1. The trade pattern
Materials from Japan, Korea, Australia, New Zealand and ASEAN, processed in China, sold across the RCEP region.
2. Why China is well placed
The supply chain is inside the region.
3. What cumulation enables
A product with materials from several RCEP parties can qualify even where no single party’s content is dominant.
4. The three consequences
Regional value content
Materials from any party count toward the qualifying share.
Tariff change
A material from another party is originating, so its heading counts as originating for the change test.
De minimis
Non-originating material below the threshold does not disqualify.
5. The documentation
Supplier declarations from each party.
The material’s HS code.
The basis of the origin claim.
6. The scenario
A manufacturer of solar mounting systems used aluminium from Australia, fasteners from Japan, and steel from China.
Under any bilateral agreement, only one source counted.
Under RCEP, all three counted, and the product qualified with a margin.
7. The lesson
Cumulation is the reason to use RCEP when the supply chain is regional.
8. What to build
A supplier declaration collection process, in the RCEP format.
9. Closing view
Cumulation turns a regional supply chain into an origin asset.
*This article is based on the Regional Comprehensive Economic Partnership agreement.*