Jinghai Customs, under the jurisdiction of Tianjin Customs, recently issued a Certificate of Origin for a shipment of radial tires exported to Nicaragua by Kenda Rubber (Tianjin) Co Ltd. This marked Tianjin’s first certificate of its kind issued by Tianjin Customs, under the China-Nicaragua Free Trade Agreement since its implementation on Jan 1.

"Nicaragua is an important emerging market for our company. With the implementation of the China-Nicaragua Free Trade Agreement earlier this year, our products can enjoy a 1 percent preferential tariff, and in 10 years’ time, the tariff will be reduced to zero. This tariff preferential policy has added confidence to our firm foothold in the Nicaraguan market," said Du Chunjie, head of customs affairs at Kenda Rubber.

According to the terms of the agreement, China and Nicaragua will eventually implement zero tariffs on products exceeding 95 percent of their respective tax categories, with immediate implementation of zero-tariff products accounting for approximately 60 percent.

For most of the products exported from China to Nicaragua, such as automobiles, batteries, textiles and agricultural products, tariffs will gradually fall and be eliminated. At the same time, products from Nicaragua benefiting from zero tariffs will cover the country’s major export items, such as beef, shrimp, coffee and cocoa.

"In recent years, Tianjin has engaged in the import and export of commodities with Nicaragua, including automotive wire harnesses, bicycle components, household appliances and more. Among them, 48 items are included in the mutually agreed tariff reduction list. Foreign trade enterprises can seize the new opportunities brought about by the China-Nicaragua Free Trade Agreement to expand the import and export of key products," said Cui Jiajie, deputy director of the Customs Tariff Division at Tianjin Customs.