RCEP will officially take effect on January 1, 2022, and more than 90% of goods trade in the region will eventually achieve zero tariffs. After the agreement comes into effect, the implementation of tariff concessions among members will help promote the growth of intra-regional trade and investment and enhance the level of East Asia's regional economic integration! So what are the specific tariff reduction policies? ! The most complete interpretation is here!
➤ The RCEP tariff reduction commitment method
RCEP tariff reduction schedule mainly adopts " unified tariff concessions" and "country-specific tariff concessions ". Among them, 8 countries adopt "unified tariff concessions" and 7 countries adopt "country-specific tariff concessions". Concessions", and there are still differences in the number and form of tariff concessions in different countries.
➤ RCEP tax reduction model
The tax reduction model mainly includes four types: immediately reduced to zero when the agreement takes effect, reduced to zero during the transition period, partial tax reduction and exceptional products. The transition period of is mainly 10 years, 15 years and 20 years.
means that in the first year after the agreement takes effect for a party, the originating goods will immediately implement zero tariffs.
. The transition period is reduced to zero
refers to the fact that the tariff rate of originating goods is reduced linearly or non-linearly through a transition period from the date when the agreement comes into force for a contracting party, and finally drops from the base rate to zero.
. Partial tax reduction
means that the tariff rate of originating goods is reduced to a certain extent, but it does not ultimately fall to zero.
4. Excepted products
refer to products that are exempt from any tariff reduction or elimination commitments after the agreement comes into effect. In the published RCEP tariff commitment schedule, the agreed tax rates for such goods are represented by the letter "U".
Different countries also have different timings for reducing tariffs each year:
- The first year of the agreement’s entry into force = from the date when RCEP comes into effect to the following December 31. (Applicable to: Australia, Brunei , Cambodia , China, South Korea, Laos , Malaysia , Myanmar , New Zealand , Singapore , Thailand and Vietnam )
- Agreement takes effect 1st Year = starting from the date when RCEP comes into effect and ending on March 31 of the following year.
(Applicable to: Indonesia, Japan and Philippines)
- Agreement Effective Year 2 = the 12-month period beginning on January 1 of that year. (Applies to: Australia, Brunei, Cambodia, China, South Korea, Laos, Malaysia, Myanmar, New Zealand, Singapore, Thailand and Vietnam)
- Agreement Effective Year 2 = 12-month period beginning on 1 April of that year . (Applicable to: Indonesia, Japan and Philippines)
and so on for the following years.
➤ What kind of goods are originating goods under the Agreement?
① Completely obtained or produced by a member;
② Produced entirely by using original materials in a member;
③ Produced by a member using non-original materials, but complying with changes in tariff classification and regional value stipulated in product-specific rules of origin ingredients, manufacturing processes or other requirements.
Those that meet the above conditions are qualified as originators under the Agreement.
➤ What is the form of certificate of origin under the Agreement ?
The certificate of origin under the Agreement includes the certificate of origin and the statement of origin. The certificate of origin shall be in writing and completed in English.
➤ The certificate of origin should meet the following conditions:
① has a unique certificate number;
② indicates the basis for the goods’ origin qualification;
➤ is issued by the visa agency of the exporting member and has the authorized signature and seal of the visa agency.
➤ The declaration of origin should be issued by an approved exporter and meet the following conditions:
① has the unique number of the approved exporter;
② has a unique declaration number;
③ has the name and signature of the issuer;
④ indicates the date of issuing the declaration of origin;
⑤ The exporting member has notified other members of the approved exporter information.
➤ How long is the certificate of origin valid for?
The certificate of origin is valid for 1 year from the date of issuance or issuance.
