Import rules and regulations on Japanese used vehicles in China

Japan or “The Land of Rising Sun” is known for its values of perfection and creativity. With Japanese products, may it be electronic or cars, one can easily see the imagination and enthusiasm for work in them. Japanese automobile industry started its journey with the launch of new small cars to reach a place where it is at present. Day by day the popularity and the market of Japanese vehicles is increasing tremendously. Along with new vehicles, Japanese used vehicle are also getting popular among people. Every day, thousands of used vehicles are exported from Japan to various countries across the world. Used vehicles from Japan are generally in good condition, reasonably priced, and it is quite easy to find spare parts of Japanese vehicles.

Like other countries in the world, China too import many used vehicles from Japan. Due to economic development of the country, the car market of China is extremely optimistic. Occupying most of East Asia, China is the fourth largest country in terms of area. Used vehicle importer should remember to follow all import regulations to clear customs smoothly. Importation of only left hand drive vehicles is allowed in the country. Even though in some cases right hand drive vehicles are imported, but it is not allowed to register and use them on the roads.

Import restrictions:-

Only Permanent Representative (working in permanent institutions), only foreign resident staff enterprises in the three forms of Sino-joint venture, cooperative business and exclusively foreign-owned enterprises in China, and foreign experts are allowed to bring their car into China. But the foreign students studying in China cannot bring in cars for their private use. Overseas students of high level who are verified by governing departments and live or work back in China for a continuous period of more than 1 year can apply for importing one self-use motor vehicle from overseas, including sedans, SUVs and passenger cars with not more than 9 seats only.

Diplomats are allowed to import a vehicle duty and tax free including motorcycles. Other foreigners are strongly discouraged from importing vehicle. Returning Chinese citizens are allowed to import their vehicle only if they are returning diplomats or can get an import permit.

Documents required:-

• Certificate of origin
• Commercial/ Purchase Invoice
• Original and copy of Bill of Lading
• Customs declaration form (in Chinese)
• Inspection certificate(in Chinese)
• Insurance documents

Customs duties and taxes:-

Customs duty rate of motor vehicles is 25%, Value-Added Tax (VAT) rate is 17% and consumption tax rate is calculated according to gas displacement of motor vehicles.

While importing vehicles if following conditions are not met, then the importer won’t be allowed to import the vehicle in the country. Importers are allowed to hire somebody with relevant documents to undertake the process, but importer should understand that the vehicle will need to be registered to them for a minimum period of six months once it enters the country before the importer can legally take possession of the vehicle.

Shipping Ports:-

The major shipping ports in China are Shanghai Port, Tianjin New Port, Dalian New Port and Guangzhou Huangpu Port. Generally, RoRo (Roll-on Roll-off) shipping method is used for shipment of vehicles. However, another method of transportation, container method is used on request of customers.