Friday, September 24, 2010

Wto Ruling On Auto Parts Import Management Irregularities


Frbiz Site
Frbiz Site

Originally on July 1 this year, the official full implementation of the "vehicle features constitute the Administration of Import Auto Parts" (hereinafter referred to as "measures") may be further delayed in the understanding of the implementation of 3 years. Information Office of the Ministry of Commerce said yesterday, still studying the ruling of the WTO on the 18th to the report, the report said, "China's auto parts import management practices violate trade rules," whether an appeal still no statement.



China Association of Automobile Manufacturers Trade Commission, the Secretary-General Zhang Boshun the market yesterday that the negotiations continue, problems are resolved, the Government will take compromise or dilute the contradictions, that is, not the full implementation of "measures", but also The results are not announced. Affected businesses, according to the former import tax rules. hilti te25

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Ministry of Commerce is to discuss response measures



The World Trade Organization dispute settlement body announced the 18 expert group on China and the U.S., EU and Canadian auto parts dispute the ruling tripartite report in February this year, its distribution to the parties of the interim report (preliminary results) consistent, basically supported the United States, Europe, Canada's view that China has more than 60% over vehicle parts imports by the practice of vehicle tax on imported auto parts constitute discrimination, breach of the relevant trade rules.



Accordance with the WTO dispute resolution procedures, the Chinese have the right to appeal against ruling group of experts. Appeal from the WTO Appellate Body to deal with.



Commerce for WTO Dispute Settlement Law Department yesterday not to this position. The Information Office of the Ministry of Commerce said in a telephone interview, is to discuss response measures to be introduced soon stand. Chinese Ministry of Commerce officials have said China's auto parts import regulations is to prevent the lawless use of vehicle and spare parts to avoid customs tax poor supervision, tax evasion behavior, but also to combat the illegal assembly, measures to protect consumer interests.



Modify the "measures" to benefit only that high car



Market and Trade Commission of China Association of Automobile Manufacturers, said the Secretary-General Zhang Boshun, although the Chinese WTO judge violations, but the Chinese still have the opportunity to appeal, a process that will last 3 years. As it involves the adjustment of the production area, the dispute may go to the newly established Ministry of Industry and Information processing.



He said, as Brilliance, BMW, Mercedes-Benz is still in Beijing, "approach" provides a 10% tariff. Has not been the "measures" the impact of introduction.



WTO expert Zhang Hanlin of the view that a dispute has not implemented the law is not necessary, do not be too concerned with WTO ruling on China. Approaches must modify, but there is no need to care too much about. He said changes to the production company must meet the 60% localization rate. In fact, even if the modification "measures", and only luxury car manufacturer to benefit most of the existing joint venture has increased localization rate, the public even more than 90%.



Long-term focus on the automobile industry, Zhou Jun said that China would lose the results of high-end parts made OEMs to reduce the enthusiasm, as currently only a few million-scale investment in luxury cars is building a larger package, and can really reduce the cost of such parts plant can not complete for other customers.



He believes that this incident will impact parts and components industry trends, the future establishment of foreign-owned parts companies in China, the trend will become increasingly apparent. Because China does not have high-end independent parts spare parts business of technology, no matter what the outcome of this dispute will not impact on these companies, but Zhou army that will accelerate the industry reshuffle, parts industry structure will be more clear. Joint venture and its parts suppliers more closely, and independent brands such as engine parts enterprises to enter the EFI system, ESP, airbag areas such as high-end components will be more difficult.