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    How To Reduce The Cost Of Textile And Garment Industry Through RCEP

    2021/3/25 23:39:00 0

    RCEPTariffsTextilesClothing

    "Our company now purchases raw materials domestically and then processes and exports them to Australia. If we purchase raw materials from Vietnam in the future and then export them to Australia after domestic processing, can we enjoy preferential tariff rates?" Mr. Wang, the customs officer of Shenzhen virgin Garment Co., Ltd., recently consulted the customs officers of Shenzhen customs. The company's main products are ladies' underwear. The processing and export mode is to import raw materials from ASEAN countries such as Vietnam and Cambodia. After being designed and processed in China, the finished products are exported to Europe, America, Japan, Australia and other countries.

    After RCEP regional accumulation rules come into effect, it helps to control costs

    Experts from Shenzhen Customs and customs office assisted enterprises to analyze and found that although China had free trade agreements with ASEAN and Australia before RCEP came into effect, bilateral accumulation rules were adopted for origin determination. In the past, China ASEAN free trade agreement can be used to enjoy tariff reduction and exemption for raw materials imported from Vietnam; after the domestic raw materials are processed and conform to the rules of origin of China Australia FTA, they can enjoy tariff preference when exporting to Australia, but it is difficult for the raw materials imported from Vietnam to meet the origin standards of China Australia agreement when exporting to Australia. After RCEP's regional accumulation rules come into effect, Vietnam's imported raw materials are applicable to the regional accumulation rules, and enterprises' products are easier to meet the requirements of the rules of origin and enjoy preferential tariff, which is of great help to the company's business expansion and cost control.

    Recently, a series of lively RCEP policy training sessions and "one-to-one" policy guidance consultation meetings were held one after another. Shenzhen Customs organized textile and garment industry enterprises to prepare in advance and fully enjoy the policy dividend.

    RCEP countries promise to reduce taxes on some textiles and clothing products

    In November last year, the regional comprehensive economic partnership agreement (RCEP) was officially signed. According to the analysis of Shenzhen Customs and tariff office, RCEP countries have made tax concession commitments on some textile and clothing products, which has a positive impact on reducing the tariff cost of enterprises and improving the competitiveness of export products; the regional accumulation rules of RCEP will strengthen the flow of raw materials and goods in the region, close the division and cooperation of industrial chains in the region, and promote the expansion and upgrading of regional consumption The RCEP provides that the approved exporters or producers can enjoy the preferential agreement tariff rate of the Contracting States by virtue of the enterprise's independent declaration of origin. At present, most of the free trade agreements can enjoy the import preference only with the certificate of origin issued by the customs or commercial departments.

    Japan is the first country among RCEP countries to sign a free trade agreement with China. According to the actual needs of enterprises, the Customs has printed a tax reduction list of Japan's textile and clothing industry, which has been sent to Japanese export enterprises. The enterprises praise the "RCEP preferential policy package" distributed by the customs, and sincerely express their gratitude.

    Enterprises can enjoy preferential agreement tax rate of contracting countries by declaration of their own origin

    Shenzhen robust Medical Products Co., Ltd. learned that RCEP stipulates that approved exporters or producers can enjoy preferential agreement tax rates of the contracting countries by virtue of the enterprise's independent declaration of origin. Miss Cao, the company's customs officer, was very excited: "our company issues more than 30 certificates of origin of non-woven fabrics to Southeast Asia every week. Since the Customs has introduced self-service printing, intelligent examination and signing, etc Service measures and certificate of origin can be applied without going to the customs scene. Unexpectedly, RCEP can clear customs by declaration of the enterprise itself, which is very convenient. Our enterprises are looking forward to it! "

    It is understood that after the RCEP agreement comes into effect, if an enterprise becomes an approved manufacturer through customs certification, it can clear the customs only with the declaration of origin of the enterprise and enjoy preferential treatment of the contracting state when exporting, which saves the entry, verification and application of the certificate of origin, and further reduces the time limit and cost of customs clearance. "Since the RCEP agreement came into force, our workload has been reduced and our work efficiency has been improved." Miss Cao is looking forward to the benefits of RCEP.

    Enterprises should seize the golden period after RCEP comes into effect

    Shenzhen Customs said that at present, China's textile industry is in a critical period of transformation and upgrading. The rise of human costs has led to the relocation of processing and production links. The obvious improvement of local design capacity gradually promotes enterprises to shift from the end of the industrial chain to the front end of high added value. Enterprises should seize the golden period after RCEP comes into effect, make rational use of the preferential policies of RCEP and optimize the low-end of the region Production and upstream design layout.

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