Guangdong Leather And Other Industries Welcome RCEP Good Spring Festival Nearby Enterprises Are Still Rushing Orders
Oct 14, 2022
After years of gathering and development, Guangdong has become one of the largest producers of leather cases and bags in China, involving a wide range of raw and auxiliary materials market, accounting for about 1/3 of the production and sales volume in mainland China. Shiling, Huadu District, Guangzhou is known as "the capital of leather goods of China". It is the largest production and marketing center of luggage and leather goods and the distribution center of raw and auxiliary materials in China.
Data show that Huadu Shiling brings together more than 8800 luggage and leather goods manufacturers and more than 16800 supporting service merchants, providing more than 700 million bags to global customers every year, with exports accounting for more than 60%. The annual output value reaches 30 billion yuan.
The Regional Comprehensive Economic Partnership Agreement (RCEP) entered into force on January 1 among six ASEAN members (Brunei, Cambodia, Laos, Singapore, Thailand and Vietnam) and four non-ASEAN members, including China, Japan, New Zealand and Australia. RCEP member countries have always been the most closely contacted countries in Guangzhou. With the formal launch of the free trade zone with the largest scale, the greatest development potential and the most diverse membership structure in the world, many Guangzhou enterprises have received tax reduction gift packages over the past week.
Japan is one of the main export consumers of Guangdong leather products. Leather, textiles and footwear products are important tax reduction goods for Japan to China under RCEP. According to preliminary estimates, in the first year of the implementation of RCEP, Guangdong can enjoy tariff concessions of about 47 million yuan only for exports of leather, textiles and footwear products to Japan. Guangdong's leather industry will usher in major favorable policies and will win a broader space for cooperation.
"RCEP's offer is very timely. At that time, the company exported a number of handbags to Japan on December 27, 2021, which had not yet arrived at the Japanese port. On the first day of RCEP implementation, we applied to Huadu Customs for a reissue of RCEP certificate of origin. With this certificate of origin, goods can apply for tariff concessions when imported into Japan, greatly enhancing the market competitiveness of enterprises." Mr. Zhang, manager of Duoweili Leather Co., Ltd.
Hou Zhifen, head of the Administrative Service Section of Huadu Customs, which belongs to Guangzhou Customs, said that according to the relevant announcement of the General Administration of Customs, enterprises can apply for the reissue of RCEP certificate of origin before June 30, 2022, according to relevant regulations for goods already exported before RCEP takes effect, which is a major convenient measure for many enterprises.
"in the first year of RCEP, the company's exports to Japan can save more than 500,000 yuan in tax costs. with the help of favorable policies such as RCEP tariff concessions, we expect exports to Japan to increase by about 25 per cent in 2022 compared with the same period last year, which makes us more confident to expand exports."
