Do Parallel Imported Cars Require Taxes?
2 Answers
Parallel imported cars do require taxes. Whether it's parallel imported cars or those imported by authorized agents, they are subject to tariffs, value-added taxes, and consumption taxes. Overall, even the better parallel imported cars tend to be slightly more expensive than their domestically produced counterparts of the same class. Here are some relevant details: Parallel imported cars refer to vehicles that are purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturer. Due to differences in import origins, they can be classified into models such as U.S.-spec cars and Middle East-spec cars, distinguishing them from China-spec cars sold through traditional channels. Bonded zones are the primary hubs for parallel imported cars: Thanks to national policy support, more and more consumers are becoming aware of this new phenomenon of parallel imported cars. Compared to regular China-spec cars, parallel imports offer very high cost-performance ratios.
Parallel imported cars indeed require tax payments, which I have personally experienced. Policy regulations stipulate that all imported vehicles must pay tariffs, value-added tax (VAT), and consumption tax, and parallel imports are no exception. Customs will assess the vehicle's value before calculating the taxes, which sometimes include additional environmental fees. A friend of mine bought one—the car price was cheap, but the total cost after taxes unexpectedly high because he overlooked the VAT rate. It's advisable to consult a customs broker to calculate the costs before purchasing to avoid budget overruns. Also, remember to check China's tariff adjustment table—current import tax rates fluctuate between 15% to 25%, depending on the engine displacement. Overall, taxes can sometimes make the price similar to officially imported models, but the appeal of unique models still attracts buyers.
