Preferential tariff is granted to the limited subjects in order for the special policies to be achieved, by offering a preference on the customs duty. Among preferential tariff, conditional duty abatement or exemption requires post-management. In that...
Preferential tariff is granted to the limited subjects in order for the special policies to be achieved, by offering a preference on the customs duty. Among preferential tariff, conditional duty abatement or exemption requires post-management. In that case post- management results in the social loss equivalent to 8.5%-8.8% of the benefit stemmed from the relevant preferential tariff policy. Therefore, in order to increase the benefit resulted from the customs policy, granting conditional preferential tariff should be reduced and the efficiency of post-management system should be enhanced, by omitting the post-management or reducing the time required for the post-management.