Zero tariff means that a country's customs does not levy tariffs on imported goods, i.e., the tariff rate is zero. It is commonly seen among member countries of free trade agreements (FTAs), such as RCEP and the China-ASEAN Free Trade Area, and also applies to preferential treatment for least developed countries or temporary tariff reductions on specific goods. Usage scenarios include: importers must provide a certificate of origin when declaring to prove that the goods meet zero-tariff conditions; exporters can use this to enhance price competitiveness. Notes: Zero tariff is not equal to tax exemption; import value-added tax and consumption tax may still be levied; and requirements such as rules of origin and direct transport must be met, otherwise it cannot be enjoyed. Unlike 'tax exemption,' which usually means exemption from all taxes and fees, zero tariff only applies to tariffs. The difference from 'tariff quota' is that within the quota, zero tariff may apply, while outside the quota, high tariffs are restored. Foreign trade practitioners should accurately check HS codes, FTA tax rates, and rules of origin standards to avoid tax supplements or fines caused by declaration errors.
📝 Examples
1. According to the China-ASEAN Free Trade Agreement, the Thai mangosteens we import can enjoy zero tariff with a certificate of origin, but we still need to pay 9% VAT. (Note: Zero tariff only exempts tariffs; VAT is still levied.)
2. This export enterprise used the RCEP zero-tariff policy to reduce the procurement cost for a Japanese customer by 5%, successfully securing an annual large order. (Note: Zero tariff enhances export price competitiveness.)
💡 Foreign Trade Tips
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