Zhuhai companies reap benefits from RCEP

A total of 76 Zhuhai enterprises have benefitted from certificates of origin issued under the Regional Comprehensive Economic Partnership (RCEP) in January, the first month since the trade pact took effect on Jan 1. They involved a value of 43 million yuan ($7 million) on cargo exported mainly to Japan, Australia, and New Zealand, according to statistics of Xiangzhou Customs.

Among them, the number of certificates for cargo exported to Japan surpassed the total figure in 2021. A staff member surnamed Xiao of Zhuhai Epoxy Base Electronic Material noted that the RCEP certificates of origin brought a preferential 3 percentage point tariff reduction for the company when exporting products to Japan, making great contributions to its expansion in the Japanese market.

A staff member of Xiangzhou Customs issues an RCEP certificate of origin to a local company [Photo by Cheng Lin and Chen Yongkang / Zhuhai Daily]

The RCEP is a free-trade agreement aiming to cut tariff and non-tariff barriers, strengthen supply chains with common rules of origin, and codify new e-commerce principles. It now includes 15 members, such as Indonesia, Malaysia, Singapore, Australia, China, Japan, and South Korea, from the ASEAN, Oceania, and East Asia. The agreement was signed by the countries via video conference in Hanoi in Nov 2020 and subsequently entered into effect in early 2022 to facilitate regional trade, investment, and supply chains.

The approach has taken effect in South Korea on Feb 1 and will be valid in Malaysia on March 18, bringing more benefits to local export enterprises. It is recommended that companies learn about RCEP regulations in advance to make full use of the agreement.