Press Release: WTO confirms China’s breach of trade law in car parts case

The WTO circulated the Appellate Body report in the case brought by the EU, US and Canada against China's taxes on imported car parts. The Appellate Body confirms the Panel's conclusions that China breached its WTO obligations by creating a system of registration and taxation of imported car parts that promoted the use of domestic components over imported car parts. Under this system, car manufacturers in China have to pay an additional tax of 15%, on top of the 10% customs duty normally levied on imported auto parts, when they do not use a sufficient quantity of parts made in China.