BDA enterprises enjoy greater benefits brought by RCEP
The Regional Comprehensive Economic Partnership (RCEP) came into effect on Jan 1, 2022. Six ASEAM member states and four non-ASEAM member states, including China and Japan, began to implement the agreement.
Member countries reduce tariffs and share rules with each other to promote economic activity.
SMC (China) Co., Ltd., an enterprise in the Beijing Economic & Technological Development Area (BDA), was successfully approved as the first exporter under RCEP.
According to preliminary estimates, after the implementation of RCEP, the company can reduce taxes by about 30 million yuan ($4.71 million) in the first year.
Workshop of SMC (China) [Photo/kfqgw.beijing.gov.cn]
RCEP was initiated by the 10 ASEAN countries and invited China, Japan, South Korea, Australia, and New Zealand to participate.
By reducing tariffs and non-tariff barriers, a free trade agreement with a unified market of 15 countries was established. The area covered by the agreement will become the world's largest free trade area.
According to the agreement, more than 90 percent of trade in goods among approved member countries will achieve zero tariffs, and member countries will significantly reduce restrictions on economic and trade cooperation, promote the circulation of goods and factors, deepen the division of labor and cooperation, and improve production efficiency.
The BDA, as an area that focuses on the development of cutting-edge industries in Beijing, is home to the first approved exporter under RCEP.
Automated production line [Photo/kfqgw.beijing.gov.cn]
The approved exporter system is one of the highlights of the RCEP implementation of RCEP, and it’s also an important facilitation measure for origin certification.
To become an approved exporter, you need to meet three conditions: belonging to a high-level customs certified enterprise, mastering the rules of origin under relevant preferential trade agreements, and establishing a complete management system for origin qualification documents.
SMC (China) Co., Ltd., a subsidiary of a Japanese company in the BDA, quickly went through the filing procedures for approved exporters through the RCEP service channel for enterprises, and was finally approved to become the first approved exporter under RCEP.
An enterprise that has become an approved exporter does not need to apply for a certificate of origin to the customs when exporting its goods. It can issue a declaration of origin at any time on its own, which is used for exporting goods to enjoy benefits abroad. In this way, customs clearance efficiency will be greatly improved.
Production line of SMC (China) [Photo/kfqgw.beijing.gov.cn]
"Many of our company's import and export goods originate from RCEP countries, including countries that signed a free trade agreement with China for the first time. Preliminary estimates show that after the implementation of RCEP, we can reduce costs by 30 million yuan in taxes," said Guo Liansheng, head of customs affairs of SMC (China).