Detonate! Plunge Warning! 0 Tariff Is Coming! 150 Plastics Such As PA/POM/PE Will Flood Into The Country!

On November 2, the ASEAN Secretariat, the custodian of the Regional Comprehensive Economic Partnership (RCEP ), Issued a notice, announcing that Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, and other 6 ASEAN member countries and China, Japan, New Zealand, Australia, and other four non-ASEAN member states have formally submitted the approval letter to the ASEAN Secretary-General, which has reached the threshold for the agreement to enter into force.

According to the agreement, RCEP will take effect in the ten countries mentioned above on January 1, 2022. This marks the official sailing of the free trade zone with the largest population, the largest economic and trade scale, and the most potential for development in the world.

What is the major impact of this on the plastics industry?

If the contract comes into effect, it also indicates that China's previous commitment to the tariffs of ASEAN member states will also be opened!

According to statistics, China has promised to directly reduce the tariffs on plastics and their products of 150 tax items in the 10 ASEAN countries to zero, accounting for 93%! In addition, the tariffs on plastics and their products of 10 tax items will be reduced from the original benchmark rate of 6.5%-14% to 5%.

This also means that more overseas low-priced plastic products may flood China in the future!

RCEP's tax reduction models mainly include four types: immediately reduced to zero when the agreement enters into force, reduced to zero during the transition period, partial tax reduction, and exceptional products.

For the plastics industry, import and export trade is expected to accelerate, and the number and types of import and export products will increase substantially, which will help Chinese companies better participate in the international division of labor and give play to their comparative advantages. At the same time, it will also force China's domestic enterprises to innovate and reform, optimize the business environment, and help China's plastics industry to accelerate the construction of a higher level of the open economy.