A view of the cargo stacked at the dock. [Photo/Xiamen Daily]
Jitong Customs, a subsidiary of Xiamen Customs, issued a China-Nicaragua Free Trade Agreement Certificate of Origin for a shipment of rubber tires exported by Xiamen CSTtires to Nicaragua on Jan 3.
This is the first China-Nicaragua Free Trade Agreement Certificate of Origin issued by Fujian province since the bilateral trade agreement between China and Nicaragua officially came into effect on Jan 1.
Nicaragua is an emerging market that this company has been expanding into in recent years. "With this certificate of origin, the tires exported to Nicaragua will benefit from a reduced tariff rate of 9 percent, compared to the previous 10 percent, when going through customs clearance," said the customs affairs manager of Xiamen CSTtires.
The China-Nicaragua Free Trade Agreement is the 21st free trade agreement signed by China with foreign countries. Nicaragua is also China's fifth Latin American free trade partner, following Chile, Peru, Costa Rica, and Ecuador.
With the official implementation of the China-Nicaragua Free Trade Agreement, foreign trade enterprises can enjoy greater tariff reduction benefits, which will help them expand their international market share.
The main industries in Fujian province that will benefit from this agreement include agricultural products, textiles, and automotive industries, including tires.
According to calculations, enterprises in Fujian province can save approximately 1.28 million yuan ($179,368) in tariff costs in the first year of the agreement's implementation.