Chong Quan Comments on Investigation on China's Administration on Auto Parts Imports by WTO
Monday,October 30,2006 Posted: 10:06 BJT(0206 GMT)  MOFCOM

On Oct 26, at the request of EU, USA and Canada, Dispute Settlement Body of WTO determined to set up expert panel to investigate China's auto-parts import management.

Chong Quan, Assistant Minister of MOFCOM said on Oct 27 that China's regulations on auto-parts import aimed to prevent evading supervision of Customs and tariff evasion through tariff differential in whole car and auto-part and to protect consumers' benefit. The relevant regulations both coordinated with China's commitments when entering WTO and WTO rules. China has clarified such issue during the negotiation with EU, USA and Canada before and showed great sincerity for settling disputes through negotiation. Therefore, China expressed deep regrets over the setting up of a expert panel.

Chong Quan said that in 5 years of entering WTO, China kept enlarging such measures as opening to the outside, reducing tariff and abolishing non-tariff, and provided all-time opening opportunity for WTO members in market entrance. Average tariff of the whole car reduced from 80% of just entering to 25%, while average tariff of auto-parts reduced from 30% to 10% and systems of quota and license were abolished. All these indicated that Chinese government took earnest and serious attitude in implementing entering commitment and abiding by WTO regulations. Chong Quan stressed that according to relevant law of China entering WTO, China was entitled to collect higher tariff for whole car than auto-parts and to fight against the evasion according to the law.

(Source: Network Center of MOFCOM)

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