Our country officially approves RCEP! How can exporters enjoy tariff preference?

On November 15, 2020, the Regional Comprehensive Economic Partnership (RCEP) was officially signed, marking the launch of the free trade area with the largest population, the largest Economic scale and the greatest development potential in the world.

The regional group consists of 10 asean countries (Indonesia, Malaysia, the Philippines, Thailand, Singapore, brunei, Cambodia, Laos, myanmar, Vietnam), invited (China, Japan, Korea, Australia, New Zealand and India), aims to cut tariffs and non-tariff barriers, the establishment of the free market trade agreement, 16 countries unified through between the member states to open up markets, the implementation of regional economic integration.
(India pulled out at the last minute)
After the agreement came into force, more than 90 percent of trade in goods in the region eventually achieved zero tariffs, mainly by reducing tariffs to zero immediately and gradually.
Import and export enterprises to achieve tax reduction and zero tariff on the premise that the products comply with the RCEP rules of origin, and according to the requirements of the import contracting party customs declaration to enjoy the relevant agreement tax rate.
According to the rules, the RCEP agreement must be ratified by at least nine of the 15 members, including at least six ASEAN members and at least three of China, Japan, South Korea, Australia and New Zealand, to enter into force.
At present, all member countries have started their domestic legal review and approval procedures with a view to promoting the early entry into force and implementation of the Agreement.
Some of the most important recent developments are as follows:

On February 3rd
Guangzhou city, guangzhou city business bureau released by government affairs website "grasp the RCEP opportunities to promote cross-border e-commerce innovation development measures (draft)", this is the first place to advance the RCEP supporting measures, from optimization of port business environment, foster the subject of innovation and development, strengthen capacity for independent innovation, expand the marketing network four aspects, the article 25 measures are put forward.
On February 24
The Japanese government has passed the ratification process for the Regional Comprehensive Economic Partnership (RCEP) in the cabinet meeting and is aiming for ratification in the current parliament.
(Japan's 204th regular session of parliament opened on Jan. 18 and will run until the end of June.)
On Feb. 28
China's General Administration of Customs (GACC) has introduced that technical preparations for the implementation of rules of origin and tariff concessions under the Regional Comprehensive Economic Partnership (RCEP) are being comprehensively advanced.
At present, China has completed the drafting of proposals on the revision of ROOs and the guidelines on the implementation of ROOs. At the same time, the RCEP information system of origin management, including export visa and the application of agreed tax rates, is speeding up the preparation for system adjustment.
On March 4
The General Administration of Customs has released the draft of the Measures for the Administration of Exporters Approved by the Customs for public comment on its official website and will solicit public comments before April 5.
On March 8
Minister of Commerce Wang Wentao confirmed in an interview with "Minister Channel" that the Chinese government has officially approved the agreement.

So, what should exporters pay attention to when enjoying tariff preference in the future?

01
RCEP Rules of Cumulative Origin
RCEP can be accumulated among the 15 member states, breaking the previous restriction that China, South Korea, China, Australia, China and ASEAN could not accumulate across agreements. If the value added during the processing of the product belongs to 15 member countries and the value added exceeds 40%, it will be regarded as the product of origin.
02
Back-to-back concept of proof of origin
Exporters of intermediate contracting parties have the flexibility to issue certificates of origin again in instalments for goods already issued with certificates of origin, and the related goods are still subject to the agreed tariff rates when sold to other contracting parties.
This means that after the separation of the export products of the contracting countries in the intermediate contracting countries, they can use the back-to-back certificates of origin to re-export the goods within the quantity and validity period specified in the original certificate of origin and enjoy the agreed tax rate at the importing country, which greatly improves the flexibility of the enterprises in terms of sales strategy and logistics arrangements.
03
Declaration of origin used on a large scale
The approved Declaration of Origin (CO (CEPA)) issued by the exporter will be used together with the traditional CO (CEPA) from the date of entry into force of the Agreement.
The enterprise independent declaration of origin means that in addition to the traditional CO (CEPA) issued by the licensing authority, the approved CO (CEPA) issued by the exporter will also be a valid certificate of benefit. This system will effectively enhance the facilitation of the implementation of free trade agreements.
04
The China-Japan free trade partnership has been expanded
China has already established a free trade area with the ten ASEAN countries. The free trade area covers more than 90 percent of the taxable items of the two countries. Therefore, one of the biggest breakthroughs of RCEP is that for the first time between China and Japan, there was a free trade area zero tariff agreement arrangement, which was a historic breakthrough.
Under the RCEP, Japan is committed to gradually lowering tariffs on some goods until they are reduced to zero in 15 years. China is a leading exporter to Japan

Customs authority guidance
01
Clarification of Rules of Origin
Products manufactured in China or any other member of the Contracting Party are not automatically entitled to the RCEP tariff rate and must be determined in accordance with the relevant rules of origin and obtained with a certificate of origin in compliance. The rules of origin under RCEP are characterized by complexity and diversity. It is suggested that enterprises should clarify the concept of origin qualification and direct transportation according to the characteristics of their products, and improve the accuracy of relevant information declaration.
02
Accurate selection of preferential agreements
Our country except under the RCEP and schedules of the other five tariff for 14 member countries, at the same time China has signed by China asean, China, Singapore, China, South Korea, China, Australia, New Zealand fta of China and the asia-pacific trade agreement form tax cross six regional trade agreements, advice from lower taxes listing the products range, and standard of origin resulting degree, tariff concession rate, convenient degree of operation sequence comprehensive consideration, choose the most suitable for their own requirements of the fta.
03
Focus on the Declaration of Origin system

In addition to the traditional certificate of origin, there are also many new forms of the certificate of origin. It is suggested that enterprises should understand the relevant system of the declaration of origin in advance, choose the suitable mode of the certificate of origin and improve the efficiency of customs clearance.
04
Optimize the layout of the supply chain on a larger scale
RCEP for all operators in the asia-pacific and even global optimization of supply chain layout provides more possibilities and choose, so the general enterprise combining different free trade agreement, and the value of certain areas of certificate of origin, regional composition accumulation, back-to-back and other rules, optimize the industrial layout, improve enterprise management efficiency.