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Tuesday, May 22, 2018, 17:57
China to significantly cut auto import tariffs from July
By ​Xinhua
Tuesday, May 22, 2018, 17:57 By ​Xinhua

This undated photo shows the stand of BMW at the Auto China exposition in Beijing. (AKASH GHAI / CHINA DAILY)

BEIJING - China will cut import tariffs on vehicles and auto parts starting July 1, the Ministry of Finance (MOF) announced Tuesday.
For car imports, the 25-percent tariff levied on 135 items and the 20-percent duty on four items will both be slashed to 15 percent, down 40 percent and 25 percent respectively. 

After the move, the average tariff rate on vehicles will stand at 13.8 percent, while that on auto parts will be 6 percent. China pledged last month to open up its auto market 

Import tariffs for 79 items of auto parts will be reduced to 6 percent from the current levels of 8 percent, 10 percent, 15 percent, 20 percent, and 25 percent, down 46 percent on average.
"China safeguards a multilateral trade system. Lowering auto import tariffs is a major step to expand reform and opening-up," the MOF said in the statement.
After the move, the average tariff rate on vehicles will stand at 13.8 percent, while that on auto parts will be 6 percent. The adjusted rates will be "in line with the reality of the country's auto industry," the statement reads.
Cutting auto import tariffs to a significant degree will help the advance of supply-side structural reform, benefit the structural adjustment, transformation, and upgrading of the auto industry, and guide the improvement of quality and efficiency in auto products, according to the ministry.
It will also enrich domestic market supply and meet the diverse needs of the people to provide more plentiful and affordable consumer experiences, the ministry said. 

China pledged last month to open up its auto market, announcing a timeline to remove long-standing caps on foreign ownership of automotive ventures and saying it would cut tariffs on imported cars soon.

READ MORE: Positive Sino-US trade talks 'benefit both countries, world'

The move will boost overseas carmakers, especially those that import premium-end cars to China such as Germany's BMW, electric car maker Tesla Inc and Daimler AG's Mercedes-Benz. 

China and the US issued a joint statement on Saturday on recent trade consultations, saying both sides have agreed to take effective measures to substantially decrease the US trade deficit in goods with China, meaningfully increase US agriculture and energy exports, and strengthen cooperation on intellectual property protection, among other things. 

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