The Order Burst, The Leather Industry Welcomes The Favor! Many Enterprises Get Big Gift Packages Of Tax Reduction

On January 1, 2022, the Regional Comprehensive Economic Partnership Agreement (RCEP) officially entered into force. The first batch of effective countries include Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam and other six ASEAN countries, as well as China, Japan, New Zealand, Australia and other non-ASEAN countries. After the entry into force of RCEP, it will bring favorable policies to all member states and enterprises, and at the same time, it will inspire China to open to the outside world at a higher level. After the entry into force of RCEP, nearly 30 per cent of China's export products can achieve zero tariff, covering China's trade volume of US $1.4 trillion, while many leather enterprises will usher in significant benefits in import and export.

For example, after the implementation of RCEP, China will reach a tariff reduction arrangement with Japan for the first time. In the first year of the tax reduction, 25% of China's imports from Japan will achieve zero tariff, and 57% of Japan's imports from China will achieve zero tariff. Eventually, 86% of products exported from Japan to China will be tariff-free, while 88% of Chinese exports to Japan will enjoy zero-tariff treatment. Japan is one of the main export consumers of leather products in China, and leather, textiles and footwear products are also important tax reduction goods for Japan to China under RCEP. According to preliminary estimates, in the first year of implementation of RCEP, only Guangdong's leather, textile and footwear products exported to Japan can enjoy tariff reduction of about 47 million yuan, which will win a broader space for cooperation. "since New Year's Day, we have been pressing ahead with production and workers working overtime, and now foreign orders are waiting for a few months. With the entry into force of RCEP, bags exported to Japan can enjoy more tariff concessions, and we are more energetic, "said Mr. Gao, head of Guangzhou Zhijia Leather goods Co., Ltd., in an interview with the media. Although the Spring Festival is approaching, there are still new customers coming to negotiate business through various channels. He also said that many enterprises in the local leather city are also working at full speed to make orders. Fully meet the order needs of foreign customers. "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% in 2022 compared with the same period last year, which makes us more confident to expand exports and greatly enhance the market competitiveness of enterprises." Mr. Zhang, general manager of Duoweili Leather Co., Ltd., said.

In addition, on the basis of the China-ASEAN Free Trade Agreement, Brunei has increased zero-tariff commitments to China on tobacco, bedding, shoes, fans, air conditioners, refrigerators, washing machines, vacuum cleaners, water heaters, televisions, circuits, electric lamps, wires and furniture. On the basis of the China-ASEAN Free Trade Agreement, Cambodia has increased zero tariff commitments to China on chicken, fruits and vegetables, seaweed, some food, tobacco, chemicals, dyes, plastic products, rubber, leather, chemical fiber, shoes and boots, iron and steel and aluminum products, industrial machinery and equipment, some mechanical and electrical equipment, automobiles and spare parts.

The reporter learned 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 that have been exported before RCEP takes effect, which is a major convenient measure for many enterprises.

Industry insiders believe that due to the export effect, the increase in the import and export of RCEP to the leather industry will be more obvious, and the establishment of RCEP will break down the trade barriers between member countries and will be more conducive to improving the competitiveness of advantageous industries such as leather in the international market. RCEP will promote the source of raw materials in China's leather industry to be more diversified. China's raw materials and skins to a large extent rely on imports, but some RCEP member countries are also important leather exporters in the world. Joining RCEP means that to a certain extent, it can reduce the tariff and freight costs of importing raw materials from RCEP member countries, and at the same time, it will also expand the sales market of finished leather products in China. Domestic leather enterprises can take advantage of RCEP tariff preference to expand the export of high-quality products to Japan, South Korea, ASEAN and other members. At the same time, we can also increase investment in the leather industry of ASEAN countries, and make use of the regional accumulation rules of origin to expand the export of raw materials and intermediate products such as leather products, shoes and boots to ASEAN countries, so as to promote the optimal allocation of resources in the region and improve the international competitiveness of products.