After The Implementation Of RCEP, Guangdong Leather And Textile Enterprises Ushered In Good News

The regional comprehensive economic partnership agreement (RCEP) entered into force on January 1 between six ASEAN Member States (Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam) and four non ASEAN member states including China, Japan, New Zealand and Australia. RCEP member states have always been the countries with the closest contacts in Guangzhou. With the official launch of the world's largest free trade zone with the largest development potential and the most diversified membership structure, many Guangzhou enterprises have been given tax reduction packages in the past week.

Japan is one of the main export consumer countries of Guangdong leather products. Leather, textile and footwear products are important tax reduction commodities of Japan to China under RCEP. According to preliminary estimates, in the first year of RCEP's implementation, Guangdong's leather, textile and footwear products can enjoy tariff reduction of about 47 million yuan. Guangdong's leather industry has ushered in major policy advantages and will win broader cooperation space.

"Since the new year's day, we have been working hard to produce, and the workers have been working overtime. Now, foreign orders have been scheduled for a few months. With the implementation of RCEP, bags exported to Japan can enjoy more tariff preferences, and we are more motivated," said Mr. Gao, head of Guangzhou Zhijia Leather Co., Ltd, "Although it is near the Spring Festival, there are still new customers coming to negotiate business through various channels. Many enterprises in leather city are rushing to make orders to meet the demand of foreign customers.".

After years of concentrated development, Guangdong has become one of China's largest leather bags production places, involving a wide range of raw and auxiliary materials market, the production and sales volume accounts for about one third of the country. Shiling, Huadu District, Guangzhou, is known as the "leather capital of China". It has more than 8800 luggage and leather manufacturers and more than 16800 supporting service merchants. It is the largest luggage production and marketing center and raw and auxiliary materials distribution center in China. It provides more than 700 million cases and bags to global customers every year, accounting for more than 60% of the export volume, and 121 Industrial Enterprises above the designated scale, The annual output value is 30 billion yuan.

Guangzhou Duowei Li leather goods Co., Ltd. is a well-known leather bag manufacturer. On the first day of RCEP implementation, the company became the first enterprise to obtain the RCEP certificate of origin issued by Guangzhou Customs. "The preferential treatment of RCEP is very timely. We exported a batch of handbags to Japan on December 27, 2021, which has not yet arrived at the Japanese port. On the first day of RCEP implementation, we applied to Huadu customs for a replacement of RCEP certificate of origin. With this certificate of origin, goods can apply for tariff preference when importing from Japan, which greatly enhances the market competitiveness of enterprises." Mr. Zhang, manager of Duoli leather goods Co., Ltd.

According to Hou zhifen, chief of the administrative service section of Huadu customs, Guangzhou Customs, according to the Announcement No. 106 of the General Administration of Customs in 2021, enterprises may, in accordance with the provisions of the measures for the administration of the origin of import and export goods under the regional comprehensive economic partnership agreement of the customs of the people's Republic of China (issued by order No. 255 of the General Administration of Customs), Before June 30, 2022, it is a major convenience measure for enterprises to apply for reissue of RCEP certificate of origin.

"In the first year of RCEP's entry into force, the company's goods exported to Japan can save more than 500000 yuan of tax cost. With the help of favorable policies such as RCEP tariff reduction, we expect that the export volume to Japan will increase by about 25% in 2022, which makes us more confident to expand our exports." Mr. Zhang said.

Guangzhou Customs reminds the majority of import and export enterprises that they should strengthen the research on RCEP agreement in time, fully grasp the tariff reduction and origin rules, reasonably use the regional accumulation rules, reduce the threshold of tariff reduction for products, and enhance the competitiveness of products. At the same time, we should actively apply for the qualification of approved exporters, arrange the production and sales of goods with a more flexible attitude, and gain advantages in the international market competition.