Chongqing- Chongqing's export trade has benefited a lot since the Regional Comprehensive Economic Partnership (RCEP) agreement took effect on January 1.

Chongqing Customs District P.R.CHINA announced on February 14 that they had issued 67 RCEP certificates of origin (CO), worth 55 million yuan (about 8.7 million U.S. dollars), after RCEP took effect on January 1.

RCEP CO is a key document for enterprises to enjoy preferential policies such as tariff reduction/exemption and convenient customs clearance.

Reduced tariff 

Chongqing Customs District issued Chongqing's first RCEP CO to Saic-Iveco Hongyan Commercial Vehicle Co., Ltd at 0:06 on January 1 for several mixer trucks exported to Vietnam.

"Vietnam is our company's largest importer, with around 800 trucks imported by it in 2021," said Xiong Zhu, head of the International Business Department of Saic-Iveco Hongyan Commercial Vehicle Co., Ltd. "Following its 14th Five-Year Plan, we will prioritize the ASEAN market as usual, where RCEP makes the plan go more smooth."

Chongqing Runji Far East Alloy Co., Ltd. is also one of the beneficiaries of RCEP. Its new metal functional materials, including manganese and iron, have been exported to America, Japan, and Europe.

After RCEP entered into force, the industry's import tariff in Japan dropped from 4.4% to 2.8%, greatly facilitating the company's development in Japan.

For instance, its latest exports of goods were valued at more than four million U.S. dollars. Thanks to the reduced tariff, the company saved over 0.4 million yuan, which dramatically improved its products' competitiveness.

Increasing signatories

Chongqing Customs District introduced that 61 out of the 67 RCEP COs were for soil conditioners, chemicals, and other products worth at least 52 million yuan exported to Japan.

RCEP is the first free trade agreement signed between China and Japan. Around 25% of Japanese exports to China and 57% of Chinese exports to Japan have become tariff-free since January 1. Ultimately, China will cut tariffs to zero on 86% of Japanese goods and Japan 88% of Chinese goods.

According to Chongqing Customs District, Chongqing's import and export volume to the 14 RCEP member countries accounts for about 30% of its total foreign trade. ASEAN has been the top trade partner of the city for three consecutive years.

In electronic information, automobile, and electromechanical industry, Chongqing and ASEAN have established close relationships in terms of industrial chains.

To date, the RCEP agreement has taken effect in 11 countries, which are China, Japan, Australia, New Zealand, Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, and South Korea.

The number of signatories to RCEP is increasing. It will come into force for Malaysia on March 18.