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China - Customs

Author Topic:   Import of used motor cars in China
LWS Consulting
posted 13 December 2005 11:14 AM           
There have been many enquiries in this SME Forum on importing of used motor cars in China. These enquiries have centered on importing regulations, procedures, and other hard facts on the customs values, customs duties, and other associated taxes, etc.

In actual fact the imports of used motor cars are subject to used machinery and electrical goods on the prohibited list in China. It seems that this administrative rule is not that clear, as there is no enforceable law really forbidding the import of used motor car in the mainland. It is also noticeable that there are used motor cars particularly those in the classic, rare and prestigious models imported from abroad to run on roads at China's main cities, or even in the second hand cars auction market.

The information provided in this Forum are at best hard facts on import duties and taxes prevailing in the mainland. Getting approval for importing used motor vehicles to China is extremely difficult to come by, and on individual case to case basis. In order to secure an import approval from relevant authority, the applicant must produce strong and valid reasons for bringing in the car from abroad. Some successful cases include the returning student who is employed to work in a substantive foreign invested enterprise, and prepared to reside in the mainland for a certain period of time, and foreign diplomatic corps and businessmen who work and live in the China.

If one attempts to import ordinary used motor cars for no particular reasons, or for sale in the market, or parts and accessories including right hand driven cars for further re-assembling, his chance of getting an access is only very slim.

As many readers know the motor car market in China is extremely buoyant following rapid economic developments in the past years. Many world renowned car producers have already ventured into China for production and assembly of motor cars to cater for the substantial and growing market. And as reported Chinese People Daily the China automobile market has increasingly been moving up markets too.

Mindaugas
posted 17 December 2005 12:07 PM           
"In order to secure an import approval from relevant authority,
the applicant must produce strong and valid reasons for bringing in the car from abroad." So can i start a used car business in China? I want to sell cars imported from Europe on the name of my company, is that a strong reason?

David
posted 17 December 2005 12:13 PM           
HI, I am wanting to import my S 600 Mercedes (6 litre) from the USA to Xiamen, China. Do you know if this is possible? And what sort of charges i would incure from the China side? Is this a worthwhile task or not worth it?

Moderator
posted 31 December 2005 10:13 AM           
The import duty and other taxes associated with imports of motor vehicles into China could amount to 50-60% of the customs value of the goods. If you peruse the postings elsewhere in this Forum, import of used machines and electrical machinery (including used motor vehicles) is on the list of prohibited goods. Approval for such imports is granted only in special circumstances and on an individual case basis.

Moderator
posted 31 December 2005 10:27 AM           
For Mindaugas: Please also refer to other postings elsewhere in this Forum stating that the imports of used motor vehicles are prohibited. Approval by relevant authority is granted only in very special circumstances and on case to case basis. In general the special approval is given to resident diplomats or businessmen with substantive investments in the mainland.

As you may know China is a big and booming market for motor cars following rapid economic development over the last two and half decades. Most world auto producers have entered into joint ventures or invested in the production and assembling of their car models for the domestic market in China. Although the second hand car market is also growing rapidly in the country but it is believed that these cars are locally replaced models rather than imported ones.

name supplied
posted 23 January 2006 06:48 PM           
I would like to bring my 1969 GTO with me (classic car) to use when I am in China on business and leave it there in my partner's care in between visits. How can I accomplish this?

CCC US Office
posted 24 January 2006 11:10 AM           
Car import for personal use is highly prohibited in China. The easy way is that you are a returning Chinese student studying oversea or a diplomat, or you own a company in China with certain capital registered. Otherwise, it will be very difficult and very expensive to import the car (either new or used) into China for your personal use. If you could pay that expensive cost and do want to import the car, you may contact us at

Moderator
posted 31 January 2006 03:54 PM           
Import of used motor vehicles is prohibited in the mainland. Please read more from this link and http://forum.tdctrade.com/forum/Forum7/HTML/000120.html

An American in China
posted 11 March 2006 11:33 AM           
To Moderator: You should start a new sub-forum in SME with the title "No, You Can Not Import Your Used Car Into China". Maybe this would save a lot of time for everybody.

Dan
posted 09 October 2006 10:29 AM           
How about driving car into China and then just keeping it here? For example i might make a drive from Europe to Shanghai. Would I be able to drive the car into China from Russia or Mongolia and then what would happen or need to happen to the car once I am in China with it? Could I keep it here as I work and live here or would I be forced to remove it from China?

Moderator
posted 18 October 2006 02:07 PM           
We would suggest you consult your local automobile association before you embark on this very long journey.

name supplied
posted 02 November 2006 10:31 AM           
To Dan, I drove from Germany to Manzhouli, like every other custom in this world, since my paperwork was incomplete, I had to store my car in a very nice custom shed and collected it 9 months later after I toured China by various means of transport. Indeed, as the moderator mentioned, a very long journey. But it was worth it. Wish you luck, it should be a very special car, and it'll cost you to keep the old friend in China.

name supplied
posted 12 January 2007 09:49 AM           
What about importing performance enhancing auto parts (new and used) to china?

Moderator
posted 20 January 2007 04:22 PM           
There is no separate HS code for the mentioned products in China import tariff schedules, but included in HS heading 8708. Import duties can range from 6% to 25% plus 17%. If you want to peruse the appropriate HS codes and import duty, please click here for the China Customs website.

name supplied
posted 29 January 2007 10:22 AM           
There are several posts on this website that say directly or indirectly that importing a car into China for personal use is prohibited. This is NOT true. In 2004, I legally imported my 2001 Pontiac Trans Am 5.7L V8 from Boston to Beijing for personal use. Main restriction is that I cannot resell it in China within 5 years. You can read a general description of this on my website www.beijingmotorsports.com

Zabster
posted 05 February 2007 04:06 PM           
I read all the info here. Now, i am a full-time student in Beijing. My parents work here. I have student visa-residence permit. My father's got a working visa. We live here full time, and i would like to import a USED car from the US. 1) What everybody says - is all different. Some people say i'm not allowed to sell it after i bring it in. Some say otherwise. What's the point? Am i allowed to sell it, or not? 2) Another thing is trucking a car from HongKong. if i buy a car in HK, and try to bring it on the train or in a truck to Beijing. Isn't it the same procedure of customs and taxing? To me, HK rules, and mainland china are too different from each other, and it looks like it the same stuff to import a car from there, or from the US. 3) Is it possible to get rid of taxes if when shipping car, i plan to register it for my friends company's representative office in Beijing? 4) How do they calculate a tax of this car for example. A 1992 Chevrolet Camaro, all the papers, all the taxes in the US paid good. -Car is modified, engine has been replaced with a new one, like original, chevrolet, but rebuilt, but all the papers are done legally, so it's fully legal in the US. -Engine has very small mileage (15000 miles) as it's rebuilt and modified -Suspension, gear-box is all modified, and it's very difficult to calculate the original mileage i guess. -I buy it for 8000US, and that's the price i'm going to claim at the customs. How are they going to calculate the TAX i need to pay? For this car Thanx. If possible, please reply on my E-mail:

Moderator
posted 20 February 2007 03:59 PM           
Import of used motor cars into the mainland is generally prohibited except it is specially permitted. Import duty is 25% plus 17% VAT and 3-20% consumption tax depending on capacity. The tax and duty are same when the goods are imported via Hong Kong.

name supplied
posted 24 March 2007 02:51 PM           
I have lived in Beijing for a few years and noticed some information regarding importing used cars. Anyone interested could find more information from the people at http://www.car-solution.com/ I read an article in a local publication ("That's Beijing") about an American who imported his Firebird to Beijing.

Lewis
posted 30 May 2007 10:46 AM           
I am the person the above poster mentioned. I imported my Pontiac Firebird Trans Am for personal use from Boston to Beijing. I am a teacher, not a business man or diplomat. It was easy to import it in terms of procedure. I paid about 100% for all taxes. Many of my friends in China have imported their cars from USA and Europe to Beijing for personal use. The regulation that says you cannot import is outdated. Why the moderator and others keep saying it is prohibited? For old cars maybe too hard but for relatively new cars mei wenti .Or maybe many years ago it was too hard but now it's not that difficult--just time consuming and expensive. Again, read it in my website www.beijingmotorsports.com

Moderator
posted 30 May 2007 12:11 PM           
We append below part of the ‘Policy of trading of motor vehicles issued by the China Ministry of Commerce on 12 December 2006 on the prohibition of used motor vehicles into China, Chapter 7 and Article 37 (text in Chinese):

第七章 汽車對外貿易
  第三十六條 自2005年1月1日起,國家實施汽車自動進口許可管理,所有汽車進口口岸保稅區不得存放以進入國內市場為目的的汽車。
  第三十七條 國家禁止以任何貿易方式進口舊汽車及其總成、配件和右置方向盤汽車(用於開發出口產品的右置方向盤樣車除外)。
  第三十八條 進口汽車必須獲得國家強制性產品認證證書,貼有認證標誌,並須經檢驗檢疫機構抽查檢驗合格,同時附有中文說明書。

David
posted 12 September 2007 05:18 PM           
I did a bit of research and came across this from China's Custom's site. http://www.customs.gov.cn/YWStaticPage/419/a7935ea8.htm (in Chinese) This gives me the impression that it is possible to import a vehicle (new? used?) without having to pay for import duty. I have also read somewhere on this forum that it is indeed possible; however, I understand there are some constraints and requirements. Can the moderator please elaborate on this? I will be moving to Shanghai next Jan. (job offer from a Chinese company), will this be a good reason to import my 6 months old car?

Moderator
posted 24 September 2007 11:21 AM           
As you read in the forum imports of used motor vehicles in China are basically prohibited except for special circumstances and approval by relevant authorities. It is alleged that special approvals are available for expatriates working in foreign invested companies, diplomatic personnel and returning scholars and graduates. Upon approval duties and VAT may be exempted. However there is no public statement stipulated the rules and procedures for application. We believe that this will be considered on an individual basis. The mentioned China Customs circular refers to the rules and regulations on the transfer of ownership of vehicles imported free of duties by these people holding special status.

foxo
posted 29 September 2007 11:54 AM           
I want to send new luxury cars from US to China for sale, especially some new models. I don't own a company in the US, planning just buy the cars under my own name and send them to China. I don't have problems paying all kinds of taxes, since I know I will still have profit. I am just not sure whether this is illegal in the US. Can somebody here help me with this? Thanks!

Moderator
posted 04 October 2007 04:10 PM           
We believe you will need an importer of automobile in the mainland to arrange all the necessary documents to be presented to relevant authorities for approval on exhaust emission and noise control system, licensing requirements etc. To search these importer contact details please click here for the World Importers Net (China) provided by the China Ministry of Commerce.

Vincent
posted 16 November 2007 10:39 AM           
Hi I read all your postings and found them extremely useful. Here is my question: What are the measures a resident in China need to take, if he/she wants to buy a used car from his friend who lives in USA? I don't know anything about export/import and customs procedures... Obviously he/she is not a dealer, and won't apply for a "automatic import license"? What I can speculate: 1, USA friends sends him/her the copies of documents (purchase orders, insurance, freight cost) 2, He/she finds someone in China who has this AIL license 3, go to the customs and pay the taxes 4, pick up the car 5, register the car and ministry of public safety Thanks! Vincent

Celes Isaac
posted 23 November 2007 10:51 AM           
Hello Guys. I am a teacher here in Jiangsu province. I saw a really nice 1990 Ford Escort Model on a German used car site. I will really like to buy this car and use it for the time I will be in China. Is this possible? Celes

Moderator
posted 27 November 2007 01:53 PM           
For Vincent 16 Nov: As you read our Forum you should be aware that import of used motor vehicle is basically banned without prior approval from relevant authorities. The resident in China should consult local trade and commerce bureau and ministry of transport on how and where to apply the relevant licence for importing the used car into China.

name supplied
posted 28 November 2007 10:24 AM           
what about shipping brand new cars with clean title for gifts purposes, do i just pay taxes? and say for a car that cost me $50,000 to buy in US, do i have to pay for sales tax in US and taxes to enter china?

Jason - Allied Motors
posted 03 December 2007 10:09 AM           
Hello all, I saw this posting and wanted to mention that I am a used car/new motorcycle dealer in the U.S. Las Vegas, NV. If you have a need to purchase any vehicles please let me know. Just be sure that you have everything set up legally if you plan to import them to your country.

Moderator
posted 10 December 2007 10:07 AM           
replying [name supplied 28 Nov] You will have to pay 25% import duty, 17% VAT and between 3-20% consumption tax in China for the value of the car you bring into the mainland. Please click here for more information about importing a car into China.

James
posted 17 December 2007 03:22 PM           
I'm an expat living in Shanghai for a couple of years. I imported my car from Canada last year. It was extremely complicated. At begin, I was heard it's not allowed to import used cars from overseas, and then a friend of my recommended shangcar, I talked with people from http://www.shangcar.com/ they were really helpful, finally I had my car drive in Shanghai. Anyway, I will not try to import used car from Canada if I buy a car next time.

China Expat
posted 07 April 2008 03:55 PM           
I am about to move to Shanghai as an expat for a large US company. It is good to hear that we can actually bring personal car with us. Can some one post links, names, companies, etc. that I can actually use to get the process started? Can someone also post the policy link so everyone can understand? Thanks

steve
posted 05 May 2008 03:11 PM           
I’m wondering if there are also regulations to import used heavy trucks (7t - 25t)to china and what is the tax rate.

LWS Consulting
posted 07 May 2008 09:58 AM           
There is no official guide to the public planning to import a used motor car into China. As you may know from the postings here in this forum import of used car is basically banned, except for special personnel with relevant quota and government approval. We would suggest you contact local automobile dealers in TDC sourcing and enquire whether they are able to help.

steve
posted 08 May 2008 10:05 AM           
i know that there are regulations for cars that why I’m asking about trucks. i want to import very big freight trucks.

Mario
posted 11 June 2008 05:05 PM           
Hello! I am going to China soon, I will stay 2 years so I consider to buy a car there. I have a diplomatic status. How can I buy a "tax free" car in China? Thank you for reply.

Moderator
posted 18 June 2008 03:48 PM           
Import of used electrical and electronic machinery including motor vehicles are basically banned in China, except with special approval and under special circumstances. Import duty of motor vehicles is levied at 25% plus 17% VAT.

nabil
posted 22 September 2008 05:45 PM           
I'm importing my used car bmw x5 2001 is it allowed the model in beijing

maxin
posted 23 September 2008 11:07 AM           
@nabil with a 2001 X5 you will probably not able to meet the emission standards in beijing. but i could doube ckeck this for you. i also can assist to legally import a used car to china. please contact maxindg@gmail.com for more details.

Bernard Tan
posted 24 September 2008 10:58 AM           
Hi, Can you tell me what the import duty of 2nd hand cars in China is and how the value of the cars are determined. I heard that there was an increase in car import tax in July.. Is that true? Please advise..



      

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