The RCEP came into effect for Indonesia
According to the Ministry of Commerce, the Regional Comprehensive Economic Partnership (RCEP) has entered into force for Indonesia on January 2, bringing the total number of RCEP members in force to 14 out of 15. When RCEP comes into force for Indonesia, China and Indonesia will implement the RCEP agreement tax rate according to the commitments of the RCEP agreement.
Under RCEP, Indonesia, on the basis of the china-asean free trade area, has granted zero tariff treatment to more than 700 tariff lines of our products, including some auto parts, motorcycles, televisions, clothing shoes, plastic products and so on. Among them, some auto parts, motorcycles, some clothing products from January 2 to achieve zero tariffs immediately, and other products will be gradually reduced to zero tariffs in a certain transitional period. On the basis of the china-asean free trade agreement, our country will also lower taxes on Indonesian pineapple juice and canned goods, coconut juice, pepper, diesel oil, paper products, some chemicals and auto parts, further opening of the market.
As promised under the RCEP agreement, Indonesia will impose immediate zero tariffs on 65.1 percent of products originating in China, and China will also impose immediate zero tariffs on 67.9 percent of products originating in Indonesia. Consul General of Indonesia in Shanghai: RCEP will promote trade and investment between China and Indonesia. After RCEP comes into effect in Indonesia, what benefits will it bring to the economic and trade between China and Indonesia? Let's take a look at our reporter's exclusive interview with Indonesian Consul General Dai Ning in Shanghai.
Dou junyun, CCTV reporter, main station: Behind Me is the newly established Indonesian experience center, where there are some characteristic Indonesian goods and handicrafts. The Indonesian Consul General in Shanghai told me, this is one of Indonesia's preparations for the entry into force of RCEP in Indonesia.
Indonesian consul general in Shanghai, Dainin: this Indonesian experience center is a microcosm of our preparations for the implementation of RCEP. Here, private companies, the China-indonesia Chamber of Commerce, the Indonesia-shanghai trade promotion center, the Indonesian Consulate General in Shanghai, and the Indonesian embassy in China are working together to increase exports and investment, this is all an important part of getting ready for RCEP.
Dai Ning introduced that China and Indonesia's trade complementarity is strong, China's main exports to Indonesia, including mechanical and electrical products, steel and other products, mainly industrial products; The main commodities imported from Indonesia include fossil fuels, steel, animal and vegetable oils and fats, mainly energy-intensive products and agricultural products.
RCEP's entry into force for Indonesia will continue to push Indonesia and China to deepen economic, trade and investment relations and further strengthen existing cooperation.
Indonesian consul general in Shanghai, Dai Ning: RCEP is not only a tariff reduction for goods, it provides certainty and openness in trade services, standards, investment, e-commerce, movement of natural persons, sanitary and phytosanitary rules and technical cooperation. RCEP will bring more motivation and determination to stakeholders, especially enterprises.
From January to November in 2022, the total value of trade between China and Indonesia was US $135.92 billion, up 22.7% year on year. Indonesia is now China's third-largest trading partner in ASEAN, after Vietnam and Malaysia.
China continues to be Indonesia's largest trading partner as well as its largest export market and source of imports.
Enterprises get substantial benefits, new opportunities for the industry
After RCEP came into effect in Indonesia, RCEP“Circle of friends” continues to expand, foreign trade enterprises receive“Real money” tariff preferences, while regional industrial development will also usher in new opportunities.
After the RCEP came into effect in Indonesia, Qingdao customs officers at the RCEP Shandong Enterprise Service Center issued an RCEP Certificate of Origin for an Indonesian aquaculture company through a “Single window” of international trade, with the certificate, 18 tons of frozen salmon exported to Indonesia can be reduced customs duties 105,000 yuan.
Zhou Zhifu, export manager of Qingdao Aquatic Product Company: We Export about 20 containers a year to Indonesia, worth about 20 million yuan. When RCEP comes into effect for Indonesia, the tariff will be reduced to zero and we will benefit from RMB 2 million per year, which will increase our exports to Indonesia by at least 10% .
Until now, china-indonesia trade has been using china-asean fta-related tariff rates, most goods still have to pay a certain tariff. RCEP to Indonesia after the entry into force, many goods tax rate directly zero for foreign trade enterprises to bring greater benefits. At the same time, the cumulative rules of origin to further expand the scope of use, will also allow enterprises to benefit from lower barriers.
Yao Yong, senior director-general, Qingdao Customs and Excise Department: With the increase of the number of countries where the agreement is in force, the scope of origin accumulation of Shandong agricultural products and other advantageous industries has been further expanded, which is conducive to the rational allocation of production factors in the region.
RCEP's entry into force in Indonesia has also brought new opportunities for the indonesian-invested paper company in China, which the company's head said would benefit the construction and development of industrial chains in the region.
Zhou Ju, customs manager of a paper company: Now that RCEP has come into effect in Indonesia, we hope to integrate the forestry-pulp-paper industry in Guangxi, Guangdong, Hainan, Yunnan and Indonesia, to expand potential economic cooperation with enterprises of ASEAN countries and achieve win-win results from all sides.
(CCTV correspondents Zhang Xin, Zhang Yuxiang, Dou junyun, Wang Jie, Tang gaolin, Tsingtao)