General

According to Huacheng's import and export data observation report, after the Regional Comprehensive Economic Partnership Agreement (RCEP) comes into force, more than 90% of the goods trade among member countries will eventually achieve zero tariffs, mainly by reducing taxes to zero immediately and to zero within 10 years, which means that all parties will fulfill their commitment to the liberalization of goods trade in a relatively short time. If import and export goods need to enjoy preferential tariff treatment under RCEP, it is one of the keys to determine whether the goods can obtain the original qualification of RCEP.

Only those commodities that have obtained the original qualification of RCEP can enjoy preferential tariff treatment in RCEP member countries. The RCEP rules of origin specify the substantive criteria for determining the eligibility of goods to obtain the qualification of origin, and a set of provisions on determining the eligibility of goods to obtain the qualification of origin are established by the standards of origin and supplementary rules. Among them, the origin standard specifies the coverage of the original goods and the specific conditions for the goods to apply the origin qualification; The supplementary rules stipulate accumulation, micro processing and handling, micro content, packaging, handling of packaging materials and containers, accessories, spare parts and tools, indirect materials, interchangeable goods or materials, production materials, standard units, treatment of specific goods, direct transportation, etc. Huacheng Import and Export Data Observation Report.

According to the observation report of Huacheng import and export data, the goods that meet one of the following conditions can be judged as originating goods under RCEP (hereinafter referred to as "originating goods") and have the originating qualification under RCEP (hereinafter referred to as "originating qualification"):

● Completely obtained or produced in a Member State;

● It is produced in a Member State entirely using original materials;

● Production in a Member State using non originating materials, but substantial changes have been made in compliance with the tax classification, regional value composition, manufacturing and processing procedures or other requirements specified in the rules of origin for products.

In addition to meeting one of the three conditions mentioned above, the determination of the origin qualification of goods also includes some supplementary and auxiliary rules to consider the requirements for determining the origin qualification under various circumstances of goods production and transportation. Huacheng Import and Export Data Observation Report.

The product specific rules of origin of RCEP list the applicable substantive change standards for all tariff lines, mainly including regional value components, changes in tariff classification (chapter changes, item changes, sub item changes), processing procedure standards and other single standards, as well as the selective standards consisting of two or more of the above standards. For the products that the parties agreed not to use non originating materials, such as primary agricultural products such as live animals and some plant products, RCEP marked "WO" in the corresponding tax number in accordance with international practice, that is, they were completely obtained, which means that the products can only be obtained through complete acquisition or production (WO), as well as from the production of original materials (PE). Huacheng Import and Export Data Observation Report.