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China to significantly cut auto import tariffs from July

Source: Xinhua| 2018-05-22 17:32:51|Editor: ZD
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#CHINA-AUTO IMPORT TARIFFS-CUT (CN)

Photo taken on May 22, 2018 shows an import vehicle exhibition hall in Nantong, east China's Jiangsu Province. 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. 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. (Xinhua/Xu Congjun)

BEIJING, May 22 (Xinhua) -- 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.

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.

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 ministry said.

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.

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