When exporting products from Korea to the US, the Korea–US Free Trade Agreement (KORUS FTA) can reduce or completely eliminate tariffs on many product categories.

To qualify, you first need to correctly identify your product's HTS code (tariff classification) and meet the rules of origin — whether it was substantially produced or processed in Korea. If you don't meet these requirements, you can't apply the agreement's preferential tariff rate.

Many SMBs end up paying unnecessarily high tariffs simply because they don't know this process. This matters especially for cosmetics, lifestyle goods, and accessories, where tariff rates can vary widely by classification — getting the classification right translates directly into cost savings.

Preparing a Certificate of Origin and handling customs paperwork is safest when done through a licensed customs broker.