China to cut auto import tariffs from July

China to cut auto import tariffs from July

Beijing: China will cut import tariffs on vehicles and auto parts starting July 1, the Finance Ministry announced on Tuesday.

For car imports, the 25 per cent tariff levied on 135 items and the 20 per cent duty on four items will both be slashed to 15 per cent, Xinhua news agency reported.

Import tariffs for 79 items of auto parts will be reduced to 6 per cent from the current levels of 8 per cent, 10 per cent, 15 per cent, 20 per cent and 25 per cent.

“China safeguards a multilateral trade system. Lowering auto import tariffs is a major step to expand reform and opening-up,” the ministry said.

After the move, the average tariff rate on vehicles will stand at 13.8 per cent, while that on auto parts will be 6 per cent. The adjusted rates will be “in line with the reality of the country’s auto industry”.

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 as well as guide the improvement in 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.

IANS