An aerial view of Xiamen, a coastal city in Fujian province. [Photo/Xiamen Daily]
The free trade agreement (FTA) between China and Ecuador came into effect on May 1. On that day, Xiamen Customs issued a certificate of origin under the China-Ecuador FTA to Xiamen Sunrise Group Co Ltd for a batch of automotive wheel hubs that are set to be exported to Ecuador.
This marked the first certificate of origin under the China-Ecuador FTA issued by Fujian province after the FTA took effect.
Wu Shanshan, customs affairs manager of Xiamen Sunrise Group stated that with this certificate of origin, the tariff rate payable upon customs clearance of the automotive wheel hubs will be reduced from 10 percent to zero.
Based on estimates, the tariff reduction for just this shipment exceeds 30,000 yuan ($4,153). "Benefiting from the tariff concessions under the FTA, we have greater confidence in maintaining stable foreign trade orders and expanding into emerging markets," added Wu.
The China-Ecuador FTA is the 20th FTA signed by China, with Ecuador becoming China's 27th free trade partner.
After the FTA took effect, approximately 90 percent of the products traded between China and Ecuador will be exempted from tariffs, with about 60 percent of them enjoying zero tariffs immediately.
When most Chinese products, such as automobiles and parts, lithium batteries, and plastic products, enter the Ecuadorian market, Ecuadorian tariffs will gradually be reduced to zero. Simultaneously, Chinese products that are subject to zero tariffs will progressively cover Ecuador's major export products such as bananas, shrimp, and others.
Xiamen Customs will further engage with key enterprises in industries such as lithium batteries, textiles, and automobiles, and will continue to strengthen the promotion of policies under the China-Ecuador FTA while also optimizing the convenience of the certificate of origin services.