In the wake of the hugely important Regional Comprehensive Economic Partnership international agreement that came into effect on Jan 1, the city of Jinan – capital of East China's Shandong province – moved quickly.
It issued its first RCEP certificate of origin just over 100 kilometers away at the customs office of the prefecture-level city of Zibo in Shandong province on the same day.
Shandong Dongyue Polymer Material Ltd, one of the largest fluoropolymer bases in China, received Jinan's first RCEP certificate of origin issued by its affiliated Zibo Customs.
Zibo Customs issues Jinan's first RCEP certificate of origin to Shandong Dongyue Polymer Material Ltd on Jan 1. [Photo/WeChat account: zibofabu]
RCEP is the world's largest free trade agreement, accounting for nearly a third of the world's population and 30 percent of its gross domestic product.
As the agreement took effect, moves were being enacted for 90 percent of the goods traded between approved members to eventually achieve zero tariffs.
In particular, Zibo's exports – including textiles and chemicals – are expected to enjoy the tariff reduction policies of Japan and South Korea.
Estimates are that RCEP certificates of origin will help save tariffs for textile enterprises in Zibo of over 60 million yuan ($9.42 million) in the first year, by calculating the value of textile exports to Japan and South Korea in 2020.
Once the tariff reductions are fully ramped up, the amount saved annually for tariffs is expected to exceed 500 million yuan.
