For the purpose of effectively monitoring the import of car products and safeguarding and regulating the normal order of the domestic car market, China has formulated the Implementing Rules for the Issuance of Automatic Import Licence of Car Products in accordance with the Procedures for the Administration of Imports of Mechanical and Electrical Products and Procedures for the Administration of Automatic Import Licence of Goods, which will take effect on 1 January 2005. These rules are formulated in compliance with China's WTO commitments.

Car products here refer to whole cars, complete sets of auto parts, spare parts assembly or system that constitute the features of cars, auto parts assembly or system, as well as key auto spare parts. The Ministry of Commerce is responsible for the administration of automatic import licensing for car products.

Besides the materials stipulated in Article 8 of the Procedures for the Administration of Automatic Import Licence of Goods, applicants for the import of auto products for sale must submit their dealer authorisation certificate of respective brands (for first applications in any calendar year). For imports of automobiles for self-use in the form of general trade, applicants must submit their business licence or certificate of organisation (copy). Carmakers applying for the import of complete sets of spare parts (including SKD and CKD) or parts assembly (system) for production must submit the Announcement of Road Motor Vehicle Production Enterprises and Products in which the models to be produced are listed.

Custom gives clearance against an Automatic Import Licence stamped with a special seal of automatic import licence of mechanical and electrical products. It is also against this Automatic Import Licence that banks sell and pay foreign exchange.