·Shanghai Free Trade Zone launched parallel pilot car import

The Shanghai Municipal Commission of Commerce issued the "Notice on the Pilot Project of Parallel Imported Cars in the China (Shanghai) Pilot Free Trade Zone on the 7th", and the pilot project of parallel imported cars in the Shanghai Free Trade Zone was officially launched.
Parallel imported cars refer to cars that are purchased by the traders and introduced into the Chinese market for sale without the authorization of the brand manufacturer. Compared with cars sold by authorized channels, the advantage of parallel imported cars is that the price is cheaper, but the shortcoming is that they can't enjoy the "three guarantees" and after-sales service of domestic brand 4S stores.
The "Notice" requires that enterprises applying for the parallel import vehicle pilot business need to meet relevant conditions, including: engaged in automobile sales business for more than 5 years; continuous profit in the last three years, vehicle sales in the previous financial year exceeded 400 million yuan; Appropriate maintenance, service, parts supply outlets and facilities; the company has a good reputation and has experience in procurement channels and automobile sales service industry; the company registers a wholly-owned subsidiary or holding company with automobile distribution qualification in the free trade zone as parallel Distributors of imported car pilots.
After the enterprise applying for the pilot has been identified, it shall, in accordance with the relevant provisions of the State Administration of Import and Export of Mechanical and Electrical Products and the relevant requirements of the Ministry of Commerce, provide relevant import application materials and apply for an automatic import license for automobiles from the Ministry of Commerce. The pilot enterprises and their car dealers registered in the Pilot Free Trade Zone are responsible for the traceability of the quality of parallel imported automobile products. Among them, the import of pilot enterprises will be mainly based on Shanghai Port, and the sales area will be based on the existing sales areas of pilot enterprises.
In November last year, the State Council proposed to take the lead in the pilot project of “parallel import of automobiles” in the Shanghai Free Trade Zone. The Shanghai Municipal Commission of Commerce said that the parallel import of automobiles allows traders to import cars from unlicensed channels, which will make the automobile circulation market more competitive and the car prices more reasonable. For the Shanghai Free Trade Zone to carry out parallel import vehicle pilots, auto dealers generally believe that this move will push some luxury car prices back to a more reasonable space, which is conducive to the overall ecology of the car sales industry. In addition, in the context of the recent expansion of the Free Trade Zone, parallel import vehicle pilots are expected to be launched in other free trade zones. Earlier, it was reported that Tianjin was interested in launching a parallel import vehicle pilot when it applied for the free trade zone, and has conducted preliminary research on this.

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