Wuxi's entry-exit inspection and quarantine bureau has issued more than 4,500 copies of preferential certificates of origin (C/O) since the China-South Korea free trade agreement (FTA) and China-Australia FTA (ChAFTA) came into force last December, Wuxi Daily reported.

Products exported to South Korea and Australia by Wuxi-based enterprises consists mainly of chemicals, machinery, steel products, textiles and plastics – all of which qualified for 52.5 million yuan ($8 million) in tariff exemptions.

An employee from Wuxi Daesung Electronic Co, which exports automotive parts to South Korea, said that the preferential C/O helps the enterprise gain initiative in contract negotiations and lower their customers’ transaction costs.

One official from the entry-exit inspection and quarantine bureau said that the preferential C/O is an important motor to expand regional export businesses against slow world economic recovery, sluggish international trade growth and declining market demand.

The official also reminded local exporters to take heed of preferential measures applicable to the administration of origins of imported and exported commodities under the FTAs, especially protocols and certifications relating to tariff concessions.

The China-South Korea FTA will remove tariffs on approximately 90 percent of goods traded between the two nations over the next 20 years, covering 22 areas of commerce, excluding South Korea’s rice industry or automobiles.

According to ChAFTA, 85.4 percent of goods traded between both sides will cut tariffs to zero immediately. About 97 percent of Australian exports to China will be tariff free following the designed timeline step by step. There will include many agricultural products such as beef, dairy and wine. Australia will eventually reduce tariffs to zero on all goods imported from China.