Shandong issues over 500,000 RCEP certificates of origin

On October 15, news from the Qingdao Customs revealed significant developments related to the Regional Comprehensive Economic Partnership (RCEP). By the end of September 2024, Shandong Province has issued a staggering 506,000 RCEP certificates of origin, leading to export values benefiting from RCEP amounting to 123.68 billion yuan (about $18 billion USD), and allowing businesses to enjoy tax reductions exceeding 1 billion yuan.

In an event at the RCEP Shandong Enterprise Service Center located in Qingdao, customs officers issued an RCEP certificate of origin for a shipment of cotton trousers valued at 29,000 yuan being exported to South Korea by Qingdao Hongyicheng Clothing Co., Ltd. Thanks to the RCEP certificate, these trousers benefitted from a reduced tariff rate of 6.5% instead of the standard 13%, resulting in a tax saving of nearly 2,000 yuan at customs.

Zhang Baokui, the documentation manager at Qingdao Hongyicheng Clothing Co., stated, “The import tariff for this batch of trousers under the RCEP agreement is 6.5%, which is 1.3 percentage points lower than that under the Asia-Pacific Trade Agreement and 5.2 percentage points lower than the China-Korea Free Trade Agreement. This is incredibly helpful for us in solidifying our international clients and expanding into overseas markets.” He added that in the first three quarters of 2024, his company had applied for 179 RCEP certificates for exports to South Korea, totaling nearly 5 million yuan in value.

Bi Haijun, director of the Customs Tariff Department at Qingdao Customs, emphasized the growing benefits of the RCEP. “As tariff reductions among RCEP member countries increase, more Shandong enterprises and their distinctive products can enjoy lower import tariff rates overseas through RCEP certificates of origin. As the largest free trade agreement in the world, RCEP not only reduces cross-border trade tariff costs but also implements a system of self-declaration of origin by approved exporters. Once certified by customs, businesses can self-declare their origin according to the agreement requirements and benefit from tariff reductions without needing to apply through customs authorities or trade promotion agencies.”

Looking forward, Bi noted that Qingdao Customs will collaborate with Jinan Customs and the Shandong Provincial Council for the Promotion of International Trade to leverage their advantages in origin management. The focus will be on major enterprises within the cross-border supply chain and new types of export products, enhancing the promotion of policies related to RCEP and other free trade agreements, and guiding businesses to make full use of tariff concessions and other benefits. This aims to improve the quality and effectiveness of foreign trade development in the region.