Unlimited Business Opportunities: How Can Chinese Textile Enterprises Seize The New Opportunity Of RCEP?

Compared with bilateral free trade agreements, the cumulative rules of regional comprehensive economic partnership agreement (RCEP), which has 15 parties, will further reduce the threshold for products to obtain tariff concessions and is more conducive to expanding product exports.

As for the contents of RCEP rules of origin that are different from the previous free trade agreements, such as the regional accumulation rules and the approved exporter system, what benefits can these arrangements bring to enterprises and what enterprises need to pay attention to in the implementation process are still unclear to many export enterprises, but they are particularly concerned about them.

The previous questionnaire survey conducted by Shenzhen Customs on textile and garment enterprises shows that all enterprises are eager to understand the process of tax reduction, 85% of them want to know the rules of origin, and 60% of them want to know about the customs clearance facilitation measures.

"In April 2019, after Japan cancelled the generalized system of preferences for China, the order volume of Japanese customers was significantly affected. Now what we want to know most is the list of Japan's tax reductions under RCEP. " Liu, manager of the foreign trade department of Huizhou nanxuan wool weaving factory Co., Ltd., said that the Japanese market share of the company would drop from more than 20% to 15% in 2020.

Manager Liu is pleased that, according to the agreement, Japan's tariff rate on woolen pullovers will be reduced from 10.9% to zero within 15 years after the implementation of RCEP“ It is estimated that the company can enjoy about 700000 yuan of tariff reduction in the first year of tax reduction. When the product is reduced to zero tariff, the figure will reach 11 million yuan! "

Mr. Wang, the customs officer of Shenzhen virgin Garment Co., Ltd., is concerned about one of the important rules of origin of RCEP - regional accumulation rule: "our company generally purchases fabrics from Vietnam, Cambodia and other ASEAN countries, and then exports them after domestic design and processing. Can such products enjoy tariff reduction?"

The customs officer of Shenzhen Customs told him that when determining the origin qualification of a product, the original materials of enterprise members used in the production process can be accumulated as the raw materials of the producing country, so as to make the export products more easily meet the conditions of tariff reduction.

Through the explanation of the customs officer at the port, Mr. Wang understood how to use the regional accumulation rule of RCEP: "under the China Australia FTA, the original materials imported from Vietnam can not be regarded as the original materials of China, and the re processed products exported to Australia can not obtain tariff reduction."

In addition to regional accumulation rules, the approved exporter system is also an important part of RCEP rules of origin. According to the person in charge of the customs and customs office of Shenzhen customs, most free trade agreements currently require certificates of origin issued by visa agencies to enjoy tariff concessions. After the implementation of RCEP, the exporter will be able to issue the declaration of origin as the certificate of tariff concession after the implementation of RCEP.

"For the non-woven fabrics exported to ASEAN, our company applies for more than 20 certificates every week. After RCEP is implemented, it is possible for the company to make an independent declaration instead of applying for certificates." Ms. Cao, director of customs affairs of Shenzhen sound medical products Co., Ltd., expressed her expectation for the convenience: "we have been looking forward to the negotiation of a free trade agreement with Japan as soon as possible, and hope that RCEP will be implemented as soon as possible."