China to introduce permits for auto exports

BEIJING, Jan 3 (Reuters) China is to introduce a permit system for exports of autos and some auto parts in order to better regulate the industry, the International Business Daily reported on Wednesday.

The rules, which will come into effect on March 1, are to ''protect the healthy development of auto exports,'' the report said, citing Customs and the Ministry of Commerce.

The regulations apply to vehicles, whole sets of parts and chassis, the report said.

With the rapid growth of auto exports, there were too many exporters, disorder in the market and unhealthy competition, the report said, without elaborating.

In order to be granted a permit, manufacturers must prove they are able to provide after-sales service and show they have a strong sales network in the markets they export to, Xinhua news agency said in a separate report.

The agency said earlier this week that China would establish export quotas for 2007 to weed out companies that are too small to be serious exporters.

China aims to lift vehicle and auto parts exports to 0 billion, or 10 percent of the world's total vehicle trading volume, in the next 10 years, Vice-Minister of Commerce Wei Jianguo said in November.

Auto exports hit a record high of 340,000 units in 2006, more than double that of the previous year.

REUTERS CS RK1155