The first goods subject to the China-Korea Free Trade Agreement (FAT) arrived in the city of Wuxi, Jiangsu province through the local customs facilities on Dec 28, 2015, the Wuxi Daily reported.
The goods are auto parts imported by Wuxi Mobis Auto Parts Co., Ltd.
China and South Korea signed a free trade agreement on June 1, 2015, calling for increased cooperation between municipal governments and industrial zones in both countries.
The FAT provides that the second round of tax reduction of Chinese and South Korean commodities started on Jan 1, 2016. It is estimated that a large number of enterprises and merchants in Wuxi city will be able to benefit from the tax reduction by the third quarter of this year.
Statistics show that the first round of tax reduction reduced the tax rate from 6 to 5.6 percent, mainly facilitating the import of refined oil products and auto accessory parts.
In 2016, an increasing number of Wuxi enterprises will benefit from two rounds of large scale tax reduction, said a local custom official.
