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S Korea To Levy Initial 10% Tobacco Import Tariff Jul 

Korea and the U.S. have recently revised the 1988 bilateral agreement to allow foreign companies to produce tobacco locally. The revision will also call for a basic 40% tariff to be imposed on tobacco imports, he said.

In order to avoid a drastic market change and friction with tobacco traders, the government has decided to start imposing a 10% duty on tobacco imports from July this year and raise the rate by 10 basis points a year up to the 40% by July 2004.

The tariff increase will be applied to non-U.S. tobacco companies under the MFN clause, the ministry official said.

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