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Save Your Import Cost With Free Trade Agreement (FTA)

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Inovatec Machinery reduce-import-duty-and-custom

FTA stands for Free Trade Agreement. Since China entering the WTO (World Trade Organization), we have signed lots of Bilateral Trade agreements with many countries and regions to reduce (or eliminate) tariffs, quotas, and other trade restrictions.

In this article, we will discuss Form A, Form E, Form B, and other Bilateral Free Trade Agreements.

Please find if your country has made an agreement with China. Take advantage of the FTA agreement between both countries to reduce your importing cost.

1.  Countries FTA Bilateral agreement with China

Inovatec Machinery China-Peru-FTA

A sample of China-Peru FTAYou can check the link and see the different goods tariff. In global trading, different countries have other HS code system in their own customs regulations. However, the first 6 number is agreed internationally. The FTA Bilateral agreement tariff usually is lower than Form A (Generalized System of Preferences (GSP) ). Details of the agreement and the specific tariff code regarding HS code can also found on the China Custom website. If you cannot find the right HS for particular goods, please contact me for help.

2. China’s ASEAN FTA

China’s ASEAN FTA is also called Form E. The China-ASEAN Free Trade Area Certificate of Origin (Form E) is an official certificate of origin issued under the Agreement on Comprehensive Economic Cooperation between China and the Association of Southeast Asian Nations for the Reciprocal Reduction of Tariffs for Certain Products Between Contracted Member States.

The countries that can issue FORM E certificates are China, Laos, Vietnam, Thailand, Myanmar, Cambodia, Philippines, Brunei, Indonesia, Malaysia, and Singapore (ASEAN member countries).

Inovatec Machinery FORM-E

A sample of FORM E

ASEAN Countries list:

Inovatec Machinery Asean-countries-with-maps

ASEAN countries with maps

  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Brunei
  • Vietnam
  • Laos
  • Myanmar
  • Cambodia

So far, ASEAN countries reduce the import duty of goods import from China to a very low level. Most mass finishing product import duty is 0%.

 

3. Asia-Pacific Trade Agreement (Form B)

Inovatec Machinery A-sample-of-Asia-Pacific-Trade-Agreement-Form-B

A sample of Asia-Pacific Trade Agreement (Form B)

Countries that applied to Form B are:

  • India
  • Sri Lanka
  • Laos
  • South Korea

The Asia-Pacific Trade Agreement Certificate of Origin (FORM B) issued following the Rules of Origin of the Asia-Pacific Trade Agreement and enjoys reciprocal tariff reductions for specific products between the member states signed the agreement (unlike the non-reciprocal FORM A certificate). Official certificate of origin. The countries that can issue FORM B certificates are China, India, Sri Lanka, Bangladesh, Laos, and South Korea.

Because South Korea already has an FTA agreement with China. You can check the tariff code and rate and compare. Usually, China-South Korea FTA has a lower tariff.

4. GSP Certificate of Origin (Form A)

The GSP Certificate of Origin (Form A) is a FORM A certificate issued under the GSP preference country rules of origin and the relevant requirements.

The FORM A certificate is the export of goods from beneficiary countries (mainly developing countries).

Applicable to the country of origin (mainly developed countries), enjoy the GSP tariff preferential treatment of the origin certificate.

The goods listed on the FORM A certificate are eligible for tariff reduction only if they meet the GSP rules of origin for the corresponding beneficiary country.

 

Inovatec Machinery A-sample-of-Form-A

A sample of Form AThere in 39 countries has given China GSP treatment: Britain, France, Germany, Italy, the Netherlands, Luxembourg, Belgium, Ireland, Denmark, Greece, Spain, Portugal, Austria, Sweden, Finland, Poland, Hungary, Czech Republic, Slovakia. Slovenia, Estonia, Latvia, Lithuania, Cyprus, Malta, Bulgaria, Romania, Switzerland, Liechtenstein, Norway, Russia, Belarus, Ukraine, Kazakhstan, Japan, Australia, New Zealand, Canada, Turkey.

5. FTA agreement Under Negotiation

China is now discussing with the following countries for an FTA agreement for future tariff reduction. If you are importing to these countries, please check the news in the coming months.

  • Colombia
  • Fiji
  • Nepal
  • Papua New Guinea
  • Canada
  • Mongolia
  • Bengal
  • Moldova
  • Japan
  • Israel
  • Sri Lanka
  • Norway
  • Palestine
  • Mauritius
  • Panama

6. Conclusion

For importers, FTA documents can significantly reduce import duty. Do not forget to ask for an FTA document from your supplier in China if you are in the listed countries.

If you are the first time import from China, just let me know your product name to help you check your import rate. Therefore you can compare your cost with the same item when you purchase locally.

 

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Written By

Founder of Inovatec Machinery with more than a decade of hands-on experience in surface finishing, mass finishing equipment, process design, and global customer support. Earnest focuses on helping manufacturers achieve stable, repeatable deburring, polishing, cleaning, and finishing results with better efficiency, safer workflows, and lower labor dependency.