Seoul: South Korea's customs agency announced a collaboration with Malaysian authorities to significantly reduce the time required to issue free trade agreement (FTA) certificates of origin for condensate imports.

According to Yonhap News Agency, the Korea Customs Service (KCS) revealed the processing time has recently been cut from 184 days to 45 days. The extended duration was previously attributed to a complex transaction structure involving South Korean importers, Singaporean brokers, and Malaysian exporters. This delay forced South Korean importers to pay tariffs upfront and later claim refunds under the FTA arrangement, affecting their cash flow.

The KCS held 15 rounds of working-level consultations with Malaysia's Ministry of Investment, Trade, and Industry to resolve this issue. The agency noted that the reduced processing time will enhance the financial liquidity of South Korean importers and enable them to diversify their supply sources beyond the Middle East.

Han Min, director general for international affairs at the KCS, emphasized the importance of stabilizing crude oil supplies and diversifying supply chains amidst uncertainties in the Middle East and potential closures of the Strait of Hormuz. The KCS affirmed its commitment to addressing trade barriers that hinder the utilization of FTAs by South Korean companies.