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China to abolish car import licenses

BEIJING - China will revoke the practice of licensing imports of cars, key auto parts and compact disc manufacturing equipment beginning January 1, 2005, according to sources with Ministry of Commerce and General Administration of Customs.

The move was made in accordance with its commitments to the World Trade Organization (WTO).

Except for three special commodities, all goods will be imported without import permits, said sources on Thursday. In 2005, China will reserve the rights only to restrict imports of controlled chemical products, chemicals that can be easily turned into narcotics, and ozonosphere-consuming materials through granting licenses.

This is the fourth time China has canceled license granting for imported goods since its entrance to WTO at the end of 2001. It has gradually phased out preferential treatment for Chinese firms and products in order to level the playing field in accordance with its WTO obligations.

On January 1, 2002, the nation canceled import licenses for 14 products, including terylene fiber, tobacco and tobacco products, color TV sets and kinescopes, color-sensitive materials,and certain types of automobiles, auto parts and tires. This reduced the kinds of license-granting goods from 26 to 12.

The license restrictions were further reduced to eight beginning January 1, 2003, and then to two in 2004.

(Asia Pulse/XIC)

Dec 18, 2004

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