
Parallel imported cars are subject to taxes. Whether they are parallel imported cars or those imported by authorized agents, they are required to pay tariffs, value-added taxes, and consumption taxes. Overall, even the better parallel imported cars tend to be 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 country of import, 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 dealers, and 4S stores, eliminating many intermediate steps. Additionally, parallel import dealers are not restricted by manufacturers in pricing, allowing for greater flexibility and often offering discounts of 10% to 20% compared to China specification cars. 2. Model and delivery time advantage: When new cars are launched overseas, they may not be immediately available in China due to manufacturers' strategic planning or domestic certification processes. 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. Richer model configurations: Another advantage of parallel imported cars is the ability to purchase overseas models not available in China. Typically, 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, so their specifications may differ from China specification cars.

Last week I accompanied a friend to Tianjin Port to check out parallel-imported cars and finally understood - these vehicles still require three types of payments: import duty, consumption tax, and VAT. For example, if you buy a $50,000 Mustang from the U.S., customs will levy a 25% tariff based on engine displacement, plus displacement tax and 17% VAT. The final total price is nearly double the U.S. price! But the advantage is you can get versions not available domestically, like my friend’s custom-ordered right-hand-drive Land Cruiser, which isn’t available through official channels. Remember to ask the dealer for the customs duty receipt—don’t believe any 'tax-free' claims, as all these cars must go through normal customs clearance.

Actually, the taxes on parallel-imported vehicles are broken down in great detail. The tariff is determined by engine displacement: below 1.5L it's only 3%, but most SUVs are above 3.0L and subject to 25%. The consumption tax is even harsher: 9% for 2.0-2.5L, and a whopping 40% for anything above 4.0L! On top of that, there's a 17% VAT. Last week, I went with my dad to check out a Middle East-spec LX570—out of the 2 million yuan price tag, 800,000 was just taxes. However, the salesperson quietly mentioned they could adjust the declared import value by itemizing optional parts separately, saving over 100,000 yuan. But it's crucial to confirm the vehicle has 3C certification and meets environmental standards, otherwise, you won't be able to register it even after paying all the taxes.

Don't be fooled by the base price when buying parallel-imported cars. Last month I took delivery of a Canadian-spec X7 with a foreign sticker price of 80,000 CAD, but the final landed cost was 1.4 million RMB. The customs valuation system includes all optional accessories in the calculation, even winter tires are subject to taxation. The dealer taught me to identify the total tax-paid price (including customs duty + consumption tax + VAT) clearly stated in the Vehicle Conformity Certificate. After paying these, you still need to pay an additional 10% purchase tax for license plate registration. I recommend checking the tax rate table on the General Administration of Customs website - just input the displacement and price to estimate taxes.


