A wel­comed boost for par­al­lel im­port deal­ers

China Daily (Canada) - - SHANGHAI - By YU RAN in Shang­hai

yu­ran@chi­nadaily.com.cn

Deal­ers of par­al­lel im­port ve­hi­cles in the China (Shang­hai) Pi­lot Free Trade Zone will enjoy cost sav­ings thanks to a three-month bonded ware­house ser­vice which will ex­empt them from tax, ac­cord­ing to a no­tice is­sued by Shang­hai Cus­toms on June 30.

In a par­al­lel im­port busi­ness, auto deal­ers di­rectly pur­chase ve­hi­cles from a for­eign pro­duc­tion base or dealer. Prices for par­al­lel im­port cars are nor­mally 10 to 20 per­cent lower than the prices of­fered by au­tomaker-au­tho­rized deal­ers.

“It usu­ally takes about two months to sell an im­ported car. This new pol­icy will help en­ter­prises save the cash re­quired for tax pay­ments and make it less stress­ful when finding a buyer,” said Wang Hao­ran, as­sis­tant to the chair­man of China Green­land Run­dong Auto Group Lim­ited, a lux­ury auto brand dealer.

The State Coun­cil pi­loted the par­al­lel im­port ve­hi­cle pro­gram in the Shang­hai FTZ in 2014 be­fore ex­tend­ing it to other free trade zones in­clud­ing Tian­jin, Guang­dong and Fu­jian prov­inces. In 2015, China’s top cer­ti­fi­ca­tion au­thor­ity stream­lined the 3C (China Com­pul­sory Cer­ti­fi­ca­tion) ac­cred­i­ta­tion process for par­al­lel ve­hi­cle im­porters, al­low­ing them to ob­tain the cer­ti­fi­ca­tion with­out the au­tho­riza­tion from the man­u­fac­tur­ers. Ex­perts con­sid­ered this to be an im­por­tant step in boost­ing the growth of the par­al­lel im­port ve­hi­cle in­dus­try.

Pre­vi­ously, only au­tho­rized deal­ers could ap­ply for a 3C in China. In­de­pen­dent deal­ers used to get around reg­u­la­tory pit­falls by im­port­ing cars in the name of af­ter­mar­ket tun­ing fac­to­ries.

In April 2016, the Min­istry of Com­merce sim­pli­fied

The par­al­lel im­port ve­hi­cle in­dus­try is more promis­ing than ever as the two ma­jor ob­sta­cles — 3C cer­ti­fi­ca­tion and the bonded ware­house — have been tack­led.”

an of­fi­cial of the eco­nomic devel­op­ment depart­ment in the Shang­hai FTZ’s bonded area

im­port pro­ce­dures for im­ported ve­hi­cles and on June 21, a 3C was granted for par­al­lel im­ported ve­hi­cles in the Shang­hai FTZ, pro­vid­ing them with a le­git­i­mate identity for the first time.

“The par­al­lel im­port ve­hi­cle in­dus­try is more promis­ing than ever as the two ma­jor ob­sta­cles — 3C cer­ti­fi­ca­tion and the bonded ware­house — have been tack­led,” said Sun Jing from the eco­nomic devel­op­ment depart­ment in the Shang­hai FTZ’s bonded area.

“Be­cause of this, the Shang­hai port is ex­pected to ob­tain about 30 to 40 per­cent of the na­tion’s par­al­lel im­port vol­ume in two to three years.”

Since 2006, the amount of im­ported cars in China has been steadily grow­ing, hit­ting a peak of 1.4 mil­lion in 2014. China im­ports about 1 mil­lion cars ev­ery year, 10 per­cent of which are par­al­lel im­ported ve­hi­cles. In 2015, 408,000 ve­hi­cles were im­ported through Shang­hai Cus­toms, mak­ing the city a ma­jor hub for such ve­hi­cles in China.

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