Korea's KPIA calls for reducing import tariffs for naphtha to zero
KPIA (Korea Petrochemical Industry Association) called on the South Korean government to reduce import tariffs on naphtha to zero late last week. The market was deteriorating due to the "double pain" of global oversupply of naphtha and sluggish demand caused by the COVID-19 pandemic.
Since 2016, the South Korean government has applied a 0.5% tariff on both imported crude oil for naphtha production and imported naphtha. However, while demand for petrochemical products declined sharply due to the COVID-19 outbreak, KPIA said tariffs should be reduced to zero for naphtha and crude oil for naphtha production, which are basic raw materials with a high dependency on imports.