With the maturity and expansion of China’s second-hand car market,second-hand car export business has increasingly gained attention from enterprises.On February 5,2024,China’s Ministry of Commerce,Ministry of Industry and Information Technology,Ministry of Public Security,Ministry of Transport,and General Administration of Customs jointly issued Announcement No.6 of 2024,which regulated matters related to second-hand car exports and officially took effect on March 1,2024.This article aims to interpret the announcement and provide enterprises with relevant requirements and procedures for second-hand car exports.

I.Used - Car Export Eligibility

First,according to the Foreign Trade Law of the Peoples Republic of China and the Catalogue of Goods Subject to Export License Administration (2024),used cars are listed as goods subject to national restricted exports.This means that enterprises wishing to engage in the used car export business must apply for an export license.According to the "Regulations on Foreign Trade Administration" and the "Catalogue of Goods Subject to Export License Management (2024)",second-hand cars are classified as goods subject to national export restrictions.This means that enterprises wishing to engage in second-hand car export business must apply for an export license.

II.Qualifications of Used - Car Export Enterprises

Enterprises should submit the declaration materials for the used car export business through the Unified Platform of Business Systems of the Ministry of Commerce.After being reviewed by the provincial-level commercial department in the place where they are located,they can conduct the used car export business.The materials to be submitted include the basic situation of the enterprise,business operation situation,future development plan,business license of the legal person,enterprise commitment letter,etc.

III.Declaration Process

Enterprises shall submit the application materials for used car export business through the "Ministry of Commerce Unified Platform for Business Systems." Only after being reviewed and approved by the provincial-level commerce authority in their locality can they engage in used car export operations.The required materials to be submitted include the enterprise’s basic information,business operation status,future development plans,corporate business license,and enterprise commitment letter.

IV.Application for Export License

The application for a used car export license is a mandatory step before export.Enterprises must apply for the export license on the "Ministry of Commerce Business System Unified Platform" after completing the motor vehicle transfer registration.Required application materials include the export license application form,export contract,motor vehicle registration certificate,product inspection report,etc.

V.Conditions for Used Car Exports

Used car exports are not subject to export tariffs.Regarding tax rebates,only when purchased through an enterprise or individual industrial and commercial household and a special VAT invoice is obtained can an enterprise declare and handle tax rebates.For used cars directly purchased from individuals,since only a general VAT invoice can be obtained,tax rebate processing cannot be carried out.

VI.Tax Treatment

Used cars fall under Chapter 87 of Section XVII of the Tariff Schedule.Before export,enterprises should refer to the Used Car Product Catalogue to determine the correct tax number.At the same time,exported vehicles need to meet the access standards of the target market,and enterprises should provide the corresponding market access statement.

VII.Tax Numbers and Target Market Access

The release of this announcement marks that Chinas used car export business has entered a new stage of standardization,providing clear guidance and norms for enterprises.Before preparing to export used cars,enterprises must carefully understand and abide by relevant regulations and procedures to ensure legal and compliant international trade.By making rational use of these new regulations,Chinas used car export enterprises can not only expand overseas markets but also further enhance the international image of Chinas used car market.

Announcement of the Ministry of Commerce and Other 5 Departments on Matters Concerning Used Car Exports

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