How can Chinese textile companies seize new opportunities in RCEP?

Compared with bilateral free trade agreements, the cumulative rules of the Regional Comprehensive Economic Partnership (RCEP) with 15 parties will further reduce product access to tariffsThe threshold for concessions is more conducive to expanding productexports.

As for the contents of RCEP’s rules of origin that are different from previous free trade agreements, such as regional accumulation rules, approved exporter system, etc., what benefits can these arrangements bring to enterprises? What else do enterprises need to pay attention to during the implementation process? , is something that many export companies don’t yet understand but are particularly concerned about.

A previous questionnaire survey conducted by Shenzhen Customs on textile and apparel enterprises showed that all enterprises are eager to understand the tax reduction process, 85% of enterprises want to understand the rules of origin, and 60% of enterprises want to understand customs clearance facilitation measures.

“In April 2019, after Japan canceled the Generalized System of Preferences treatment for China, the order volume of Japanese customers was significantly affected. What we want to know most now is Japan’s tax reduction list under RCEP.” Huizhou Nan Heather Weaving Factory Manager Liu of the foreign trade department of the company said that the company’s Japanese market share dropped from more than 20% to 15% in 2020.

What makes Manager Liu happy is that according to the agreement, after the formal implementation of RCEP, Japan’s tax rate on woolen pullovers will be reduced from 10.9% to zero within 15 years after the implementation of the agreement. “It is expected that the company will enjoy about 700,000 yuan in tariff reductions in the first year of tax reduction. When the products are reduced to zero tariffs, this number will reach 11 million yuan!”

The issue that Mr. Wang, Customs Supervisor of Shenzhen Virginie Garment Co., Ltd. is concerned about is an important item in the RCEP rules of origin – the regional accumulation rules: “Our company generally purchases fabrics from ASEAN countries such as Vietnam and Cambodia, and passes through domestic Can such products enjoy tariff reductions after they are designed, processed and made into finished products and then exported?”

The Shenzhen Customs officer told him that the RCEP regional accumulation rule is that when determining the origin qualification of a product, the original materials of the enterprise members used in the production process can be regarded as the producing country’s own raw materials and accumulated. This will make it easier for exported products to qualify for tariff concessions.

Through the explanation of the port customs officer, Mr. Wang understood how to use the RCEP regional accumulation rules: “Under the China-Australia Free Trade Agreement, the origin of import from Vietnam Materials cannot be regarded as originating in my country, and they cannot receive tariff concessions after being reprocessed and exported to Australia.”

In addition to the regional accumulation rules, the approved exporter system is also an important part of the RCEP rules of origin. According to the relevant person in charge of the Shenzhen Customs Tariff Department, most free trade agreements currently require a certificate of origin issued by a visa agency to enjoy tariff concessions. After the implementation of RCEP, exporters approved by the customs will be able to issue a declaration of origin on their own as a voucher for enjoying tariff concessions.

“Our company exports non-woven fabrics to ASEAN and applies for more than 20 certificates every week. After the implementation of RCEP, it is possible for the company to make independent declarations without applying. I’ve received the certificate.” Ms. Cao, Customs Supervisor of Shenzhen Wenwen Medical Supplies Co., Ltd., expressed her expectation for this convenience: “I have long been looking forward to negotiating a free trade agreement with Japan as soon as possible, and hope that RCEP will be implemented as soon as possible.”

AAA

Disclaimer:

Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.