To curb food price instability stemming from the won-dollar exchange rate rising, the Ministry of Economy and Finance will support tariff quotas on food ingredients. In particular, for sugar, it decided to increase by 20% the volume eligible for the reduced tariff quota compared with this year.
The Ministry of Economy and Finance (MOEF) on the 2nd finalized and announced next year's regular tariff quota operation plan containing these details. A tariff quota is a system that lowers the tariff rate for a set period within a 40-percentage-point (p) range from the basic tariff rate, and the Ministry of Economy and Finance (MOEF) sets out the operation plan for the following year at the end of each year.
According to the operation plan, sugar, which currently receives a 5% tariff quota, will be subject to the same rate next year. However, the quota volume will be expanded from 100,000 tons per year to 120,000 tons. On this, the Ministry of Economy and Finance (MOEF) said it is "to promote domestic competition and stabilize prices."
In addition, a 0% tariff quota on corn for processing, green coffee beans, and potato starch will be applied through the end of next year. For 12 items that received an emergency tariff quota in September this year—including sunflower seed oil (0%), frozen strawberries (5%), and cocoa powder (0%)—the tariff quota will be applied through the first half of next year.
For liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil used to produce LPG, which are used for heating dwellings, the tariff rate will remain at the same 0%–2% level as this year through the first half of next year. The Ministry of Economy and Finance (MOEF) said global oil prices are likely to stabilize downward and plans to reduce the extent of the rate cut by 1 percentage point from the second half of next year.
To support the steel sector subject to U.S. itemized tariffs, the government decided to apply a new 0% tariff quota to nickel matte and fluorspar, which are secondary raw materials. To bolster export competitiveness in the auto industry, it also decided to apply a 0% tariff quota to aluminum alloys for electric-vehicle batteries and to grinding wheels used in semiconductors and secondary batteries.