Auto Taxes to be Cut

Related entries: General, Risk & Law, Trading

The on-going trade spat over auto parts (see here) has helped push China to cut import duties on some auto parts. The People’s Daily reports:

    “With the approval of the Chinese government, the Customs Tariff Commission of the State Council, has decided to lower the tariffs on cars, SUVs (sports utility vehicles or cross-country vehicles), and mini-buses from 28 percent to 25 percent, said the ministry.

    Meanwhile, the import taxes on auto parts, such as auto bodies, underpans, medium and low emission gasoline engines, will be reduced to 10 percent from a range between 13.8 percent and 16.4 percent.”

It looks like China was playing for time with a weak hand on this one and, as noted in my earlier post (“Trade Spats Update: Shoes (Fighting); Autos (Negotiating); TVs (Watching)“), has opted to negotiate a settlement. The shoes are unlikely to go the same way.

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3 Responses to “Auto Taxes to be Cut”

  1. elaine Says:

    I don’t know if this would be treated as a good news or a bad news. Though that is the case, one thing seems to stand out-there have been a lot of changes in China’s laws and tax regulation seems to be taking place this year.

  2. China Law Blog Says:

    Jeremy — Do you know how China’s car emission standards compare to those in the U.S. and/or Canada?

  3. Jeremy Gordon Says:

    Dan, I have not done any work on emissions, but it does seem that China has moved to stricter emission standrads over the past couple of years. This China Daily article has more (adopting Euro III emission standard by 2008), but no comparison with the US: http://www.chinadaily.com.cn/english/doc/2004-07/07/content_346332.htm.

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