· China's auto tariffs will be lower than the average in developing countries

After the tariff reduction on July 1 this year, the tariff level of China’s autos will be lower than the average of the developing countries.
Expanding opening up and accelerating the transformation of China's auto industry
Our reporter Li Wei
"I heard that I want to reduce taxes, but I didn't expect to come so fast." On May 18th, Mr. Zhang of Shanghai just mentioned the newly bought imported Mercedes-Benz. I did not expect that the imported car immediately ushered in policy adjustment. On May 22, the State Council Tariff Commission issued a notice stating that the import tariffs on automobiles will be considerably reduced. A number of foreign-funded car companies welcomed this and successively lowered the retail price to benefit consumers.
Although the tariff cuts will not be officially implemented until July 1 this year, the auto market has continued to maintain high fever due to the new tariff policy in the past week. Multi-party analysis pointed out that the reduction of automobile tariffs will produce favorable prices and consumption, but its significance is not limited to this. This is one of the series of measures taken by China to deepen reform and expand opening up according to the actual economic development, and to meet the growing needs of the people. At the same time, the diversified demand will further promote the transformation and upgrading of the domestic auto industry, and ultimately bring longer-term consumer benefits.
Lowering tariffs is in line with the actual development
——The tariff level of automobiles has been gradually reduced. This tax reduction has been lower than the average of developing countries.
The State Council Tariff Commission Committee announced that since July 1, 2018, the import tariffs on complete vehicles and parts have been reduced. 135 tax numbers with a vehicle tax rate of 25% (including small passenger cars of 9 or less, large and medium-sized passenger cars, light goods vehicles with a weight of 5 tons or less) and 4 tax numbers with a tax rate of 20% (including the weight of the car) The tax rate for petrol-type trucks of more than ton and diesel-duty trucks weighing between 5 and 20 tons will be reduced to 15%. The tax rates for auto parts tax rates of 8%, 10%, 15%, 20%, and 25% were reduced to 6%.
According to the "Import and Export Tariff of the People's Republic of China", China's automobile vehicles have a total of 178 tax numbers. Before the tax reduction, the average MFN tax rate of China's auto vehicles is 21.5%, and the tax rate is between 3% and 25%. After the tax reduction, the MFN average arithmetic tax rate is 13.8%, and the tax rate is between 3% and 15%.
“The level of tax reduction has been lower than the average level of the developing countries.” The relevant person in charge of the Office of the Customs Tariff Commission of the State Council said that compared with the small passenger cars of 9 or less, the tariff rate is 15% in China and 9.8 in the EU. %, South Korea is 8%, India is 60%, and Brazil is 35%. In general, the tariff rate of China's auto after tax reduction is in line with China's industrial reality.
In fact, in recent years, China’s automobile tariff level has been gradually lowered. On January 1, 2001, China reduced the tariff rate of imported models with a displacement of more than 3.0L to 80%, and reduced it to 70% below 3.0L; then adjusted once a year; on January 1, 2006, China will again import tariffs on automobiles. The tax rate was reduced from 30% to 28%; on July 1, 2006, half a year later, China's import vehicle tariff rate was adjusted to 25%.
If this is the historical axis of the evolution of China's automobile tariffs, then the specific year of 2018, which is enlarged to the axis, has already been arranged.
At the Boao Forum for Asia held in April this year, China announced that it will reduce vehicle import tariffs considerably during the year; further, this year's "Government Work Report" also proposed to reduce automobile import tariffs. Therefore, the reduction of import vehicle tariffs has long been expected in the market.
"Adjusting the import tariffs of automobiles is a natural matter." Shi Jianhua, deputy secretary general of China Association of Automobile Manufacturers, analyzed this reporter. On the one hand, the tariff reduction is a common commitment of all members of the WTO. Since China's accession to the WTO, China has gradually liberalized the automobile market. This is a measure of mutual benefit for our member states. On the other hand, China has long been importing. The arrangement of tariff reduction for automobiles is an initiative in line with our development stage.
In recent years, China's automobile industry has gradually grown and developed, forming a complete and complete industrial system. The proportion of China's automobile market has also reached 30% of the world. Shi Jianhua said that after the development of domestic automobiles in various stages, the quality, type and performance of the products are not bad, and they have already reached the level of further integration with the international competition. It is time to push the Chinese automobile industry to be more open. Under the conditions to achieve better development.
Foreign companies welcome China's opening
——The price of imported cars has been lowered, and the price of consumers ultimately depends on the pricing strategy of car companies.
The news of the tariff reduction came out. Mr. Zhang was pondering an account. The tariff rate was from 25% to 15%. How much can the car price drop? This is also the issue that consumers are most concerned about.
According to the current regulations of China, there are three types of taxes to be paid in the import chain: import duties, consumption tax and value-added tax. The calculation of these three types of taxes is in order. The import tariff is based on the CIF price; the taxable price of the consumption tax is the CIF plus tariff, and the tax rate of the consumption tax is divided into 7 files according to the engine displacement, ranging from 1% to 40%; The taxable price is the landed price plus tariff and consumption tax.
The relevant person in charge of the Office of the Customs Tariff Commission of the State Council gave an example: the import price of a car is RMB 240,000, the tariff rate is 25%, the tariff is 60,000 yuan; the tariff rate is reduced to 15%, and the tariff is 36,000. Yuan, reduced by 24,000 yuan.
Affected by lower tariffs, the value-added tax and consumption tax on automobile imports will also be reduced accordingly. Assuming that the imported vehicle exhaust volume is from 2.5 liters to 3.0 liters (including 3.0 liters), the corresponding consumption tax rate is 12%. Then the corresponding consumption tax decreased by 0.33 million yuan, and the value-added tax decreased by 0.43 million yuan. After comprehensively adjusting the three types of taxes, the tax on import links after the tariff reduction was reduced from 155,400 yuan to 133,800 yuan, and the reduction in tariffs brought about a total of 31,600 yuan in tax reductions on import links.
However, the CIF price is 240,000, plus the import link tax of 395,400, but the market guidance price may be as high as 900,000. The huge price difference between them is still somewhat incomprehensible. What are the factors that determine the price of imported cars?
It is understood that the market guidance price is actually the price that the automakers must pay according to these taxes, import customs clearance, commodity inspection fees, sellers to rent or purchase venues, hire employees, etc., plus a certain profit. It has been calculated that, regardless of the CIF price and consumption tax rate of imported cars, when the import tariff rate is reduced from 25% to 15%, the price of imported car terminals is about 8%. How much price reduction can consumers enjoy in the end depends on whether the car company adjusts the guidance price, and to a certain extent depends on the pricing strategy of imported car companies in China.
From the current point of view, the first time the car company's response is more optimistic, which is conducive to consumers. Imported brands such as Volvo, Jaguar Land Rover, Porsche, BMW, Audi, and Toyota all expressed their welcome to China's open policy, which will help further enhance market vitality, and will evaluate and adjust the current price system to serve consumption at a more optimal price. By.
Many brands immediately announced specific price adjustment policies. Among them, the fastest action is Tesla. On the day of the tax reduction policy, Tesla updated the price comprehensively, and the price reduction range of each model ranged from 48,000 to nearly 100,000 yuan. This also caused a wave of buying craze. A salesperson from a Tesla direct experience store in Beijing told reporters that “the intentional consumers are getting more and more. At the 12 o'clock on the same day of the policy release, there are customers asking questions. The transaction volume is almost normal. 10 times."
Before other brands announced specific price adjustment policies, more consumers are still holding on to the currency. A staff member of the Beijing Beichen Asian Games Village Automobile Trading Market Center told reporters, “The customers who come to see the car have an upward trend, but it is not very obvious. The purchase will definitely grow, but the response is not so fast, and some customers are waiting, Some may not know about policy changes."
The transformation and upgrading of the automotive industry is the key
——Imported cars account for about 4% of the Chinese market, and tax reduction has limited impact on the domestic auto industry in the short term.
In addition to how much benefit consumers can get, there is much discussion about how the tariff reduction will affect the domestic auto industry.
According to the statistics of China Association of Automobile Manufacturers, in 2017, China's automobile production and sales were 29.015 million and 28.879 million, respectively. Imported cars account for about 4% of the entire Chinese market.
Look at the structure again. According to the statistics of many institutions, about 80% of imported cars in 2017 are concentrated in more than 250,000, while domestic independent brands and joint-venture brands are mostly below 250,000 yuan. Therefore, imported cars and domestically produced cars show a stronger differentiated competitive relationship, and the consumption overlap interval is smaller.
“The tariff reduction may have an impact on the quantity and price of imported cars, but the intensity will not be too great.” Shi Jianhua said that almost all current product lines, conventional models, joint ventures or domestic brands have been produced, domestically imported cars. The proportion of demand is not high. At the same time, imported cars are mostly high-end, luxury and personalized models, and this part of consumers is not so sensitive to price, and the tariff reduction has limited impact.
However, in the long run, the trend of further importing of imported cars may still bring some domestic cars to squeeze. With the upgrading of consumption and the continuous development of domestically produced cars, the market competition will be more intense, which will also promote domestic cars. Higher quality, higher performance and other directions.
“The urgency of domestic brands will definitely be strengthened. Under the circumstance of constant tariff reduction, our Chinese autos and brands must improve their competitiveness and meet the challenge of imported cars, mainly focusing on products.” Shi Jianhua said.
Related companies have already felt the pressure. A person in charge of a car accessory manufacturer in Yangzhou, Jiangsu Province told reporters that under the background of tariff reduction, it is imperative to reduce the price of automobiles. This will bring challenges to domestic auto manufacturing and supporting enterprises, and the urgent need for cost management and transformation and upgrading. Sex is stronger.
Not long ago, the country relaxed the restrictions on the foreign shares of the automobile industry, and by this time the tariff reduction, the automobile industry ushered in a new situation of further opening up. As the relevant person in charge of the Office of the Customs Tariff Commission of the State Council said, at present, the new generation of information and communication, new energy, new materials and other technologies and the automotive industry are accelerating integration, the industrial ecology is undergoing profound changes, and the competitive landscape is fully reshaped. I hope that through the opening up, China's auto industry can strengthen competition, adjust its structure, and accelerate transformation.

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