Enterprises Use "Economic Passport" To Enjoy Zero Tariff Preferences

Since January 1, 2010, with the full start of the China ASEAN Free Trade Area, the zero tariff era of China and ASEAN has quietly arrived.

A variety of export products of Chinese enterprises can enjoy zero tariff preferences only by the FORM E issued by the inspection and quarantine department.

The entry-exit inspection and quarantine bureau pointed out that in the face of ASEAN business opportunities, enterprises need to make full use of the certificate of origin, the "economic passport", to enhance the competitiveness of export products.

According to statistics, in 2009, Jiangsu Yangzhou entry exit inspection and Quarantine Bureau issued 702 copies of FORM E, with a visa amount of US $34 million 791 thousand. According to the average tax reduction of 7%, the tariff relief for Yangzhou's export enterprises was 2 million 435 thousand and 300 USD (RMB 16 million 560 thousand yuan).

However, the total volume of products exported to ASEAN in Yangzhou last year amounted to 200 million US dollars, and the estimated amount of visa was only 17% of the total amount. According to the average tax reduction of 7%, the tariff concessions of about 13 million 829 thousand and 500 dollars were wasted.

According to the analysis, because some enterprises do not know the relevant policies, some enterprises do not know that they can enjoy duty-free concessions with this certificate.

Many export companies simply think that the beneficiaries of tariff preferences are the buyers, so they only deal with the FORM E according to the buyer's request, instead of trying to divide them from the benefits they get.

Some enterprises do not know the policy well enough. They think that the export products containing non Chinese made imported raw materials are not Chinese original products. They have given up the opportunity to enjoy tariff reduction and exemption.

In fact, products exported to ASEAN countries can enjoy zero tariff treatment as long as one of the following conditions is available: first, the products are completely originated in China; the two is that the value of raw materials from non China ASEAN Free Trade Area members account for less than 60% of the value of export products; three, the products from the non China ASEAN Free Trade Area members are fully processed.

If the export products that satisfy one of the above conditions are not in the territory of the non ASEAN Free Trade Area (member) of the non ASEAN Free Trade Area during the pportation of the products, or through the non China ASEAN Free Trade Area members, products without any other operation in these countries can be provided with the FORM E issued by the inspection and quarantine agency to enjoy the import tariff reduction and exemption granted by the customs of the importing country.

In fact, as long as the enterprise applies this preferential policy properly, it can become a favorable weapon at the negotiating table, especially when it competes with enterprises in non ASEAN countries.

Because when customers purchase products, they may only consider the price comparison for the products of the same country, but for different countries, we must consider the cost of customs clearance. At this time, tariff preferences will enhance the competitiveness of Chinese enterprises.

In the negotiations, they offered to handle the FORM E for each other, so that the other party could enjoy the preferential tariff. It would also leave a good impression on the customers and win the initiative of profit sharing for themselves.

Some enterprises, as importers importing raw materials and other articles from ASEAN, can also make enterprises enjoy substantial benefits and enhance their competitive strength.