Are There Tariffs on Joint Venture Vehicles?
2 Answers
Joint venture vehicles are not subject to tariffs; tariffs are only applicable when vehicles are imported from abroad. Below are the introduction to joint venture vehicles and details about tariffs: Introduction to Joint Venture Vehicles: Joint venture vehicles are projects established through collaboration between Chinese and foreign investors. The Chinese side contributes by providing land and factory usage rights, as well as capital, while the foreign investors contribute brand, technology, capital, talent, etc. Joint venture vehicles are the result of such collaborations. The foreign side provides technology, talent, brand, etc., for assembly within the country, but core technologies remain under foreign control. Tariffs on Joint Venture Vehicles: Joint venture vehicles are not subject to tariffs; tariffs are only applicable when vehicles are imported from abroad. Import tariffs are duties levied by a country's customs on imported goods and items. Imposing import tariffs increases the cost of imported goods, raises their market prices, and affects the quantity of foreign goods imported.
When it comes to whether joint venture cars have import tariffs, I’ll share my experience from buying a car. Joint venture cars refer to those produced by brands like Volkswagen and Toyota in Chinese factories. Since they are locally manufactured, there’s no such thing as import tariffs, saving a significant cost. However, when I bought my car, I still had to pay a purchase tax, which was about 10% of the car’s price, plus an annual vehicle and vessel tax of a few hundred yuan. Overall, joint venture cars are much more affordable than purely imported cars, and parts and maintenance are more convenient. As an average car buyer, I think joint venture cars offer high economic value, especially for family use. If you’re considering buying a new car, you can calculate the total tax expenses in advance, including insurance and other fees—don’t just look at the car’s price. In summary, tariffs aren’t involved, but various taxes are still unavoidable.
