What is the tariff rate for imported cars?
1 Answers
The current tariff rate for imported cars is 15%. Since July 1, 2018, the import tariffs on complete vehicles and auto parts have been reduced. The tariff rates for 135 tariff lines with a 25% rate and 4 tariff lines with a 20% rate for complete vehicles have been lowered to 15%, while the tariff rates for 79 tariff lines for auto parts with rates of 8%, 10%, 15%, 20%, and 25% have been reduced to 6%. The reduction in import car tariffs brings several benefits: 1. Promoting the development of the domestic automotive industry: After multiple stages of development, the industry has reached a level where it can further integrate and compete internationally. It is time to relax protective mechanisms, encourage competition between domestic and foreign automakers, and accelerate structural adjustments and transformations, thereby promoting better development of China's automotive industry under more open conditions. 2. Advancing supply-side structural reforms in the automotive industry: The tariff reduction will undoubtedly intensify competition in the domestic automotive market, significantly increasing pressure on domestic automakers. Many independent brands will accelerate their transformation and upgrading, further driving supply-side structural reforms in the automotive industry. 3. Boosting consumption: With the deepening of reform and opening-up, lowering import car tariffs helps expand imports and domestic demand while meeting the needs of domestic consumption upgrades. The reduction in the retail prices of imported cars will inevitably pose a threat to joint-venture and independent brands in the same segment. Therefore, lowering prices and improving product quality will be the way forward for joint-venture and independent automakers, which is clearly more beneficial for consumers.
