Policy "Three Arrows" Fired: China's Used Car Exports Rising in Global Value(Nov 2)

Policy "Three Arrows" Fired: China's Used Car Exports Rising in Global Value

As the export tax rebate rate for new energy vehicles is reduced from 13% to 9%, and export permit applications incorporate overseas after-sales, modification qualifications, and compliance commitments as "hard thresholds," the window for China's used car export market to rely on "tax rebate dividends and low-price volume" is rapidly closing.

Recently, the Ministry of Finance and the State Taxation Administration issued Announcement No. 29 of 2026, clarifying that starting April 1, 2027, the VAT export rebate rate for new energy vehicles will be reduced from 13% to 9%. The scope covers 67 items based on customs commodity codes listed in the accompanying New Energy Vehicle Product Catalog, with the export date on the customs declaration form as the determining standard.

Prior to this, the General Office of the Ministry of Commerce issued the Notice on Doing a Good Job in the 2027 Annual Automobile and Motorcycle Export Permit Application Work, further standardizing automobile and motorcycle export order. Compared with the previous year, the document made multiple adjustments in after-sales service and modified vehicle access thresholds, aligning with the policy direction of compliant development of used car exports.

From export qualification applications and tightened modified vehicle access, to the phase-down of new energy tax rebates, under the "three arrows" policy approach, how will the used car export market evolve in 2027?

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