Machinery / Industrial Parts & Tools

In August 2022, Guangxi Liugong Machinery Co., Ltd. became the first approved exporter under the RCEP approved by Nanning Customs in Liuzhou. After obtaining the qualification, Liugong can independently issue a declaration of origin at any time, which is equivalent to the certificate of origin issued by the customs. In this way, the issuance time is shorter, the goods clearance flow speed is faster, and the clearance efficiency of enterprises is also greatly improved.

Driven by this, Liugong's overall overseas income reached a new record in 2022. Du Pengqing, strategic manager of the International Business Center of Guangxi Liugong Machinery Co., Ltd., said that customs data showed that Liugong's overall overseas income increased by 50% from January to November. Among them, the growth in RCEP region exceeded 70% year on year, and the revenue performance accounted for nearly 1/4 of Liugong's overseas revenue performance.

Liu Gong's example is a vivid epitome of the benefits of tariff concessions, rules of origin accumulation, trade facilitation and other institutional dividends to Chinese enterprises since the RCEP came into force one year ago.

One of the most significant effects of the entry into force and implementation of the RCEP is that the level of trade liberalization in goods among members has been significantly improved, and the implementation basis of tariff reduction in goods trade is the issuance of the certificate of origin under the RCEP. According to Yang Fan, the spokesman of the China Council for the Promotion of International Trade (CCPIT), at a regular press conference held a few days ago, customs data showed that from January to November 2022, the total amount of RCEP certificates issued by the National Council for the Promotion of International Trade amounted to US $6.254 billion, with a total of 142100 visas. According to customs data, the amount of the RCEP certificate of origin issued by the National Trade Promotion System in November was US $599 million, the number of visas was 16487, the number of certificate-handling enterprises was 3062, and the export destination countries included Japan, South Korea, Thailand and other nine implemented member countries. It is estimated that a total of US $9 million in tariff relief for Chinese products in the RCEP import member countries will be provided.

Liugong Machinery is one of the beneficiaries. According to Du Pengqing, customs data shows that Liu Gonghui will enjoy the RCEP dividend in 2022. In terms of export, the basic tariff will be basically reduced to zero. Up to now, Liu Gong has issued a total of 21 RCEP certificates of origin at the request of RCEP regional dealers, with the amount of about USD 3.67 million. According to customs data, Japan and South Korea are the main importers of parts and components of Liugong. After the implementation of RCEP, the average import tariff of relevant parts and components decreased from 5.4% to 4.8%, which directly saved about 1.2 million yuan in import tariff costs. "In 2022, Liugong participated in key projects including Indonesia's Yawan High speed Railway, China Laos Railway, and other key projects, which are all over the member countries of RCEP. At present, nearly 3000 sets of Liugong's equipment have been used in infrastructure projects in various industries in the region," said Du Pengqing.

The relevant person in charge of the China Council for the Promotion of International Trade said that under the dual effects of the preferential policies for market access of goods trade and the cumulative rules of origin, RCEP has effectively promoted the export of advantageous products and the import of key technologies of Chinese enterprises, helped Chinese enterprises break through the limitations of the domestic market and the instability of the international circulation, and created a more cost-effective and resilient "medium circulation" space in the RCEP area.

China Council for the Promotion of International Trade (CCPIT) is one of the statutory issuing agencies of the preferential certificate of origin of RCEP, and is the national team promoting the implementation of the promotion strategy of RCEP and service free trade zone. Since 2021, CCPIT has established an overall coordination and linkage work mechanism, formed a distinctive and dislocation development work pattern around the implementation of RCEP, and focused on turning the provisions of the agreement rules into dividends for high-quality development of enterprises. As a specific functional undertaking unit, the CCPIT Trade Promotion and Exchange Center has comprehensively strengthened the top-level design, coordinated the forces and resources of all parties, scrambled for time, consolidated the foundation, focused on the key points, and combined theory with practice to do a good job in the investigation and research of the effective implementation of RCEP; At the same time, we will build a team of RCEP training teachers who are familiar with economic and trade rules, have strong practical ability and high level of interpretation, and strengthen publicity and professional training; Organize the compilation of an authoritative, pragmatic and operational guide for the business application of RCEP enterprises; We will strengthen the guidance of visa work and the construction of personnel team, and continue to optimize and upgrade the RCEP origin visa service.