Shenzhen enterprises enjoyed 5.87 million yuan (US$922,216) in tariff reduction for 156 million yuan worth of imported goods for the first quarter of the year under the RCEP agreement since it took effect Jan. 1, data from Shenzhen Customs showed.
The imported goods were mainly bronze, plastic, steel, mechanical and electrical products. At the same time, Shenzhen Customs issued 3,074 certificates of origin for exports worth 680 million yuan and helped importers enjoy 34 million yuan in tariff reduction.
The certificates of origin were mainly signed for export products to Japan, as it is the only RCEP member country that hasn’t signed a free trade agreement with China. Since the implementation of RCEP this year, local enterprises are enthusiastic about applying for certificates of origin to enjoy tariff reductions. Starting April 1, Japan implemented a second round of tariff reductions which will benefit more Chinese exporters and Japanese importers.
Shenzhen Baifencheng Science and Technology Co. Ltd. applied for 26 certificates of origin for its plastic products to be exported to Japan. According to Xu, a manager of the company, the certificates of origin have helped the enterprise enjoy 60,000 yuan in tax benefits in Japan.
The RCEP agreement has also reduced the customs clearance costs for enterprises. According to Liu Yuli, vice president of Shenzhen Yuehai Global Logistics Co. Ltd., the company is expected to save around 10 million yuan in tariffs for its customers.