Are Imported Cars Subject to Tariffs?

[McBlakely]

Parallel imported cars are subject to taxes. Whether it's parallel imported cars or those imported by authorized agents, they all require payment of tariffs, value-added taxes, and consumption taxes. Generally speaking, even high-quality parallel imported cars are still more expensive than domestically produced cars of the same grade. Parallel imported cars refer to vehicles purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturers. Depending on the import source, they can be categorized as "U.S. specification cars," "Middle East version cars," etc., distinguishing them from "China specification cars" sold through traditional channels. Advantages of parallel imported cars: 1. Significant price advantage. Parallel imported cars bypass sales channels such as general distributors, regional distributors, and 4S stores, eliminating many intermediate links. Additionally, parallel import dealers have more freedom in pricing as they are not restricted by manufacturers, resulting in substantial price discounts. Typically, parallel imported cars are 10%~20% cheaper than China specification cars. 2. Model and delivery time advantage. Sometimes, new overseas car models are not launched in China due to manufacturers' strategic plans or domestic certification issues. However, parallel imported cars have a natural advantage in this regard—they can be freely purchased overseas and then shipped to China for sale, significantly reducing the waiting time for new models. 3. More diverse models and configurations. Another advantage of parallel imported cars is the ability to purchase overseas models not available in China. Generally, to align with the Chinese market positioning strategy, manufacturers make certain adjustments or modifications when importing overseas models to China. In contrast, parallel imported cars are directly sourced from regions like North America and the Middle East, and their models may differ from China specification cars. For example, the Mercedes-Benz GL350 diesel version is not sold in Chinese Mercedes-Benz 4S stores, but it can be purchased through parallel imports. 4. Special models/luxury sports cars. Additionally, some luxury sports cars, pickup trucks, and RV models not yet available in China can also be purchased from parallel import dealers. 5. Factory-modified models. There are also some factory-modified models that are unlikely to be available domestically. When purchasing such cars, it is important to ensure that the modifications are factory-made, not dealer-made. 6. Optimized delivery process. Except for overseas new models not yet introduced to China, most models can be picked up immediately after completing the necessary procedures. If the procedures are not completed, the longest waiting time is only about one month.