The U.S.–Korea Free Trade Agreement (KORUS) lets originating Korean goods enter at a preferential rate — for most lines, duty-free. It also carries something importers routinely miss: a valid KORUS claim exempts the Merchandise Processing Fee entirely. On the tariff schedule you'll see this as a special-program subcolumn that lists KR among the eligible programs, e.g. Free (A*,AU,B,BH,CL,CO,D,E,IL,JO,KR,MA,OM,P,PA,PE,S,SG). If KR is in that list and your goods actually originate in Korea, the preference is available.
What KORUS zeroes — and what it doesn't
| Layer | KORUS effect |
|---|---|
| Base column-1 duty | Zeroed (for most originating goods) |
| Merchandise Processing Fee | Exempt |
| Section 122 surcharge (10%) | Still applies |
| Section 301 / 232 overlay | Origin-dependent; usually N/A from Korea |
The distinction that trips people up: KORUS is an origin preference. The Section 122 balance-of-payments surcharge is applied across all origins and is not an FTA-waivable duty — so even a perfect KORUS claim doesn't remove it. That's why, in the worked math below, the KORUS total still carries the $1,000 surcharge until the surcharge itself sunsets.
Worked example: $10,000 LED mask, with and without the claim
Take an LED light-therapy face mask classified at 8543.70.98 — base rate 2.6%, and KR appears in its special-rate subcolumn — entered at $10,000 from South Korea:
| Scenario | Base | §122 | MPF | Total |
|---|---|---|---|---|
| No KORUS claim | $260.00 | $1,000.00 | $34.64 | $1,294.64 |
| KORUS claim | $0.00 | $1,000.00 | $0.00 | $1,000.00 |
The claim is worth $294.64 on this single $10,000 entry — $260 of base duty plus the $34.64 MPF. Scale that across a year of containers and the number that matters isn't the per-entry figure, it's the multiplier. Importers who ship Korean goods monthly and never claimed KORUS are the single clearest "this pays for itself" case we see.
The rule-of-origin check (do this before you claim)
"Made in Korea" on the box is not the test. KORUS has its own rules of origin, and a good qualifies as originating only if it meets one of them:
- Wholly obtained in Korea (or the U.S.) — rare for manufactured goods.
- Tariff-shift — non-originating inputs are transformed enough that their HTS classification changes to the good's heading/subheading per the product-specific rule. This is the usual path for assembled electronics.
- Regional value content — a minimum percentage of the good's value originates in the FTA region, computed by build-up or build-down.
Concretely, for the LED mask: if the plastic shell, PCB, and LEDs are sourced from third countries and merely assembled in Korea, you need to run the product-specific rule for heading 8543 and confirm the tariff shift or the value content actually holds. If it doesn't, the goods aren't originating and the claim is invalid — claiming anyway is a false claim, not a saving.
How to actually claim it on the entry
- Confirm eligibility — the correct HTS code lists
KRin its special-rate subcolumn, and your rule-of-origin analysis holds. - Hold a certification of origin — KORUS uses a free-form certification (no prescribed government form). The importer, exporter, or producer can complete it; you should have it before or at entry.
- Flag the claim on the entry summary — the special-program indicator
KRis entered before the HTS number, signaling the preference to CBP. - Keep the supporting records for five years — the certification, the origin analysis, and the bill of materials, in case CBP issues a CF-28 verification request.
Missed a claim on a past entry that qualified? You may be able to recover the overpaid duty with a Post-Summary Correction or a protest — covered in the duty-refund guide. KORUS specifically allows a post-importation refund claim within one year of importation even if you didn't flag the preference at entry.