The free trade agreements between China and Republic of Korea, and China and Australia took effect since Dec. 20, 2015. After more than half a year’s implementation, the tariff dividend has shown on exporters in Laiwu, Shandong province.
According to Laiwu Inspection and Quarantine Bureau, in the first half of 2016, the administrator issued 291 certificates of origin related to China-ROK and China-Australia FTAs, valued at 14.04 million U.S. dollars.
The goods concerned will be able to enjoy tax exempt of about 702,000 dollars in overseas free trade zones.
Included were 202 China-ROK certificate of origin, valued at 11.69 million dollars. The tax exempt was about 584,000 dollars, covering such goods as earphone, arcolite, steel, tire and clothes.
The number of China-Australia certificate of origin issued by Laiwu authority was 89, valued at 2.35 million dollars. The tax exempt was about 118,000 dollars, covering such goods as electrical vehicle, steel, non-woven fabric, fresh vegetable and ceramics.
China-ROK and China-Australia FTAs cut taxes for the second time on Jan. 1, 2016, the range and amount of tax reduction was greater.
Certificate of origin is a core method in applying the free trade agreements, exports need to apply for the certificates to prove their products are from China, so as to enjoy tax exempt or reduction at the customs of importers.
As further implementation of China-ROK and China-Australia free trade agreements, more exporters will be able to enjoy policy dividend brought about by the agreements.
