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    Trade Between China And South Korea: Over 90% Products, Zero Tariff After 20 Years

    2015/6/12 16:53:00 57

    Trade Between China And South KoreaZero TariffForeign Trade

    It is understood that at present, bilateral trade between China and South Korea has reached 300 billion US dollars.

    The FTA between China and South Korea is expected to take effect before the end of this year. This is China's FTA which covers the largest and most comprehensive range of trade so far. It will bring new benefits to China's export to Korean enterprises.

    Shenzhen's exports have ranked first in the country for 22 consecutive years, and Shenzhen's exports to Korea are numerous.

    The staff of the Shenzhen inspection and Quarantine Bureau said that before the export of Korean goods by local enterprises, they could enjoy preferential tariff treatment based on the certificate of origin of the Asia Pacific Trade Agreement.

    "Since the beginning of this year, the Shenzhen inspection and Quarantine Bureau has issued 12 thousand and 690 certificates of origin for the Asian Pacific Trade Agreement for the Shenzhen enterprises, which has reduced the tariff to nearly 60 million dollars for the enterprises. The main products of the visa are batteries, lamps, televisions, fans, hard alloy drills, bags, footwear, toys, etc.

    The source said.

    According to the introduction,

    Asia Pacific Trade Agreement

    Under the heading

    The Republic of Korea

    Compared with the list of concessions, there are some new characteristics of the Korean tax reduction commitments under the FTA: first, the range of tax reduction products for export goods has been expanded.

    The FTA between China and South Korea covers all other products except sensitive products such as some agricultural and aquatic products, textiles and clothing, timber and wood products. Two, the tax reduction rate for export goods has been widened.

    The Asia Pacific Trade Agreement's tax cut ranges from 10% to 50%. According to the China South Korea FTA tax reduction arrangement, more than 90% of China's products will be enjoyed in Korea after 20 years of pition.

    Zero tariff

    Among them, the quota tax rate of tariff quota products will be reduced to zero immediately after the agreement comes into effect. Other tax reduction products will be reduced to zero tariff in 5, 10, 15 and 20 years respectively.

    For example, according to the tax reduction arrangement under the Asia Pacific Trade Agreement, the export of lithium batteries from China to Korea can enjoy a 30% tariff preference, while the products that comply with the rules of origin of the Sino Korean free trade agreement enjoy zero tariff. The exported floodlights of our country can enjoy 50% tariff preferences when exported to South Korea, while the products that comply with the rules of origin of China Korea free trade agreement can enjoy 10% tariff preferences in the first year of the agreement. After that, the tariff discount rate increases by 10% per year, until the agreement is implemented tenth years, which can enjoy zero tariff.

    Inspection and quarantine personnel remind Enterprises: after the implementation of the agreement, the products exported to Korea can choose to apply for the certificate of origin of the Asia Pacific Trade Agreement or the certificate of origin of the Sino Korean free trade agreement. The products can enjoy different tariff preferences with different certificates.

    Export enterprises should fully understand the preferential trade policy and seize the opportunity to further expand the international market in foreign trade negotiations.

    Qu Jian, vice president of Shenzhen Comprehensive Development Research Institute, said that the difference between Shenzhen's GDP and South Korea's GDP level is not large, which indicates that both sides have a large quantity of purchases.

    Comparatively speaking, Shenzhen will have more export advantages in the field of medical equipment, household appliances, clothing and other commodity products, while South Korea's export advantage to China is mainly cosmetic.

    "This FTA tax reduction covers a wide range and a large decrease, which will bring significant growth to bilateral trade."

    "In other words, cosmetics and pickles will become cheaper and cheaper in the future."

    At the same time, according to the free trade agreement, doctors who hold Korean doctors' licences can practise medicine in China for a short period of time. The deadline is expected to extend from 6 months to 1 years.

    This also means that if people in Shenzhen want to have cosmetic surgery, they do not have to go farther south to Korea.



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