprehensive overview of government support programs newly established in 2025 for tariff-affected businesses. The sessions present a three-phase roadmap — short-term (immediate action), medium-term (6 months to 1 year), and long-term (1 year or more) — and summarize programs from five agencies: KOTRA, KSURE, KExim Bank, KOSME, and the Ministry of Trade, Industry and Energy (MOTIE).

Priority Strategy by Company Size
Large CorporationsLocal production / M&A
Mid-Sized CompaniesFTZ / supply chain restructuring
SMEsExclusion requests / FTA
StartupsMarket diversification
Government Support Agencies and Programs
KOTRATariff Response 119 / vouchers
KSUREGuarantee limit expanded 150%
KExim BankSpecial rate −0.5%p
KOSME / MOTIEEmergency stabilization funds

The Bangladesh utilization strategy highlighted during the webinar is as follows. Bangladesh is a beneficiary of US GSP (Generalized System of Preferences) for developing countries, and processing Korean raw materials locally before exporting to the United States can reduce tariffs on select product categories. However, this approach requires meeting rules-of-origin requirements, and consulting the KOTRA Dhaka Trade Office for local entity establishment is strongly recommended.

Short-Term Response (Immediate ~ 3 Months)
Exclusion RequestsProduct-specific exclusions
Quota ManagementAdjust export timing
FTA ReviewKORUS compliance rate
Drawback ClaimsFile drawback applications
Medium-to-Long-Term Response (6 Months ~ 2 Years)
Production BaseBD/Vietnam review
FTZ Entry196 US locations
Market DiversificationEU/Middle East/South Asia
R&D ShiftHigh-value-added products
Analyze Own Impact
Identify tariff types by sector; review HS codes
Immediate Action (3 Months)
Exclusion requests, FTA drawback, quota monitoring
Apply for Support Programs
Utilize KOTRA, KSURE, and KExim Bank programs
Supply Chain Restructuring (6–12 Months)
Diversify production bases including BD and FTZ options
Execute Long-Term Strategy
Shift to high-value-added products; establish presence in new markets

Webinar Material Usage Guide

The 254MB webinar recording and presentation materials are available for download after logging in to the KOTRA Tariff Response portal. The video is provided in session-by-session segments, and the presentation slides (PDF) and full Q&A transcript are distributed together. The content may be used for internal corporate training; copyright belongs to KOTRA.

01
Video Download Instructions
Log in to the official KOTRA portal (kotra.or.kr) → Navigate to the Tariff Response 119 menu → Go to the Webinar Video Library → Download "Expert Tariff Lecture (254MB)." Free membership registration is available; a company business registration certificate is required.
02
Additional Consultation Channels
Tariff Response 119 Hotline (1600-7119), available weekdays 09:00–18:00. Complex cases requiring legal interpretation are connected to dedicated customs broker consultants. Inquiries related to Bangladesh business operations can be addressed separately by the KOTRA Dhaka Trade Office (+880-2-xxxx-xxxx).
03
Follow-Up Training Schedule
Follow-up courses for this webinar are scheduled on the KOTRA u-Campus online learning platform. Three free modules will be offered: HS Code Practice, FTA Certificate of Origin Practice, and a Drawback Application Workshop.
Tariff Response 119 FAQ Part 4-1Steel and aluminum Section 232 tariff Q&A — quotas, exclusion requests, and corporate response strategies
Tariff Response 119 FAQ Part 5Comprehensive guide to government support programs — KOTRA, KSURE, KExim Bank, and KOSME
Tariff Response 119 FAQ Part 4-2Automobile 25% tariff Q&A — response strategies for finished vehicles and auto parts
tariff responsewebinarexpert lecturerules of originduty drawback
Tariff Response 119 Webinar Video: Expert Lecture Key Summary | Dhaka Trade Portal