Brussels: The World Customs Organization (WCO) has decided to classify display modules for outdoor advertising, a key South Korean export item, as duty-free, the Seoul government announced Wednesday. The decision marks a significant development for South Korean exporters, who have long awaited clarity on the classification of these products.

According to Yonhap News Agency, the Brussels-based intergovernmental body determined that the modules should be classified under HS code 8524, rather than HS code 8528. This reclassification by the WCO, in collaboration with the Ministry of Economy and Finance and the Korea Customs Service, is expected to have substantial economic implications. Products under HS 8528 previously faced tariffs of about 5 percent in the United States and 14 percent in the European Union.

The Ministry of Economy and Finance highlighted that this decision is anticipated to generate about 12 billion won ($8.09 million) in annual tariff savings for domestic exporters. The classification had been a point of contention among countries, but the recent WCO decision aligns with the position advocated by Seoul, offering a favorable outcome for South Korean businesses.