China's Tianjin government invests 100 million yuan for pilot program of parallel-import cars

According to Tianjin’s newly published paper Ten Measures to Promote the Steady Growth of Foreign Trade, Tianjin Commission of Commerce, government of Tianjin Binhai New Area and Management Committee of Functional Zones in Binhai New Area will together manage the special fund of 0.1 billion yuan to support the pilot program for parallel-import cars and actively explore sales of parallel-import cars.

Parallel-import car refers to cars imported directly from overseas market without authorization, while normally cars are imported through authorized distribution channel. Parallel-import cars are usually sold at a discount to usual prices, very favorable to consumers.

According to Implementation Scheme for Pilot Program of Parallel-Import Cars in trial zone of Tianjin Free Trade Zone issued at the end of this May, there are pilot platforms and pilot enterprises based on the scale of the program and its operation modes. One of the pilot platforms’ obligations is to develop more qualified member enterprises that import and sell cars, while pilot enterprises are responsible for sales of parallel-import cars.

According to the data from Tianjin Free Trade Zone, there are already ten enterprises applying to be pilot enterprises or pilot platforms for parallel-import cars. The application materials have been reviewed, with approval by related departments pending.