'Parallel imports' raises the bar in market

3R for parallel imports

The other good news for consumers is that such non-Chinese-standard vehicles will be guaranteed under regulations on 3R－repair replacement or return－that became effective in China in October last year.

According to previous domestic media reports, the General Administration of Quality Supervision, Inspection and Quarantine is working on a new policy that requires sellers of non-Chinese-standard vehicles to provide warranties consistent with 3R regulations.

Luo Lei, deputy secretary-general of the China Automobile Dealers Association, told National Business Daily that if the policy is issued it will regularize the development of parallel import businesses.

But because importers of non-Chinese-standard vehicles are usually small companies, they may not have the capability to meet the obligations of 3R, he said.

According to media reports, the administration plans to introduce insurance companies into the process to help the trade companies meet their 3R responsibilities.

Improving service

Market forces require importers of non-Chineses-tandard vehicles to improve their services, said Yan Jinghui, vice-general manager of the Yayuncun Automobile Trade Market, the largest of its kind in Beijing.

Nearly half of the new car sales in Yayuncun are imported vehicles, and more than one-third are non-Chinese standard. Yan told China Daily that the Yayuncun market plans to establish a special zone for such vehicles and promote it as one of its key business characteristics.

Dealerships permitted in the special zone have to meet certain criteria in warranties and after-sale services, he said.

According to Yan, imports of such non-Chinese standard vehicles account for about 8 percent of total imports.

Last year, some 1.17 million vehicles were imported by China, among which nearly 90,000 are non-Chinese standard vehicles, he said.

In developed countries, the proportion is usually around 15 percent, he said.