What Advantages Do China, South Korea And China Australia FTA Bring To China?

At present, China has signed 14 free trade agreements, of which 12 FTA have been implemented, involving 22 countries and regions.

The FTA in China, South Korea and Australia is the FTA which involves the largest volume of trade and the highest level of trade and investment liberalization.

With the entry into force of the above FTA, consumers can buy more affordable imports without going abroad.

Australia and China

Since December 20th, it has entered into force and implemented the first round of tax reduction.

The second round of tax reduction will take effect from January 1, 2016.

For the majority of export enterprises, the entry into force of the FTA between China, Korea and Australia means that the goods exported to Korea and Australia will enjoy more tariff preferences and enter the international market at a more competitive price.

At the same time, consumers can buy more import goods from both countries without going abroad.

How about customs clearance on the first day of the FTA? How to adjust the tariff?

How much is the cost of customs clearance?

For Yang Kaijun, deputy general manager of Qingdao Hua Ze international logistics company for many years, it is very unusual for him to declare the customs cargo. The Korean "morning Hai" cargo ship loaded with more than 2600 tons of liquid sulphur has stopped at the port of Qingdao, which is not far away. This is the first batch of imported goods benefited from the Sino Korean FTA agreement.

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After the entry into force of the FTA, the volume of business is expected to increase by about 15%.

To this end, we have set up a project team to closely follow South Korea's business and further strengthen business coordination and guidance.

Yang Kaijun said.

Chong Xin Chemical Trading (Shanghai) Co., Ltd. is the owner of liquid sulphur in this ship. The general manager of the company has made an account: the company imports liquid sulfur products between 300 thousand tons and 400 thousand tons each year. After the trade agreement between China and Korea has come into effect, the liquid sulphur tariff has been reduced from 1% to zero. Only this one can save nearly 3 million yuan.

On the same day, enjoy zero tariff.

The first voting commodity is a Mini robot with independent intellectual property rights.

The robot development company named "Tong Feng Youdao" was first issued "certificate of origin" issued by the Qingdao branch of China Council for the promotion of international trade (CCPIT). It achieved a zero tariff clearance from Qingdao airport.

After the implementation of the FTA between China and South Korea, the tariff rate of China's original robots entering South Korea dropped from 8% to zero, and only these exported goods reduced taxes and fees by more than 20 thousand yuan.

Dong Shengji, deputy general manager of Tong Feng Youdao, said that the reduction of costs will directly give back to Korean customers, so as to win more market sales for the company.

How to reduce tariffs?

The main content of FTA is tariff concession, and the enforcement means is origin visa.

This means that products such as Korean cosmetics, clothing and other products, Australian dairy products, meat products and so on will be gradually reduced tariffs, which will be more convenient and affordable for the public.

"There is a misunderstanding here. It does not mean that when the FTA comes into effect, all products are zero tariff.

For example, Korean cosmetics, in addition to sunscreen clear tax cuts, other cosmetics basically no tax reduction.

Qingdao customs Customs Commissioner Wu Xia said.

It is reported that after the implementation of the FTA between China and South Korea, some popular products such as household electrical appliances, daily chemicals, clothing, shoes and caps will gradually reduce taxes in a certain pitional period.

Among them, South Korea produced shampoo, shower gel, etc. in 5 years, part of the tax cut 20% to 35%, toothpaste and other oral cleaning products in 10 years, the abolition of tariffs, clothing, shoes and hats in 10 to 20 years customs duties from the present 15% to zero.

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After the implementation of the Sino Australian FTA, consumer goods such as beef, mutton, dairy products, wine, lobster and fruit can enjoy more favorable prices.

The beef tax rate will be reduced to zero in 10 years. Dairy products will be subject to duty free entry into China within 4 years. The average duty rate of wine will be reduced to zero from 5 in the next 5 years. The duty of infant formula 15% will be abolished in 4 years.

That is to say, after a certain period of pition, most of the goods will be zero tariff under the two FTA agreements.

Among them, under the China South Korea trade agreement, after the longest 20 years of pition period, South Korea will carry out zero tariff on the 92% tax contents of China's original goods, and China will carry out the zero of the Korean original goods of the 91% tax contents.

Under the China Australia FTA agreement, Australia will impose zero tariffs on all China's original goods within 5 years. After the longest 15 years of pition, China will impose zero tariffs on Australia's original goods of 96.8% tax.

What is the opportunity of "Nuggets"?

The upcoming 2015 is a good harvest year for China's FTA strategy.

As an important economic region in the Asia Pacific region, the FTA between China and South Korea has milestone significance, and the Sino Australian FTA will also have a demonstration effect for the development of high level economic and trade arrangements in the Asia Pacific region.

"In view of the huge volume of bilateral trade between China, South Korea and Australia, the preferential trade volume will soon increase after the implementation of the two FTA, taking into account the trade creation and pfer effects of the FTA."

Xu Huiyun, deputy director of the Customs Administration of customs administration, said.

According to the preliminary forecast of the customs, according to the static estimation of bilateral trade volume in the first half of 2015, the first year of the FTA implementation, about 26 billion US dollars of China's export goods and 20 billion US dollars of Korean export goods enjoy preferential tariffs on the other side of the FTA, and about 20 billion US dollars of Chinese export goods and 15 billion US dollars of Australian exports are enjoying tariff preferences on the other side.

Song Yankui, an expert in origin management of the General Administration of customs, believes that the implementation of the FTA can effectively enhance the level of cooperation among all parties in the agreement and create a new situation of mutual benefit and win-win situation.

He said that Australia's exports were mainly resource-based products. China's exports were mainly electronic communications, toys and some labor-intensive products, and the complementarity of product structure was very strong. The FTA not only means lower tariffs and larger common markets, but also more importantly, it will promote closer integration of industrial chains and enhance the competitiveness of enterprises.

"We have made statistics. Korea's exports to China are mainly concentrated in mechanical and electrical, chemical and other products, and our exports to Korea are mainly electrical and chemical products. The products are similar, but we are still at the lower end of the industrial chain."

Wu Xia said that although large-scale imports will have an impact on similar products in China, it will also form a forced mechanism to promote better integration of domestic capital with Korean technology and brands, which is conducive to the pformation and upgrading of industries.