Yiwu Zhihong Import-Export Co obtains Zhejiang's first RCEP certificate of origin for exports to Indonesia. [Photo/zgyww.cn]
Yiwu Zhihong Import-Export Co received the first certificate of origin in Zhejiang province after the Regional Comprehensive Economic Partnership, or RCEP, agreement took effect in Indonesia on Jan 2.
Its 5-percent tax rate on exported bike accessories has been completely eliminated, a massive boost to the company's global competitiveness, said the company's director Huang Xinzhen.
The company is a foreign trade company exporting daily necessities and machine parts, mainly to the Southeast Asian market. In 2022, by virtue of the China-ASEAN free trade agreement, the company has enjoyed preferential tariffs for over $10 million in goods.
Statistics showed that in 2022, Yiwu Customs issued certificates under the China-ASEAN free trade agreement for bicycle accessories worth $5.47 million for export to Indonesia. After the RCEP takes effect in Indonesia, these products will enjoy greater tax reduction dividends, according to officials.
Indonesia's new regulations have specified the procedure for obtaining certificates of origin for goods exported from the Southeast Asian country as part of the RCEP agreement, said Indonesian Trade Minister Zulkifli Hasan.
The RCEP comprises 10 ASEAN countries plus China, Japan, South Korea, Australia and New Zealand. In 13 of the 15 economies, the RCEP agreement had taken effect last year. With Indonesia now joining them, only the Philippines still needs to ratify and implement the agreement.
Over the past year, the RCEP has helped lower tariffs, facilitated the integration of industrial chains and benefited consumers in the 14 markets.
A worker from Yiwu Zhihong Import-Export Co studies the RCEP at Yiwu Customs. [Photo/zgyww.cn]
