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Jiaxing enterprises capitalize on RCEP tariff cuts for Japanese exports

chinadaily.com.cn| Updated : Apr 18, 2024

Japanese tariff reductions under the Regional Comprehensive Economic Partnership have opened new doors for Jiaxing's businesses. Japan announced its fourth cut in import tariffs on April 1, encouraging Jiaxing companies to expand their export operations.

Jiaxing Huali Non-woven Fabric Co Ltd, a Japanese-funded enterprise, is one such company that has nearly three decades of manufacturing experience in Jiaxing. With the recent tariff reduction, the company's non-woven fabric exports to Japan now face only a 2.7-percent import tariff, down from 5.5 percent.

Hong Chunping, the management director of Huali, highlighted the company's reliance on the Japanese market, with exports totaling 68 million yuan ($9.39 million) last year, 80 percent of which were to Japan. The RCEP benefits have reinforced the company's competitive edge and commitment to the Japanese market.

Similarly, Jiaxing Hualishi Knitting Co Ltd has taken advantage of the new policy, applying for certificates of origin under RCEP for its socks exported to Japan. The company anticipates a 4.7 percent year-on-year growth in exports for the first half of the year, with expected tariff savings of about 230,000 yuan.

RCEP, the largest free trade agreement globally, includes China and Japan among its 15 member nations. It has provided Jiaxing's advantageous industries, like textiles and apparel, with improved tariff treatments. Qu Lingkuan from Jiaxing Customs noted that the cumulative effect of the tariff cuts is significant, with most products expected to have zero tariffs in 10-15 years.

In the first quarter of 2024, Jiaxing Customs issued over 4,500 certificates of origin under RCEP, aiding businesses to enjoy approximately 16 million yuan in import tariff reductions.