China and ASEAN will Realizes Zero Tariff in 2010

In accordance with the Sino-ASEAN Free Trade Agreement and Sino-ASEAN Expo, over 90 percent products in both countries will enjoy zero tariffs since January 1, 2010, which means that China and ten countries of ASEAN will enjoy zero tariff except for sensitive products.

According to Zhang Kening, the counselor of Ministry of Commerce, 2009 and 2010 will be the key period for Sino-ASEAN free trade area. In conformity with the stipulated lowering tax mode in free trade area, since January 1, 2007, China began to extend the tax lowering scope and degree on product, to lower the tariffs on 5375 products and make the average tariff of 5.8 percent to ASEAN, and further lower to 2.4 percent in January 1, 2009. China will take zero tariff on 7000 products until 2010, accounting for 93 percent of the total volume, meanwhile, the ASEAN makes the similar arrangement.

In 2008, China imports goods under preferential tariff 6.1 billion U.S. dollars, save RMB3.2 billion yuan for enterprises. In addition, China’s enterprises have gained 184000 copies of place of origin of China-ASEAN Free Trade Area, and exported USD5.1 billion product under tariff preferential to ASEAN. With the further lowering of tariff rate in free trade area, enterprises in both countries will benefit more from the preferential policy.