On April 7,2022, the "Protocol between the Government of the People's Republic of China and the Government of New Zealand on Upgrading the Free Trade Agreement between the Government of the People's Republic of China and the Government of New Zealand" came into effect.
It is understood that the upgrade protocol further expands the market opening of China and New Zealand in the fields of goods, services, investment, etc., further improves the level of rules such as trade facilitation, and adds four new chapters on e-commerce, competition policy, government procurement, environment and trade. It is more in line with the needs of modern economic and trade development.
The "Protocol to Upgrade the China-New Zealand Free Trade Agreement" came into effect, and foreign trade enterprises once again ushered in tangible benefits.
"Our company has been importing milk powder raw materials from New Zealand for a long time. In 2021, it will import 17,000 tons of milk powder, and the import value will reach 397 million yuan. After the Sino-New Zealand agreement is upgraded, imported dairy products and milk powder will be completely zero tariffs within 1-3 years. You can enjoy more than 40 million yuan in tariff reductions and exemptions.” said He Lilin, deputy commissioner of the customs department of Zhejiang Mingwang Dairy Co., Ltd.
According to Hangzhou Customs, the dairy and wood products import industries will benefit the most from the upgrade of the China-New Zealand Free Trade Agreement. According to the content of the agreement, New Zealand will implement zero tariffs on 100% of products imported from China, and China will implement zero tariffs on 97% of products imported from New Zealand. With this upgrade, 99% of New Zealand's wood and paper products will receive zero tariff access immediately, and all dairy products will be tariff-free by 2024. New Zealand has always been an important source of the above-mentioned products in our province. In 2021 alone, Zhejiang Province will import wood and paper products worth 3.29 billion yuan and dairy products worth 2.42 billion yuan from New Zealand. Import costs will be further reduced.
For exporters, although all goods exported to New Zealand have achieved zero-tariff treatment before, this upgrade will bring two new changes in customs procedures and facilitation:
One is the introduction of the "approved exporter system". Similar to the relevant provisions of RCEP, the upgraded China-Singapore Agreement clarifies that approved exporters recognized by the customs can issue a declaration of origin for the exported goods, and there is no need to go to the customs to apply for a certificate of origin. This system design fully reflects the latest achievements in the facilitation of customs procedures in the international mainstream free trade agreements, which greatly improves the convenience of exporting goods enjoying tariff preferences in New Zealand.
The second is to allow the certificate of origin to be reissued. The previous China-Singapore agreement requires that the certificate of origin must be issued before the goods are shipped. After the agreement is upgraded, enterprises can apply to the customs for a reissue of the certificate within one year from the date of shipment of the goods. The time left for exporting enterprises to apply for the certificate is greatly increased. The flexibility of certificate application is greatly improved. "Our company's bamboo products are very popular in New Zealand. Because the previous certificate of origin must be applied for before the ship is shipped, and the shipping schedule is unstable, the visa time is delayed several times, which affects customers' enjoyment of tariff concessions. Now the 'upgrade version' With the reissuance rules, we no longer have to rush to rush for a visa!" Fang Youzhen, manager of the foreign trade department of Anji Mosuo Bamboo Products Co., Ltd. said happily.
According to the relevant person in charge of the Hangzhou Customs and Customs Department, my country has long been New Zealand's largest trading partner. The implementation of the China-New Zealand Free Trade Agreement Upgrade Protocol is the first upgrade since the signing of the Free Trade Agreement between China and New Zealand in 2008. In recent years, Hangzhou Customs has continuously optimized supervision and services, further promoted the high-quality implementation of the China-Singapore Free Trade Agreement, and actively helped Zhejiang enterprises to make full use of the tariff preferences brought by the agreement. In 2021, Hangzhou Customs will issue a total of 1,565 certificates of origin of the China-New Zealand Free Trade Agreement, with a visa amount of US$45.1998 million, allowing enterprises to enjoy tariff reductions of more than 14 million yuan abroad.