General

(RCEP) is fully effective for 15 signatory countries. Recently, reporters visited multiple foreign trade enterprises in Jiangsu and found that the new round of policy dividends from RCEP has injected surging momentum into the development of foreign trade. Enterprises have a stronger willingness to make good use of, utilize, and fully utilize preferential policies. The Certificate of origin is the "passport" of the goods. The Certificate of origin of the Free Trade Agreement is the certificate for export goods to enjoy tariff concessions in relevant importers, known as "paper gold" in international trade. At the beginning of June, the Regional Comprehensive Economic Partnership (RCEP) officially entered into force for the Philippines, marking a new stage of full implementation of the world's largest free trade zone. What will this bring to Nantong, which has close economic and trade cooperation with RCEP member countries? In response, the reporter interviewed relevant departments and enterprises to analyze the significance of the comprehensive implementation of RCEP.

Looking Forward to the Long Term, Welcoming and Seizing New Opportunities

It is understood that after RCEP officially takes effect for the Philippines, the Philippines has added zero tariff treatment to China's automobiles and parts, some plastic products, textiles and clothing, air conditioning and washing machines, etc. on the basis of the China ASEAN Free Trade Area. This means that enterprises have another choice on the basis of the existing China ASEAN Free Trade Agreement.

The fitness equipment, Yoga mat and other products produced by Nantong Iron Man Sports equipment Co., Ltd. are popular in Southeast Asian countries such as the Philippines and Thailand. The relevant person in charge of the company said that the RCEP agreement is more advantageous for Yoga mat exported to the Philippines. At present, the agreed tariff rate of RCEP is 5% lower than that of the China ASEAN Free Trade Agreement, and after a transitional period, it can be reduced to zero tariff, which helps enterprises further stabilize and expand the Southeast Asian market

According to import and export data, since RCEP came into effect, as of the end of May, the Nantong Council for the Promotion of International Trade had issued 52396 RCEP Certificate of origin, amounting to US $1.52 billion, which reduced and exempted the tariff of the destination country for enterprises by more than 160 million yuan. According to import and export data, from January to May this year, Nantong Customs issued 5913 RCEP Certificate of origin, amounting to US $256 million. It is estimated that enterprises can enjoy tariff preference of about 17 million yuan in the destination country.

In addition to tariff reduction policies, RCEP maximizes the integration of fragmented economic and trade institutional arrangements within the region, including rules of origin accumulation, intellectual property rights, and service trade. This means that after the full implementation of RCEP in the 15 signatory countries, RCEP will play a greater role in building closer regional industrial and supply chains within the region.

According to import and export data, Nantong's textile raw materials and textile products account for over 90% of RCEP origin visas. As an established foreign trade company engaged in the production of non-woven fabrics, Dongli Gaoxin Juhua (Nantong) Co., Ltd. truly feels the sweetness brought by RCEP. Since the RCEP agreement came into force 17 months ago, the company has applied for more than 900 RCEP Certificate of origin, with a visa amount of more than 50 million dollars.

RCEP has deepened cooperation between industry and supply chains within the region by adopting regional cumulative rules of origin. Taking the textile and clothing industry as an example, the reporter learned from several companies that the comprehensive implementation of RCEP has led to some Southeast Asian orders returning to China. Some industry associations are also actively integrating and improving industry chain resources, promoting the industry to move towards the high-end of the value chain faster. It can be seen that the signal of RCEP promoting the reshaping of regional industrial chains has been released. Import and export data shows that in the past year since RCEP came into effect, the cost of trade in goods within the region has significantly decreased. Industry insiders believe that the comprehensive implementation of RCEP can create a relatively stable, open, transparent, and convenient external environment for the global trading system. In the future, the industrial chain, supply chain, and value chain will be deeply integrated, regional cooperation will move to a higher level, and the resilience and vitality of regional economic growth will be further enhanced.

According to import and export data, Nantong will also "deeply tap" into the benefits of the RCEP system, seize opportunities for service investment opening up, continue to provide policy guidance for the implementation of RCEP, assist enterprises in fully enjoying RCEP tariff preferences and various origin facilitation measures, and expand the markets of RCEP member countries. At the same time, we will increase the layout of relevant industrial chains in the region, consolidate and create more "chain owners" of industrial chains, make better use of various resources and advantages of member countries, further enhance the ability to participate in international cooperation and competition, and inject more power into the high-quality development of Open economy in the city.