Annex 2-B indicates that the duty on popcorn (HSK 1005902000) is Staging Category F, which means the 630 percent duty will be reduced in seven equal stages: Year 1: 540 percent, Year 2: 450 percent; Year 3: 360 percent; Year 4: 270 percent; Year 5: 180 percent; Year 6: 90 percent; Year 7: no duty. However, Annex 2-B also indicates that popcorn is subject to a safeguard (indicated by note ¡®See Annex 3-A¡¯ in Safeguard column.) A safeguard establishes a quantity of imports, which once reached in any given year, will trigger an increase in the tariff applied under the KORUS FTA.
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The details for each safeguard are contained in Annex 3-A Agricultural Safeguard Measures at the end of Chapter 3 of the Agreement. For example, paragraph 3 (n) of the Annex (page 3-13) provides details on the safeguard for popcorn.
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For year 5 the safeguard trigger level is set at 10,224 metric tons. The note indicates that imports up to this amount would be assessed zero duty; however, on imports beyond this amount, the duty would be assessed the safeguard duty of 486 percent. Year 1 is a bit more complicated: up to 2,556 MT of U.S. popcorn would enter at zero duty; imports above 2,556 MT but below 5,112 MT would enter at a 55 percent duty. Imports above 5, 112 MT would enter at a 601 percent duty.
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