According to the website of the Ministry of Commerce, on December 1, 2019, the protocol between the government of the people's Republic of China and the government of the Islamic Republic of Pakistan on Amending the free trade agreement (hereinafter referred to as the protocol) entered into force. JUNON Switch has few customers in Pakistan, so we are surely pay attention on this.
At present, China and Pakistan have completed relevant domestic procedures, and the tax reduction arrangement of the protocol will be implemented from January 1, 2020. JUNON switch is checking the list to see if our products (switches and sockets, distribution box and LED lights) are in this list or not. According to the protocol, after the implementation of the tax reduction arrangement, the proportion of tax items of zero tariff products between China and Pakistan will gradually increase from 35% to 75%. In addition, the two sides will implement a partial tax reduction of 20% for other products accounting for 5% of their respective tax items. For specific tax reduction arrangements, please refer to China free trade area service network. The implementation of the tax reduction arrangement of the protocol will further expand market opening between the two countries, enable enterprises and consumers of the two countries to enjoy more preferential policies, and promote the construction of China Pakistan Free Trade Area to enter a new stage.
By the way, at present, China has signed 19 free trade zones, 12 free trade zones under negotiation, 8 free trade zones in the research stage and 1 preferential trade arrangement. We have JUNON switch business can get more orders from this free trade zones.