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New policies to implement from 2012

2012-3-4 0:00:00Author： Xinxin WangFont Size：Big Medium Small

1. Vehicle and Vessel Tax Law of the People's Republic of China

Effective date: 01-01-2012

The new edition of Vehicle and Vessel Tax Law of the People's Republic of China has come into force since January 1, 2012. The law is valid in five years. All major cities in China have begun to levy tax from different types of vehicles and vessels according to the new standard. At the same time, Vehicle and Vessel Tax Law of the old edition promulgated in 2007 was abolished simultaneously.

According to the new law, tax standards of passenger vehicles are divided into seven levels in accordance with the displacement instead of the passenger capacity in the old law, ranging variously from 180 yuan to 4500 yuan.

The new law requires that the Vehicle and Vessel Tax should be declaredly annually, calculated monthly and paid in a lump sum. The tax-payers should pay off the tax of the current year before the end of the year.

2. Guidance of Foreign Investment Industries (Amended in 2011)

Effective date: 30-01-2012

Guidance of Foreign Investment Industries promulgated by State Development Planning Commission and the Ministry of Commerce on December 29^th , 2011, has come into force on January 30^th , 2012.

The same time when the new Catalogue was issued, the State Development Planning Commission made a proclamation to annul the Catalogue released in 2007.

Compared to the former two editions of Catalogue, the policies on foreign investment in China's automobile industry, especially auto manufacturing , become stricter.

The amendment of this Catalogue aimed to modify the auto industry policies, encouraging “research and development of essential parts” instead of “the whole car manufacturing”.

In that case, “ the whole car manufacturing”, which allows foreign investment to take no more than 50% proportion, was removed from the category of “encouragement” to “object accordingly”, said Su Jing, the Deputy Director of Foreign Investment Department of the Ministry of Commerce.

3. Anti-dumping & anti- susidy duties imposed on some U.S.-brand cars

Effective date: 15-12-2011

The Ministry of Commerce proclaimed on December 14th , 2011 that the anti-dumping and anti-subsidy duties would be imposed on sedans and SUV manufactured in U.S. with an engine size larger than 2.5L. The policy is valid in two years extending from December 15th, 2011 to December 14th, 2013.

According to the proclamation, the auto enterprises such as GM, Chrysler, BMW, Mercedes-Benz and Honda would be affected. The anti-dumping tax rate imposed upon these enterprises ranges from 2.0% to 21.5%-- General Motors LLC' s tax rate is 8.9%, Chrysler Group LLC 8.8%, Mercedes-Benz U.S.

International, Inc. 2.7%, BMW Manufacturing LLC 2.0%, American Honda Motor Manufacturing Co, Inc. and American Honda Motor Co, Inc. is 4.1%.

4. Industrial Transformation and Upgrading Plan (2011-2015)

Effective date: 30-12-2011

The State Council printed and distributed "Industrial Transformation and Upgrading Plan (2011-2015)" on December 30^th, 2011.

According to the plan, the top ten auto enterprises should upgrade their production and marketing concentration ratio by 7.8%, from 82.2% to 90%.

The plan requires to promote homegrown brands and encourage the dominating enterprises to merge or reorganiz small ones, forming 3-5 large auto enterprise groups with core competence.

Until 2015, average fuel consumption of new energy-saving passenger vehicles will be reduced to 5.9 liters per 100 kilometers. And the new-energy auto's production and sales volume will achieve 500 thousand vehicles, according to the plan.

5. Guidance on the Development of Automobile Circulation Industry during the 12th Five-Year Plan

Effective date: 27-12-2011

The Ministry of Commerce published Guidance on the Development of Automobile