RCEP comes into force! What opportunities will it bring to enterprises in the region?

On the first day of 2022, the regional comprehensive economic partnership agreement (RCEP) will officially enter into force, and the free trade area with the largest population, the largest economic and trade scale and the most development potential in the world will officially set sail.

What opportunities will the entry into force of RCEP bring to enterprises in the region?

The regional comprehensive economic partnership agreement (RCEP) has a total of 15 member countries. The regional comprehensive economic partnership agreement (RCEP) has officially entered into force for Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and Australia on January 1, 2022. South Korea will also join the entry into force on February 1.

The entry into force of RCEP will bring tangible benefits to enterprises and consumers in the region, including China.

Gradually realize zero tariff

After the agreement comes into force, more than 90% of the trade in goods in the region will gradually achieve zero tariff.

On January 1, 2022, the proportion of immediate zero tariff between China and ASEAN, Australia and New Zealand will exceed 65%; The proportion of immediate zero tariff with South Korea will reach 39% and 50%; It is a newly established free trade relationship with Japan, and the proportion of mutual immediate zero tariff will reach 25% and 57% respectively. Finally, 86% of Japan's products exported to China will achieve zero tariff, and 88% of China's products exported to Japan will enjoy zero tariff treatment.

For example, after the tax reduction is completed, China's coconut juice, pineapple products and paper products imported from ASEAN, induction cooker, electric oven and most mechanical equipment, instruments and meters and auto parts imported from Japan will be gradually exempted from tariffs. China's exports of mechanical and electrical products, instruments and meters, textiles and clothing, some aquatic products and vegetables to Japan will also gradually enjoy zero tariff treatment.

Through RCEP tariff preference arrangement, enterprises in the region can significantly reduce production costs, and consumers can enjoy more high-quality and low-cost products.

How to query the preferential tax rates of RCEP countries?

Export enterprises can determine whether the export goods are included in the preferential list by querying the tariff commitment form of relevant countries. The detailed tariff concession form and concession description of various countries can be found in the service network of China free trade area（ http://fta.mofcom.gov.cn ）View in "agreement topics" in.

The opening level of service trade has been improved

On the whole, RCEP member states have committed to opening up more than 100 service trade sectors, including finance, telecommunications, transportation, tourism, R & D, etc., and promised to turn them into a negative list within six years after the entry into force of the agreement to further improve the level of opening up.

New business forms and models such as cross-border e-commerce, Internet finance, online office, online education, online consultation and online trade fair will usher in greater development opportunities and bring more benefits and convenience to the lives of people in the region.

Rules of origin

The original materials of other member countries used by enterprises of RCEP member countries in the production process can be regarded as local original materials, which can cumulatively increase the proportion of original value components and make it easier for export products among member countries to reach the threshold of tariff preference.

For example, a Chinese enterprise produces refrigerators and exports them to ASEAN countries. The compressor and other parts made in South Korea are used in the production, which exceeds 60% of the price of the whole machine. If the China ASEAN Free Trade Agreement is applicable, because it fails to meet the specified origin standard of regional value components exceeding 40%, it cannot enjoy preferential tariffs when exported to ASEAN. However, under RCEP, Korean compressors can be regarded as the cumulative value of regional origin materials. Refrigerators assembled in China and using Korean compressors can enjoy preferential tariffs when exported to ASEAN.

RCEP's cumulative rules of origin have greatly reduced the threshold of commodity benefits, which will encourage manufacturers to use more original materials in the region, and help the region form a closer and more resilient industrial chain supply chain. The production and trade of intermediate products will benefit, and the export of upstream products such as textile raw materials, auto parts and electronic components will further increase.

About RCEP certificate of origin

The certificate of origin, known as "paper gold", will become an important certificate for RCEP Member States to enjoy preferential treatment such as tariff reduction and exemption.

On the day when the regional comprehensive economic partnership agreement (RCEP) came into force on the 1st, the China Council for the promotion of international trade and local institutions issued the first batch of 158 RCEP certificates of origin, involving 69 enterprises in 12 provinces and cities across the country.

These certificates of origin mainly involve textiles, chemical products, medical products, food, etc. the export destination countries include Japan, Australia and other effective member countries, involving an export amount of US $12 million, and it is estimated that the tariff reduction and exemption is US $180000.

At present, RCEP certificates of origin exported to Singapore, Thailand, Japan, New Zealand and Australia under the China Council for the promotion of international trade RECP are fully issued electronically. Enterprises can handle certificates "at home" and enjoy convenient issuance services such as "appointment", "mail" and "express". The certificate information can be queried by scanning the certificate QR code or logging in to the website of CCPIT.