What is the tariff rate for imported cars?
1 Answers
Currently, the tariff rate for imported cars is 15%. Starting from 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 auto parts have been lowered to 15%. Additionally, the tariff rates for 79 tariff lines with rates of 8%, 10%, 15%, 20%, and 25% for auto parts have been reduced to 6%. The reduction in import car tariffs brings several benefits: 1. Promoting the development of the domestic automotive industry: After undergoing 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 fostering better development of China's automotive industry under more open conditions. 2. Driving supply-side structural reform in the automotive sector: The reduction in tariffs will undoubtedly intensify competition in the domestic automotive market, significantly increasing pressure on domestic automakers. This will accelerate the transformation and upgrading of numerous independent brands and promote supply-side structural reform in the industry. 3. Stimulating 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.
