As the Regional Comprehensive Economic Partnership agreement, or RCEP, has been implemented in more countries, foreign trade companies in Shandong have been leveraging the chance to achieve further development.

In 2022, Yantai Longda Foostuffs Co applied for 1,083 RCEP certificates of origin from customs, with the value of export benefits reaching 291 million yuan ($42.36 million). On Jan 4, the company filled out an application for its goods worth 8.6 million yuan, and their tariffs were reduced by 120,000 yuan.

A businessman applies for RCEP certificates of origin. [Photo/Jinan Daily]

Tariff reductions have increased the rapid growth of foreign trade in Shandong. During the first 11 months in 2022, the foreign trade volume reached 3 trillion yuan, up 13.5 percent year-on-year. Among them, trade made with countries involved in RCEP hit 1.14 trillion yuan, an increase of 23.3 percent year-on-year.

At the same time, the rules of origin of the RCEP agreement have also brought great benefits to Shandong enterprises. According to Zhou Xiaohui, the general manager of operation of Qingdao Canaan HOME fashion Products Co, which has established processing factories in Vietnam, thanks to the rules, the company's high-end fabrics produced in Qingdao can enjoy tariff reductions and exemptions when exported to other RCEP members after being processed in Vietnam factories.

Furthermore, Shandong has always been trying to spread the knowledge of RCEP in more enterprises. According to Liu Xiaoli, director of production management department of Rizhao branch of KEFIC Automotive Systems (Beijing) Co, in 2022, after RCEP came into effect in the Republic of Korea (ROK), Qingdao Customs sent professionals to the company to give instructions about how to benefit from the RCEP.