China-ASEAN Officially Implementing the Tax Rate of Free Trade Zones Domestic Chemical Enterprises are Facing Export Opportunities

Starting from July 20th, China will formally accord preferential tariffs to products originating in China and ASEAN in accordance with the timetable set out in the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN signed in 2004 with 10 ASEAN countries. Treatment, to achieve the customs clearance of the goods with the tax rate of the free trade zone, the implementation of the tax reduction products involved in as many as 7,000 tax items.

The implementation of the Agreement on Trade in Goods will drastically reduce tariffs, which will help Chinese enterprises reduce import and export costs and increase their international competitiveness. As basic industries in ASEAN countries are relatively weak, China’s textiles, clothing, shoes, food, machinery and electronic equipment, vehicles and chemical products have obvious comparative advantages, and exports of such products will increase.

It is understood that on November 29, 2004, China and ASEAN signed the "Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN", in which the core of trade in goods is the third "tariff reduction and cancellation." The Agreement on Trade in Goods was formally implemented on July 1. The two sides will implement tariff reduction on about 7,000 taxation products and use 20 days to conduct technical verification on each other's tariff reduction schedule and adjust the relevant customs data system. Starting from July 20th, it officially began to give preferential tariff treatment to products originating in China and ASEAN in accordance with the timetable set out in the agreement. The two sides also plan to reduce the tariffs of most normal commodities to zero in 2010.

The relevant person in charge of the Shenzhen Customs said in an interview with reporters recently that Shenzhen and Guangdong enterprises have close trade relations with ASEAN countries. The two sides have a lot of complementarity in terms of industrial structure and import and export commodities. The implementation of tax cuts will come to Shenzhen and Guangdong enterprises. It is a good opportunity.

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