Chongqing- The Chongqing Port Customs, a subsidiary of the Chongqing Customs District P. R. China reduced tariffs by more than 20,000 yuan (about 3,165 U.S. dollars) on an offset printing machine imported from Japan on March 3. The printer is valued at 3.66 million yuan.

Chongqing Customs District officers inspected imported offset printing machines. (Photo/ Chongqing Customs District)

The printers were part of the first batch of imported goods to enjoy tax benefits in the Chongqing Customs District after the Regional Comprehensive Economic Partnership (RCEP) came into effect.

RCEP Free Trade Zone

RCEP has achieved zero tariffs for over 90% of the trade-in goods in the region as a whole through four tariff reduction modes, including zero immediately after the agreement takes effect, zero during the transition period, partial tax reduction, and exempted products.

Zero during the transition period means that it will drop to zero within ten years, so the RCEP Free Trade Zone is expected to fulfill its commitment to liberalize trade in goods in a relatively short period.

Under the RCEP agreement, China and Japan have established free trade relations for the first time.

China will eventually reduce tariffs on 86% of Japanese products to zero, of which 25% of Japanese products will be reduced to zero immediately when the agreement takes effect.

At the same time, Japan will eventually reduce tariffs on 88% of Chinese products to zero, of which 57% of Chinese products will be reduced to zero immediately when the agreement takes effect.

"Many of the goods that we declared as agents involve countries and regions under the RCEP, including gasoline engines and lawnmowers exported to Australia and New Zealand," said Liao Jia, head of the Chongqing Sinotrans Customs Declaration Co., Ltd.

As RCEP is applied more widely, shipper enterprises will also get more tariff concessions.

111 RCEP certificates of origin

RCEP has been in force for two months since January 1, 2022, among China, Japan, New Zealand, Australia, and ASEAN (Association of Southeast Asian Nations)'s Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam.

China implements "unified concessions" for all the ASEAN members. China will eventually reduce tariffs on 90.5% of ASEAN products to zero, of which 67.9% of ASEAN products will have tariffs immediately reduced to zero when the agreement takes effect.

From January to February this year, the Chongqing Customs District issued a total of 111 RCEP certificates of origin involving goods worth 87.94 million yuan. 

These goods all enjoyed corresponding tariff reductions according to different categories. In particular, manganese metal additives exported to Japan, with a value of 43.18 million yuan, could enjoy up to 690,000 yuan under the RCEP, said the relevant person in charge of the Chongqing Customs.

Next, Chongqing Customs will continue to track the implementation of RCEP and make concerted efforts in optimizing management, facilitating customs clearance, and promoting policies to help enterprises enjoy the policy dividends and seize development opportunities.

Chongqing Customs District officers guide enterprises to use the RCEP certificate of origin to declare benefits. (Photo/ Chongqing Customs District)

(Shi Jiaqi, as an intern, also contributed to this report.)