US welcomes China move to cut auto parts tariffs

However, it subsequently adopted regulations that levied an additional charge on imported auto parts when the imported parts were incorporated into a final assembled vehicle that failed to meet certain local content requirements, USTR said.

All vehicle manufacturers in China that used imported parts also had to register with China's Customs Administration and provide specific information about each vehicle they assembled, including a list of the imported and domestic parts to be used, and the value and supplier of each part.

If the number or value of imported parts in the assembled vehicle exceeded specified thresholds, the Chinese authorities assessed a 25 percent tax on each of the imported parts.

The charges unfairly discriminated against imported auto parts and put significant pressure on auto parts producers to move their manufacturing facilities to China, USTR said.

(Reporting by Doug Palmer; Editing by Doina Chiacu)

((doug.palmer@thomsonreuters.com; +1 202 898 8341; Reuters Messaging: doug.palmer.thomsonreuters.com@reuters.net)) Keywords: USA CHINA/AUTO PARTS

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