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RCEP relieves duties for Nantong-made products
Updated: Aug 5, 2022
en.nantong.gov.cn
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Foreign trade companies in Nantong, East China's Jiangsu province, were exempted from 35 million yuan ($5.22 million) in tariffs in the first half of the year after the Regional Comprehensive Economic Partnership took effect on January 1, Nantong Daily reported on July 7.
Nantong Customs issued 11,200 RCEP certificates of origin to cargo worth 2.37 billion yuan during this period.
Among the issued RCEP certificates of origin, most were for textile products, garments, and chemical products, and the number and value of exports to Japan accounted for more than 99 percent of the total.
Take Nantong Maojia International Trade Co Ltd for an example. After the RCEP took effect, Maojia increased its expansion into Japan, and its order volume doubled since January to June last year.
Wang Xiaoju, manager of Maojia's international trade department, said that they received RCEP certificates of origin for Japan-exported cargo worth $2.52 million, which is expected to exempt Japanese clients from about $35,300 in tariffs.
Nantong Baichuan New Material Co Ltd also benefited from the RECP. Shi Bin, manager of Baichuan, said that the RCEP certificates of origin will exempt their Japanese clients from about $110,000 in tariffs in the Jan-June period.
Shi added that such favorable measure will help Baichuan attract more Japanese clients and that the company is considering the further expansion of its production capacity.
The RCEP is signed by 15 Asia-Pacific countries, including 10 ASEAN members, China, Japan, the Republic of Korea, Australia and New Zealand. The 15 states' total population, gross domestic product and trade all account for about 30 percent of the world total.
RCEP covers a wide range of areas, including tariff reduction, trade facilitation and opening up of services and investment. Over 90 percent of trade in goods among approved member states will be tariff-free, and all member states will significantly reduce restrictions on economic and trade cooperation, facilitate the flow of goods and factors of production, and improve production efficiency.
