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No customs duty on Taiwan fabric exports to China
Jan '12
Under the Cross-Straits Economic Cooperation Framework Agreement (ECFA), customs duty has been removed on export of fabrics from Taiwan to China since beginning of 2012, Taiwan's Ministry of Economic Affairs (MOEA) has announced.

The customs duty has been reduced from the prevailing 5-15 percent to zero on 437 types of exports from Taiwan to China, including agricultural, machinery, petrochemical and textile related products.

On January 1, 2011, customs duty was reduced to zero on 72 types of goods and hence the number of Taiwanese products that can now enter Chinese market duty-free has risen to 509, the MOEA said.

The MOEA estimates the removal of tariff would help Taiwanese exporters to save up to US$ 400 million during the year, which would be about three times the savings in 2011.

During January-November 2011, Taiwan earned US$ 114.16 billion in exports to China, which resulted in saving of US$ 114 million in customs duties from the export of 72 products on which duty was removed under ECFA, According to MOEA data.

At the beginning of 2013, customs duties are scheduled to be reduced to zero on another 30 types of Taiwanese export items, taking the total number of Taiwanese goods exempted from Chinese customs duties to 539.

Under ECFA, Taiwan has agreed to remove tariffs on import of 267 types of Chinese goods by January 1, 2013.

ECFA is a bilateral pact signed between Taiwan and China in 2010. Under the pact, the two countries agreed to remove tax on a variety of goods by January 1, 2013.

Fibre2fashion News Desk - India

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