Tariff concessions after the RCEP came into force

1. RCEP's overall tariff reduction commitment

As a whole, there are two broad categories of tariff commitments applicable to RCEP parties. One kind is the same products to other parties to apply the same tax arrangement, the implementation of "unified cuts", Australia, New Zealand, Malaysia, Singapore, brunei, Cambodia, Laos, myanmar and other eight parties are this model, the origin of the goods under RCEP, when the parties to the import, pay the same tariff. The other category is "country concession", which applies different tariff reduction arrangements to other parties, including The Republic of Korea, Japan, Indonesia, Vietnam, the Philippines, Thailand and China. This means that "RCEP goods originating in different Parties may be imported at different RCEP tariff rates".  

2.Tax reduction mode

There are four modes of tax reduction: zero immediately after the agreement takes effect, zero in transition period, partial tax reduction and exceptional products. The transitional period is mainly 10, 15 and 20 years.  

3.Enterprises make full use of the main points of tariff concessions

When RCEP is implemented, its tariff reductions will be implemented in parallel with other PREFERENTIAL trade agreements (arrangements). Each PREFERENTIAL trade agreement (ARRANGEMENT) has its own list of tariff concessions and rules of origin. The same goods will have different levels of tariff reduction and rules of origin under different agreements. All import and export enterprises should make comprehensive evaluation and comparison based on their own conditions and in light of the tariff concessions, rules of origin and implementation procedures of RCEP and other preferential trade agreements (arrangements), so as to optimize their supply chains and make full use of preferential policies to maximize economic benefits.  

(1) Preferential trade agreements (arrangements) shall be applied on the basis of merit and import tariff preferences shall be fully enjoyed.  

Importers should compare tariff reduction levels and rules of origin under different PREFERENTIAL trade agreements (ARRANGEMENTS) for their imports. In particular, the same goods from the same country of origin may be subject to different rates and rules of origin under different preferential trade agreements (arrangements). Take goods of South Korean origin as an example. After the RCEP takes effect, there will be three preferential trade agreements between China and South Korea: RCEP, China-South Korea Free Trade Agreement and Asia-Pacific Trade Agreement. When importing goods from Korea, importers should consider which preferential tariff under the PREFERENTIAL Trade Agreement to apply for and ensure that the goods are qualified for origin under the agreement.  

(2) make good use of the preferential tariff treatment granted by contracting parties to China's exports.  

Tariff concessions from free trade partners can enhance the price advantage of China's export products in the target market. Exporters should pay close attention to the tariff concessions made by RCEP parties for their exports and conduct in-depth assessments of whether the goods meet the rules of origin. If goods do not meet the rules of origin, further consideration can be given to adjusting the source of raw materials, increasing the proportion of raw materials in the region by taking into account the industrial advantages of each party, and further assessing the compliance costs required for such adjustment. At the same time, export enterprises can take relevant tariff concessions as advantages of their own products into business negotiations, and can consider sharing the dividends brought by tariff concessions with importers of contracting parties by adjusting pricing and other means.