RCEP takes effect for South Korea today, and the first certificate of origin for South Korea is issued in Qingdao
The Regional Comprehensive Economic Partnership (RCEP), which took effect in the ROK on February 1, will further deepen industrial and supply chain relations in the Asia-Pacific region, including between China and the ROK. It will help countries leverage their strengths and industrial complementarities and deepen cooperation in high-end industrial and supply chains.RCEP was launched by ASEAN in 2012. It covers 2.2 billion people and the GDP of member countries is about 25.6 trillion US dollars.Signatories include China, Japan, South Korea, Australia, New Zealand and the 15-member ASSOCIATION of Southeast Asian Nations.On January 1, 2022, the agreement officially entered into force. The first batch of countries to enter into force include brunei, Cambodia, Laos, Singapore, Thailand and Vietnam, as well as four non-ASEAN countries, including China, Japan, New Zealand and Australia.Effective from March 18, 2022 for Malaysia.At midnight today, Qingdao customs officers issued RCEP for a batch of garments exported to South Korea at the Customs Certificate of Origin Examination center of Shanghe Demonstration Zone in Qingdao, Shandong province.This is the first CERTIFICATE of origin for RCEP to South Korea issued by Shandong province after the RCEP came into effect in South Korea.According to CCTV news, with the certificate of origin, the goods can enjoy a tax exemption of more than 10,000 yuan during customs clearance in South Korea.An official of the company said that when the goods went through customs clearance in Korea, the tariff rate of the original 13 percent was reduced to 6.5 percent, and the tax reduction is expected to be around 10,000 yuan.It is reported that this garment company exports more than 22 million yuan to South Korea every year. Thanks to the RCEP tariff reduction policy, it is estimated that it can reduce the tariff cost in South Korea by more than 1.4 million yuan every year, which can boost the enterprise’s export to South Korea by about 10% year-on-year and help improve the product’s share in the international market.