The Regional Comprehensive Economic Partnership agreement, or RCEP, took effect on Jan 1 in China, Japan, Australia, New Zealand, and six ASEAN member countries (Brunei, Cambodia, Laos, Singapore, Thailand, and Vietnam), marking the launch of the world's largest free trade deal.

Xiamen Xiashun Aluminium Foil Co, a company that produces and sells light gauge aluminum foil, submitted the first RCEP certificate of origin in Xiamen. The certificate of origin will help lower the cost of customs duties by 5,000 yuan ($785.97) for the company's aluminum products worth 2.4 million yuan that will be exported to Japan.

On Jan 1, Xiamen Customs and the China Council for the Promotion of International Trade Xiamen Committee issued 13 RCEP certificates of origin to seven companies, including Xiamen Xiashun Alumnium Foil Co.

Their export goods include textiles and garments, paper, and household supplies, mainly to Japan.

The companies' exports amounted to about $4 million, and the RCEP certificates of origin are expected to help reduce tariffs for the companies by $160,000.

China and Japan have forged bilateral free trade relations for the first time following the RCEP. As Japan is Xiamen's sixth largest trade partner, the RCEP agreement will help expand the scale of its trade with Japan.

More RCEP certificates of origin are expected to be issued after the New Year holiday.

In addition, Intex Industries (Xiamen) Co became the first approved exporter following the Administrative Measures for the Approved Exporters, which is a vital measure to facilitate the recognition of certificates of origin.

The approved exporters can issue certificates of origin by themselves at any time without applying to customs and enjoy preferential tariffs abroad. The certificates of origin issued by the approved exporters have the same validity as ones issued by customs so that customs clearance efficiency will be significantly improved.

This means that Intex industries (Xiamen) Co can issue RCEP certificates of origin on their own for products produced and exported to RCEP member countries without applying for the certificates case by case.

The company is able to arrange product production and export in a more flexible manner and improve customs clearance efficiency so as to benefit from preferential tariffs brought about by the implementation of the RCEP agreement.

Since the RCEP agreement coming into effect, China's immediate zero tariff ratio with ASEAN, Australia and New Zealand will exceed 65 percent, while around 25 percent of Japanese exports to China and 57 percent of Chinese exports to Japan have become tariff-free.

More than 90 percent of goods traded among the RCEP member countries will eventually be subject to zero tariffs.

For companies, the RCEP agreement brings lower costs for imports and more opportunities for exports.

For domestic consumers, cross-border shopping will be more convenient with a wider selection.