Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Gov’t to tighten monitoring of tariff-rate quota to prevent abuse by importers – Full Analysis.
Published: 18 Mar. 2026, 12:16
The Ministry of Economy and Finance office inside the government complex in Sejong is seen on Jan. 6. [YONHAP]
The government on Wednesday announced plans to strengthen monitoring, including imposing additional duties on violators, to prevent importers from exploiting the country’s tariff-rate quota system.
The Ministry of Economy and Finance said it has proposed revisions to the enforcement ordinance of the Customs Act and related regulations to establish a legal basis for designating certain items for stricter oversight.
The tariff-rate quota system allows a certain volume of imports to be subject to lower tariff rates within a specified limit. Under the system, tariffs on selected items, mostly essential goods, can be reduced by as much as 40 percentage points.
Authorities have found that some importers abused the system. In some cases, companies imported goods at reduced tariff rates but stored them in warehouses or delayed customs declarations, then sold them at higher prices.
Under the proposed revision, conditions for applying tariff-rate quotas, including setting deadlines for the release of goods into the market, will be tightened.
If companies violate the rules, tariff reductions will be revoked, and additional duties will be imposed, the ministry said.
The ministry said the revisions are expected to take effect next month following Cabinet approval.
Yonhap