Sharing The "Bonus" Of Cross-Strait Economic And Trade &Nbsp; Guangxi Enterprises To Seize ECFA Business Opportunities To Reduce Taxes

In January 1st of this year, the "Cross Strait Economic Cooperation Framework Agreement" (ECFA) goods

Buying and selling business highlights

Reminder: purchase of goods in Taiwan must be issued with certificate of origin to enjoy preferential tax reduction and exemption. Enterprises need to understand the arrangement of early harvest tax reduction and adjust business accordingly.

According to the early checklist, the mainland has implemented a tax reduction for 557 commodities (originally produced in Taiwan) in 2011, involving agricultural products and manufacturing products. Most of the goods in 2011 were reduced by more than 5% of the import tariffs. Taiwan lowered taxes on 267 products originating in the mainland, and the import tariff of most commodities decreased by more than 2.5% in 2011.

The advantage of reducing taxes in mainland China is that the products sold on the ECFA early checklist will bring significant business opportunities to mainland manufacturers.

"Taiwan food occupies a large proportion in the import commodities of our supermarket, and is also very popular with customers. Seize the opportunity of implementing the early harvest plan of ECFA, we will introduce the classics of Taiwan food to Guangxi, and believe that there will be a qualitative leap in sales at that time!" Lin Qiuguo, general manager of Limited by Share Ltd Lianhua supermarket, is full of confidence in the hot sale of Taiwan products in the future.

After the Spring Festival, Lianhua Supermarket plans to increase the purchase of food in Taiwan in terms of quantity and variety, so that the variety reaches more than 100.

It is worth noting that the import and export administration reminds enterprises that before signing the contract, they must explicitly request the exporters to issue certificates of origin, so that they can enjoy preferential tax relief and reduce procurement costs at the customs.

On the export side to Taiwan, Huang Huansheng, deputy director of the Commerce Department of the autonomous region, said that based on the ECFA early harvest plan, the Guangxi enterprises could increase the sales scale of the superior products, such as light industry, forest products, machinery, chemical raw materials, and so on.

In terms of micro operation, enterprises should understand the early tax reduction plan and adjust the business accordingly, which can directly reduce the operating cost of enterprises, enhance the competitiveness of products, and improve the economic efficiency of enterprises.

In recent years, the economic and trade cooperation between Guangxi and Taiwan has been "warming up", and the scale of trade and investment has increased steadily.

In 2010, Guangxi's total import and export volume to Taiwan amounted to nearly 300 million US dollars, up 58.3% over the same period last year.

The implementation of ECFA early harvest plan is bound to further promote the rapid growth of trade between Guangxi and Taiwan.

Industrial cooperation benefits doubled

Trend: ECFA accelerates technology exchange and commodity circulation between the two places; with the advantage of Cross Straits division of labor, it is expected to enhance the competitiveness of cross-strait commodities in the international market.

"An American buyer takes the latest bicycle design map to Taiwan. Giant can assemble and deliver the product in two days, delivering the performance test to the buyer, followed by lots of bulk orders."

In January 21st, Nanning held the ECFA early harvest product procurement benefit briefing. Lan Keming, a senior commissioner of Taipei World Trade Center and an international trade and business research expert, described the complete bicycle industry supply chain in Taiwan.

Lan Keming believes that the ECFA early receipt list brings only the most superficial business opportunities to the mainland, and its underlying business opportunities are to promote cross-strait industrial cooperation.

There are three advantages of Taiwan commodity entering the mainland market: the scale of industrial settlement, the complete supply chain of upstream and downstream industries, and the leading technology.

Once these advantages are combined with the broad mainland and ASEAN markets, a reasonable division of labor and integration with the mainland industries will result in win-win results for both sides of the Strait.

Take the bicycle industry as an example, the Taiwan bicycle industry exported in 2009 to US $1 billion 250 million, and has the world bicycle brand like Giant, Merida, Pacific and so on. As well as the complete industrial chain of "creative design, product development, production, assembly and brand marketing", the product's function and performance have reached the international level. If we take advantage of the division of labor between the two sides of the Straits, we will succeed in mastering the high-ranking market of America, Europe and Japan.

In the automotive industry, there is also great room for cooperation across the Strait.

Lan Keming said that Taiwan has achieved a fairly good standard on auto parts, and the mainland is strong in vehicle manufacturing, and the integration of cross-strait auto industry can enhance its competitiveness in the international market.

Insiders pointed out that combined with the mature auto parts industry in Taiwan, it will help to realize the leaping development of Guangxi's automobile industry and win the opportunity to seize the ASEAN market such as Thailand and Vietnam.

In the early harvest list, Taiwan's agriculture, forestry and fisheries are the key to opening up, and Taiwan has prominent technical advantages and scale benefits in these areas.

For example, orchid cultivation is a key development industry in Taiwan's fine agriculture, with an annual output value of US $100 million, and the global market share of Taiwan orchids has reached 1/3.

Taiwan turtle eggs, pitaya and tea in the early harvest list are also popular in the mainland market.

Experts said that ECFA is a strong catalyst for the agricultural cooperation between Guangxi and Taiwan. It will speed up technological exchanges and cooperation and commodity circulation between the two places.

Cross Straits cooperation wins first opportunity

Viewpoint: when ECFA is formally implemented and combined with the advantages of China ASEAN Free Trade Area, the cross-strait enterprises can achieve maximum benefit.

Two years ago, because of the regional advantages and investment prospects of Guangxi, Huang Weitong, a businessman in Taiwan, came to the border of Guangxi alone, and invested 250 million yuan in Shuikou port and Longzhou border area in Chongzuo Longzhou.

What she did not expect was that after the completion of the two port logistics parks, more than 95% of the customers came to find their own homes.

"This is something I've never met, enjoyed and felt for so many years," Huang Weitong said with excitement.

It is precisely in the Sino ASEAN free trade area brought about by the huge logistics dinner in advance card position, Huang Weitong has the initiative and the right to speak.

In Nanning ECFA early harvest product procurement benefit briefing session, she took her own investment experience as an example to encourage more Taiwan enterprises to seize the opportunity of ECFA tax reduction, invest in Guangxi, and win the development opportunities.

Huang Weitong believes that most of the agricultural and sideline products in Taiwan have obvious advantages compared with that of the mainland. They have strong competitiveness, and there will be broad market prospects for pporting and selling to the mainland. In the early harvest products, the most suitable agricultural products include: fruit, dried fruit, oil, fresh fish, frozen fish and so on.

In just over a year, Huang Weitong built the import base for nuts. Among them, 80% of cashew imports on the mainland market came from her hand. Only this one paid 40 million yuan in profits and taxes every year.

In addition to the early harvest of investment, Huang Weitong believes that if ECFA is implemented in conjunction with the advantages of the China ASEAN Free Trade Area, the real benefits will be maximized.

For example, Taiwan's agricultural and sideline products, horticultural plants, light industrial products and so on, through the Taiwan port to Vietnam coast defense, and then sent to Guangxi or Guangdong and other mainland destinations (i.e. Taiwan Vietnam Haiphong - Shuikou / Pingxiang / Dongxing - customs clearance - Guangdong and other mainland destinations), will be able to increase profits by at least 10%, which is China's benefits to the implementation of ASEAN's zero tariff.

With special geographical advantages, Guangxi is becoming an important hub for Taiwan commodities to move towards ASEAN and the mainland market. The increasingly perfect customs clearance mechanism has been recognized by more and more import and export enterprises.

"Guangxi's port clearance construction is becoming more and more mature. We can get the goods from Vietnam to the port before 12 noon, and we can finish customs clearance before 5 noon, and the services of customs, inspection and quarantine departments are absolutely first-class," Huang Wei Tong feels deeply.

Nowadays, with the impetus of Huang Weitong, 6 or 7 Taiwanese businessmen have invested in Guangxi and become a typical example of introducing Taiwan capital into business.

At present, Huang Weitong is planning to establish Taiwan Industrial Park in the border area, as a bridge and link for Taiwan products to enter ASEAN.