China has eliminated additional charges on imported auto parts, starting Sept 1 this year, the top planning body said on Wednesday, ending a two-year dispute with the World Trade Organization.

The WTO found last year that China's additional import tariffs on auto parts accounting for 60 percent or more of the finished product's value broke international trade rules. It turned down China's appeal last December.

The auto parts case was the first in which the WTO formed a panel to review whether China was meeting its commitments.

The decision to revoke the tariff was made to meet the needs of the adjustment and development of the country's auto industry, the National Development and Reform Commission said on its website (www.ndrc.gov.cn).

China began to impose the additional tariff on auto parts in 2005, to prevent foreign car manufacturers from shipping partially-assembled vehicles for final assembly in China.

China normally imposes a 10 percent tariff on auto parts.

(Reporting by Huang Yan and Lucy Hornby; Editing by Kazunori Takada)

China