"Lishui Auto Parts Enterprises Leveraging RCEP Rules of Origin Accumulation to Enjoy Preferential Treatment: A Case Study" Wins Zhejiang Province's RCEP Origin Excellent Case Award

Recently, the Provincial Department of Commerce, in conjunction with the Zhejiang Provincial Council for the Promotion of International Trade, Hangzhou Customs, Ningbo Customs, and China Export & Credit Insurance Corporation Zhejiang Branch, organized the event titled "Embracing Open Markets, Sharing Development Opportunities" – the first anniversary celebration of the implementation of the RCEP in Zhejiang Province. During the event, an award ceremony for outstanding RCEP origin cases in Zhejiang Province was held. Since the agreement came into effect, a number of advanced examples of enterprises actively utilizing the RCEP agreement have emerged across the province. The Zhejiang Provincial Department of Commerce, the Provincial Council for the Promotion of International Trade, Hangzhou Customs, and Ningbo Customs jointly conducted a selection of outstanding RCEP origin cases in Zhejiang Province, ultimately identifying 10 excellent cases of enterprises benefiting from the agreement. Among them, the case study titled "Analysis of Lishui Auto Parts Enterprises Leveraging RCEP Rules of Origin Accumulation to Enjoy Preferential Treatment," submitted by our city, was awarded.

Prior to the official implementation of the RCEP, the Lishui Municipal Bureau of Commerce, in collaboration with Lishui Customs and the Lishui Municipal Council for the Promotion of International Trade, proactively conducted a survey of foreign trade enterprises within their jurisdiction that had trade relations with RCEP member countries, using methods such as telephone interviews and on-site visits to conduct research one by one.

       During a visit and survey to Zhejiang Shuangkai Automotive Air Conditioning Parts Co., Ltd., it was learned that Shuangkai Auto Parts is a long-established automotive parts export enterprise in Qingtian, established in 2004. Its main export product is automotive condensers, primarily exported to countries such as the United States, Poland, Malaysia, and Brazil. It was understood that Shuangkai Auto Parts faced two main difficulties. On the one hand, due to the current unavailability of self-printing for ASEAN certificates for exports to Malaysia, Shuangkai Auto Parts had to send staff back and forth between Qingtian and Wenxi every month to sign ASEAN certificates, incurring high labor and time costs for the company. On the other hand, Shuangkai Auto Parts' Malaysian customers were not fixed, and the company often operated on a model of having goods before receiving orders, frequently receiving urgent orders that required high customs clearance efficiency, which also caused considerable trouble for the enterprise. After learning about the difficulties faced by Shuangkai Auto Parts, the relevant departments promptly compared the tariff reductions for the company's main export goods under the ASEAN and RCEP agreements. They found that the tariff preferences for "automotive condensers" with HS code 8415901000 were the same under both the ASEAN and RCEP free trade agreements. They then proactively explained the implementation arrangements and preferential policies of the RCEP agreement to the enterprise, guiding it to switch to signing RCEP certificates for exports to Malaysia after the implementation of the RCEP, and provided hands-on guidance for the enterprise to complete the self-printing, signing, and filing process. After the official implementation of the RCEP agreement, the enterprise successfully obtained the RCEP certificate for Malaysia, achieving a situation where "no trips are needed" every month, and saving approximately hundreds of hours of travel time annually.

       According to statistics, despite a year-on-year decline in Qingtian County's total exports to Malaysia in 2022, Zhejiang Shuangkai Automotive Air Conditioning Parts Co., Ltd. achieved an export value of RMB 11.62 million to Malaysia throughout the year, representing a year-on-year increase of 34.72%. This achievement solidified its position as a leading enterprise among those exporting to Malaysia in Qingtian County.

       In the next step, Lishui should further share in the development dividends of the RCEP, with the starting point and ultimate goal focused on "utilization." Adhering to the principle of multi-party collaboration, including government support, enterprise engagement, and institutional coordination, Lishui should thoroughly understand and master the preferential clauses of the RCEP, fully and effectively leverage its development dividends, and add strong synergy to strive for a leap forward in the development of Lishui's open economy.