On May 22, according to the official website of the Ministry of Finance of the People's Republic of China, starting from July 1, 2018, the import tariffs on autos and auto parts were reduced. The Ministry of Finance announced that in order to further expand reform and opening up, promote supply-side structural reforms, promote the transformation and upgrading of the automobile industry, and meet the people's consumer demand, starting July 1, 2018, reduce the import tariffs on vehicles and auto parts. Tax rates for 135 tax numbers with a full vehicle tax rate of 25% and 4 tax numbers with a tax rate of 20% will be reduced to 15%, and tax rates for auto parts will be 8%, 10%, 15%, 20%, and 25 respectively. The tax rate for a total of 79 tax numbers dropped to 6%. According to the relevant person in charge of the Ministry of Finance, the reduction of import tariffs is a major measure for China to maintain the multilateral trading system and further expand reform and opening up; after tax reduction, the average tax rate of China’s auto vehicles is 13.8%, and the average tax rate for parts and components is 6%. The actual situation of China's auto industry. This move will also bring a richer and more affordable consumer experience to domestic consumers. In this connection, the reporter interviewed Wu Yabin, dean of the Institute of Global Value Chains of the University of International Business and Economics. He believes that this time the downward adjustment of import tariffs is an independent, step-by-step, and step-by-step opening measure. "The magnitude of this adjustment has been relatively large. This is the result of comprehensive considerations, both fulfilling China's commitment to the world and taking into account the domestic automobile industry's affordability." Wu Yabin told reporters, "and from the perspective of the global industrial chain This time, the reduction of import tariffs on parts and components is more profound than the reduction in the tariff of complete vehicles. It will even affect the reconstruction of the industrial chain." He said that the specific impact will be reflected in three aspects: First, the reduction of import tariffs for parts and components will enhance the competitiveness of domestic manufacturers of foreign brands that use imported parts as key components; second, it will increase the number of Chinese cars. The competitiveness of manufacturing will help China become a big production base and export base in the world. Third, in the domestic market, it will benefit domestic consumers. As for the impact of the import tariff reduction on domestic parts and components manufacturing companies, Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Association, said that because the two are misplaced, they will not have a direct impact. ZF, one of the world's largest auto parts suppliers headquartered in Germany, told reporters that, first of all, they support free and fair trade. As a company operating in 230 locations in 40 countries around the world, when ZF sets out operations and production strategies, tariffs must be considered, but not the only one. With their global scale and strong production capacity, they have enough flexibility to meet the needs of global customers, including China, the most important market. On May 22, when the news came out, it was positively responded to by many car brands. First of all, Tesla, who was recently in a quagmire, issued price cuts. They stated that Tesla has adjusted the prices of Model S and Model X vehicles on sale in Mainland China thanks to the reduction of import tariffs on complete vehicle vehicles, and has already reached all sales outlets in China. It is understood that the price drop of Tesla Model S is about 40,000 yuan, and that of Model X is about 50,000 yuan. Tesla also stated that all undelivered vehicles will be delivered at the vehicle price under the new tariff regardless of when the vehicle is cleared. A small number of quasi-cars will enjoy the adjusted prices at the same time, and they can pick up the cars as soon as possible without having to wait until the new tariffs come into effect on July 1 to enjoy the corresponding discounts. In addition, Toyota, BMW, Audi, Porsche, Jaguar Land Rover, Volvo, Lincoln and other auto brands have also voiced their enthusiasm and support for the new policy. Among them, Jeep said that its Grand Cherokee model officials up to 65,000 yuan. For the current tariff adjustment, the ultra-luxury brands such as Maserati and Bentley, which have the largest downward adjustments in the future, are also conducting internal audits and valuations. The latest retail prices will be announced in the near future. In view of the fact that the specific price reduction figures are still not entirely clear, the reporter quoted a report from Orient Securities, which gave a practical measurement case as a reference: it is expected that when the tariff is reduced from 25% to 15%, the imported Audi Q7 terminal sales price will decline by 5.1. %, Lexus NX terminal price or down 6.7%, BMW X3 M40i terminal price or drop 6.5%. Taxes on imported vehicles are mainly determined by tariffs, consumption tax and value-added tax, and are distributed in various aspects. The Ministry of Finance also stated that the price is determined by various factors. Import tariffs are only one of the factors. Whether or not auto vehicles and parts and components will continue to reduce import tariffs will be mainly determined by the competitiveness of the auto industry and development and changes. . Cui Dongshu said that in the short term there is no room for tariff reduction. Wu Yabin also believes that the reduction in tariffs will not have much impact on the final sales price, and the government will also consider liberalizing trade through other means such as joint stocks than liberalization. Hot Forging Towball,Towing Parts,Truck Hitch Ball,Forged Trailer Hitch Ball Wenzhou Lianggong Forging Co.,Ltd. , https://www.lianggongforging.com
Relatively more or less far-reaching impact of import tariffs on spare parts than complete vehicles