Shishi Enterprise Saves Import Tariff By US $4 Million 300 Thousand

A few days ago, Mr. Chen, the head of a Shishi company, eagerly consulted the Shishi inspection and quarantine department how to handle the preferential certificate of origin for the export of Chile's FTA.

Mr. Chen said that Chile's customers said that if the certificate of origin was successfully processed, a large number of orders would be provided.

Some enterprises in Shishi began to realize the important role of preferential certificate of origin in foreign trade negotiations, enhancing international competitiveness of products, and striving for foreign orders.

According to the briefing, China has signed the ASEAN Free Trade Area Agreement, the Chile Free Trade Agreement, the Pakistan free trade area agreement, the New Zealand Free Trade Agreement, the Asia Pacific Trade Agreement, and the Singapore Trade Agreement.

The products in the list of tariff reductions exported to the above countries or regions will be able to apply for the relevant certificate of origin.

In addition, developed countries with preferential treatment for China's GSP have also expanded to 39, and the space for countries to apply for certificates of origin is becoming wider and wider.

Statistics from the inspection and Quarantine Department of Shishi show that in 2008, the Department issued 334 certificates of origin for various FTA, involving 11 million 30 thousand US dollars in export products, and 1978 copies of all inclusive certificates, involving 74 million 750 thousand US dollars in export products.

According to the tariff reduction range of 5%%, the tariff of importing countries was about $4 million 300 thousand last year, and the enterprises benefited from the preferential certificate of origin.

However, many enterprises have no knowledge of the preferential certificate of origin, do not know how to use the certificate of origin to increase the weight of foreign trade negotiations, and strive for greater interests and more orders for themselves. Some enterprises even refuse to refuse the order when they request the original certificate, until they give up the order. Some enterprises fail to pass the customs certificate of origin and fail to meet the requirements of foreign investors, resulting in unnecessary economic losses.

Reporter learned that at present Shishi has the advantage of export clothing, shoes and other products apply for preferential certificate of origin number is still low, the visa volume and export volume compared to the larger gap, the application for the certificate of origin has a single commodity, inadequate utilization.

For example, last year, Shishi exported to the 734 batch of commodities such as clothing, shoes and other legal inspection products in ASEAN, and the value of goods was about 35 million dollars. However, only 79 certificates of origin were applied for the ASEAN Free Trade Area. The visa amount was $2 million 220 thousand, the utilization rate of the certificate of origin was only 10%, and the 1688 batch of legal inspection products exported to the EU, worth about 64 million 50 thousand US dollars, applied for only 336 copies of the general pass certificate. The amount of the visa was 11 million 760 thousand dollars, and the utilization rate of the certificate of origin was less than 20%.

If the illegal export inspection is included, the utilization rate will be greatly reduced.

In addition, some enterprises have unreasonable product mix, and make great use of imported ingredients, which do not accord with the origin standard of the donor countries, and can not apply for preferential certificates of origin.

According to the insiders, in the current economic situation and the establishment of various technical barriers and shrinking market demand in China's traditional export markets such as Europe and the United States, it is undoubtedly an effective way to resist the economic "cold winter" for our export enterprises to fully pay attention to and utilize various preferential policies of free trade zones to expand the international market and promote diversification of the international market.

The inspection and Quarantine Department of Shishi stated that the majority of export enterprises should be more familiar with the policies and information of the preferential certificate of origin, make good use of the certificate of preferences, grasp the list of tariff reductions, adjust the structure of export products in a timely manner, and enhance the international competitiveness of products.