Home > Economy & Society >Economic/Social News
Dalian Free Trade Area Having Introduced the New Mode of “International Procurement Full-chain List Self-choice Service” for Parallel Import Cars for the First Time

Recently, a Mercedes-Benz G550 off-road car has been wholesaledby Dalian Fenglian International Trading Co., Ltd., a parallel import car pilotenterprise in Dalian Free Trade Area, to a parallel import car buyer in SouthChina through the new mode of "international procurement full-chain list self-choiceservice" for the first time. In the past, the wholesaling price of thatmodel was about RMB 2.05 million yuan. After adopting the new mode, thewholesaling price of the same model is about RMB 1.9 million yuan to save acost of about RMB 150,000 yuan. The parallel import car pilot enterprise,domestic buyer and end consumer have all benefited from it with a win-winsituation realized for all parties.

At present, the international procurement full-chain businesslinks for parallel import cars mainly include: foreign ordering, internationalletter of credit (L/C) for foreign parallel import cars, foreign port services,foreign marine transportation, parallel import car license entry, parallelimport car 3C entry, parallel import car environmental protection (nationalclass IV) entry, port service, bonded warehousing service, parallel import car compliancerectification service, parallel import car PDI testing, parallel import car 3Ctesting, parallel import car environmental protection (national class VI)testing, parallel import car customs clearance and commodity inspection bureau inspectionservice, import link tax payment (customs duty, value-added tax, consumptiontax, luxury car tax), parallel import car three-guarantee service, with eachlink requiring payment of different fee. 

In the previous traditional international procurement mode, thebusiness period for each link of the above international procurement full-chainwas about 2-3 months or so, and the costs of each link were usually about 80%of the parallel import car sales price, which was finalized by parallel import carpilot enterprises themselves, and domestic purchasers and end consumers didn'tgrasp the price structure of each link, so that the end sales prices were nottransparent. At the same time, as the parallel import car industry required ahigh degree of capital occupation, the pilot enterprises could only make paymentthrough loan financing. The huge financing cost led to the parallel import carsales price rising constantly and the market competitiveness and sharedeclining constantly.

       AfterDalian Free Trade Area innovatively introduces the new mode of “international procurementfull-chain list self-choice service”, the parallel import car pilot enterprises,after completing ordering abroad, shall provide international procurementfull-chain business link service list and quotation for domestic purchasers toprovide “self-choice service” according to the actual business requirements,that is, selecting freely the entrustment of financial institution, seatransportation logistics service provider, domestic agency service company,customs clearance agency, CPA firm, insurance company service agency tocomplete all subsequent international procurement services. The costs involvedin all the links shall be paid on basis of independent negotiation by thepurchasers and various service agencies. Since that innovative mode waslaunched, the international procurement costs of the parallel import car pilot enterpriseshave decreased substantially to reduce effectively the wholesaling andretailing prices of parallel import cars. The degree of price reduction isaround 10%-20% of the original car price. At the same time, the chargestandards of parallel import car enterprises have become more transparent, andthe credibility of enterprises has further improved, with their cooperationwith domestic purchasers further enhanced and the market competitivenessgreatly strengthened.

Next, Dalian Free Trade Area will expand the function of the specialcustoms supervision zone through further innovating the business mode ofparallel import cars, especially realize reform and innovation in parallelimported car modification, port supervision mode, car sales system and otheraspects, drive and promote the rapid development of the parallel import car industryin Dalian.