General

According to Hangzhou Customs, on January 2, 2023, the Regional Comprehensive Economic Partnership Agreement (RCEP) officially came into force for Indonesia. On the effective date, Yiwu Zhihong Import and Export Co., Ltd. applied for the issuance of the first certificate of origin of Zhejiang exported to Indonesia under RCEP at the Yiwu Customs Office Hall under Hangzhou Customs.

Yiwu Zhihong Import and Export Co., Ltd. is an international trading company mainly exporting daily necessities and machine parts, mainly exporting to Southeast Asian countries. By virtue of the China ASEAN Free Trade Agreement in 2022, the company has enjoyed tariff preference for more than 10 million dollars of goods. With the effective of RCEP to Indonesia this year, the international trade export of enterprises to ASEAN has ushered in new opportunities.

"Prior to the application of the China ASEAN Free Trade Agreement, the tariff rate of bicycle accessories we exported was 5% when they were imported into Indonesia. After the RCEP came into effect in Indonesia, it was directly reduced to zero tariff, which helped the company greatly to improve its product competitiveness." said Huang Xinzhen, head of Yiwu Zhihongjin Export Co., Ltd.

According to statistics, in 2022, Yiwu Customs issued a certificate of China ASEAN Free Trade Agreement for the export of bicycle accessories worth 5.465 million dollars to Indonesia. After the RCEP takes effect in Indonesia, this part of goods will enjoy greater tax reduction dividends under RCEP.

Jiaxing Xin'an Packaging Materials Co., Ltd. specializes in the production of PVC extruded heat shrinkable film, and Indonesia is one of its important export destinations. The basic tax rate of PVC heat shrinkable film exported by the company to Indonesia is 10%, and the preferential tax rate under the China ASEAN Free Trade Agreement is 5%. After the RCEP Agreement takes effect for Indonesia, the import tariff of this product in international trade in Indonesia is directly reduced to zero tariff.

"Taking the value of the company's exports to Indonesia in 2022 as a reference, it is estimated that RCEP can reduce the import tariff for the company's exports to Indonesia by about 370000 yuan a year. This will play an important role in our further development of new markets in Indonesia," said Yang Liteng, general manager of Jiaxing Xin'an Packaging Materials Co., Ltd.

ASEAN is one of the largest foreign trade markets in Zhejiang, and Indonesia is an important international trade partner of the province in ASEAN. The head of the Customs Office of Hangzhou Customs said that after RCEP came into force for Indonesia, enterprises can comprehensively use RCEP and the China ASEAN Free Trade Agreement to choose the best trade agreement to handle certificates and enjoy benefits, so as to better expand the international trade market and enhance product competitiveness.