The customs authorities in the county-level city of Jingjiang – located in East China's Jiangsu province – issued their first certificate of origin on April 19 for exports to Indonesia, under the Regional Comprehensive Economic Partnership, or RCEP free trade agreement.
The certificate – a kind of passport for products attesting to their originality and origin – is expected to reduce tariffs by $5,500 for a local specialized equipment manufacturer in Indonesia.
Based on the preceding China-ASEAN Free Trade Agreement, Indonesia added a zero-tariff treatment to more than 700 Chinese products – including auto parts, motorcycles, televisions, clothing, shoes and plastic products.
The massive RCEP trade according took effect for Indonesia on Jan 2, 2023 and has enabled the country to implement new trade regulations.
Under the RCEP framework, Indonesia implemented immediate zero tariffs on auto parts, motorcycles, and clothing originating from China. Other products will also enjoy the zero-tariff policy gradually over a transitional period.
On Nov 15, 2020, the 10 ASEAN countries – along with Australia, China, Japan, South Korea and New Zealand – jointly signed the tariff-busting RCEP trade agreement and pushed for its official entry into force on Jan 1, 2022.
Later – on June 2, 2023 – RCEP officially entered into force for the Philippines, marking the full entry into force of the agreement for the 15 signatory countries.
Since the implementation of RCEP, it has received increasing attention from Jingjiang's enterprises.
As a result, Jingjiang Customs issued 17 certificates of origin for exports to Japan, Thailand, and Indonesia in the first quarter of the current year.
The export goods included bamboo products processing, chemical equipment and chemical products.