Shaanxi issues 1st Certificate of Origin under China-Ecuador Free Trade Agreement

On May 1, the China-Ecuador Free Trade Agreement officially came into effect. On May 6, under the guidance of Guanzhong Customs which is affiliated to Xi'an Customs, Shaanxi Heavy Duty Automobile Co successfully applied for Shaanxi province's first Certificate of Origin under the China-Ecuador Free Trade Agreement.

The China-Ecuador Free Trade Agreement is the 20th free trade agreement signed by China with other countries. According to the agreement, both China and Ecuador will eventually implement zero tariffs on around 90 percent of their respective tariff lines.

The products from Ecuador to China that will eventually enjoy zero tariffs covering a wide range of goods, including bananas, shrimps, fish, fish oil, fresh and dried flowers, cocoa, and coffee. Most of the products from China to Ecuador, such as automobiles and parts, electrical equipment, lithium batteries, plastic products, chemical fibers, steel products, will also see tariffs gradually reduced and eliminated.

The visa officers from Guanzhong Customs, upon learning that Shaanxi Heavy Duty Automobile Co had a batch of goods destined for export to Ecuador, promptly guided the company through the process of obtaining a Certificate of Origin under the China-Ecuador Free Trade Agreement.

With this certificate, the tariff rate for the self-dumping trucks that the company plans to export, which are valued at 1.91 million yuan ($264,646.74), will be reduced from 5 percent to zero. It is estimated that the company will save approximately 96,000 yuan in Ecuadorian tariffs through this transaction.

From January to April this year, Guanzhong Customs had issued a total of 5,853 certificates of origin, totaling 3.69 billion yuan, which cumulatively saved export companies approximately 130 million yuan in foreign tariffs.