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Hainan pilots parallel import of automobiles

chinadaily.com.cn | Updated: 2018-07-06 20:33
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Hainan has launched a pilot program for the parallel import of automobiles in Haikou Port, the largest in China's southernmost island province, allowing dealers to import vehicles directly from overseas, Hainan Daily reported Friday.

The scheme, which allows vehicles to be imported from abroad without authorization from any particular authorities, has a target to bring in 10,000 parallel-import cars by 2020, and a total sales volume of 7 billion yuan ($10.5 billion), according to a statement issued by the Hainan Provincial People’s Government.

It said the pilot program was designed to explore the Hainan experience in innovative mechanisms for the parallel import of vehicles and to promote the development of a parallel import business chain. This chain will cover overseas purchasing, domestic marketing, supplies of spare parts, repair and maintenance services, car recalls, logistics, finance and insurance.

A maximum of five qualified companies are allowed to join the first batch of dealers for the pilot program, which was expected to help enhance the country's supply-side reform in the automobile industry and serve as a step to promote the development of Hainan's vehicle service sector.

The qualification requirements include business registration at Haikou Comprehensive Bonded Zone and registered capital above 50 million yuan for a pilot vehicle business platform, which should have made more than 300 million yuan in profits for the past two years. Pilot companies should have registered capital of 20 million yuan and made annual sales of over 30 million yuan in the previous financial year, according to the official document.

It noted that all the parallel-import vehicles must meet national compulsory technical standards and the pilot firms are responsible to provide such services as product recall, quality assurance, after-sales service and calculation of average fuel consumption.

It added that Hainan will start measures to support the new program, including better trade facilitation, a simple application management system for an automobile import license and deepening reform in compulsory product certification for parallel import vehicles.

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