The fourth round of tax reduction for the Asia-Pacific Trade Agreement has been implemented since July 1, 2018.
The Asia-Pacific Trade Agreement is referred to as the Asia-Pacific Trade Agreement. It was formerly known as the Bangkok Agreement. China joined in May 2001. This is the first preferential trade arrangement for China and the earliest preferential trade agreement in the Asia-Pacific region. The current membership includes China, India, South Korea, Sri Lanka, Bangladesh and Laos. Mongolia is expected to join as a new member.
The Asia-Pacific Trade Agreement has implemented three rounds of tariff concessions. With the joint efforts of members, after nine years of negotiations, the fourth round of tariff reduction results in August 2016 was signed by the Second Amendment to the Asia-Pacific Trade Agreement. It will be implemented on July 1, 2018.
Since the implementation of the Asia-Pacific Trade Agreement, a total of $106 billion worth of products have been imported into China with preferential tariffs. The top five categories of goods, including plastics and rubber products, chemical products, mineral products, textile raw materials and products, mechanical and electrical products, etc..
How much do you know about the fourth round of tariff reductions?
With the joint participation and efforts of the six members, the total number of tariffs for the fourth round of tariff reductions was 10,312, which was 2.5 times higher than the third round. The average tax reduction and taxation ratio was over 28%, and the average tax reduction was 33%. The tax-reduction products are diverse and include all kinds of animal and plant products such as fish, vegetables, oilseeds, tea, mineral products, chemical products, leather products, rubber products, textiles and garments, enamel metal products, steel products, and motor vehicle parts. Mechatronics and instrumentation. The degree of trade liberalization among members will be further enhanced and the market within member countries will be further enriched.
What is the import tax reduction?
China has reduced taxes on imports of 2,323 items of tax from other five members, including fish, vegetables, tea, chemicals, textiles and clothing, footwear, steel products, automotive parts, machinery and electronics. Instruments and other products.
Which products will continue to reduce taxes?
There are 32 tax items lower than the third round tax rate, including essential oils, jewelry, hats, washing machines, cameras, projectors, monitors, toy motors, etc. In addition to the above-mentioned products that continue to have a large tax reduction, there are many products with different levels of tax reduction. For example: EDO sweet biscuits and chemical raw materials styrene commonly found in China’s market, of which styrene is the fifth-ranked product in the import.
What new tax reduction products are added?
330 tax items are newly added to the tax reduction list, including animal products, textiles, metal products, and mechanical and electrical products. 22 tax items of new tax reduction products with a 5% or lower MFN rate, including blended fabrics, granite stone carvings, gold and silverware, animal fur, heaters, ceiling fans, etc. For example, if you import the felt hat made in India, you can enjoy the agreed tax rate of 13.2%, which is 8.8% lower than the MFN tariff rate, and the preferential rate is 40%. For example, if you import a camera made in Korea, you can enjoy an agreed tax rate of 16.3%, which is 8.7% lower than the MFN tariff rate, and the discount rate is 34.8%.
How much do you know about export offers?
South Korea, India, Sri Lanka, Bangladesh and Laos have implemented tax reductions on products originating in China.
Tax reduction range
| Country | Tariff reduction project to China |
|---|---|
| India | 3142 |
| South Korea | 2797 |
| Laos | 999 |
| Bengal | 598 |
| Sri Lanka | 585 |
In addition to tax reductions, the fourth round of tariff reduction results also includes the optimization of rules of origin and the adjustment of certificates of origin.
Increase the list of product-specific rules of origin, covering a total of 153 four-digit tariff products, including beverages, fossil fuels, organic chemicals, plastics and their products, synthetic rubber, steel and other products. These products are subject to the “4-digit change in tariff number” standard. Enterprises can choose to apply value-added standards or tax number change standards, and the rules of origin are more flexible and scientific.
For example, copper products (tax number 7419) are produced from copper mines (heading 2603), the four tax numbers have changed, and copper products are eligible for origin.
Clearly calculate the “cumulative component”, which is conducive to the production integration between members.
Article 4 of the rules of origin of the Asia-Pacific Trade Agreement states that “if the cumulative composition of the materials of each Member State is not less than 60% of the on-board delivery price of the final product, it may be considered as a member of the manufacturing or processing of the final product. Original goods.”
In order to prevent countries from understanding the terms in the actual operation process, the comments on “cumulative components” have been added, and the calculation method has been clarified, that is, the products produced by a member can include the origin materials of other members according to the cumulative calculation. Domestic raw materials and domestic direct labor costs, production overheads, freight and manufactured goods profits, the sum of the three is not less than 60% of FOB.
For example, imported mobile phone chips originating from South Korea, plastic parts originating in Bangladesh, producing mobile phones in China, and then exporting to India. If chips, plastic parts and other Chinese origin materials and labor costs, production overheads, freight and finished product profits are higher than or equal to 60%, the mobile phone can obtain Chinese origin qualification and can apply for the agreed tax rate in India.
Further explanation of direct shipping terms, operation is simpler and more convenient
In order to unify the understanding of the members in Article 5 “Direct Transportation” that “products have not entered the trade or consumption field in these countries”, a note has been added to clarify that the goods are not in non-members when they are transported through non-members. The party conducts any import customs clearance procedures, and does not enter the non-member’s domestic market for consumption or subsequently export under another contract. These are all “products that have not entered the trade or consumption sector in these countries”.
