RCEP agreement to enter into force for Indonesia

The Regional Comprehensive Economic Partnership (RCEP) Agreement entered into force for Indonesia on Jan 2, 2022. At this point, China has mutually implemented agreements with 13 of the other 14 RCEP members. The entry into force of the RCEP Agreement for Indonesia brings the full implementation of the RCEP Agreement one important step to inject new impetus into regional economic integration, regional and global economic growth which will further promote regional industrial and supply chain cooperation.

 RCEP agreement to enter into force for Indonesia

In a release issued by the Indonesian Ministry of Trade, Minister of Trade Zulkifli Hasan previously said that companies can apply for preferential tax rates through certificates of origin or declarations of origin. Hassan said the RCEP Agreement will enable regional export goods to flow more smoothly which will benefit businesses. By increasing exports of goods and services, RCEP Agreement is expected to promote regional supply chain, reduce or eliminate trade barriers and enhance the transfer of technology in the region, he said.

Under the RCEP, on the basis of the China-Asean Free Trade Area, Indonesia has granted zero tariff treatment to over 700 additional Chinese products with tariff numbers, including some auto parts, motorcycles, televisions, clothing, shoes, plastic products, luggage and chemical products. Among them, some products such as auto parts, motorcycles and some clothing will be immediately zero-tariff from January 2, and other products will be gradually reduced to zero-tariff within a certain transition period.

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Jiangsu’s first RCEP certificate of origin to Indonesia issued by Nanjing Customs

On the day the agreement entered into force, Nantong Customs under Nanjing Customs issued the RCEP Certificate of Origin for a batch of aspartame worth USD117,800 exported to Indonesia by Nantong Changhai Food Additives Co., Ltd which is the first RCEP Certificate of Origin from Jiangsu Province to Indonesia. With the Certificate of Origin, the company can enjoy a tariff reduction of about 42,000 yuan for the goods. Previously, the company had to pay a 5% import tariff on its products exported to Indonesia, but the cost of the tariff immediately dropped to zero when the RCEP entered into force for Indonesia.

Post time: Jan-12-2023

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