BUSINESS

MANY COMPANIES STILL NOT BENEFITTING FROM CPTPP, RCEP IMPORT DUTY REDUCTION - MITI

13/12/2023 11:42 AM

In a reply through the parliament website dated Dec 12, the ministry said it found that it still took time for local companies to understand the import duty reduction schedule of CPTPP and RCEP member countries and identify the products that would benefit the most through the reduction of the duties under the agreements.

“Local companies are still using other free trade agreements (FTAs) that have been in force for a long time such as the Asean Trade in Goods Agreement (ATIGA), the Asean-China FTA (ACFTA) and the Asean-Japan FTA (AJCEP) which offer duty rates that the same or lower,” it said in reply to Senator Tan Sri Low Kian Chuan's question regarding the challenges and percentage of RCEP and CPTPP usage rates.

In order to increase awareness of the opportunities and benefits of the two FTAs, MITI is actively conducting engagement sessions with the industry.

Focus needs to be given to the benefits of CPTPP and RCEP for markets in countries where Malaysia does not have a bilateral or regional FTA, it said.

In 2023 alone, MITI has carried out more than 20 engagement sessions with various industry bodies including chambers of commerce and industry associations.

The Malaysia External Trade Development Corporation (MATRADE) has formulated a strategy to increase export promotion to the CPTPP and RCEP markets as well as the countries with which Malaysia first established FTAs, namely Canada, Mexico and Peru for Malaysian export goods that are subject to lower tariffs such as palm oil products, rubber products , wood products (such as plywood), electrical & electronic goods (E&E), automotive products and others, it said.

MATRADE also plays a role in bringing quality foreign buyers from CPTPP and RCEP member countries to match with local companies at international trade fairs organised in Malaysia such as Oil & Gas Asia (OGA), MIHAS, Defence Services Asia (DSA) and International Greentech & Eco Products Exhibition and Conference Malaysia (IGEM).

Regarding the achievement of CPTPP and RCEP benefits, the government measures it through the issuance of Certificate of Origin (CO) to Malaysian producers.

CO allows Malaysian producers to get preferential treatment through low or duty-free import duties in CPTPP and RCEP trading partner markets, it said.

For the CPTPP, a total of 5,224 COs worth RM1.91 billion have been issued from March 18, 2022 until Nov 30, 2023.

Meanwhile, for RCEP a total of 2,624 COs worth RM897.99 million have been issued, said MITI.

-- BERNAMA


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