Original title: RCEP takes effect, Ningxia foreign trade companies “ride the wind and waves” in overseas markets
China News Service, Yinchuan, January 6th (Reporter Li Peishan) Recently, Elkem Carbon (China) Co., Ltd. applied for two “Regional Comprehensive Economic Partnership Agreement” (RCEP) items from Xingqing Customs through a “single window”. It is the first time for a Ningxia enterprise to apply for a certificate of origin under RCEP through a “single window”. As the world‘s largest free trade agreement, the entry into force of the Regional Comprehensive Economic Partnership Agreement (RCEP) will significantly expand the scale of trade between Ningxia’s foreign trade companies and regional countries, giving companies greater motivation to “ride the wind and waves” in the international market.
“Don’t look at this small certificate, but it is very important for our company. With this certificate, our products can enjoy tariff preferential treatment in Japan, and it can also save some tariff costs for our partners.” Hu Lihong, a salesperson of Carbon (China) Co., Ltd., told reporters that with these two RCEP certificates, after the company’s US$95,000 electrode paste arrived in Japan, the import tariff dropped from 2.6% to 2.4%.
As the “paper gold” in international trade, the certificate of origin is an important certificate for enjoying tariff reductions and other preferential treatments of importing countries. According to statistics, in 2021, Yinchuan Customs issued a total of 1,755 certificates of origin for products exported from Ningxia customs area to RCEP member states, with a visa amount of US$215 million.
According to Chen Yan, Deputy Director of the Second Division of Yinchuan Customs, in addition to bringing the most direct tariff reduction dividends, one of the “features” of RCEP is the introduction of approved exporter system clauses. “If an enterprise can flexibly apply the regional rules of origin and the declaration system of the approved exporter’s origin, it will further reduce the procurement cost of resource products and bring more and more flexible product production and processing options and cooperation opportunities for enterprises.” Chen Yan said.
Take Ningxia’s trade with Thailand as an example. In 2021, Yinchuan Customs issued a total of 180 certificates of origin for ASEAN and general trade exported to Thailand, with a visa amount of 25,203,800 US dollars. The main visa products are rubber tires, feed additives, etc. After the RCEP takes effect, companies can choose to apply for the China-ASEAN Free Trade Area Certificate of Origin, RCEP Certificate of Origin, or general certificate of origin according to the types of exported commodities and trading partners. The choice and freedom of enterprises are higher. “At present, about 74.9% of the tax items exported by China to Thailand can be immediately zero-tariff. Take rubber tires as an example. After applying for the RCEP certificate of origin, you can enjoy the’zero-tariff’ preference, and the company can save 550,000 to 1.1 million throughout the year. Yuan’s tariff cost.” Chen Yan said.
In addition, tax reduction products such as automobiles and parts, chemicals, electromechanical and steel products have been added under RCEP. Ningxia’s clean energy and equipment manufacturing industries will also usher in new development opportunities.
The relevant person in charge of the Port Office of the Ningxia Department of Commerce said that the entry into force of RCEP will also help promote the “bring in” of regional high-quality products and services, and will play a positive role in promoting the upgrading of Ningxia’s industry and consumption. (Finish)
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