Seoul reviews zero tariff on LNG imports for next year

[Photo by Yonhap]

The South Korean government mulls temporarily exempting duties on imports of liquefied natural gas (LNG) next year to curb rises in prices in the fuel in greater demand for power generation for carbon emission control and inflationary pressure from strong international prices.

According to government sources on Tuesday, the Ministry of Trade, Industry and Energy recently recommended zero tariff on LNG imports in 2022.

The Ministry of Economy and Finance around this time of the year receives survey on list of commodities for one-year tariff quota, temporary favorable duties on imports.

Based on the tariff rate quota system, the Korean government temporarily lowers or raises tariff on a fixed quantity of import items for a fixed period of time.

The trade ministry has requested the finance ministry to allow LNG imports without tariffs under growing inflation pressure stemming from a surge in commodity and energy prices world-wide.

Korea imposes 3 percent basic tariff on LNG imports. The trade ministry every year has asked the finance ministry to lower tariffs to zero, and 2 percent tariff quota was applied in winter times between October and March.

The finance ministry is expected to accept the trade ministry’s request and allow zero tariff on LNG imports next year to cope with a sharp rise in international LNG and gas prices.

The finance ministry plans to review the necessity according to procedure, said an unnamed finance ministry official.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]