Trade regulations and tariffs: Europe-Asia trade relations in focus

Trade between Europe and Asia is heavily influenced by trade regulations and tariffs. For companies in these regions, a sound understanding of these regulations is crucial in order to avoid legal hurdles, optimize costs and organize international trade efficiently.

1. importance of trade regulations and customs duties

Trade regulations and tariffs determine how goods are traded between Europe and Asia. They have a direct impact on the competitiveness of companies and influence overall costs.

• Example:
  A German mechanical engineering company that exports its products to China must obtain China Compulsory Certification (CCC) in order to gain access to the Chinese market. Without this certification, import is impossible.

2. important trade regulations

2.1 Customs procedures and rules of origin

• Customs procedures: Define how goods are imported or exported.
• Rules of origin: Determine in which country a product was manufactured in order to calculate the applicable duty rate.
• Example:
  A Japanese company that exports car parts to the EU must prove the origin of the products in order to benefit from customs concessions through trade agreements.

3. customs duties and their effects

Customs duties are levied on imported goods and vary depending on the product and trade agreement.

• Example:
  A European company importing shoes from Vietnam pays customs duties of up to 12 %. However, thanks to the free trade agreement between the EU and Vietnam, it is possible to apply for duty exemption for certain products.

4 Bilateral trade agreements

4.1 EU-China Comprehensive Agreement on Investment (CAI)

• Objective: To improve investment opportunities for European companies in China and reduce trade barriers.

4.2 Free Trade Agreement (FTA)

• Free trade agreements reduce or eliminate tariffs and promote trade between Europe and Asia.
• Example:
  A Swiss pharmaceutical company exports its medicines duty-free to South Korea, as there is a free trade agreement between the two countries.

5 Non-tariff trade barriers

In addition to customs duties, there are other trade barriers such as quality and safety regulations and complex customs procedures.

5.1 Quality and safety standards

Companies must ensure that their products comply with the legal requirements of the importing country.

• Example:
  A European food manufacturer adapts its production processes to meet Japan's strict food safety standards.

5.2 Customs procedures

Efficient customs clearance is essential to avoid waiting times and additional costs.

• Example:
  A German automotive company that imports components from India uses digital customs procedures to minimize delays.

6 Challenges and adjustments

6.1 Compliance management

Companies should implement effective compliance systems to comply with all trade regulations.

• Example:
  A European fashion company deploys a compliance team to ensure that imports from China meet EU standards for textiles.

6.2 Cooperation with customs advisors

Experts can help companies develop the best strategies for dealing with trade regulations.

• Example:
  An Italian wine exporter is working with a customs consultant to ensure that certificates of origin for exports to Japan are issued correctly.

7. future prospects

7.1 Digitization

The introduction of digital customs clearance and automated processes will make trade more efficient.

• Example:
  Chinese companies use blockchain technology to manage commercial documents securely and transparently.
• 7.2 Trade diplomacy

Diplomatic negotiations and new trade agreements will further facilitate trade between Europe and Asia.

• Example:
  The EU and India are currently negotiating a free trade agreement that could significantly reduce tariffs on automotive and pharmaceutical exports.