On the 22nd, the Customs Tariff Commission of the State Council issued an announcement, starting July 1st, 2018, reducing the import duties on autos and auto parts.
After this tax reduction, the average tax rate of China's auto vehicles is 13.8%.
According to the new automobile import tariff policy, starting from July 1, 2018, the tax rate will be 25% respectively, and the 20% vehicle tariff will be reduced to 15%, and the tax reduction rates will be 40% and 25% respectively; For 8%, 10%, 15%, 20%, 25% of auto parts tariffs to 6%, the average tax reduction rate of 46%.
According to the relevant person in charge of the Ministry of Finance, China’s maintenance of the multilateral trading system, this time reducing the import tariffs on automobiles is a major measure for China’s further expansion of reform and opening up. After tax reduction, the average tax rate for China’s auto vehicles is 13.8%, and the average tax rate for parts and components is 6%. China's automobile industry is practical.
What is a tariff?
Customs duties are a type of tax that is levied by Customs upon importation and exportation of goods and articles. For imported goods, there are two prices, one is the CIF price, and the other is the market pricing. No matter what goods are imported, tariffs are levied. The basis is the CIF price. The duty payable is the CIF of the imported goods multiplied by the applicable tax rate.
Experts: There Are Three Benefits of Lowering Auto Import Tariffs
Which industries and who will benefit after the reduction of automobile import tariffs?
Experts said:
The Chinese market is huge, and the demand for cars is very large. If there are many imported cars, then for the automobile-producing countries, it will increase the production of cars and boost the income of employment and the local people.
For the domestic auto industry, lowering auto import tariffs can force the domestic auto industry to improve quality, increase efficiency, innovate, and transform and upgrade, so as to provide more varieties of automobiles that meet the needs of the common people.
For ordinary people, lowering auto import tariffs not only enriches the domestic market supply, but also brings a richer and more affordable consumer experience to domestic consumers.
China's auto import tariff rates have continued to decrease since the accession to the WTO
In fact, since China's accession to the World Trade Organization, car tariffs have continued to decrease.
Take a car with a displacement of up to 3 liters as an example:
Before November 2001 (before China's accession to the WTO), the import duty rates for petrol cars of 3L or more and 3L or less were 80% and 70%, respectively.
On January 1, 2002, for the first time, China reduced the tariffs on imported cars. For cars with a displacement of less than 3 liters, tariffs fell to 43.8%, and more than 3 liters dropped to 50.7%.
From 2003 to 2006, the import tariffs on automobiles were lowered five times in a row.
On July 1, 2006, the tariff fell to 25%, and the average tariff of parts and components dropped to 10%, basically matching the international market.
