General

According to the latest announcement of the General Administration of Customs:

According to the "Administrative Measures for the Generalized Preference System of the People’s Republic of China for the Certificate of Origin Visa", the General Administration of Customs has decided that starting from December 1, 2021, the export to EU member states, the United Kingdom, Canada, Turkey, Ukraine and Liechtenstein will no longer be accepted. The customs will no longer issue GSP certificates of origin for goods from countries that give China’s GSP tariff preferential treatment.

If the shipper of goods exported to the above-mentioned countries needs a certificate of origin, it can apply for a non-preferential certificate of origin.

Up to now, the only countries that still retain the GSP treatment for China are Norway, New Zealand, and Australia. For goods exported to these three countries, companies can still apply for the GSP certificate.

Original announcement:

http://www.customs.gov.cn/customs/302249/2480148/3968366/index.html

In recent years, with the steady development of China's economy and the gradual improvement of its status in international trade, more and more countries and regions have announced their "graduation" to China's GSP.

According to a report from the Eurasian Economic Commission, starting from October 12, 2021, the Eurasian Economic Union will abolish the Generalized System of Preferences for goods exported to China, and goods exported to the member states of the Eurasian Economic Union will no longer enjoy the GSP tariff preferences.

Since the same day, the customs will no longer issue GSP certificates of origin for goods exported to Russia, Belarus, and Kazakhstan.

In the past, according to the Generalized System of Preferences program of the Eurasian Economic Commission, the alliance granted preferential tariffs to China’s exports of meat and meat products, fish, vegetables, fruits, some raw materials and primary processed products. Goods in the list of exports to the Union are exempted from import duties of 25% on the basis of their tariff rates.

Japan, on the other hand, will no longer grant tariff preferences to China's GSP for goods exported to Japan from April 1, 2019. Since April 1, 2019, China’s customs will no longer issue GSP certificates of origin and related Japanese import processing certificates for goods exported to Japan.

GSP preferential tariff refers to a universal, non-discriminatory, and non-reciprocal preferential tariff for manufactured and semi-manufactured products (including certain primary products) exported by developing countries or regions by developed countries. A special tariff that is further reduced or exempted on the basis of the most-favoured-nation tariff.

This policy is conducive to helping developing countries improve the competitiveness of their export products, expand exports, and promote the industrialization and economic development of developing countries.

The average tariff reduction rate for China's GSP certificate of origin and regional preferential certificate of origin is about 6%.

It is worth noting that while China is "graduating" from the GSP, some countries and regions still maintain the GSP treatment for Vietnam, Indonesia, Bangladesh, Cambodia and other countries, which means that part of China’s labor-intensive exports Products are facing more severe challenges.

Export to Pakistan can be issued certificate of origin under the free trade agreement

But at the same time, China has accelerated the pace of expanding the "friend circle" of the free trade zone.

So far, China has reached 19 free trade agreements and signed these agreements with 26 countries and regions. The free trade partners are all over Asia, Europe, Latin America, Oceania and Africa.

In addition, there is the latest good news. Starting from November 10th, certificates of origin under the Free Trade Agreement can be issued for exports to Pakistan.

By applying for the certificate of origin of the China-Pakistan Free Trade Agreement, products exported to Pakistan can enjoy different degrees of tariff reductions when imported from Pakistan:

Pakistan has implemented zero tariffs on 45% of the tax items.

For 30% of the tax items, zero tariffs will be gradually achieved in the next 5 to 13 years.

A partial tax reduction of 20% will be implemented on 5% of tax items on January 1, 2022.

The certificate of origin under the China-Pakistan Agreement of the China Council for the Promotion of International Trade is fully electronically issued, providing independent certificate printing services. Enterprises can apply for the preferential certificate of origin under the China-Pakistan Agreement for free through the CCPIT online visa system or the single window of international trade.