CHINA - Authorities break up car smuggling groups.

Chinese authorities have broken up six gangs that smuggled around $164 million worth of cars into the country over the past three years to help consumers bypass heavy taxation.

The smuggled vehicles included more than 80 high-end models such as BMWs and Rolls-Royces, the official Xinhua news agency reported today. In total, the gangs had smuggled in more than 3,000 vehicles, it added.

Smuggling of cars into China has long been a problem for the government, as Chinese consumers try to avoid paying steep taxes for coveted foreign models.

Tariffs on foreign cars brought into China are 25 percent for any type of car. In addition, there is a value-added tax of 17 percent and consumption tax, which depends on engine size.

For example, in China, Maserati's top market, a new fully equipped, V-8-powered Quattroporte starts at the equivalent of 325,000 euros after added taxes. In Europe, the same model would cost 150,000 euros.

In total, police arrested 54 gang members who had smuggled in the vehicles from the United States, Vietnam, Myanmar and Hong Kong, the agency said.

In July, Xinhua accused foreign carmakers of reaping exorbitant profits by selling imported luxury cars in China and called for them to face an anti-trust investigation

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