Jiaxing Xin'an Packaging Material Co Ltd obtains Jiaxing's first RCEP certificate of origin for exports to Indonesia on Jan 4. [Photo/cnjxol.com]

Jiaxing Xin'an Packaging Material Co Ltd obtained the first Regional Comprehensive Economic Partnership (RCEP) certificate of origin on Jan 4 for a batch of PVC thermal shrinkage film exported to Indonesia.

The RCEP agreement took effect in Indonesia on Jan 2. Since then, Indonesia has had zero tariffs on 65.1 percent of Chinese products while China has applied zero tariffs on 67.9 percent of Indonesian products.

With the RCEP certificate of origin, the company is expected to enjoy a tariff reduction of 14,000 yuan ($2,067) at Indonesia's customs.

The PVC thermal shrinkage film produced by the company and used for the outer packaging of food and beverages is mainly exported to the Middle East, South America and ASEAN. The proportion of the company's exports to ASEAN countries has reached 30 percent.

The implementation of the RCEP agreement in Indonesia has brought great benefits to the company. The 5 percent tariff reduction under the China-ASEAN Free Trade Agreement has also enhanced the competitiveness of the products, said Yang Liteng, general manager of the company.

Based on the value of the company's exports to Indonesia in 2022, the preferential tax rate brought by the RCEP is expected to reduce import tariffs on the company's goods exported to Indonesia by about 370,000 yuan a year.

ASEAN is one of Jiaxing's most important trading partners. In 2022, the value of trade between Jiaxing and Indonesia exceeded 17.81 billion yuan, an increase of 46.2 percent over 2021.

Under the RCEP, on the basis of the China-ASEAN Free Trade Agreement, Indonesia has granted zero tariff treatment to over 700 additional Chinese products, including some auto parts, clothing, shoes, plastic products, luggage and chemical products, which are the city's main products exported from Jiaxing to Indonesia.