This will be the first implementation regulation to be issued after the implementation of the new “Automobile Industry Development Policy” on June 1st. The model of CKD (all imported parts) or SKD (imported half-parts) assembled cars that prevailed in the domestic auto industry over the years is about to be hit hard. Companies using this method of production will have to pay a huge price for this. The "approach" indicates that the country will curb the CKD loading mode from the source. Improve local production capacity. The reporter recently learned from reliable sources that the “Automatic Vehicle Characteristics Identification Management Regulations” of Qi Yi’s manuscript had basically been finalized, and was eventually named “Administrative Measures for the Import of Auto Parts that Constitute the Characteristics of the Vehicle” (hereinafter referred to as “ Method"). According to an informed source, the "approach" will be formally introduced in October. On August 18, the National Development and Reform Commission, the Ministry of Commerce, and the General Administration of Customs will hold a joint meeting in Chongqing. Hear opinions from relevant parties. If there are no major accidents, this may be the last meeting before the "approach" is introduced. Judging from the current progress, this measure will be the first implementation regulation issued after the promulgation of the new industrial policy. The new "Auto Industry Development Policy" clearly stipulates that the state supports auto manufacturers in their efforts to increase the local production capacity of automotive products. It is not encouraged to import wholly or partially assembled vehicles for production. In order to prevent the loss of customs duties, tariffs shall be imposed strictly on the rate of imported vehicles and parts and parts. Where imported automobile parts and components constitute the characteristics of the vehicle, it shall be taxed in accordance with the tax on imported vehicles. "Although industrial vehicle policies have stipulated the requirements for vehicle certification and tariff collection, industrial policy is, after all, a framework and programmatic document. It is not operability," said one analyst. Obviously, the forthcoming issuance of "Automobile Parts and Components Import Management Measures Constitutes Characteristics of Complete Vehicles" is a great supplement to industrial policies, making them more maneuverable, and making full use of the regulatory role of taxation leverage. Avoid China's auto industry becoming an assembly center, thereby increasing the localized production capacity of China's auto industry. The reporter saw a ninth draft of the “Regulations on the Identification of Vehicles' Complete Vehicle Features”, but according to informed sources, the finalized version was a great change from the ninth draft. First of all, from the definition of the name, the method is named "Automotive Components Import Management Measures that Constitute the Characteristics of the Vehicle", which means that the identification process of the vehicle characteristics will be more detailed and more rigorous, indicating that the country will be at the source. That is, the import management of spare parts will be manpowered to curb the CKD loading mode and increase local production capacity. The “approach” part of the Regulations emphasizes that if a car manufacturer violates regulations and violates the law. Will be severely punished. The person also told reporters that the “approach” to be finalized was divided into 6 chapters 41 and gave records management, customs clearance management, the characteristics of the vehicle characteristics, as well as the verification, taxation principles, tax assessment, etc. Comprehensive explanation. Among them, it is clarified in the General Regulations that imported auto parts and components are to be managed by the National Development and Reform Commission, the Ministry of Commerce and the General Administration of Customs. The three ministries and commissions set up an inter-departmental “Leading Group for the Import Management of Auto Parts” which constitutes the characteristics of the entire vehicle, and handles the daily work of coordination and coordination of “National Vehicle Verification Center for Vehicle Characteristics”. Based on the authorization of the three ministries and commissions, the “Professional Verification Center” implements professional verification work on whether the imported parts and components used by various automobile manufacturers for the production of assembled vehicles constitute the features of the entire vehicle or assembly (system). The General Administration of Customs is responsible for establishing a corresponding computer management system. In the "approach" part of the annex, it is emphasized that if the automobile manufacturing companies violate the rules and violate the law, they will be severely punished. The "approach" stipulates that the declaration of "Vehicle Production Enterprises and Products" shall conceal the imported parts and components that constitute the characteristics of the vehicle when it is announced and recorded. The use of imported parts and components of imported vehicles to complete the vehicle assembly constitutes the characteristics of the vehicle. It does not record with the National Development and Reform Commission, the Ministry of Commerce and the General Administration of Customs, evades customs duties and import value-added tax. If there is one of the above scenarios, it is based on smuggling. Customs imposed additional customs duties and import link value-added tax. Fines were imposed concurrently and the National Development and Reform Commission revoked its "Vehicle Production Enterprises and Products" list. The plot was serious to constitute the crime of smuggling. Transferred to judicial organs for criminal responsibility. In the ninth draft, this part is not clear. Just mentioned that "violation, illegal acts will be punished according to relevant laws and regulations" is only a rough concept. In addition, the final draft of the “approach” to be issued also has a distinctive feature. The definition of key components of the assembly (system) is more nuanced and refined. The key components that make up the assembly are divided into Class A and Class B parts, where Class A components are the core components of the assembly and Class B components are: • Some auxiliary components. The total number of Class A components in each assembly is two. The number of imports exceeding two or more is considered to constitute the characteristics of the assembly. This method of division did not appear in previous drafts. Obviously. This division is highly targeted and guides foreign companies in the introduction of key components into domestic production. All indications indicate that the entire process of formulating the "approach" is an increasingly rigorous process. It shows that the relevant government departments have become clearer about the management of automobiles and their attitudes have become clearer. The "approach" constitutes a technical barrier to the development of China's auto industry. Make companies that do not want localized production in China lose competitiveness. “Is it a car or a car?” This topic has been plaguing the Chinese auto industry. Rely on the CKD way to build a car, the risk is greatly reduced, and at the same time, the enterprise can complete the original accumulation in a short period of time. As a result, many domestic companies are rushing toward it. The import duty on KD parts is only 10%, which is obviously lower than the current tariff of about 35% for the whole vehicle. However, this method did not achieve the original intention of the market for technology, on the contrary led to the slow development of independent brands are difficult to develop, core technology hollowing and foreign brands leading many companies. The embarrassing situation of the right to development. An authoritative person in the automotive industry reminded reporters of such a detail. In Article 20 of the new industrial policy that was introduced on June 1st, there was such an explanation: "Do not use imported cars and imported body-assembling cars instead of self-produced products for certification. , prohibiting illegal assembly and infringement of intellectual property products into the market." In fact, this principle and the forthcoming "approach" constitutes a technical barrier to protect the development of China's auto industry, so that those companies do not want to lose their local production in China lost Competitiveness. "This is the original intention of the government to introduce these policies." This person said. It should be said that the management approach is entirely under the framework of the WTO agreement, the use of tariff adjustment of economic leverage to enhance technological development capabilities, rather than mandatory localized production. This specification is used in conjunction with industrial policies to guide foreign automakers to establish R&D bases in China, guide foreign automakers to introduce key component technologies into China, and prevent China from becoming an assembly center, thereby improving the autonomy of domestic automakers. .

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