S.Korea considers implementation of emergency tariff quota system

Seoul may seek to adopt an emergency tariff quota system if international raw material prices rise over current levels, the Ministry of Knowledge Economy said Thursday.

 

The ministry said applying emergency tariff quotas to key commodities, which South Korea imports, could help control local consumer prices that have seen a sharp rise in recent months.

 

"We can review the implementation of an emergency tariff quota system when raw material prices soar," a ministry official was quoted by Seoul's Yonhap News Agency as saying.

 

"But the issue needs to be discussed with the Ministry of Strategy and Finance and detailed talks have not been made," the source said.

 

Unlike the regular tariff quota system that is announced by the finance ministry twice every year, the emergency system temporarily lowers tariff rates for imports for a certain period of time when unexpected developments, such as skyrocketing prices, arise.

 

Reducing import duties can help contain price hikes on the local market and tackle inflationary pressure.

 

Seoul slashed import duties on sugar from 35 percent to zero percent in August last year and took similar measures in April and August of 2008 on grain and certain petroleum products.
(source:http://news.xinhuanet.com)