Korean Shoes And Clothing Products Will Become Zero Tariff In 10 To 20 Years.

It is reported that, according to the latest news reports, yesterday, freight forwarders to Qingdao Dagang customs staff to submit the "China South Korea Free Trade Agreement" officially entered into force after China's first ticket import declaration.

The Sino Korean and Sino Australian free trade agreement (FTA) came into effect in December 20th.

After the two agreements are implemented, tariff reductions will be made according to the tariff reduction list.

Among them, under the terms of the Sino Korean FTA, under the 6108 tax items, the original goods of China and the 1649 tax numbers will be immediately enjoyed by the Korean original goods.

Under the terms of the Sino Australian FTA, under the 5662 tax items, the Australian original goods and the 2402 Australian tax items will enjoy zero tariff immediately on the other side.

Entry into force of the agreement

There will be second tax cuts next month.

In January 1st next year, the two agreements will be subject to second tax reductions and further tariff reductions.

After a certain period of pition, the majority of the goods under the two agreements will eventually achieve zero tariff.

Among them, the Sino Korean free trade agreement, the longest period of 20 years after the pition period, South Korea will impose zero tariffs on China's original goods with 92% tax figures. China will impose zero tariffs on the original goods of South Korea with 91% tax. Under the Sino Australian FTA agreement, Australia will impose zero tariffs on all China's original goods within 5 years. After the longest 15 year pition period, China will impose zero tariffs on Australia's original goods with 96.8% tax.

Yesterday morning, 2600 tons of liquid sulfur imported from South Korea was declared to be imported at Qingdao customs and enjoyed tariff concessions from the Sino Korean FTA. This is the first batch of imported goods benefited after the Sino Korean FTA came into effect.

Benefiting from the FTA tax cut arrangement, the 20 thousand yuan import tariff that the enterprise originally needed to pay has been reduced to zero.

Yonhap reported that it is speculated that the Sino Korean FTA will boost Korea's GDP by 0.96% in the next 10 years.

In addition, better business opportunities will create a large number of jobs and bring great benefits to consumers.

Analysts said that with the entry into force of the Sino Korean FTA, Chinese consumers can buy Korean goods of better quality and low price. They can enjoy Korean plastic services and travel to Korea without going abroad, and can enjoy authentic Korean pickles.

The "made in China" with good quality and low price will also enter the daily life of the Korean people.

In addition, South Korea's cosmetics, entertainment and so on.

Will also usher in a major positive.

China Australia FTA covers more than ten fields such as goods, services and investment.

In the service sector, the Australian side has promised to open the service sector to the Chinese side in a negative list since the entry into force of the agreement, making it the first country in the world to make a pledge of trade in services with a negative list.

The Chinese side opened the service sector to the Australian side in a positive list.

In the field of investment, the two sides give MFN treatment to each other from the time the agreement comes into effect. The Australian side will reduce the threshold of examination for Chinese enterprises to invest in Australia and make facilitation arrangements.

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How much is the tax cut?

Korean beauty appliances cancel tariffs within 10 years

South Korea's cosmetics, clothing, food and mobile phones and other electronic products, Australia's beef and mutton, dairy products, wine, fruit and so on.

In recent years, many products in Korea and Australia have been sought after in China.

After the FTA comes into effect, the most direct benefit to ordinary consumers is naturally due to lower prices and more choices brought about by tariff concession.

For example, South Korea's refrigerators, rice cookers and some beauty appliances and other household electrical appliances will abolish the current tariff of 15% in 10 years. The tariffs on toothpaste and other dental cleaning products will be reduced to zero in 10 years. The tariff of kimchi will now be abolished within 20 years, and the tariffs on the most productive products in clothing, shoes and caps will be reduced from about 15% to zero in 10 to 20 years.

Australian formula milk for 4 years free of duty into China

After the entry into force of China Australia FTA, the import tariffs on Australian food will be generally reduced, which is a big gospel of "gluttonous tourists" in China.

Australia is currently the largest source of beef imports in China. At present, the average tariff of 15% of Australian beef will drop to zero in 10 years. Dairy products, including infant formula, will be exempt from customs duties in 4 years. After 5 years of pition, the average wine tax rate will be reduced from 34.7% to zero.

In addition, most of the imported oranges, orange juice, Australian lobster, large abalone, king crab and so on will be fully liberalized and the tax rate will be reduced to zero.

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For consumers in Korea and Australia, the "made in China" of good quality and good price will also become a frequent visitor in life.

China's agricultural and aquatic products and vegetables will increasingly appear on the dining table of Korean families.

Electronic products will also be more convenient to enter the Australian market.

Insiders pointed out that the two free trade agreements have opened the curtain of the era of "zero tariff" in China, South Korea and China, but the completion of tax reduction needs a process.

For example, the FTA pition period in China and Korea will last 20 years, and dividends will be gradually released.

Background link

Main progress of China's FTA negotiations in 2015

The Sino Korean FTA agreement, which lasted nearly three years in June 1st, was formally signed, and came into effect in December 20th and the first tax reduction, and the second tax reduction in January 1, 2016.

The Sino Australian FTA agreement was formally signed in the ten calendar year of the 17 calendar year June, which came into effect in December 20th of the same year and the first tax reduction, and the second tax reduction in January 1, 2016.

Compared with the liberalization level of about 90% of the general FTA, the openness of the Sino Australian FTA cargo area has been greatly improved.

The final zero tariff ratio of all Australian products will reach 100% in terms of tax and trade volume, and the final tariff and trade tariff will reach 97% respectively.

In the field of investment, the two sides give MFN treatment to each other, expand the opening of service industry, and at the same time, substantially reduce the threshold for investment examination.

In November 22nd, China and ASEAN concluded negotiations on the escalation of the FTA and signed the upgrading of the protocol. The upgrading of the protocol covers trade in goods, services, investment, economic and technological cooperation and other fields. It is a rich, perfect, complementary and upgrading of the various agreements in the original China B ASEAN Free Trade Area.

In November 6th, China's B Singapore FTA negotiations were formally launched. The focus of the upgrading negotiations will be on further improving bilateral trade facilitation level, speeding up the opening up of service industries, promoting two-way investment, exploring and mining new areas of cooperation, and so on, so as to push bilateral economic and trade relations to a higher level.

The two sides have agreed that the negotiations for escalation will be completed in 2016.

In November 28th, the CEPA agreement on trade in services between the mainland and Macao was signed in Macao, and the agreement will be formally implemented in June 1, 2016.

This is the first free trade agreement in the mainland to fully open the field of service trade in the form of pre admission national treatment plus negative list, which marks the liberalization of trade in services between Macao and the mainland.

In December 10th, China and Georgia formally launched the free trade agreement negotiations.

China is Georgia's third largest trading partner and second largest source of imports.