Do Parallel Imported Cars Still Require Tax Payment?
3 Answers
Parallel imported cars do not require additional tax payments. The price on the invoice at the time of purchase already includes tariffs, value-added tax, and consumption tax, so there is no need to pay these again. However, the vehicle purchase tax must be paid separately after purchasing the car. 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. Depending on the import origin, they can be categorized into "American-spec cars," "Middle East-spec cars," etc., distinguishing them from "China-spec cars" sold through traditional channels. Below are the 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 steps. Additionally, parallel import dealers are not restricted by manufacturers in pricing, offering greater flexibility, which results in substantial price discounts. Typically, parallel imported cars are 10% to 20% cheaper than China-spec 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 plans or domestic certification processes. Parallel imported cars, however, 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 and Configuration Options: Another advantage of parallel imported cars is the ability to purchase overseas models not available in China. To align with the Chinese market positioning strategy, manufacturers often make adjustments or modifications when importing overseas models to China. Parallel imported cars, sourced directly from regions like North America or the Middle East, may differ in specifications from China-spec cars. For example, the Mercedes-Benz GL350 diesel version is not sold in Chinese Mercedes 4S stores, but it can be purchased through parallel imports. 4. Special Models/Luxury Sports Cars: Additionally, some luxury sports cars, pickup trucks, or RV models not yet available in China can also be purchased from parallel import dealers. 5. Factory-Modified Models: There are also factory-modified models that are unlikely to be available in China. When purchasing such vehicles, it is important to ensure that the modifications are factory-made, not dealer-made. 6. Optimized Delivery Process: Except for overseas models not yet introduced to China, most models can be picked up immediately after completing the necessary procedures. If the procedures are not fully completed, the maximum waiting time is only about one month.
Parallel imported vehicles definitely require tax payment, let me share the main tax types. As a seasoned car enthusiast who has purchased several parallel-imported BMWs and Mercedes, every import involves paying customs duty, value-added tax (VAT), and consumption tax. The customs duty rate varies depending on the engine displacement - for example, vehicles above 3.0L may face up to 25% duty. VAT is uniformly 17%, plus consumption tax, all calculated into the vehicle price. For my last purchase, taxes accounted for one-third of the total cost - equivalent to giving the government a pile of money for free. You'll need professional customs clearance companies to handle import procedures, which can be quite tedious, though the price is still slightly cheaper than buying from authorized dealers. I recommend calculating all taxes in advance rather than just looking at the base vehicle price, or you might regret it later. Overall, tax payment is mandatory - no pay, no entry. Legal imports mean accepting this reality.
Parallel imported vehicles are absolutely subject to taxes. I just bought a parallel imported Mustang myself and paid tariffs, VAT, etc. at import. I don't remember the exact amounts, but the total taxes were roughly over 30% of the car's price. The process isn't too complicated, but you have to pay an agent to handle it for you, otherwise it won't clear customs. Compared to officially imported vehicles, parallel imports save on brand premiums, making the post-tax price more cost-effective, especially for luxury models which can be tens of thousands cheaper. However, don't even think about evading taxes—customs is very strict. A friend of mine tried to handle it themselves and got stuck on paperwork, delaying everything. In short, if you're opting for a parallel import, budget for taxes in advance and find a reliable channel to avoid headaches.
