Regional Comprehensive Economic Partnership (RCEP)
Regional Comprehensive Economic Partnership (RCEP) is the free trade agreement among the ten ASEAN states, China, Japan, South Korea, Australia and New Zealand, signed November 15, 2020 and in force since January 1, 2022.
What it requires
Originating goods receive scheduled tariff cuts that eliminate duties on about 90 percent of tariff lines over periods of up to 20 years. Origin is generally 40 percent regional value content or a change in tariff classification, and inputs from any member cumulate. Exporters prove origin with a certificate of origin or an approved exporter declaration. Members commit to releasing goods within 48 hours where possible, and express and perishable shipments within six hours. Hong Kong, Sri Lanka, Chile and Bangladesh have applied to join.
Why it matters
RCEP's cumulation rules let brands combine inputs from China, Japan, Korea and ASEAN while still qualifying for preferences, which supports regional sourcing and fulfillment hubs in Asia. A brand assembling electronics in Vietnam with Chinese and Korean parts can ship to Japan at a preferential rate, which was harder under separate bilateral deals. For 3PLs, the fast release commitments for express shipments help cross-border e-commerce within Asia. RCEP does not include the US, so it does not change US duties.
Events
Related laws
- ASEAN Free Trade Area (AFTA)1992 · ASEAN free trade area cutting intra-regional tariffs
- U.S.-Japan Trade Agreement (USJTA)2019, in force 2020 · Limited US-Japan pact on farm and industrial tariffs
- China Cross-Border E-Commerce Retail Import Policy2016, limits raised 2019 · China's tax rules for consumer imports via e-commerce
Sources
- RCEP Secretariat rcepsec.org
- Philippines DTI: RCEP philippineftas.dti.gov.ph
Not legal advice.