470-million-yuan goods enjoy RCEP benefits in H1

A press conference on Hunan's foreign trade in the first half of 2022 was held on July 15th. It was learned that Hunan's imports and exports with the other 14 Regional Comprehensive Economic Partnership (RCEP) members combined went up 36.2% yearly to 108.07 billion yuan in the first half of the year. RCEP agreement has benefited Hunan province, involving 470 million yuan of imported and exported goods. In addition, about 6.8 million yuan in tariffs has been reduced.

The RCEP agreement took effect on January 1st, 2022, bringing benefits to several import and export enterprises. Hunan's goods exported to RCEP members and enjoying tariff reductions mainly include footwear, metals, chemical products, fireworks, and lamps; products imported from RCEP countries and enjoying preferential tariffs have rubber, resin, engines, and auto parts.

"After RCEP came into effect, the tax rate of the company's rail shock absorbers at the destination was reduced from 5% to 0, and our market share in the destination market increased to 30% in the first half of the year," said Chen Chuang, director of the Customs Affairs Department of Zhuzhou Times New Material Technology Co., Ltd. This year, the company has issued a declaration of origin for 3.5-million-yuan exported products, enjoying a tariff reduction of about 180,000 yuan from the importing country.

According to Changsha Customs, from January to June this year, Changsha Customs issued 710 RCEP certificates of origin, approved the issuance of 12 pieces of declarations of origin by qualified export enterprises, and handled 24 import declarations under the RCEP agreement.

The population, economic aggregate, and trade volume of RCEP members account for about 30% of the global total, and the market potential is enormous. According to the agreement, more than 90% of regional goods will enjoy zero tariffs. Changsha Customs suggested that foreign trade enterprises in Hunan should grasp the implementation of tariff reductions under preferential trade agreements such as RCEP as soon as possible, adjust the raw material procurement market and trading target market, and focus on relevant customs policies to seize opportunities.