Rugao enterprise benefits from RCEP

Nantong Dongrun Industry Co Ltd, based in Jiuhua town, Rugao, has saved more than 1.5 million yuan ($216,535) in taxes and fees this year by applying for certificates of origin under the Regional Comprehensive Economic Partnership, which has allowed some mid-to-high-end clothing orders of Japanese brands to flow back to China from Southeast Asia.

Before the RCEP came into effect, some Japanese customers valued preferential tax rates in Southeast Asia. After the RCEP took effect, the tax rate of China's export of garments to Japan has been gradually reduced to zero, which enhances the competitive advantage of products, said a higher-up of the company.

Taking advantage of the RCEP preferential policy, more and more foreign trade enterprises in Rugao have expanded their international market.

In 2022, Rugao Customs issued 9,586 RCEP and other export certificates of origin, helping enterprises enjoy tariff reductions of $14.2 million. In the first quarter of this year, the number of certificates of origin under RCEP in Rugao increased by 52.8 percent over the same period last year.