As everybody knows, the EU car market is among the most competitive and challenging – if the company wants to be present on the market, it must fulfill many rules and regulations. Whole-car import is considered especially troublesome, so most of the small and medium importers would rather purchase car parts. The value of Chinese car part market is estimated to reach $70 bln, the parts being imported are usually not very complicated, but it also gradually changes.
Every importer is particularly interested in duty regulations. In the case of auto parts market, the past trade relations between EU and China cast a shade on present state of affairs: in 2008 WTO Appelate Body voted in favour of Western countries, when they entered the dispute with China about auto part tariffs. Beijing established relatively high duty rates on car parts, so by now EU also uses several tariffs, which depend on the type of car parts. Some of those tariffs are presented below:
|Name of compontent||Duty rate for China|
|Safety belts||3% (+VAT)|
|Gear boxes and parts thereof||3% (+VAT)|
|Silencers (mufflers) and exhaust pipe||4.5% ( +VAT)|
|Bodies (including cabs), for the motor vehicles||4.5% ( +8%/23% VAT)|
|Bicycle frames and forks||4,7% (+8%/23% VAT)|
As you can see, the duty rate should be checked for every kind of part separately. Still, importing car parts, however heavily taxed, is more reasonable than the whole-car import – for example, duty tariff for vans is 22%, and for bicycles – 48.5%!
This level of duty rates is related with the EU protectionist stance over trade policy, so we should not expect significant duty decrease. However, Chinese car part prices are still competitive, especially when we compare them with the OEM car parts. Chinese b2b platforms are filled with auto parts offers, while purchasing, we should of course remember about basic safety measures.