China-South Korea Free Trade Agreement Opens

- Nov 01, 2018-

China-South Korea Free Trade Agreement opens

The China-South Korea and China-Australia FTA, which have long been waiting for many Chinese companies and consumers, have finally officially opened. On December 20th, the two FTAs came into effect at the same time and the tax was reduced for the first time. On January 1 next year, the tax will be reduced again.

As the most liberalized and largest-scale free trade agreement signed by China, the entry into force of the China-South Korea and China-Australia FTA will bring many dividends to Chinese enterprises, and citizens can buy more and cheaper at their doorstep. Korean and Australian goods.

Some goods have been cancelled, and Australian milk powder has to wait for 4 years.

According to the China-South Korea Free Trade Agreement, after a transition period of up to 20 years, China will cancel 91% of Korean origin goods tariffs, and South Korea will cancel 92% of China's original goods tariffs. Under the China-Australia Free Trade Agreement, Australia will impose zero tariffs on all Chinese origin goods within five years. After a maximum period of 15 years, China will impose zero tariffs on 96.8% of the original Australian goods.

The reporter found that from the 20th, among the imported goods from Australia and South Korea, there were 2,402 tariffs under the tax code of 1,402 and 1,649, including lobster products from Australia, canned abalone, etc.; and American ginseng from South Korea. , Tianma, etc. As for the attention of Australian milk powder, Australian steak, Korean cosmetics, etc., there is no immediate tax exemption. Australian formula is completely tax-free after 4 years, and Australian steaks have to wait for 10 years.

Some experts pointed out that although the tax reduction scope is extensive, the tax reduction process is long, and the public has to wait for a while to "buy and buy".

Ningqi mechanical and electrical products exported to South Korea is more competitive

"Korea and Australia are important trading partners of our province, and the products are complementary. After the two regions have reduced the tax on a large scale, it will obviously promote the trade between the province and the two countries, and it is a long-term effect. Force." Tang Renjun, director of the General Statistics Department of Nanjing Customs, said.

Nanjing Customs statistics, last year, the province's import and export of Korea to 364.34 billion yuan, accounting for 10.5% of the province's total import and export value in the same period. Among the exports to Korea, mechanical and electrical products accounted for more than 60%. As import tariffs are reduced until cancelled, the advantages of these products will be further amplified.

“The cost of importing raw materials from South Korea will be lower, and the products will be more competitive when exported to South Korea.” Tan Yunfeng, director of the customs department of Nanjing LG Xingang New Technology Co., Ltd., said that they mainly produce electronic consumer products such as liquid crystal displays and notebook computers. Many of the main core components are imported from South Korea. "90% of the raw materials we imported have been implemented with zero tariffs. The remaining 10% still have import tariffs, such as 5% TV LCD screen, the power board is 8%, if the tariff on this part of raw materials is reduced to cancellation, it will further reduce our import cost.” He said that South Korea is also their important export market, accounting for 30% of the share. “Korea cancels tariffs on Chinese origin goods. After that, our products will have an advantage in the local market."

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