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China on May 1 began to expand its zero-tariff treatment to cover all 53 African countries with which it has diplomatic ties. This will further boost trade between Jiangsu and Africa.
Recently, a consignment of green coffee beans from Ethiopia with a value of RMB 1.27 million cleared customs smoothly at Yangzhou Customs, after the verification of its origin eligibility and authentication of its relevant certificate of origin. Thanks to China’s zero-tariff treatment for 100% tariff lines, an earlier policy for the least developed countries having diplomatic relations with China, the import tariff rate on this batch of coffee beans was cut from 8% to zero, saving the company tariff duties of RMB 101,800. In the first quarter of this year, the company declared import of green coffee beans worth RMB 21.53 million, with total tariff savings of RMB 1.7226 million.
Nanjing Kenbei International Trading Co., Ltd. imports green coffee beans from Kenya via Kunshan Comprehensive Bonded Zone. It is learned that following the implementation of the new policy, the import tariff on green coffee beans originating in Kenya has been slashed directly from the current 8% to 0%. The company is expected to secure about RMB 600,000 in annual tariff savings. In the first quarter of this year, imports of green coffee beans through Kunshan reached RMB 650 million, a year-on-year increase of 43.6%, ranking first nationwide. Imports from African countries accounted for 12.6% of the total import value.
Statistics showed that in the first quarter, Jiangsu’s foreign trade volume with Africa reached RMB 55.29 billion, a year-on-year increase of 23%. Exports stood at RMB 46.59 billion, up 22.2%; imports hit RMB 8.71 billion, rising 27.7%. Under the preferential tariff treatment for the least developed countries, Nanjing Customs got off to a strong start with the value of eligible imports reaching RMB 215 million and tariff savings registering RMB 19.2146 million, a growth of 24.28% and 40.12% year on year respectively. Categories of imported goods under this preferential scheme have become increasingly diversified. Featured products such as Southeast Asian syrup, African green coffee beans and gum arabic now rank among the principal imports benefiting from preferential tariffs.
As more quality African goods pour into the domestic market, Jiangsu-made products are also accelerating their global expansion. On April 24, inside the workshop of Jiangsu Goostars Hometextiles Co., Ltd, workers were busy along the intelligent production line, making the company’s self-developed elastic fabric into sofa covers of various styles. Leveraging cross-border e-commerce channels, the company has been exploring emerging markets. Its products like sofa covers, curtains and blankets are now selling well in South Africa, Kenya and many West African countries.
In its survey on the African market, the company noticed that local residents often use sofa covers to decorate or protect old sofas. Tailored to the habits and aesthetic preferences of African households, the company rolled out a range of cost-effective sofa covers in diverse patterns and designs, thereby gaining a strong foothold in Africa soon. Via a combination of on-site exhibitions and cross-border e-commerce platforms, the company is able to target at needs of the African corporate clients, leading to a steady increase in orders. In the first quarter, its textile exports to the African market exceeded RMB 10 million, a surge of 120%.
Echoing this new zero-tariff measure, Nanjing Customs will invest greater efforts in data analysis based on import declaration records to identify potential beneficiary enterprises and goods. To better serve its clients within its jurisdiction, it will improve its service and better address the needs of key enterprises through targeted research to ensure that eligible recipients are able to enjoy all available benefits to the fullest.