On January 1, 2022, the first day that the Regional Comprehensive Economic Partnership (RCEP) came into effect, Jiangsu XCMG ushered in a good start for exports. Xuzhou Construction Machinery Group Import and Export Co., Ltd. passed the Nanjing Customs audit and became the first batch of approved exporters in China after the implementation of RCEP, and immediately issued the country’s first RCEP country of origin declaration for a concrete mixer to be exported to Thailand.
It is understood that the effective implementation of RCEP marks the official landing of the free trade zone with the largest population, the largest economic and trade scale, and the most development potential in the world. On November 15, 2020, it was jointly signed by China and the 10 ASEAN countries, Japan, South Korea, Australia and New Zealand. It will come into effect on January 1, 2022. After the implementation, more than 90% of the trade in goods in the region will eventually achieve zero tariffs. It will bring many development opportunities for the development of Chinese foreign trade enterprises.
According to the relevant person in charge of Xuzhou Customs, the premise for import and export enterprises to achieve tax reduction and zero tariff is that the products comply with the RCEP rules of origin, and declare and enjoy the relevant agreed tax rates according to the customs requirements of the importing parties. Most trade agreements currently require a certificate of origin from customs.
The biggest highlight of RCEP is the implementation of the “approved exporter” facilitation measure, that is, the exporter approved by the customs can issue a certificate of origin for the goods and enjoy preferential tariff treatment. This system will further reduce the export management cost of enterprises and improve the convenience of customs clearance.