Quanzhou shoe companies to use ASEAN "zero tariff" offers

Affected by the "zero tariff" preferential policy of the ASEAN Free Trade Area, Quanzhou exported 310 million U.S. dollars to ASEAN in the first four months, an increase of 71.39% year-on-year. According to industry sources, recently Quanzhou has a number of shoe companies planning to set up factories in Vietnam, Myanmar, and other ASEAN countries. By way of ASEAN, preferential trade between China and ASEAN will be extended to more countries and regions through policy superposition.

Set up factories in ASEAN

Share zero tariff policy

In recent years, the consumer potential of the ASEAN market has become increasingly prominent. According to Quanzhou Customs statistics, in April, the city's foreign trade with ASEAN was US$ 118 million, up 106.7% year-on-year, of which exports were US$ 93 million, up 100.45% year-on-year; imports were US$ 25 billion, up 133.6% year-on-year.

"Strong Quanzhou enterprises may consider establishing small-scale processing plants in ASEAN countries such as Vietnam and the Philippines. Apart from digging the local market nearby, they can also 'share' zero-tariff preferential policies signed by ASEAN and other countries." According to people, apart from China, ASEAN has also implemented zero import and export tariff policies with Japan, South Korea, India, New Zealand and other four countries. Quanzhou's products can be channelled into ASEAN and enter the four countries mentioned above. Take Japan as an example, Japan imposes an average import tariff of 10% on most of Quanzhou's products. If Quanqie sets up factories in Vietnam, it will export the city's semi-finished products exported to ASEAN for secondary processing, using the country's cheap labor and reducing costs. At the same time, it is also possible to obtain a certificate of origin in Vietnam and import products into Japan and India as countries with "zero tariffs", such as countries and regions that have signed preferential trade agreements with ASEAN.

Bypass Europe and the United States

Higher trade threshold

It is reported that in the establishment of factories in ASEAN countries, the products produced in our city can enter into countries such as Japan, South Korea, and India in addition to “zero tariffs”, and products can also bypass higher trade thresholds for exports directly to Europe and the United States.

“The generalized system of preferences is a system of tariff preferences granted to developed countries by developed countries. In recent years, the EU and Japan have successively adjusted their GSP schemes, reducing the rate of tariff preferences for certain products in China, and even canceling preferential treatment. In contrast, developed countries such as Europe and the United States The state still grants tariff preferences to ASEAN countries,” said Xiao Kechang, head of the Bureau of Inspection and Quarantine at the Quanzhou Inspection and Quarantine Bureau. As China’s economy develops, the future “quanzhou manufacturing” exports to these developed countries will face increasing tariff thresholds.

“Japan, South Korea, Europe and the United States have different criteria for assessing whether the products from ASEAN can enjoy the tariff preferences granted by their own country. Quanzhou companies that plan to set up factories in ASEAN countries should pay special attention, instead of shipping products to ASEAN, and doing simple things. After packaging, you can enjoy preferential tariff policies offered by other countries to ASEAN countries.” Xiao Kechang reminded that if a certain country will make regulations, goods produced or processed in a country in ASEAN need to use materials that are produced locally. Production, and the value of this part of the material accounted for not less than 40% of the cost of goods, in order to enjoy the "zero tariff" concessions. Before choosing a factory in a certain ASEAN country, our company must first understand the proportion of local raw materials to be used for production, and the products can enjoy the tariff preferences granted by other countries. These information companies can inquire online, or consult experts who are familiar with the relevant laws and regulations of the local country.