1. The four destinations
Korea, Australia, and the ASEAN members as a group.
Each has a bilateral agreement. All four are also covered by RCEP.
2. What Korea offers
The China-Korea FTA, in force since 20 December 2015, with a long staging schedule.
RCEP, in force for China since 1 January 2022.
3. What Australia offers
ChAFTA, in force since 20 December 2015, with most goods at zero.
RCEP, on its own schedule.
4. What ASEAN offers
The bilateral agreement, with the Form E.
RCEP, with its cumulation across fifteen members.
5. The choice mechanism
For each product and each destination:
Check whether the good qualifies under each available agreement.
Where it qualifies under more than one, compare the rates in the current year.
Where it qualifies under only one, use that one.
6. Why the answer changes annually
Because both the bilateral schedules and the RCEP schedule are staging down, at different speeds and on different timelines.
A comparison done in the year an agreement entered into force may be wrong now.
7. The cumulation advantage
RCEP allows cumulation across all fifteen members.
For products with Japanese, Korean, Australian, New Zealand or ASEAN inputs, that can be decisive.
8. A working practice
Maintain a matrix: product by destination, with the qualifying agreements and the current rates.
Review annually, and on any change to the product’s sourcing.
9. Closing view
Four destinations, two agreements each, and a choice per shipment.
The structure is simple. The maintenance is the work.
*This article is based on ChAFTA, the China-Korea FTA, the China-ASEAN Trade in Goods Agreement and RCEP.*