CHONGQING (CQNEWS) -- This June marks the first anniversary of the entry into force of the Regional Comprehensive Economic Partnership (RCEP) Agreement between 15 countries. With the continuous increase in the intensity of high-quality implementation of the RCEP Agreement, more and more foreign trade enterprises have benefited from favorable measures such as tariff reduction and facilitation of customs clearance, and a pattern of regional cooperation featuring the sharing of benefits and promotion of common development has initially taken place, recharging the high-level and high-quality development of the regional economy. With the RCEP Agreement in full effect for one year, Chongqing enterprises stepped up their efforts to expand their international markets, said Chongqing Customs on July 1.

The significant role of ‘paper gold’

The automotive industry represents one of the three leading industries in Chongqing's 33618 modern manufacturing cluster system. To boost the export of Chongqing-made vehicles, Chongqing Customs has actively guided automotive enterprises to leverage tariff reduction and rules of origin under the RCEP Agreement.

"Previously, when we exported to Indonesia, we applied for the certificate of origin under the China-ASEAN Free Trade Agreement, with a preferential tariff rate of 5%. Today, with the assistance of customs’ local tax payment service, we can obtain RCEP certificates of origin and enjoy zero tariffs in the importing countries,” said Li Xiang, the customs officer of Chongqing Xiaokang Import & Export.

Chongqing Xiaokang Import & Export is engaged in the sales and service business of the complete vehicles and auto parts of new energy vehicles and petrol-powered vehicles in overseas markets, which cover more than 70 countries and regions, including many RCEP member countries. According to the rules of tariff reduction, Chongqing Xiaokang Import & Export can enjoy the one-year zero tariff benefit for its produced buses. As of June 2024, the enterprise has applied for seven RCEP certificates of origin, obtaining tariff reductions of more than 190,000 yuan.

To maximize the effectiveness of the RCEP Agreement, Chongqing Customs conducts a fact-finding survey on the import and export of commodities within its jurisdiction and the importing countries, guiding enterprises to compare and select different free trade agreements based on their situation before determining the best way to enjoy preferences and leverage the "paper gold" in international trade.

Since the full entry into force of the RCEP Agreement, Chongqing Customs has issued more than 1,000 RCEP certificates of origin, with a visa amount of over 800 million yuan.

Unleash policy benefits

Recently, a batch of laptop products worth more than 700,000 yuan from Inventec (Chongqing) was ready to be exported to Vietnam, but the company was not sure if the products met the requirements for obtaining a certificate of origin.

Chongqing Xiyong Customs immediately sent personnel to the enterprise to understand the relevant situation, finding that the laptop products contained raw materials imported from South Korea and Malaysia, both of which are RCEP member countries. According to the relevant provisions of the RCEP Agreement on origin, raw materials imported from the above countries can be regarded as the raw materials of the RCEP members. Therefore, Inventec (Chongqing) obtained an RCEP certificate of origin for its laptop products.

“Thanks to the active promotion of the policy by Chongqing Customs, we have gained a deeper insight into the RCEP rules of origin and the benefits they bring to enterprises. Most of our newly developed products contain imported raw materials. The RCEP Agreement has enabled us to have a wider range of choices for raw materials and import channels,” said Dai Fuqiang, the customs officer of Inventec. Thanks to the RCEP Agreement, the company has enhanced the competitiveness of its products and achieved sustained growth in business for the past year, said Dai.

To help enterprises gain more benefits from the RCEP Agreement while constantly expanding their markets in the RCEP member countries, Chongqing Customs has conducted one-to-one guidance, interpreted the rules of origin to enterprises, and customized the ‘One Enterprise, One Policy’ benefit program.

Help enterprises accelerate going global

The approved exporter system is one of the highlights of the RCEP Agreement. The customs implements management of approved exporters based on integrity, compliance with the law, and facilitation. Enterprises that obtain qualification recognition can independently issue a declaration of origin for their goods, which has the same effect as traditional certificates of origin and does not require a visa.

Recently, Chongqing Lihong Fine Chemicals issued the first RCEP declaration of origin for its goods exported to Thailand on the international trade website. With a value of 347,400 yuan, it is the first declaration of origin independently issued by an approved exporter in Chongqing.

Chongqing Lihong Fine Chemicals is a chemical production enterprise with its export market mostly covering the RCEP member countries such as Vietnam and Indonesia. The value of RCEP certificates of origin it has applied for has exceeded four million yuan.

"After the RCEP Agreement came into effect, the customs immediately carried out the approved exporter training for our company, and we successfully obtained the qualification as an approved exporter at the end of 2023. Now, we can independently issue a declaration of origin at any time as needed without the application and review procedures, making the production and export of goods more flexible and giving our company more confidence and momentum to venture into overseas markets,” said Cai Ning, the manager of the company's foreign trade department.

At the same time, as part of the efforts to assist enterprises in leveraging the RCEP Agreement, Chongqing Customs has worked with regional trade promotion associations, management committees, and other departments to offer policy presentations, enterprise visits, and relevant training to offer an insight into the benefits and application requirements of the approved exporter system, further promoting the effective implementation of the RCEP Agreement. With the support of the RCEP Agreement, the value of goods imported from the RCEP member countries by enterprises in the Chongqing customs area has exceeded 4.6 billion yuan, with tariff reductions reaching 580 million yuan.

Based on the development needs of Chongqing's foreign trade economy, Chongqing Customs will closely follow up on key enterprises in the customs area, understand and solve the actual difficulties in the foreign trade development of enterprises, fully unleash the RCEP policy benefits, and help enterprises further expand their international markets. (Translated by Yuki, Fathom Language Limited)