1 january 2022
Regional comprehensive economic partnership agreement
(rcep)
Entry into force
Six asean member states, including brunei darussalam, cambodia, laos, singapore, thailand and viet nam, and four non-asean member states, including china, japan, new zealand and australia, have formally started implementing the agreement. What changes would the implementation of the rcep bring to foreign trade enterprises in the region and to national economies? What are the real benefits to our ordinary people
Regional comprehensive economic partnership agreement in force
Video of the first time column on the economics watch
Just after new year's day 2022, the rcep pilot innovative testing base in qingdao, shandong, the application module of the rcep certificate of origin for our single window for international trade was launched and the issuance of the rcep certificate of origin was simultaneously initiated in other member countries of the region. This implies the formal implementation of the regional comprehensive economic partnership agreement, which has the largest population, the largest trade and economic potential and the largest global economy. From this moment on, enterprises can click on the application module to enter the rcep certificate of origin declaration interface and benefit from the rcep tariff concessions。
In the early morning hours of 1 january, at the crep advanced experimental certificate of origin review centre in qingdao, shandong, customs officers in qingdao issued the crep certificate of origin for a shipment of calcium chloride exported to japan, the first such certificate in the country. On the basis of this certificate, the exporting enterprise can save nearly $10,000 in taxes on the goods alone。
Liu qiang, managing director of the gulf group co. Ltd., shandong: when the former product was imported into japan at a rate of 3. 3 per cent, its tariff became 3 per cent when the rcep entered into force. The tariff on this product will be reduced to zero per year in subsequent rcep implementation. So the combined measure is that, in the first year, we would benefit from a tariff reduction of about $1 million for japanese exports。
According to customs statistics, in the first 11 months of 2021, our exports and imports to and from the other 14 countries members of the rcep totalled 10,96 trillion yuan, or 31 per cent of our total foreign trade. When the agreement enters into force, the largest reductions in tariffs will be on imported machinery, plastics, electrical and electrical appliances, and on exported textiles, bags, plastics, etc。
Director of customs and excise, qingdao: with the completion of the tax reduction process, approximately 90 per cent of products receive zero tariffs. In 2022, shandong exports benefited from a tariff reduction of 380 million yuan in the region; after completing the tax reduction process, shandong imports could reduce tariff costs by about 900 million yuan。
After full entry into force of rcep
90% of goods traded within the region will be duty-free
Video of the first time column on the economics watch
With the entry into force of the rcep, tariffs on a number of imported consumer goods will decline, and we ordinary consumers will enjoy the benefits of the entry into force of the agreement. So, what imports have tariffs fallen much
Fong hui runs a shop in the town of zhejiang yiu's imported goods, which sells mainly imported meat boxes, cooking equipment, cleaning materials, etc. Fang hui told reporters that more than 80 per cent of the goods in the store are covered by the rcep tariff, so she ordered additional orders with sellers abroad。
Zhejiang yiu, an importer of china, is a producer of chinese imports. For example, the retail price is now 258 yuan. Retail prices can be reduced by 40 yuan after benefiting from the rcep tariff preference. There is also a bowl of asphalt. The retail price is now 105 yuan。
It is understood that with the entry into force of the agreement, our immediate zero tariff ratio with asean, australia and new zealand will exceed 65 per cent. In 2022, 24. 9 per cent of china’s products will be duty-free for japan, 55. 5 per cent of japan’s products will be duty-free for china, and more goods will be subject to annual reductions。
Chongqing cao, chief of the integrated customs operations ii section of the lao customs service of hangzhou: when the rcep is fully operational, the trade in goods within the region will reach around 90 per cent of the tariff-free products。
Professor at the international school of economics and trade of the university of external economics and trade: illophones and western cucumbers are all subject to zero tariffs in the first year, with some impact on prices. However, the reduction of taxes on most products is a gradual process, such as electric ovens, microwave ovens, 15 per cent of which are phased in over a 10-year period, after which they become zero, and the reflection of some products in final consumer prices requires a process。
The rcep agreements reduce the tariff costs of cross-border trade between members, most affected by traditional high-tax sectors such as food, agriculture, consumer goods and automobiles. In the future, consumers will buy japanese cars, australian skins, new zealand honey, malaysian fruit, etc. At cheaper prices。
More uniform standards, easier communication
Not only does it reduce tariffs, it also brings about more uniform standards and a more convenient flow of elements. The director of the chinese world trade organization institute of the university of foreign economic and trade stated that our country had become a party to the same agreements as japan and south-east asia, and that harmonization of rules of origin, customs procedures, quarantine and technical standards would create a high-quality business environment for enterprises in all countries that was stable, free, accessible and interconnected。
Certificates of origin are easier to process, gold is higher
Certificates of origin are proof of the “nationality” of the goods and are important proof that exporting enterprises enjoy preferences such as tariff concessions in the importing country. With the entry into force of the rcep agreement, customs issues certificates of origin for enterprises, which are eligible for rcep tariff concessions。
In order for enterprises to benefit better from the policy dividends of the rcep agreement, the customs department has vigorously promoted the policy of authorized exporters, i. E. Enterprises with relevant qualifications approved by the customs may issue a declaration of origin on their own, without having to obtain a certificate of origin from a visa agency, and enterprises may be more flexible in organizing production and exports。
Moreover, one of the highlights of the rcep agreement is the rules of origin accumulation. Products and raw materials originating in member countries can accumulate and be included as components of their origin in the final product. The use of the rcep accumulation rules by asean countries to order spare parts from their national companies for the manufacture of whole cars will also greatly expand the export market for spare parts from their enterprises。
Source: financial services, news client
