On July 1, 2014, the China-Switzerland Free Trade Agreement was officially implemented.
Tax reduction model
According to the provisions of the agreement, Sweden will immediately implement zero tariffs on 99.7% of China’s exports, and China will eventually implement zero tariffs on 84.2% of Sweden’s exports. If some products with tax reductions are included, the proportion of Swiss products participating in tax reductions is 99.99%, and that of China is 96.5%.
China’s specific tax reduction models for Swedish origin products are divided into the following categories: The first is Category A, which will be reduced to zero after the agreement takes effect. The second type is Category B, which has a 5-year transition period. The tax will be reduced year by year within 5 years after the agreement comes into effect, and will be reduced to zero in the 5th year. The third type is Category C, which is divided into two types: C1 and C2. Category C1 has a 10-year transition period. The tax will be reduced year by year within 10 years after the agreement comes into effect, and will be reduced to zero in the 10th year. Category C2 is divided into two types. One is a transition period of 12 years, with taxes reduced year by year within 12 years, and reduced to zero in the 12th year; the other is a transition period of 15 years, with taxes reduced year by year within 15 years, and reduced to zero in the 15th year. is zero. In either case, tariffs should be reduced to 60% of the base rate (2010 MFN tariff) in 10 years. The fourth category is Category D, which does not reduce taxes.
Sweden’s specific tax reduction model for Chinese-origin products is as follows: The first is Category A, which will be reduced to zero after the agreement takes effect. The second type is Category B, which is divided into B1 and B3. The original product is levied a fixed amount per 100 kilograms of gross weight or a fixed amount based on the most-favored nation tariff reduction rate. The third category is Category C. Originated products are subject to a fixed amount of MFN tariff reduction rate per 100 kilograms of gross weight. The fourth category is Category D, which does not reduce taxes.
Details of textile tariff concessions
According to the provisions of Annex 1-1 of the Agreement, China has classified most of Sweden’s textiles and clothing into Category B and Category C1. There will be a transition period of 5 to 10 years for tariff concessions, and tariffs will be reduced year by year until 2023. Cancel. Wool and cotton raw materials under Chapter 51 are included in Category D and are not subject to tax reduction.
According to the provisions of Annex 1-2 of the agreement, Sweden has included all Chinese-origin textiles and clothing in Category A, which means that starting from July 1, 2014, they can enjoy zero-tariff treatment. If the Chinese exporter cannot provide a free trade zone certificate of origin or a statement of origin, the importer can only go through customs clearance procedures according to the most-favored-nation basic tax rate (2010 Customs Tariff).
Judging from the Swedish tariff reduction schedule, the tax rate for clothing is much higher than that for textiles. The import tariff for most clothing products exceeds 100 Swiss francs for 100 kilograms of gross weight, and for individual products exceeds 1,000 Swiss francs. Therefore, if Chinese exporters can provide certificates of origin or statements of origin to Swedish importers, the price competitiveness of origin products will be greatly improved.
Rules of Origin
The origin standards of the China-Switzerland Free Trade Zone are divided into fully acquired and incompletely acquired products. Completely acquired products are products processed and produced using raw materials produced within the territory of one contracting party, while incompletely acquired products are products processed and produced using non-originating raw materials. For products that are not fully acquired, Annex II of the Agreement stipulates specific rules of origin for most products, which requires changes in tariff classification or restrictions on the value content of non-originating materials.
For textiles, pure raw material products such as raw cotton and wool must be fully obtained, that is, they must be produced within the territory of the contracting party. For other types of textiles and clothing, if non-original raw materials are used, they generally require substantial processing to achieve tax return. Category change requirements, or the value of non-original raw materials cannot exceed 60% of the ex-factory price of the product.
Question: What documents are required to apply for tariff preferences?
Answer: According to the provisions of the agreement, when going through customs clearance procedures, importers need to submit the China-Switzerland Free Trade Zone Certificate of Origin to the local customs, or a statement of origin issued by the exporter approved by the competent authority of the exporting party. It should be noted that the Chinese side’s certificate of origin in the China-Switzerland Free Trade Zone is FORMS, and the Swedish side’s European No. 1 mobility certificate.
Question: What are the requirements for the transportation of products enjoying preferential tariffs in the China-Switzerland Free Trade Zone?
Answer: According to the provisions of the agreement, origin products that enjoy preferential tariff treatment should be transported directly between China and Switzerland. If transported through a third party, the conditions that must be met are: they have not undergone any processing other than loading and unloading or keeping the products in good condition. operations and are under customs supervision in non-contracting parties. If these conditions are met, a batch of originating products can be split logistically in a non-party. In addition, the customs of the importing party may also require the importer to submit other sufficient evidence to prove that the product has not been subjected to other operations in the territory of the non-party.
Textile Trade Guide for the China-Switzerland Free Trade Zone
On July 1, 2014, the China-Switzerland Free Trade Agreement was officially implemented. Tax reduction model According to the provisions of the agreement, Sweden will immediately implement zero tariffs on 99.7%…
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