How to reduce and apply tariffs under RCEP?

Correctly understand "two-two concessions" and "top tax rate"!

Answer: "Two-two concessions" mode. The 15 contracting parties have not implemented a unified tariff reduction model. my country will implement 5 tariff reduction tables with Japan, South Korea, Australia, New Zealand and the 10 ASEAN countries under the RCEP (the same table for the 10 ASEAN countries).

The highest tax rate under the agreement applies. If the goods are determined to be eligible for RCEP origin, but the country of origin of RCEP cannot be specified, enterprises are allowed to apply for the highest tax rate under the applicable agreement, or the highest tax rate in the country involved in the production of goods.

What's interesting about the RCEP agreement?

Four key points are worth paying attention to!

Answer: 1. RCEP rules of origin accumulation. RCEP achieves accumulation among 15 member states, breaking the original restrictions that cannot be accumulated across agreements such as China and South Korea, China Australia, and China ASEAN. In the process of product processing, the value-added part realized as long as it belongs to 15 member states and the value-added value exceeds 40% is regarded as a product of origin.

Concerns: RCEP combines the advanced experience of previous free trade agreements, with richer rules of origin and more detailed regulations. The cumulation rule allows for the cumulation of the originating content of a commodity within an area of ​​15 contracting parties. Since this RCEP involves 15 countries, the application of the cumulative regional components will further enhance the flexibility and diversity of the industrial value chain layout, and the dividends of the agreement will be fully released.

3. The declaration of origin is used on a large scale. The declaration of origin issued by the approved exporter will be used together with the traditional certificate of origin from the date of entry into force of the agreement.

Concerns: The independent declaration of origin of enterprises means that in addition to the traditional certificate of origin issued by the visa agency, the declaration of origin issued by the approved exporter will also be a valid certificate of benefit, and the system will be effectively improved. The degree of facilitation of FTA implementation.

Fourth, the new China-Japan free trade partnership. RCEP integrates multiple "10+1" free trade agreements between ASEAN and China, Japan, South Korea, Australia, and New Zealand, as well as multiple pairs of free trade partnerships between China, Japan, South Korea, Australia, and New Zealand. China and Japan For the first time, a bilateral tariff reduction arrangement has been reached, achieving a historic breakthrough, which is the greatest incremental significance of RCEP.

Concerns: The further reduction of import tariffs under the RCEP framework provides a more solid source of imports for companies that need to import from Japan. At the same time, under RCEP, Japan pledged to gradually reduce tariffs on some goods until it drops to zero in 15 years.

1. Clarify the rules of origin

Products produced in China or member states of other contracting parties do not automatically enjoy the RCEP agreement tax rate, and should be judged in accordance with the relevant rules of origin and obtain a certificate of origin that meets the requirements. The rules of origin under the RCEP agreement are characterized by complexity and diversity. It is recommended that enterprises clarify the concepts of origin qualification and direct transportation according to their own product characteristics, so as to improve the accuracy of relevant information declaration.

2. Accurate selection of preferential agreements

In addition to implementing 5 tariff reduction schedules with other 14 member states under RCEP, my country has also signed the China-ASEAN, China-Singapore, China-South Korea, China-Australia, China-New Zealand Free Trade Agreements and the Asia-Pacific Trade Agreement6. A regional trade agreement has formed overlapping tax rates. It is recommended that enterprises comprehensively consider the scope of products on the tax reduction list, the degree of leniency and strictness of origin standards, the extent of tariff reduction, and the convenience of operating procedures, etc., and choose the most suitable free trade agreement for their own needs.

3. Pay attention to the system of declaration of origin

The form of RECP certificate of origin has been expanded. In addition to the traditional certificate of origin, various forms of declaration of origin have been added. It is recommended that enterprises understand the relevant system of declaration of origin in advance, and choose the mode of certificate of origin suitable for themselves to improve customs clearance efficiency.

Fourth, optimize the layout of the supply chain on a larger scale

RCEP provides more possibilities and choices for operators to optimize the layout of their supply chains in the Asia-Pacific and even globally. Therefore, it is recommended that companies combine different free trade agreements, as well as the aforementioned provisions on determination of regional value, accumulation of regional components, and back-to-back certificates of origin. , optimize the industrial layout, and improve the efficiency of enterprise management.