2012-3-22

The government is to extend the country’s tariff quotas for pork belly and dried peppers until the end of June to ensure a stable supply during the spring excursion season, when the demand for pork belly rises significantly.

It will also increase the pork belly quota by 70,000 tons and expand the quota for dried peppers in the first quarter from 6,185 tons to 11,185 tons, but let the quota for garlic expire as scheduled. The tariff quota is a flexible system that is temporarily applied to lower the basic tariff rate within 40 percentage points in order to stabilize prices and secure a smooth supply.

The system is now being applied to 103 types of items, including wheat and corn, with the quotas for pork belly and dried peppers originally scheduled to expire on March 31. A bill for extension of the quotas was approved by the Cabinet on March 20, and the extension will go into effect on April 1.

The government plans to consider whether or not to extend the quotas further as well as re-examine prices and supply trends after the expiration of the quota periods. The tariff quota is expected to help stabilize domestic prices as well as ensure a smooth supply of products due to the increase of imports as a result of the lowering of the tariff rates.