S Korea to exempt tariffs on higher shipping costs for Hormuz reroutes

The measure, aimed at easing supply chain disruptions as the key Middle Eastern shipping route has effectively been closed since US-Israeli strikes on Iran in February, will apply retroactively to imports reported since March 1 that have already faced sharp increases in shipping costs.

Eligible shipments include vessels from the Middle East using alternative routes that bypass the Strait of Hormuz, emergency air cargo transport and ships stranded in the strait due to the conflict, South Korea’s customs authority was cited as saying by a domestic news agency.

The Korea Customs Service will exempt extra shipping costs from tariffs on imports rerouted due to the Strait of Hormuz closure.
The measure, aimed at easing supply chain disruptions, will apply retroactively to imports reported since March 1 that have faced sharp shipping cost hikes.
The exemption will cover not only standard freight charges, but also demurrage fees and transportation insurance premia.

The exemption will cover not only standard freight charges, but also demurrage fees and transportation insurance premia.

Fibre2Fashion News Desk (DS)