(Yicai Global) Nov. 26 -- The Chinese  government is making it easier for certain vehicle importers to procure  and sell foreign brands without paying duties in order to spur growth in  the sluggish car market.

The General Administration of  Customs removed a time limit of three months that car dealers may keep  parallel imported foreign vehicles in a bonded warehouse in China before  selling them, it said in a statement. In 2016, China introduced a  parallel import pilot that allows certain dealers operating in selected  free trade zones to import foreign brands without carmakers'  authorization.

Vehicle sales dropped almost 12 percent  to 2.4 million in October, data from the China Association of Automobile  Manufacturers show. This makes 2018 as the first year when the annual  growth of the Chinese auto market has been negative in nearly two  decades since 2000.

With the new policy, import firms may  reduce their operating costs and become more competitive, China National  Radio reported, citing Chen Zhenchong, an expert from the customs  bureau.

If a car costs CNY1 million (USD144,000)  to procure and it takes six months to sell it in China, the parallel  import scheme allows importers to lower operating costs between  CNY20,000 (USD2,880) and CNY30,000 (USD4,320), said Chen Zhongxian, the  general manager of dealer Tianjin Dongyun International Trade, which  participates in the pilot.

From January to September, the number of  parallel imported cars increased almost 6 percent to nearly 96,000 units  from the same period last year, Chen said. Sales of some medium- and  high-end vehicles in this import category decreased as much as 30  percent. 

Editor: Emmi Laine