General

On June 2, the Regional Comprehensive Economic Partnership (RCEP) officially entered into force for the Philippines, marking a new stage of full implementation of the world's most populous, largest economic and trade zone with the greatest development potential. According to relevant data, from January to April this year, the total import and export volume between China and other members of RCEP was 4.12 trillion yuan, a year-on-year increase of 7.3%, accounting for 30.9% of China's total international trade import and export volume.

What new opportunities will RCEP bring to foreign trade enterprises when it comes into full force for 15 signatory countries? What favorable conditions have China Customs created for enterprises to better enjoy benefits? Our reporter conducted an interview on this matter.

Wider stage——

Accelerated release of open potential

On November 15, 2020, the 10 ASEAN countries, along with Australia, China, Japan, South Korea, and New Zealand, jointly signed the RCEP and promoted its official entry into force on January 1, 2022. At present, the dividends brought by RCEP are accelerating to be released.

New Zealand milk, Malaysian snacks, Korean facial cleanser, Thailand's Golden Pillow Durian... In various stores of Wumart Supermarket in Beijing, imported products from RCEP countries are abundant. Behind the longer and longer shelves, there is a wider and wider stage. Recently, we held the 'Southeast Asian Fruit Festival' and 'Hi Eating Festival' in dozens of stores across the country, showcasing fruits imported from RCEP countries to consumers through mobile markets and other means, receiving high praise from customers, "Wu Mei Group spokesperson Xu Lina told our reporter.

Xu Lina said that as RCEP enters a new stage of comprehensive implementation, the prices of imported goods purchased by Wumart Group in RCEP member countries are expected to be cheaper, and the customs clearance time will be further shortened. "At present, we are purchasing goods such as Prawn cracker from Indonesia and Coconut water from Vietnam. Among them, the purchase volume and sales volume of imported goods from Wumart Metro AG are expected to increase by 10% over last year. We will give full play to the advantages of the international supply chain, expand direct overseas procurement, increase the supply of high-quality fresh and fast moving consumer goods, and better meet consumer demand," said Xu Lina.

Imported goods are coming in droves, and export enterprises are accelerating their exports to the sea.

From January to May this year, the Shanghai Customs issued 34300 RCEP Certificate of origin with a value of 11.772 billion yuan. Shanghai Shenhuo Aluminum Foil Co., Ltd. is one of the beneficiaries. It is understood that the company has an annual production capacity of 83000 tons of high-end ultra-thin double zero aluminum foil, of which about 70% is used for export. The products are widely used in food and beverage packaging, pharmaceutical packaging, and other fields.

"Last year, we handled 1058 Certificate of origin for exporting to RCEP member countries, with a value of nearly 67 million dollars. After RCEP takes full effect this year, our aluminum foil products will enter the RCEP market at a lower price and faster speed." Mei Xiaojun, the minister of the company's foreign trade department, said that with the Certificate of origin, enterprises can reduce tariffs equivalent to 5% of the value of goods in the importing country, which not only reduces export costs, but also wins more overseas orders.

The trade service industry is also facing new opportunities.

Qian Feng, CEO of Huace Testing and Certification Group Co., Ltd., introduced that in recent years, Huace Testing has increased investment in fields such as medicine and health, new material testing, and has established more than 150 laboratories in more than 90 cities worldwide. In this process, RCEP countries are the focus of new investment for enterprises.

RCEP has entered a new stage of comprehensive implementation, which is conducive to accelerating the integration of regional industrial and supply chains, reducing risks and uncertainties in international trade, and providing strong momentum for regional economic development. In this process, China's inspection and testing institutions will have more opportunities to communicate with overseas countries, strengthen cooperation with relevant countries in areas such as technological innovation, quality standards, and information mutual recognition, and further achieve 'one test, one result' Regional access Qian Feng told our reporter that Huace Testing will strive to cultivate and introduce international talents, build an international sales network, and actively participate in the RCEP international market.

Better service——

Assist enterprises in efficiently enjoying benefits

In international trade, the origin of goods is referred to as the "economic nationality" of the goods and is an important reference for determining tariff treatment. To ensure efficient benefits for foreign trade enterprises, China Customs actively constructs a precise RCEP service system, optimizes customs clearance processes, reduces customs clearance costs, and assists enterprises in exploring the RCEP market.

Some use Big data analysis to develop benefit plans for enterprises——

In the future, Filipino fruits will also become our advantageous raw materials! "Wang Jiashun, Minister of International Business Department of Qingdao Chuangxin Food Co., Ltd., told our reporter that 95% of the vegetables and canned fruits produced by the company are exported overseas. After the comprehensive implementation of RCEP, enterprises will choose more tropical fruits in Southeast Asia as raw materials and auxiliary materials, and process them into assorted fruit cans for export to markets such as Australia and Japan. After the RCEP came into effect, Qingdao Customs discovered through data analysis that we lacked benefits, and took the initiative to develop a plan to help us apply for tariff concessions from foreign countries. It is expected that this year, our imports of raw materials such as pineapple and pineapple juice from ASEAN countries will increase by more than 15% year-on-year, and our exports are also expected to increase by 10% to 15%, "Wang Jiashun said.

Bi Haijun, Director of the Customs Tariff Department of Qingdao Customs, introduced that RCEP has effectively integrated the bilateral free trade agreements previously signed between China and ASEAN, South Korea, Australia, and New Zealand, expanding the scope of origin accumulation. In practice, multiple treaty tax rates can often be applied to a specific commodity. To this end, Qingdao Customs will provide services such as designing preferential schemes for import and export enterprises, ensuring that they can enjoy the maximum benefits of opening up.

Some actively promote the RCEP tariff policy to help enterprises optimize their export layout——

Stainless steel tableware and kitchenware is a "specialty" commodity exported by Yunfu City, Guangdong Province, and has a high reputation in the international market. However, due to multiple factors such as weak global economic recovery, demand in the European and American markets has temporarily declined, and the number of foreign trade orders has declined. At this moment, RCEP opened a window for many local enterprises.

Liao Xiuping, assistant to the chairman of Guangdong Denas Metal Products Company, said that foreign trade involves multiple countries, links, and policies, and it is not easy for enterprises to explore new markets when the demand in traditional export markets is weak. Since the beginning of this year, Guangzhou Customs has actively popularized the RCEP tariff policy, actively helping enterprises make full use of the benefits of RCEP tariff preferences and origin accumulation rules, and expanding the RCEP market. With the increasing demand in the RCEP market, we are optimistic that the company's exports will continue to grow throughout the year, "she said.

Others promote self-service printing and intelligent audit mode of Certificate of origin to help enterprises reduce costs——

Dongfang Turbine Co., Ltd. of Dongfang Electric Group is an important clean energy equipment manufacturing enterprise in China, and its thermal power turbine products sell well in overseas markets. In May last year, the company became the first RCEP approved international trade exporter of manufacturing equipment in Sichuan Province. The enterprise can issue the declaration of origin at any time according to specific shipment arrangements, which makes the operation more flexible and greatly shortens the processing time of Certificate of origin.

After the RCEP came into effect, Chengdu Customs actively provided us with comprehensive policy guidance to help us complete the identification of 'approved exporters'. As RCEP enters a new stage of comprehensive implementation, the intensity of tariff reduction will be further increased, which provides an opportunity for us to carry out deeper industry chain integration with relevant countries. "Zeng Mingjing, Minister of International Business Department of Dongfang Steam Turbine Co., Ltd., told our reporter, Whether it is the import of components and raw materials or the export of finished products, the company's business dealings with RCEP countries have been steadily expanding this year.

More confident——

Double improvement in quality, expected to improve

Data shows that in the first five months of this year, ASEAN was China's largest trading partner, with a total trade value of 2.59 trillion yuan between China and ASEAN, a year-on-year increase of 9.9%. This confirms from one side the new impetus RCEP has brought to foreign trade. With the full implementation of RCEP, market entities are expected to further improve.

Wider channels for going to sea. Seventy percent of the Ferris wheel, pirate ship and other amusement equipment produced by Zhengzhou Limeiqi Amusement Equipment Co., Ltd. are exported overseas. Since the beginning of this year, the company's investment in factories and production capacity has doubled compared to last year. Company leader Wang Xuejiao calculates that through cross-border e-commerce, the growth of Li Meiqi's export business will at least double.

Since 2008, the amusement equipment we produce has mainly been exported through Alibaba International Station. After the RCEP came into effect, the tariffs we apply have significantly decreased, overseas customers have become more active, and some foreign orders have also begun to transfer to us. "Wang Xuejiao told this reporter that the changes brought by the implementation of RCEP entering a new stage are systematic. For example, in the past, the customs clearance speed of many Southeast Asian countries was as long as ten days, but now it has been gradually reduced to less than six days, which has reduced the trade costs of enterprises and strengthened their confidence in further expanding international trade business.

Liu Yu, General Manager of the Northern Region of Alibaba International Station, revealed that in May this year, the international trade export volume of merchants on the Alibaba International Station platform to RCEP member countries increased rapidly year-on-year. Among them, the export volume of international trade to Australia, Japan and the Philippines increased by more than 15% year on year; The export volume to Singapore increased by nearly 30% year-on-year. In the first quarter of this year, we released the 'Northern Region Merchant Service System' to further improve the digital foreign trade service system, allowing domestic merchants to trade better and faster with RCEP national purchasers, "Liu Yu said.

Deeper level of cooperation. Nanning Qiaohong New Materials Co., Ltd. is a specialized production enterprise that specializes in the production of new types of absorbing core materials such as dust-free paper, double woven fabric, and melt blown fabric. Since the beginning of this year, with an increase in export orders, the production workshop operating rate has remained above 90%, presenting a busy scene.

According to the introduction of Nanning customs staff, in the future, our production of dust-free paper entering the Philippine market can be reduced from the current 15% to zero tariff. "Deputy General Manager Lu Qi told our reporter that RCEP has promoted deep integration of regional industrial and supply chains. For example, multinational companies such as Procter&Gamble have established a large number of daily necessities production bases in RCEP countries. The full implementation of RCEP will help Qiaohong and relevant partners to carry out more in-depth cooperation on the industrial chain.

Wang Weibing, the Director of Nanning Customs, said that Guangxi is the forefront and window of China ASEAN's open cooperation, and deepening open cooperation with RCEP member countries, including ASEAN, will stimulate more development dividends. Nanning Customs will actively promote the export of advantageous products and the import of key technologies, continuously expand the coverage of RCEP policy dividends, promote the construction and upgrading of "ASEAN–China Free Trade Area Version 3.0", and support Guangxi to transform its unique geographical advantages into open development advantages.

Looking at the RCEP region, more stories of win-win cooperation are being written.