So if the Koreans are subsidizing their steel industry 25% and we charge a 25% tariff then we are in affect getting their subsidy to the Treasury.So what is wrong with that? We are already running huge deficits. Getting foreign countries to help pay into Federal revenue is better than taxing our people and the corporations. Before the personal income tax, we used to run our country using tariffs and duties, among other sources of income.
Notes:
Largest sources of excise tax revenues are: Fuel, Tobacco, Airport, Health Insurance providers, and Alcohol
Largest sources of “other” revenues are: Federal Reserve Deposits, Customs Duties & Fees, and Estate and Gift tax
Korea - Import Tariffs
Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market. Last Published: 6/20/2017
The U.S.-Korea FTA was implemented on March 15, 2012. Prior to that, the average basic tariff on U.S. goods was approximately 7.9 percent and duty rates were high on a large number of high-value agricultural and fisheries products.
With the FTA, 95% of tariffs on U.S. imports were eliminated by March 15, 2017. The U.S. Department of Commerce’s FTA Tariff Tool can help U.S. exporters identify the harmonized system number for their products and the associated tariff rates over the next ten years. Exporters can also contact the U.S. Agricultural Trade Office, affiliated with the U.S. Embassy in Seoul, for specific information on agricultural tariff rates.
Korea also maintains a tariff quota system designed to stabilize domestic commodity markets. Customs duties can be adjusted every six months, within the limit of the basic rate, plus or minus 40 percent.
Korea has a flat 10 percent Value Added Tax (VAT) on all imports and domestically-manufactured goods. A special excise tax of 10-20 percent is also levied on the importation of certain luxury items and durable consumer goods. Tariffs and taxes must be paid in Korean Won within 15 days after goods have cleared Customs.
Customs Valuation
Duties are assessed on a Cost-Insurance-Freight (CIF) basis. The main mode of customs evaluation is the transaction value method. Other methods under the WTO appraisement hierarchy may be used if there are doubts about Korean Customs valuation methods on the stated value.
A Value Added Tax rate of 10 percent is applied on imports based on customs value plus duties.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.