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One year on, Guangdong ports see import tax cuts of 350 mln RMB under RCEP

On June 2, 2023, the Regional Comprehensive Economic Partnership (RCEP) came into full effect among all 15 members. One year later, goods valued at 15.04 billion RMB have entered Guangdong ports under RCEP, with import duties reduced by 350 million RMB. These figures represent year-on-year increases of 14% and 8.5% respectively, according to statistics from the Guangdong Sub-Administration of the General Administration of Customs of the People's Republic of China.

(Photo provided to GDToday)

Customs authorities in Guangdong province have been actively assisting foreign trade enterprises in utilizing the preferential tax policies of RCEP, resulting in new tariff reductions.

For instance, Huangpu Customs has conducted targeted studies for 11 key automotive enterprises, including GAC Honda and Dongfeng Honda. These studies have helped the enterprises leverage the rules of origin based on their own products and industry characteristics, thereby reducing the production costs of domestic automobile manufacturers. One local enterprise, Guangzhou Denso Co., Ltd., has been utilizing RCEP to import automotive motors and other components from Japan since May 2024, enjoying tax reductions of nearly 18 million RMB.

"Previously, when we imported from Japan, we could only apply for a general certificate of origin without tariff preferences. Now, with the certificate of origin under RCEP, we can immediately enjoy tariff preferences ranging from 3% to 6%. The applicable tariff rate for our imported automotive VCT motors has been reduced from 12% to 6%, which is a significant reduction of 50%. This is a great advantage for our company," said Mr. Wu, Manager of Dongfeng Honda Engine Co., Ltd. The company enjoys tax benefits for as many as 32 imported goods.

Author | Hannah

Editor | Olivia, Nan, Abby, James

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