Chongqing- The Lianglu Cuntan Customs, affiliated to Chongqing Customs District, issued the first certificate of origin for the Chongqing Customs District’s RCEP agreement on January 1.

The Regional Comprehensive Economic Partnership (RCEP) agreement formally came into force among China, Japan, New Zealand, Australia and Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam of the Association of Southeast Asian Nations (ASEAN) on January 1, 2022.

The certificate was applied for by Saic-Iveco Hongyan Commercial Vehicle Co., Ltd (SIH), where a batch of mixer trucks shipped to Vietnam. It is expected that this batch of goods can enjoy the preferential bonus of zero tariffs under RCEP in the importing country.

"Before New Year's Day, we have issued 128 heavy trucks of SIH to Southeast Asia, and immediately another five vehicles were shipped to Vietnam, just in time for the RCEP to take effect," said Xiong Zhu, the head of the company's international business department. "Southeast Asia is an important export market for our company, and the implementation of the agreement will bring more benefits to our company's development."

Xiong explained, with the certificate applied for, the goods can enjoy a tariff preference of about 200,000 yuan (about 31,466 U.S. dollars) under the RCEP. The cost of auto parts circulation among member states is effectively reduced, while regional cooperation is deepened, and the overall competitiveness of the entire vehicle will be improved.

The ASEAN has become Chongqing's largest foreign trade partner for three consecutive years. Chongqing and the ASEAN region have formed a relatively close industrial chain in the electronic information, automotive, electromechanical and other industries.

After the RCEP takes effect, Chongqing export companies can choose to apply for the RCEP certificate of origin or the China-ASEAN Free Trade Agreement based on the preferential tariff treatment and rules of origin in different agreements, and share the policy dividend with importers.

Furthermore, under the RCEP agreement, China and Japan established a free trade relationship for the first time.

In the first year of the agreement, China’s tariffs on 25% of Japanese products were immediately reduced to zero, and Japan’s tariffs on 57% of Chinese products were immediately reduced to zero.

Statistics show that Chongqing’s imports and exports to the rest 14 RCEP members account for about 30% of Chongqing’s total foreign trade.

Next, Chongqing Customs District will make policy interpretations for import and export enterprises, promote the implementation of self-printing of certificates for Japan, Australia, New Zealand, Thailand, and Singapore, and help more enterprises to make good use of relevant facilitation measures, creating new competitive advantages.