Thailand Exporter to Asia
Thailand Exporter to Asia, Exporter from UK, Australia, US and Dubai to Asia
Top exporter from Thailand Jim saga started in 2011 when our Great Grandfather established Asia’s first dealership. If you need to reach us right away, please email us at [email protected] Our biggest export from Thailand are Toyota Hilux Revo in new and Toyota Hilux Revo in used followed by new and used Toyota Fortuner, Ford Ranger Wildtrak, Nissan Navara NP-300, Mazda BT-50, Chevy Colorado, Isuzu Dmax, Toyota Hiace Commuter, Mitsubishi Fuso Trucks and Hino trucks.
Jim Australia, Jim United Kingdom, Jim United States, Jim Japan and Jim Dubai provide full range of Right Hand Drive and Left Hand Drive vehicles to worldwide destinations including Asia.
Following countries in Asia are Right Hand Drive countries: Bangladesh, Bhutan, Brunei, East Timor, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, Maldives, Nepal, Pakistan, Papua New Guinea, Singapore and Sri Lanka. Here a Thai vehicle can be driven without any conversion and we are sending quality Thailand made RHD vehicles, parts and accessories to these countries. We are also supplying RHD vehicles from Australia, New Zealand, Singapore, United Kingdom and Japan.
Dubai and Singapore act as gateways to most of these countries. Our Gold Partners and sister companies in these countries have provided quality Thailand made Jim Autos exported vehicles to the entire continent, not just right hand drive vehicles but also our quality converted LHD vehicles and original Left Hand Drive vehicles. Now after 20 years of indirect presence in Dubai, we are proud to announce that Jim Autos Dubai is emerging as the largest supplier of not only Thailand-made vehicles but also vehicles from Australia, Japan, Indonesia and Malaysia.
Regions of Asia
|East Asia||People’s Republic of China, Hong Kong,
Japan, Macau, Mongolia, South Korea, Taiwan
|Central Asia||Kazakhstan, Kyrgyzstan, Tajikistan,
|South East Asia||Brunei, Cambodia, East Timor (Timor-Leste),
Indonesia, Laos, Malaysia, Myanmar (Burma),
Philippines, Singapore, Thailand, Vietnam
|South West Asia||Afghanistan, Bangladesh, Bhutan, India,
Iran, Maldives, Nepal, Pakistan, Sri Lanka
|Western Asia||Armenia, Azerbaijan, Bahrain, Cyprus,
Palestine, Georgia, Iraq, Jordan,
Kuwait, Lebanon, Oman, Qatar,
Saudi Arabia, Syria, Turkey, United Arab Emirates, Yemen
We are Thailand’s top car exporter to Asia, Thailand’s top car exporter to Europe, Thailand’s top car exporter to the Americas, Thailand’s top car exporter to Africa and Thailand’s top car exporter to the Pacific. No matter where in the world you are and whether your requirement is Right Hand Drive car or 4×4 or Left Hand Drive car or 4×4, Jim Autos Thailand, its used car division Jim 4×4 Thailand and its Dubai division Jim Autos Dubai are ready to serve all your automotive needs. In our 100 years proud history we have exported to over 100 countries in the world and continue to add new customers while not forgetting old customers and old countries. We have an 80% repeat and referral business rate, a testament to our superior customer service, honesty, great quality, great selection, great pricing and great speed of delivery. Thailand’s top car dealer, Thailand top car exporter and Thailand’s top 4×4 exporter is ready to serve you from either its Thailand or Dubai offices.
South East Asia
Currently we are exporting almost no vehicles to China. Jim Autos Thailand, Jim Autos Japan and Jim Autos Dubai are monitoring this market both for its import and export potential. China had exorbitant tariffs on autos and auto parts but they are gradually being phased out.
Tariffs will be phased down from an average of 23.4% to an average of 10%. For any auto parts tariff with a differential between the base rate and the final rate of less than 20 percentage points, the original schedule prevails resulting in fully phased-in tariffs cuts in 2000, 2001, 2002, 2003, and 2004 depending on the product. For products with differentials of 20-30 percentage points, the final duties will be phased in by January 1, 2006, with a 30% initial cut and remaining reductions made in equal annual installments thereafter. For products with differentials above 30 percentage points, final rates will be phased in by July 1, 2006, with a 25% initial cut and remaining reductions made in equal annual installments thereafter.
Quotas: Quotas on autos will be phased out by 2005 with an initial level of $6.0 billion, which exceeds the actual level of trade prior to implementation of the 1994 Auto Industrial Policy. Quotas will grow 15% annually until eliminated. Quotas on autos will be phased out by 2005 with an initial level of $6.0 billion, which exceeds the actual level of trade prior to implementation of the 1997 Auto Industrial Policy. Quotas will grow 15% annually until eliminated. Tariffs will be phased down to an average of 10%. For any auto parts tariff with a differential between the base rate and the final rate of less than 20 percentage points, the original schedule prevails resulting in fully phased-in tariffs cuts in 2000, 2001, 2002, 2003, and 2004 depending on the product. For products with differentials of 20-30 percentage points, the final duties will be phased in by January 1, 2006, with a 30% initial cut and remaining reductions made in equal annual installments thereafter. For products with differentials above 30 percentage points, final rates will be phased in by July 1, 2006, with a 25% initial cut and remaining reductions made in equal annual installments thereafter.
Distribution and Trading Rights: Currently in China, the right to engage in trade (importing and exporting) is strictly limited; only companies that receive specific authorization or who import goods to be used in production have such rights. This limits the ability of foreign companies to do business in China, and has limited Thailand exports. China also generally prohibits companies from distributing imported products or providing related distribution services such as repair and maintenance services. China will permit foreign enterprises to engage in the full range of distribution services over a three-year phase-in period for almost all products, including autos and auto parts. Will there be a Jim Autos China soon?
Auto Financing: Currently, only certain Chinese banks are authorized to conduct auto financing and only for certain vehicle models. Upon accession, non-bank financial institutions will be permitted to provide auto financing without any market access or national treatment limitations.
Other Commitments: To alleviate the uncertainty associated with China’s inconsistent application, refund, and waivers of its 17% VAT tax, China has agreed to apply all taxes and tariffs uniformly to both domestic and foreign businesses. China has agreed not to apply or enforce export-performance requirements, local-content requirements, and similar requirements as a condition on importation or investment approval.
There seems to be no restrictions on importation of new or used Thailand made quality vehicles. Typical Port Of Entry is Kowloon.
There are no local content requirements, quantitative restrictions or import duties on motor vehicles. Cars must pass a strict emissions test. Only right hand drive passenger cars are allowed. The exception is for buses and some commercial vehicles.
Hong-Kong has an initial registration tax based on value. “Basic” cars valued below HK$ 30,000 are assessed a 90 percent tax; “Semi-luxury” cars valued between HK$ 30,000-HK$ 60,000 are assessed a 105 percent tax; “Luxury” cars valued over HK$ 60,000 are assessed a 120 percent tax. Registration taxes on commercial vehicle ranges from 15-90 percent.
There are three government departments which are involved in the importation and registration of motor vehicles to Hong Kong, they are namely the Customs and Excise Department, Environmental Protection Department and Transport department. The following guidelines help to explain the procedures that were required by respective departments.
Step 1 : Compliance with the Exhaust and Noise Emissions Standard
You are advised to obtain approval / exemption from the Environmental Protection Department before shipping your vehicle into Hong Kong.
You are required to prove your vehicle is fully compliant with the emission standards in the Air Pollution Control (Vehicle Design Standards)(Emission) Regulation and Noise Control (Motor Vehicles) Regulation. Proof of emission compliance can be documents issued by vehicle manufacturers or emission testing report issued by an approved test laboratory. You should submit application form to the Environmental Protection Department for approval together with all original supporting documents.
Subject to the fulfillment of exemption criteria, certain catergories of vehicles may be exempted from complying the exhaust emission standard. You may apply to the Environmental Protection Department for the exemption. Enquiries on approved test laboratories, emission standards and exemption criteria can be made to telephone numbers: (852)2877 0448 (Exhaust emission); (852)2411 9765 (Noise emission) or fax number: (852)2824 9361.
Step 2 : Importation
Vehicles, no matter whether it is a company car or not, imported into Hong Kong are not subject to any Customs tax, but in general, an importer is required to lodge with the Customs and Excise Department an accurate and complete declaration within 14 days of importation. For importer already registered with one of the two service providers appointed by the Government, he can lodge import declaration to the Government directly from his personal computer. For occasional importer and individual, they can lodge import declarations at the service centres set up by the service providers and their partners to convert paper declarations for electronic transmission. For further information about the electronic lodgement service, or to register for using the service, please call (in alphabetical order) Global e-Trading Services Ltd at 8201 0082, or Tradelink Electronic Commerce Ltd at 2599 1700.
Also, within 30 days of the importation of your vehicle, you should submit an Import Return (Form No.: CED336) enclosing with a Declaration Form (Form No.: CED336A) to the Customs and Excise Department. Enquiries on the submission of CED336 and CED336A can be made at Tel No.: (852) 2231 4390.
Any importer of a motor vehicle for use in Hong Kong, fails to file the import return within 30 days of the importation of a motor vehicle into Hong Kong, commits an offence and is liable on conviction to a fine of $500,000 and to imprisonment for 12 months.
Following the submission of your Import Return, you will receive a “Notification of Motor Vehicle Provisional Taxable Value” of your vehicle from the Customs and Excise Department. The Notification should be produced on first registration of your vehicle in the Transport Department.
Step 3 : Vehicle Examination
You should approach To Kwa Wan Vehicle Examination Centre for inspection of your private car and produce either the original certificate or original letter of exemption to prove that your car had complied with the vehicle emissions standard. Vehicle examination should be subject to payment of vehicle examination fee. If your vehicle can pass the vehicle examination, you will receive a Certificate of Roadworthiness from the Examination Centre. Enquiries on vehicle examination can be made on Tel No.: (852) 2333 3112.
Step 4 : Vehicle Registration and Licensing
When applying for first registration of your vehicle, you should submit a completed application form (Form No.: TD22 ) to the Hong Kong Licensing Office of Transport Department (Tel No.: (852) 2804 2637 or Fax No.: 2804 2599) together with the supporting documents as prescribed in the application form. Upon the verification of your submitted document, you are required to pay first registration tax and registration fee for the registration of your vehicle, and pay vehicle licence fee and levy for Traffic Accident Victim Assistance Fund for licensing of the vehicle.
Step 5 : Calculation of First Registration Tax
The first registration tax will be derived from the taxable value of your vehicle times the appropriate tax rate. The rate is as shown below :-
|Class of Motor Vehicle||Rate of Tax|
|Motor cycles and motor tricycles||35%|
|Taxis, Light buses, Buses and Special purpose vehicles||3.7%|
In the case where the price of your vehicle is expressed in foreign currency, in calculating the taxable value, the opening indicative counter exchange selling rate published by the Hong Kong Association of Banks on the date of importation of your vehicle will be taken as the exchange rate of the foreign currency.
Application for the registration and licensing of a left hand drive vehicle will not be accepted unless there are special circumstances.
For the “Procedures for Importation and Registration of Motor Vehicles and Motor Cycles”, please click here [ PDF ] (1.92MB).
Tariffs: Import duties on motor vehicles have been waived indefinitely since 1978.
Taxes: Japan currently levies a 5 percent consumption tax on vehicles. This tax was increased from 3 percent in April of 1997. In addition to the consumption tax, there is an annual automobile tax which increases by engine size, ranging from 7,200 to 111,000 yen, and an acquisition tax for automobiles, 5 percent on automobiles for private use and 3 percent on mini vehicles and automobiles for business use. Japan maintains no local content requirements or quantitative restrictions.
On October 20, 1998, Korea and the United States signed a Memorandum of Understanding Regarding Foreign Motor Vehicles in the Republic of Korea (1998 U.S.-Korea Auto MOU) to improve access for foreign motor vehicles in the Korean market. The MOU will result in changes to Korea’s automotive trade regime as it is implemented. Those changes and their anticipated dates for implementation are described below.
Tariffs: Passenger vehicles are assessed an applied tariff rate of eight percent. This rate is now bound at eight percent as per the commitment made in the 1998 MOU. The applied tariff rate for commercial vehicles is ten percent. The applied tariff rate for most automotive parts and components is eight percent or lower.
Taxes: The taxes described below are calculated cumulatively, but several are applied as percentages of other automotive taxes. The Korean Government imposes eight different taxes on passenger cars, which are assessed on the C.I.F. value of the vehicle plus the 8 percent tariff. Two of the remaining taxes are based on engine displacement. The Korean engine displacement taxes are currently applied such that a disproportionate financial burden falls on vehicles with larger engines (over 2,000cc).
Taxes Levied at the Purchase Stage: At the purchase stage, the following three taxes are levied: 1) special consumption tax (a percentage of the C.I.F. value of the vehicle plus duty), 2) special excise education tax(30% of the special consumption tax), and 3) a 10% value added tax (VAT – based on vehicle value, plus the special consumption tax and the education tax). The special consumption tax is based on engine displacement. On July 10, 1998, the Korean Government temporarily reduced the rates in each of the three engine displacement categories by 30 percent as follows: Prior to July 1998
Rates until at least July 2005
1,500cc and below 10% 7%
1,501cc-2,000cc 15% 10.5%
Over 2,000cc 20% 14%
Under the 1998 MOU, the Korean Government committed to maintain this reduction of the special consumption tax until at least July of 2005.
Taxes Levied at the Registration Stage: At the registration stage, the Korean Government levies the following three taxes: 1) acquisition tax (2% of the retail price before VAT), 2) registration tax (5% of the retail price before VAT), 3) subway bond or regional development bond (based on engine displacement).
The subway bond/regional development bond is another tax based on engine displacement. The engine displacement categories and rates are as follows:
Subway Bond Regional Development Bond Passenger vehicles:
Below 800cc N/A 1.5%
800cc-999cc 4% 3%
1,000cc-1,499cc 9% 6%
1,500cc-1,999cc 12% 8%
2,000 and over 20% 12%
Sport utility vehicles: 5% 6% (regardless of engine size)
Minivans until January 2005: 390,000 Won 3% (regardless of engine size)
In 2003, the Korean Government took steps to harmonize vehicle definitions for regulatory (safety/environmental) purposes, and for taxation purposes. Under the older definitions, 9 or 10 seat minivans were not considered passenger vehicles for taxation purposes, and were therefore taxed at a lower rate. Under the newly harmonized definitions, vehicles with ten or less seats are considered passenger cars for tax and regulatory purposes, unless they meet the criteria set defining trucks or cargo vehicles. Therefore, this step would have changed the classification of minivans with nine or ten seats to “passenger car”, and subject them to higher levels of tax. However, in a 1998 exchange of letters, the Korean government committed not to tax 9/10 seat minivans as passenger cars (which would dramatically increase the tax on the vehicle) even in the event of reclassification of the vehicles as passenger cars. Therefore, the Korean government has given assurances that this new vehicle definition alignment will not impact the tax burden on 9/10 seat minivans. Taxes Levied at the Ownership Stage: The Korean Government also assesses two taxes at the ownership stage: 1) annual vehicle tax (based on engine size), 2) annual vehicle education tax (30% of the annual vehicle tax) The annual vehicle tax is based on engine displacement. Under the 1998 MOU, the Korean Government reduced the annual vehicle tax rate for all vehicles with engine displacement of greater than 2,000 cc to a maximum of 220 Won per cc, reducing the number of steps from seven to five. The current rates are as follows: Effective March 1999Passenger vehicles and SUVs:800cc and below 80 Won/cc 801cc-1,000cc 100 Won/cc 1,001cc-1,500cc 140 Won/cc 1,501cc-2,000cc 200 Won/cc 2,001cc and over 220 Won/cc Minivans until January 2005:65,000 Won Other Measures: Standards and Certification Procedures: Under the 1998 MOU, the Korean Government committed to implement a self-certification system for motor vehicle safety and environmental regulations. This system was put into effect on January 1, 2003.
Taiwan/ Chinese Taipei
In its effort to accede to the World Trade Organization (WTO), Chinese Taipei has agreed to make some significant trade and investment concessions in the automotive sector. Almost all of the concessions will be implemented upon accession; the following reflects Chinese Taipei’s current automotive trade and investment measures — not the status of Chinese Taipei’s current WTO accession negotiations (pre-accession import quota allocations are included). However, it is important to note that upon Chinese Taipei’s accession to the WTO many of these measures will experience significant change. Tariff Measures: Motor Vehicles: Chinese Taipei assesses a 30 percent import tariff on passenger cars and trucks with an engine displacement of 3,500 cc or less. Other commercial vehicles are assessed a 42 percent tariff, except for refrigerated and insulated trucks. Chinese Taipei uses the invoice price of a vehicle as the basis for calculating the tariff-paying value. Note: The tariff on motor vehicle imports will be reduced from 30% to 20%, phased down by 1% each year following Chinese Taipei’s accession to the WTO. Tariffs on motor vehicles outside the quota will be phased down from 60% to 20% over these same ten years.Automotive Parts and Components: Automotive parts import tariff rates range from as high as 25 percent for certain internal engine parts to as low as 3.5 percent for ignition wiring sets. The average auto-parts and Completely-Knocked-Down (CKD) component import tariff is between 15-19 percent Taxes:Motor Vehicles: All vehicles are subject to a 5 percent Value Added Tax (VAT) and a 0.5 percent Harbor Tax. Chinese Taipei has two taxes based on engine displacement: 1) Special Commodity Tax and 2) License Plate Tax. The commodity tax for passenger cars ranges from 25 percent to 60 percent and is calculated on the CIF price plus import tariff plus harbor tax of imported vehicles. The following is a breakdown of the current commodity tax structure by engine displacement: – 25 percent for passenger vehicles with an engine displacement of 2,000cc or less; – 35 percent for passenger vehicles with an engine displacement between 2,001cc – 3,600cc; – 60 percent for passenger vehicles with an engine displacement of 3,601cc or more. Note: Upon accession to the WTO, Chinese Taipei will replace its current system of three commodity tax levels based on engine displacement, with a two-level system. For vehicles with a displacement of 2,000cc or less, the commodity tax will remain 25 percent. However, vehicles at 2,001cc or more, the commodity tax will be 35 percent upon accession, and it will be further lowered to 30 percent five years after accession. The commodity tax for commercial vehicles is 15 percent. Chinese Taipei’s license plate tax ranges from under $100 for passenger vehicles with an engine displacement of 500cc or less, to over $5,500 for a passenger vehicle with an engine displacement between 6,601cc-7, 800cc. Most U.S.-built passenger vehicles pay between $400- $2,500.
Other Measures: Local Content Requirement: Local vehicle manufacturers must meet a 50 percent local content requirement, including the mandatory local sourcing of certain components. The local content requirement is set to be lowered to 40 percent on January 1, 1999. Note: Upon accession to the WTO, in conformance with the Agreement on Trade-Related Investment Measures, Chinese Taipei will eliminate its automotive local content requirements. Vehicle Leasing: Chinese Taipei has removed restrictions on foreign participation in the long-term vehicle leasing business. The modifications to relevant regulations are scheduled to be completed by December 30, 1998. Trade Balancing Requirement: Japanese manufacturers located in Chinese Taipei are required to export to Japan 10 percent of the value of CKD vehicles imported from Japan. Import Bans & Quotas: Import of used vehicles for other than personal use is prohibited. Import of diesel vehicles (except Jeeps) and two-stroke engine cars are prohibited. Prior to 1997, Japanese and Korean motor vehicles were banned from Chinese Taipei (except for passenger cars with an engine capacity of 3,000cc or more). As part of the WTO accession process, Chinese Taipei agreed to grant Japan and Korea pre-accession import quotas for motor vehicles. In 1997, Korea was granted an import quota of 7,000 units, with a growth rate of 10 percent per year (1997 quota was 7,700 units). In 1997, Japan was granted a pre-accession import quota of 7,700 units, also with a growth rate of 10 percent per year. All vehicles entering Chinese Taipei under the pre-accession quota pay a 30 percent import tariff. In addition, Chinese Taipei granted all local manufacturers a pre-accession import quota also known as the Global Quota. The global quota is 3,300 vehicles for each manufacturer/assembler. Of the 9 local motor vehicle manufacturers/assemblers in Chinese Taipei, 8 are Japanese. For Japan, this represented an additional quota allocation of 26,400 for 1997, with a 10 percent growth each year. All vehicles entering Chinese Taipei under the pre-accession global quota also pay a 30 percent import tariff. Note: A Tariff-Rate Quota (TRQ) will be in place for ten years after accession. For countries enjoying access to the Taiwan Market before 1997, of which the United States has the largest share, the quota will be double the amount of their highest level of imports between 1990 and 1993.
Nine countries currently form the membership of the Association of South East Asian Nations (ASEAN). These countries include:
- Brunei Darussalam
- Myanmar (Burma)
- the Philippines
- Thailand and
The founding ASEAN economies, including the Philippines, Indonesia, Malaysia and Thailand aspire to achieve an ASEAN Free Trade Area (AFTA) by 2003, under which all internal tariffs on manufactured products are supposed to be lowered to 0-5 percent, as applied by the common effective preferential tariff (CEPT). However, within the automotive sector, Malaysia was given an extension for ASEAN free trade area (AFTA) until 2008. In order to receive AFTA benefits, goods must meet a 40% ASEAN regional value content standard. The main trade scheme in ASEAN that has an impact on automotive trade within the region is the AICO (ASEAN Industrial Cooperation) established in November 1997. Under the AICO scheme, approved companies are eligible to benefit immediately fromthe AFTA 0-5% preferential tariff rate, for trade in approved items. In the automotive sector this applies to completed vehicles, parts, half-finished goods and material. In order to qualify, products must have 40 percent ASEAN content and demonstrate resource sharing between participating companies. The AICO program was originally slated to expire upon full implementation of the AFTA in 2003. However, there is currently discussion underway about maintaining or modifying the AICO scheme to continue on into the future. The AFTA has created a tighter market and affected price competition within the ASEAN region. Nonetheless, many outlying issues have been left unresolved in the ASEAN region including tax, tariff and transparency issues. On a more positive note, the majority of ASEAN economies have recovered from the 1997-1997 Asian Economic Crisis, and ASEAN automotive markets have largely returned to pre-crisis levels.
Though there was never any official notification, since July 1997 the Ministry of Commerce has had a policy not to issue import licenses for vehicles. However, until late-2002/early-2003, the Ministry continued to allow imports on a case-by-case basis for personnel from the Ministry of Commerce, the Union Solidarity and Development Association (the primary sub-national government organization), and to war veterans associations. Though there is no law giving it the authority to do so, currently, only the Trade Policy Council, headed by the regime’s number two Vice Senior General Maung Aye, can grant an import licenses – which it does on occasion to favored cronies. For those cars that are legally imported, customs duties ranging from 1-40 percent are levied depending on the type of vehicle (e.g. 1 percent for Ambulances, 30 percent for the vehicles between 1500 cc and 2500 cc, and 40 percent for the vehicles between 2500 cc and 3000 cc.) Since 2002, the assessment of customs duties for vehicle has been based on market value of the vehicle and there is no special exchange rate.
Exceptions to the de facto import ban are made for: (a) Foreign investment companies and joint ventures with government organizations with official recommendation from the Myanmar Foreign Investment Commission. (b) Diplomats of foreign missions. (c) Anyone with special import permission from the Trade Policy Council. Preexisting regulations allow the import of only certain vehicles, including: (a) Passenger buses with a capacity of 24 passengers and more, trucks of three tons and above, and heavy-duty vehicles for business use. None may be older than seven years. (b) Pick-up type (inclusive of mini-truck below 3 tons) and mini-buses with the capacity of the carrying 8 passengers and more. These must have been manufactured during the past five years. (c) Saloon cars, sedans, vans, and mini-buses to be utilized for trade. None may be older than three years.
Used Vehicle Bans: The import of used parts is currently banned. To import used vehicles the vehicles must meet safety requirements and only after the following six conditions have been met: tested engine; replaced necessary parts; overhaul of breaks, repaired to met safety standards; the vehicle body must be in perfect condition; cleaned interior; new batteryand tires; and inspection must be done by an authorized agency. In reality, the government’s implementation of its used car policy is very weak. Authorities are not strict about safety standards and there are many cases of un-inspected used cars and motorbikes smuggled from China.
Appears to have similar procedures to Singapore. Typical Port Of Entry in Indonesia is Kelang, Jakarta. We are both exporting to and importing from Indonesia. Import Duty for a Thailand imported vehicle is 20% beginning in 2005 because Thailand is an ASEAN country.
Tariffs: Motor Vehicles: In July of 1999 Indonesia introduced a new automotive policy. This new policy was introduced in order to bring Indonesia into compliance with the World Trade Organization Agreement on Trade Related Investment Measures (TRIMs) and to comply with the terms of the IMF Agreement granting $43 billion in aid to Indonesia. Under the new policy, Indonesia removed all support for the National Car Program, and removed all local content requirements. Tariff rates were also significantly lowered for most automotive products. Import duty and luxury tax rates are now based on engine size, with lower rates applied to vehicles with smaller sized engines. Also, lower duty rates are applied to CKDs verses CBUs for the same vehicle categories.Taxes:$ In addition to the duty and luxury tax, Indonesia applies a 10 percent Value Added Tax (VAT). $ On December 22, 2000, the GOI increased luxury sales taxes on 41 kinds of products, which include automobiles. Through the Government Regulation No.145/2000, the GOI increased the luxury tax on 4,000cc sedans and 4×4 Jeeps or vans from 50 percent to 75 percent. Also, the luxury tax on automobiles with engine capacity between 1,500cc and 3,000cc was increased from 15 percent to 20 percent. $ Jakarta City Vehicle Tax:In order to boost city revenues, the Jakarta City Administration recently increased vehicle taxes between 0.34 percent and 22.47 percent. The new tax rates took effect on April 25, 2001, following the issuance of Governor Decree No.33/2001 on Vehicle Taxes and Change of Vehicle Ownership Taxes. The new decree stipulates that vehicle taxes are calculated based on vehicles= selling prices, regardless of their engine capacities, as was the case in the old decree. The vehicle selling prices are determined by the Governor and subject to annual adjustments in accordance with the market prices. Previously, vehicle taxes were set at 1.5 percent of their selling prices, with engine capacities being taken into account. The tax increase brings the rate for trucks to 22.47 percent, followed by the tax on sedans (14.87 percent), on jeeps (14.27 percent), on motorcycles (8.12 percent), on dump trucks and tank trucks (6.85 percent), on minibuses (5.14 percent), and on heavy equipment (0.34 percent). Other vehicles such as station wagons, three wheelers, and minivans are excluded from the tax increase. Other Measures:Local Content Requirements: $ With the implementation of the automotive policy in 1999, Indonesia removed all local content requirements. Import Bans and Quotas:$ Used vehicle and automotive part imports are prohibited. Investment Requirements:$ Under the Government Regulation No.20/1994 and the Presidential Decree No.31/1995, foreign investors are allowed to acquire 100 percent ownership of their investment in Indonesia and the automotive sector is open for foreign direct investment. $ The minimum capital requirement for foreign investment has been eliminated. $ Under the decrees of the Ministry of Finance No.297/1997 jo., No.545/1997 and No.546/1997, the GOI exempts importation of capital equipment, which includes production machinery and raw materials, from import duties. $ Investment procedures have been substantially simplified. Foreign investment’s application with a value of more than $100 million, which formerly needed the President’s approval, is now subject only to the approval of the Investment Coordinating Board (BKPM). Moreover, the BKPM is currently making necessary preparations to grant more authority to the Local Government Authority to issue investment licenses. $ The tax holiday is a new incentive for investors in 22 kinds of manufacturing activities. The basic period of enjoying the tax holiday is 3 years for Java and Bali. The 3-year incentive can be extended up to 12 years if certain requirements are met. Distribution The GOI requires foreign automakers to be represented by a single exclusive agent throughout Indonesia. However, the new automotive policy allows any imported vehicles to be imported by companies other than the exclusive agent. The exclusive agent remains the sole authorized dealer and the only party who can operate maker-authorized repair services. Consequently, some exclusive agents are now advertising that they are not responsible for performing warranty services on vehicles they did not import.
Appears to have similar procedures to Singapore.
Import Duty for a Thailand imported vehicle is 20% beginning in 2005 because Thailand is an ASEAN country. Visit Malaysian Customs (http://www.customs.gov.my/) for car import regulations.
The imposition of very high import duties make owning a non Malaysian made car somewhat expensive. Import duties run to as high as 300%. Consequently the vast majority of cars in Malaysia are locally produced ones. Cost of maintenance and parts for foreign cars are also factors to be considered. Needless to say if your car is rare or indeed not available in Malaysia these factors become paramount. Shipping charges, documentation and bureaucracy may also cause you problems, although hiring a shipping agent will alleviate most of the stress involved, charges will of course be imposed.
To import your car, you must apply for an Approval Permit from the Ministry of International Trade and Industry (MITI).
In order to apply for this permit your car must be registered under your name for at least 3 years. The following documentation must then be presented and processed:
- A letter of application addressed to the Ministry Of International Trade and Industry (MITI) for the importing of a car from your home country to Malaysia for personal use.
- A JK69 form must be purchased MITI and duly completed.
- Documentation indicating proof of ownership. Typically this will be a purchase receipt or transfer of ownership/letter from the previous owner if the car was purchased second-hand.
- The original and photocopied registration.
- The cars original insurance documents and/or a letter from the insurance company.
- Your work permit and letter of contract from your employer in Malaysia.
- A photocopy of your passport.
All these documents must be presented to the officer in charge at the MITI offices, who will also conduct a short interview. Processing of your application typically takes seven working days, if all goes well you will be issued an Approval Permit allowing you to import your car. The permit is valid for only 3 months, if you do not import your car by then, you will have to go through the entire process all over again.
Upon the arrival of your car, you are required to collect it yourself from the port and then you will need to apply for a permit from the Malaysian Road Transport Department or “Jabatan Pengangkutan Jalan”, this entails more registration paperwork which of course will include your proof of ownership and registration documents, a car inspection and the payment of the import duties.
(Source: Royal Malaysian Custom – Import of Personal Vehicle)
Import Duty For CBU Vehicles (%)
|ASEAN (CEPT)||NON-ASEAN (MFN)|
>1800 – < 2000
>2000 – < 2500
|MPV/Van||>1500 – < 1800
>1800 – < 2000
>2000 – < 2500
>2500 – < 3000
|4WD||>1800 – < 2000
>2000 – < 2500
>2500 – < 3000
Excise Duty For All Vehicles (%)
>1800 – < 2000
>2000 – < 2500
|MPV/Van||>1500 – < 1800
>1800 – < 2000
>2000 – < 2500
>2500 – < 3000
|4WD||>1800 – < 2000
>2000 – < 2500
>2500 – < 3000
Calculation of customs duties on imported vehicles
|Vehicle Type :||BMW Model 735iAL/ 2003|
|Engine Capacity (CC) :||4,999 cc|
|Purchase Price :||Euro 36,277.84 (Euro 36,277.84 x RM4.5562 = RM165,289.09)|
|Customs Value||RM165,289.09 + RM1,500.00 + 826.45||= RM167,615.53|
|Import Duty||Customs Value x Import Duty Rate (changes according to Budget)
RM167,615.53 x 200%
|Excise Duty||Customs Value x Excise Duty Rate (chnages according to Budget)
RM167,615.53 x 100 %
|Sales tax||Customs Value + Import Duty + Excise Duty
RM167,615.53 + RM335,231.06 + RM167,615.53
|Total||RM670,462.12 x 10%||= RM67,046.21|
|Total amount of customs duties to be paid||= RM 569,892.80|
** Purchase price of the vehicle can be taken into account in the calculation of the Customs Value and this is only an estimation of the calculations of Customs Duties. However, Royal Malaysian Customs has docket price of the particular vehicle to determine the calculation of the exact Customs Value. The calculation of Customs Duties also depends on the original registration date (birth date), engine capacity, date of import and model of the vehicle.
Tariffs:Motor Vehicles:$ The import duty for passenger cars is between 140-300 percent, based on engine displacement. (New Diesel cars (CBUs) are charged a rate of 120 percent, while used diesel cars are charged the same rates as gasoline engine vehicles [chart below]). Passenger Cars CBU CKD Engine Capacity (cc) Less than 1,800 140% 42% 1,800 – 1,999 170% 42% 2,000 – 2,499 200% 60% 2,500 – 2,999 250% 70% 3,000 and above300% 80% $ The import duty for 4WD and MPVs ranges from 60-180 percent. 4WD and MPVs CBU CKD Engine Capacity (cc) Less than 1,800 60% 10% 1,800 – 1,999 80% 20% 2,000 – 2,499 150% 30% 2,500 – 2,999 180% 40% 3,000 and above200% 40% Vans The import duty for vans ranges from 42-140 percent CBU CKD Engine Capacity (cc) Less than 1,800 42% 5% 1,800 – 1,999 55% 10% 2,000 – 2,499 100% 30% 2,500 – 2,999 125% 40% 3,000 and above140% 40% Commercial Vehicles CBUCKD30% Nil Automotive Parts and Components:$ The import duty for auto parts and components ranges from 0-42 percent. $ The import duty for National Cars (Proton and Perodua are the two national vehicles) CKDs is 13 percent. Taxes:$ A 10 percent sales tax on all vehicles is assessed. An excise tax on passenger cars is assessed on a graduated schedule: First RM 7,000 x 25% Next RM 3,000 x 30% Next RM 3,000 x 35% Next RM 7,000 x 50% Next RM 5,000 x 60% Balance x 65% $ There is a 45 percent excise tax on MPVs and 4WD vehicles. $ There is a 30% excise tax for vans $ No excise tax for commercial vehicles $ National cars receive a 50 percent reduction in the excise tax. $ A road tax of 0.13 to 3.6 ringgits is assessed, based on engine displacement. Other Measures:National Car Policy:$ The Malaysian government heavily influences the activities of the domestic automotive manufacturers/assemblers. Malaysia has developed the automotive sector to help reduce the effects of volatile changes in rubber and palm oil prices on its economy, avoid having a huge trade deficit, and as a platform for economic development. Malaysia believes that a strong motor industry brings employment, technology and prestige. $ There are 23 vehicle assembly companies in Malaysia, but Proton and Perodua, Malaysia’s National Car companies dominate the market. Combined, the two maintain over 90 percent market share in Malaysia.$ Loans for vehicles valued RM40, 000 and below require a 15 percent down payment and a seven-year maximum repayment period. Above RM40, 000, the down payment is 30 percent with a seven-year maximum repayment period. All non-national cars on the market are currently selling above RM 50,000. $ The national cars (Proton and Perodua) are granted a 50 percent reduction in excise taxes (not available to foreign manufacturers). Protons typically sell for half the price of import equivalents. $ National cars (Proton and Perodua) are assessed an import duty of 13 percent for CKDs versus 42 percent for other CKDs. Import Bans and Quotas: $ An approval permit (license) is required for imports of motor vehicles, which limits importers total market volume for completely built-up units (CBUs), effectively acting as an import quota. Currently CBU imports make up less than five percent of the market. $ Malaysia maintains an import ban on motor vehicles (and all other products) from Israel. Trade Related Investment Measures (TRIMs) $ Under the World Trade Organization’s TRIMs Agreement, Malaysia was required to remove local content requirements measures by January 1, 2000 unless additional time was granted by the WTO. On December 29, 1999, Malaysia made a formal request for an additional two years to bring these measures into compliance with its obligations under the Agreement. $ Under an agreement worked out with United States, Malaysia agreed to phase out its local content program by December 31, 2003. To date, Malaysia has complied with the phase out schedule. The United States will continue to monitor this situation until the process is completed.
ASEAN Free Trade Area (AFTA): $ Under AFTA, all internal tariffs on manufactured products are supposed to be lowered to 0-5 percent, as applied by the common effective preferential tariff (CEPT). However, within the automotive sector, Malaysia was given an extension for AFTA until 2008. $ Some reports state that the Government of Malaysia will make a series of tariff cuts on CKDs starting in 2004 until they reach the 5 percent AFTA rate in 2005. While other sources report that the Malaysian tariff rates for ASEAN cars will decrease to 20 percent by 2005 and by 2008 rates will drop to 5 percent. Recent reports have shown that the Government of Malaysia may impose new excise taxes on imported vehicles as tariff rates are reduced. Investment Requirements:$ Foreign investors may retain up to 100 percent equity if the firm either exports 50 percent of its output or employs 350 Malaysians full-time. $ Malaysian companies must be 30 percent Bumiputra (native Malay) owned.
Tariffs: The Philippines has announced an intention to lower MFN tariff rates for automobiles in 2004.
MFN Rates CBU 20022003Passenger Cars(8703)3030Commercial Vehicles Motor vehicle for the transport of 10 or more persons (8702)15/2015/20Motor vehicle for the transport ofgoods (8704)20/3020/30Motorcycles (8711.9010)30 30 66 CKD (Tariff Line for the Participants of the Motor Vehicle Development. Program) 20022003Passenger Cars(8703.9010)1010Commercial Vehicles*Motor vehicle for the transport of 10 or more persons (8702.9010)33Motor vehicle for the transport of goods (8704.9010)33Motorcycles (8711.9010)3 3 (* As amended by E.O. 11 issued on 17 April 2001)CEPT Rates (for qualifying products from AFTA partners) CBU 20022003Passenger Cars(8703)205Commercial Vehicles Motor vehicle for the transport of 10 or more persons (8702)15/205Motor vehicle for the transport ofgoods (8704)205Motorcycles (8711.9010)20 5 CKD 20022003Passenger Cars(8703.9010)73Commercial Vehicles Motor vehicle for the transport of 10 or more persons (8702.9010)33Motor vehicle for the transport ofgoods (8704.9010)33Motorcycles (8711.9010)3 3 Taxes: Automobiles in the Philippines are subject to an excise tax. However, the excise tax system in the Philippines has recently been modified and reformed. In August 2003, the Philippine Senate passed its final version of an automotive excise tax bill that taxes vehicles by car value rather than engine size. While some discrepancies did exist between the Senate and the House versions of the excise tax bill, the Philippine Congress was able to consolidate the two versions of the bill, thus resulting in a compromise that favored lower tax rates. The consolidation of the two bills was accomplished by the work done within the Bicameral Conference Committee, which approved the committee report that contains the automotive excise tax rate. The final version of the bicameral report is still pending until all committee members sign. The bill should be ratified by congress and signed into law by the President by September 2003. Under the new legislation, all vehicles, including the Asian Utility Vehicles (AUVs), would be subject to an excise tax. It is important to note that under the prior system, vehicles that were previously tax exempt by meeting certain seating requirements, such as the ten-seat rule, could be classified as AUVs and avoid excise tax. The approved tax rates are as follows: for vehicles with a manufacturer’s price of PHP600,000 and below, the tax is two percent; those priced over PHP600,000 to PHP1.1million, the tax will be PHP12,000 plus 20 percent of the amount in excess ofPHP600,000; those priced over PHP1.1 million to PHP2.1 million, the tax will be PHP112,000 plus 40 percent of the amount in excess of PHP1.1 million; and those over PHP2.1 million , the tax will be in PHP512,000 plus 60 percent of the amount in excess of PHP2.1 million. A 10 percent VAT tax is assessed on all vehicles and automotive components sold in the domestic market. Other Measures: Importation of the following automotive parts is regulated by the Bureau of Import Services (an agency under the Department of Trade and Industry), which requires clearances/permits prior to importation: DashboardsGrillesPlateracketMudguards DoorsHoodsVisorsFloor BoardsFendesLuggage compartmentsRadiato cowlingsFloor mats (other than of textile material/rubber) Ext. luggage racks Running boardsTrunks/trunk lids The importation of bodies (including cabs and body shell) and chassis fitted with engines for vehicles weighing below 6 tons is not allowed. Motor Vehicle Development Program: The Philippine Car Development Program (CDP) introduced in 1987 was developed to increase the exports of automotive parts to enable the Philippine economy to support a viable local components industry. In addition there is a similar Commercial Vehicle Development Program, and a Motorcycle Development Program. These programs mandate certain levels of local content usage for manufacturers (based on vehicle type) and require foreign exchange balancing. In return manufactures are granted tariff reduction benefits. The local content usage and foreign exchange balancing requirements are contrary to the terms of the World Trade Organization Agreement on Trade Related Investment Measures. It is important to note that no phase-down requirement exists for the foreign exchange balancing elements, and the foreign exchange balancing measures will be eliminated by July 1, 2003. 68
Singapore is one of Bloomstar’s global hubs. A number of our partners are buying from us and then re-exporting to different Asian markets. We are exporting a number of new and used Toyota and Mitsubishi vehicles to Singapore, some for Singaporean consumers while others imported for the express purpose of re-export to other Asian and European countries.
Individuals may import their own Vehicles, or use an Import Agent or Dealer Singapore side. The LTA (Land Transport Authority), have an excellent and informative website: http://www.onemotoring.com.sg. Our partners can arrange all importation requirements and some may even be willing to arrange financing for our brand new cars provided you are a Singaporean resident. All our vehicles are provided with Registration/Deregistration Certification as the LTA requires.
Tariffs: Singapore does not apply any tariffs to vehicles or components. Taxes: The excise tax on all vehicles is 31 percent. Registration fee: $140 Sing dollars Additional Registration fee: 140 percent of vehicle’s market value Singapore levies a road tax on vehicles, which is based on engine displacement. There are five categories for this tax: less than or equal to 600cc, 601cc – 1000cc, 1001cc – 1600cc, 1601cc – 3000cc and above 3000cc. Tax is determined by a graduated formula, with larger engine sizes charged a higher tax rate (for additional details, see the Singapore Land Transport Authority’s web page at www.onemotoring.com.sg) Singapore employs a system to refund a portion of the additional registration fee upon the trade in of a used car for a new vehicle. However, the amount of the refund is graduated, significantly discouraging the trade in of used cars over five years in age. Other Measures: In 2002, the U.S. – Singapore signed a Free Trade Agreement (FTA). The most important impact on Automotive Trade was a guarantee by Singapore to comply with WTO customs valuation procedures. Domestic Quotas: The government of Singapore established the Vehicle Quota System in 1990 to restrict the growth of the vehicle population. Under the system, the Land Transport Authority, part of the Ministry of Communications, pre-determines the number of cars that it will register for the year. This number is based on the number from the previous year plus 3%, added to the number of cars that are expected to be scrapped. For example, in 2002, slightly over 26,000 cars were registered. Under the Vehicle Quota System, each person who wants to purchase a car must also purchase a Certificate of Entitlement (COE). Each citizen can either submit the bid for him/herself or ask a car dealer to submit the bid. Certificates are awarded each month to the highest bidders. Currently, certificates are selling for roughly $20,600 Singapore dollars. More information on this process can be found at www.lta.gov.sg. The price has been known to go as high as $60,000, clearly indicating that demand outstrips supply. Miscellaneous: Left hand drive vehicles may not be registered in Singapore. The combination of COE premiums, duties, fees and taxes add significant costs to vehicles, resulting in a C.I.F. price of $10,000 growing to over $70,000 at retail. 90 percent of passenger cars use manual gearshifts. Singapore requires vehicles to have dual independent brake systems.
Tariffs: Motor Vehicles: As a result of the economic crisis, on October 14, 1997, the government temporarily raised the tariff on imported cars and sport utility vehicles. These “temporary” increases are still in place. In addition, Thailand increased CKD duties in January of 2000 when it removed its local content requirements. Effective January 1, 2000, the Royal Thai Government raised tariff rate on CKDs from 20 percent to 33 percent. It is important to note that the tax rates still favor pick-up trucks. Passenger cars are assessed an 80 percent import duty. Pick-ups are assessed a 60 percent import duty. Heavy-duty trucks and buses are assessed a 40 percent import duty. Previously, Thailand Customs did not use CIF value for imported vehicles, to prevent loss of revenue through under-invoicing. Instead, it established a “check price” for various imports, which is established as the value of the first imported model. Although Thailand has modified its Customs procedures to comply with WTO obligations, it is unclear if all problems with Customs valuation have been resolved. Automotive Parts and Components: CKD kits (passenger cars, pickups and sport utility vehicles) are assessed a 33 percent import duty. Vehicle components which are not brought in as CKD material (i.e. service parts/missing/damaged parts) are subject to 5 – 42 percent duties The maximum tariff on raw materials is 23.5 percent, with the overall average of less than 20 percent. Taxes: Thailand applies a cascading tax system, which dramatically increases the price of vehicles. For imported passenger cars with engines over 3,000 cc in size, the final price can be as high as four times the original price. As the tariff rate is included in the base price for tax calculations, imported vehicles are taxed at a higher rate than domestically produced vehicles. The excise tax is computed under the following formula: Vehicle Price (including tariff) x Excise Tax Rate 1 – (1.1 x 35) for passenger cars The municipal tax is 10% of the amount of the excise tax. The VAT is 7% or 10% (depending on engine size) times the price including tariff, excise tax and municipal tax. Other Measures:Local Content Requirements: Thailand removed all local content requirements on December 31, 1999 to comply with the WTO TRIMs Agreement. Import Bans: Ban on used vehicles Ban on buses with 30 seats and over.
Tariffs: Motor Vehicles: Passenger cars: we have conflicting information on whether the import duty is 100 or 200 percent. Minivans are assessed an import duty of 150 percent. Commercial vehicles are assessed an import duty of between 120-160 percent. The government routinely allows foreign companies to import vehicles duty-free for corporate use.
Automotive Parts and Components: CKDs are assessed a 20-50 percent import duty, but the government may impose an annual quota for kit imports (1997 quota was 3,500 for CBUs and CKDs). We have conflicting information on whether the lower end of the range is 7 or 20 percent.
Taxes: The following tax rates apply: – Automobiles with less than 5 seats: 100 percent – automobiles with 6 to 15 seats: 60 percent – Automobiles with 16 to 24 seats: 30 percent Beginning in January 1999, all domestically produced vehicles will be subject to a special consumption tax. This tax will range from 30 to 100 percent. Reductions in the tax will be offered if manufacturers face losses after 5 years. Other Measures:Local Content Requirements: In late 1994, the Vietnamese government introduced a rule requiring any foreign applicant to commit to making 60 percent of vehicle parts locally, in an apparent effort to expand its indigenous automotive components production, which is currently rather limited (i.e., batteries and floor mats). Five percent of the value of CKDs must be localized after 5 years, and 30 percent by the tenth year. Although the supplier base in Vietnam is limited, it is expected that the government will force assemblers to conform to local content requirements. Prohibitions: Beginning in 1998, Vietnam has a prohibition on the importation of used passenger vehicles.
South West Asia
You can import used vehicles that are less than four years old but the chassis number of the vehicle must be within the manufacture of the year. The maximum cc on cars is 1.6 cc and max on Jeeps or SUVs is 3000cc
New vehicles may be parallel imported by Dealers or Individuals provided these are supplied with “Euro1” exhaust emissions Certification, which we can arrange. Most Thai vehicles are Euro3 compliant so Euro1 is not a problem. All tariff and Customs information for are at: http://www.ieport.com
Typical Ports of Entry: Nhava Shiva, Bombay, Calcutta
Basic Duty: New motor vehicles (HS 8703) are assessed a basic customs duty of 25 percent of the value listed on the manufacturer’s invoice if imported in a completely knocked down form. For motor vehicles in any other form (i.e., semi-knocked-down or completely built unit), the basic custom duty is 60 percent.
Additional Duty: An additional duty of 24%, also known as the countervailing duty, is also applicable. Additional duty or CVD is equivalent to the excise duty on similar articles produced locally, and is levied on the C.I.F. value of the vehicle plus all other duties of custom other than antidumping duties.
Special Additional Duty (SAD): A 4% SAD is applicable in addition to basic and additional duties. It is levied on the aggregate of C.I.F. value of the vehicle plus all other duties (i.e., the basic duty, the additional duty, the antidumping/safeguard duty). In June 1998, the Government of India introduced the special additional duty of 4 percent. The SAD is approximately equal to the total incidence of local taxes, such as sales tax or VAT. Questions have arisen as to whether the SAD constitutes double taxation as each Indian state imposes its own sales tax as well.
National Calamity Duty: An additional 1 percent National Calamity Contingent Duty of Customs (NCCD) is applicable; and it is compounded on the CIF value plus all other duties. The total effective duty on the import of CKD units works out to 62.8 percent, and that for SKD and CBU approximately 108.4 percent
The basic customs duty on most auto parts is 25 percent. The Central Board of Excise and Customs ruled January 21, 1998, that CKD/SKD kits, which are taxed at the same rates as CBUs, are eligible for a credit for the full 40 percent additional duty as they are considered inputs for manufacture. However, if the kits contain all of seven essential parts, components or sub-assemblies (engine, gear box, chassis, transmission, body/cab, suspension system, front/rear axles), the kits treated as finished motor vehicle for purpose of assessing customs duties. India’s auto tariffs are not bound in the WTO. (Please refer: www.cbec.gov.in, chapter 87)
Certain importers are eligible to import vehicles without a license, but on a foreign exchange neutrality basis, meaning that no foreign exchange is permitted to leave India to finance the import.
Categories of eligible importers include:
- Persons settling permanently in India
- Foreign nationals married to Indian nationals
- Foreign nationals working in India
- Foreign firms, companies and institutions established in India
- Companies incorporated in India having foreign equity
- Journalists/correspondents of foreign news agencies
- Indian firms executing contracts abroad
- Charitable and missionary institutions
- Physically handicapped persons
- Honorary consuls of foreign governments
The Government of India prescribes the requirements and conditions under which the eligible importers listed above may bring vehicles into India. Please refer to the following web site for additional information: http://konark.ncst.ernet.in/customs/Car.htm.
A Non-resident Indian importing vehicle into India
The total Customs duty incidence on cars comes to around 181%. The car can only be imported, if you are transferring residence into India and the engine capacity is less than 1600 cc (for new cars), there is no cc limit for old and used cars, in your possession for more than 1 year
No import licence required for importing cars and other vehicles into India.
- 1. The importer should have been continuously stayed in abroad for a period of two years before coming to India for permanent settlement.
- 2. The payment for the car is made abroad.
- 3. The car should have been in use for at least one year prior to importer’s return to India.
- 4. The car should be imported within six months of the arrival of importer in India.
- 5. The custom duty should be paid in foreign exchange
- 6. The importer is free to sell this car in the open market after his return to India without any restrictions about the period of retention of the vehicle.
- 7. The importer can import another vehicle only after five years, if he moves out of India
- 8. The duty on import by a handicapped persons can be paid in rupees and the vehicle in this case cannot be sold at any time without the permission of the government.
- 9. Import of spares up to a value of Rs.20,000.00 for each imported vehicle is allowed with a license.
- 10. The import duty is charged on the basis of list price prevailing. However, trade discount and depreciation on the value are deducted from the price list but freight from the country of manufacture and insurance charges are added.The landing charges are further added to arrive at the final assessable value.
General guidelines for importing a new or used car to India
The import of vehicles shall be subject to the following guidelines of the Government of India:
1. (I) A new imported vehicle shall mean a vehicle that: –
(a) has not been manufactured/assembled in India; and
(b) has not been sold, leased or loaned prior to importation into India; or
(c) has not been registered for use in any country according to the laws of that country, prior to importation into India.
(II) The import of new vehicles shall be subject to the following conditions:
(a) The new vehicle shall-
(i) have a speedometer indicating the speed in km / h;
(ii) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);
(iii) have photometry of the headlamps to suit “keep-left” traffic; and
(iv) be imported from the country of manufacture.
(b) In addition, the new vehicle shall conform to the provisions of the Motor Vehicles Act, 1988 and the rules made thereunder, as applicable, on the date of import.
(c) The import of new vehicles shall be permitted only through the Customs port at Nhava Sheva (Mumbai), Calcutta and Chennai.
2. (I) A second hand or used vehicle shall mean a vehicle that :-
(a) has been sold, leased or loaned prior to importation into India; or
(b) has been registered for use in any country according to the laws of that country, prior to importation into India;
(II). The import of second had or used vehicles shall be subject to the following conditions:-
(a) The second hand or used vehicle shall not be older than three years from the date of manufacture;
(b) The second hand or used vehicle shall:
(i) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);
(ii) have a speedometer indicating the speed km / h; and
(iii) have photometry of the headlamps to suit “keep left” traffic.
(c) In addition, the second hand or used vehicle shall conform to the provisions of the Motor Vehicle Act, 1988 and the rules made thereunder, as applicable, on the date of import.
(d) Import of second hand vehicles shall be allowed only through the customs port at Mumbai.
(e) The second hand or used vehicles imported into India should have a minimum roadworthiness for a period of 5 years from the date of importation into India with assurance for providing service facilities within the country during the five year period. For this purpose, the importer shall, at the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies, which the Central Government may notify in this regard.
(f) The vehicle has to be submitted for testing to Vehicle Research and Development Establishment (VRDE), Ahmednagar, of the Ministry of Defence or the Automotive Research Association of India, Pune or the Central Farm and Machinery Training and Testing Institute, Budni, Madhya Pradesh, and such other agencies as may be specified by the Central Government, for granting a certificate by that agency as to the compliance of the provisions of the Motor Vehicles Act, 1988 and any rules made thereunder.
Car Imports & Duties – Exim policy 2001
Quantitative Restrictions on imports of second-hand automobiles lifted. The remaining QRs on about 715 items that were being maintained for balance of payment (BoP) purposes have been removed.
Exim policy stipulates that for new vehicles being imported into the country, the Vehicle should not be manufactured/ assembled in India, not been sold, leased or loaned prior to being imported to India; or should have been registered for use in any country prior to being imported to India. Vehicles should be imported only from the country of manufacture and should comply with CMVR, 1989.
Imports of new cars would be allowed only through Mumbai port (Nhava Sheva), Kolkata and Chennai.
Used vehicles being imported should not be more than three years old and conform to the Central Motor Vehicle Rules, (1989). Imported automobiles should have a minimum residual life of five years and the importer should ensure supply of spares and service during this period.
The government has decided to allow the entry of second hand vehicles into the country only through the Mumbai port. The commerce ministry has identified six categories of second hand vehicles having cylinder capacity of up to 3000 cc, which will now be allowed to be brought in through the Mumbai port. The six categories includes second hand or used motor cars and jeeps and landrovers.
Import of left hand vehicles banned. The vehicles should necessarily have right-hand steering controls, a speedometer indicating the speed in kilometres and a photometry of the head-lamps to suit ‘keep-left’ traffic.
For ensuring the requirements, pre-shipment as well as post-shipment of certification have been made mandatory.
The importing agency is expected, at the time of importation, to submit a certificate issued by a testing agency notified by the central government that the second hand vehicle being imported has been tested immediately before shipment and that the vehicle conforms to all the regulations specified in Motor Vehicles Act, 1988.
The importer is also required to submit a certificate issue by a testing agency notified by government that the used vehicle being imported conforms to the original homologation certificate issued at the time of manufacture.
The vehicle has to be submitted for testing to Vehicle Research and Development Establishment (VRDE), Ahmednagar, of the Ministry of Defence or the Automotive Research Association of India, Pune or the Central Farm and Machinery Training and Testing Institute, Budni, Madhya Pradesh, or other notified testing agency by the government.
The policy totally bans the import of cars whose engine capacity ranges from 1000 to 2500cc. As far as two-wheelers go, scooters with an engine capacity of over 50cc to 500cc can be imported. Motorcycle engine capacity should be their engine capacity should be over 250 cc but not in excess of 800 cc.
VALUATION OF CAR & DUTY RATES
The value of the car is determined in the following manner:
i) Manufacturer’s invoice value is accepted wherever such invoice is available.
ii) When no such invoice is available, value is determined on the basis of the world car catalogues available with the department or on the basis of manufacturer’s price list, where ever available. Normal Trade Discounts are allowed to be deducted where ever the value is taken on the basis of World car catalogues.
iii) Value of Second hand car is arrived at in the above manner after allowing the deductions for depreciation as per the schedule below, subject to maximum of 70% :
PERIOD OF USE
For every quarter during 1st year
For every quarter during 2nd year
For every quarter during 3rd year
For every quarter during 4th year and thereafter
The present rate of duty on import of Car is as below:
Total effective duty works out to 101.656% which includes the following.
BASIC CUSTOMS DUTY
SPECIAL CUSTOMS DUTY
40% (16% CENVAT + 24% SPECIAL EXCISE DUTY*)
SPECIAL ADDITIONAL DUTY OF CUSTOMS
( * Special Excise Duty exempted in the case of cars capable of being used by physically handicapped persons )
A. Persons Coming To India For Permanent Settlement.
B. Foreign Nationals Married To Indian Nationals.
C. Foreign Nationals Working In India.
D. Foreign Firms, Companies And Institutions Established In India.
E. Companies Incorporated In India Having Foreign Equity.
F. Journalists/Correspondents Of Foreign News Agencies.
G.Indian Firms Executing Contracts Abroad.
H. Charitable And Missionary Institutions.
I. Physically Handicapped Persons.
J. Honorary Consuls Of Foreign Government.
Import of automobile is not permitted except against a licence or in accordance with a Public Notice issued in this behalf.
Import of Passenger cars and automobile vehicles may be made without a licence by the categories of eligible importers specified in the Public Notice subject to the following conditions:-
i) The payment for the vehicle is made abroad.
ii) The payment of the Customs duty is made in foreign exchange, unless exempted in the case of any particular category of importer.
iii) The conditions specified against each category of eligible importers in the Public Notice are fulfilled.
iv) The importers returning to India on permanent settlement, a declaration to that effect is given to the Customs at the time of the clearance of the Car.
The categories of eligible Importers specified in the Public Notice are as follows:-
A. INDIAN NATIONALS OR FOREIGN NATIONALS OF INDIAN ORIGIN COMING TO INDIA FOR PERMANENT SETTLEMENT:
(a) Import of One Passenger Car with engine size not exceeding four cylinders and not exceeding 1600 C.C. is permitted, whether the car is new or old. Alternatively, import of any one passenger car is permitted provided the car has been in the use of the importer for more than a year prior to the return to India.
(b) The importer has stayed abroad continuously for a period of at least two years prior to his coming to India for permanent settlement.
(c) The payment for the Car is made abroad before his return to India.
(d) The car should be imported into India within six months of the arrival of the importer in India for Permanent settlement.
(e) If the importer transfers his residence out of India again, he will be entitled to import another car under this Policy only after a minimum period of five years from the date of importation of the previous vehicle.
(f) The importer is free to sell the car in the open market after his return to India without any restriction as regards the period of retention of the vehicle.
(g) Import of any other type of automobile vehicle may be permitted by the Director General of Foreign Trade on merits.
B. FOREIGN NATIONALS (INCLUDING PERSONS OF INDIAN ORIGIN) MARRIED TO INDIAN NATIONALS.
(a) Import of one passenger car is permitted, whether the car is new or old.
(b) The importer, namely the foreign national including person of Indian Origin, is coming to India for Permanent settlement.
(c) The car has been gifted to the importer by the parents within one year of the marriage.
(d) The importer is free to sell the car in the open market after his or her return to India without any restriction as regards the period of retention of the vehicle.
C. FOREIGN NATIONALS WORKING IN INDIA.
(a) The contract period for the employment, assignment or stay of the importer in India shall not be less than one year.
(b) Import of one vehicle is permitted.
(c) In case the importer wants to dispose of the vehicle, it will be subject to the condition of re-export of the vehicle or sale to the state Trading Corporation of India or to an eligible importer covered by any of the categories C, D, E and F mentioned in this Public Notice.
(d) Subsequent import of a vehicle may be made after the disposal of the previous vehicle accordance with the condition mentioned in (c) above, provided there is a minimum period of five years between two successive imports.
D. BRANCHES/OFFICES OF FOREIGN FIRMS, COMPANIES AND INSTITUTIONS (CORPORATE OR OTHERWISE) ESTABLISHED IN INDIA.
(a) Branches/Offices foreign firms, companies and institutions (corporate or otherwise) established in India may import up to three vehicles.
(b) In case the importer wants to dispose of the vehicles, it will be subject to the condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible importer covered by any one of the categories C, D, E and F mentioned in this Public Notice.
E. COMPANIES INCORPORATED IN INDIA HAVING FOREIGN EQUITY PARTICIPATION AMOUNTING TO NOT LESS THAN US $ 2 Lakhs.
(a) The Indian company may import upto three vehicles.
(b) The payment for the vehicle as well as the payment of the Customs duty in foreign exchange are made by the foreign company holding equity in the Indian company.
(c) In case the Indian company wants to dispose of the vehicle, it will be subject to the condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible imports covered by any one of the categories C, D, E and F mentioned in this Public Notice.
(d) Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in (c) above, provided there is a minimum period of five years between two successive imports of a vehicle.
F. ACCREDITED JOURNALISTS/CORRESPONDENTS OF FOREIGN NEWS
(a) The importer should have the Accredition Certificate from the Press information Bureau, Ministry of Information 7 Broadcasting, Government of India.
(b) Import of one vehicle is permitted.
(c) In case the importer wants to dispose off the vehicle it will be subject to the condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible importer covered by any one of the category C, D, E and F mentioned in this Public Notice.
(d) Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in (C) above, provided there is a minimum period of five years between two successive imports.
G. INDIAN FIRMS EXECUTING CONTRACTS ABROAD:
(a) Import of vehicle may be made after substantial completion of the project/winding up of the foreign office, subject to the production of a letter of approval from the Reserve Bank of India showing the permission of the Reserve Bank of India for the purchase of the vehicles abroad for the execution of the contract.
(b) The vehicle should have been in the use of the firm/company abroad for atleast one year.
(c) The vehicle shall not be sold, transferred or disposed off in any manner by the importer for a period of five years from the date of importation of the vehicle into India. If the importer wants to dispose off the vehicle within this period, he shall be free to sell it to the State Trading Corporation of India or to an eligible importer covered by any one of the categories C, D, E and F mentioned in this Public Notice.
H. CHARITABLE AND MISSIONARY INSTITUTIONS
(a) Import of vehicle such as utility vans, ambulances, station wagons, jeeps, passenger cars is permitted as gift, subject to the condition that the importer is an established institution and is functioning for the common benefit of the community, and subject further to the production of necessary clearance under the Foreign Contribution (Regulation) Act, 1970.
(b) Payment of Customs duty may be made in Indian Rupees.
(c) The vehicle shall not be sold, transferred or disposed off in any manner by the importer for a period of five years from the date of importation of the vehicle into India. If the importer wants to dispose off the vehicle within this period he shall be free to sell it to State Trading Corporation of India or to an eligible importer covered by any one of the categories C, D, E and F mentioned in this Public Notice.
I. PHYSICALLY HANDICAPPED PERSONS:
(a) Import of cars specially designed for the physically handicapped may be permitted on the basis of certificate in the proforma as prescribed in annexure-I appended to this Public Notice, from the State Civil Surgeon or Head of the concerned wing in the Government Hospital, certifying that the importer has any of the following disabilities and the percentage of impairment is not less than 50% of the total body as per Mebride Scale:
i) Unilateral/Bilateral amputees of the lower limbs excluding below knee unilateral.
ii) Unilateral below elbow or above elbow ambuacee.
(iii) Traumatic/permanent paralysis which cannot be surgically or medically treated.
iv) Permanent paralysis of one upper limbs or lower limbs due to any reason or hemipares.
v) Grossly deformed limbs due to trauma arthritis or congenital but having atleast one upper limbs normal.
(b) If the car is a gift, confirmatory letter from donor, in original, which should also indicate the donor’s relationship with the donee.
(c) Satisfactory evidence clearly justifying the need and essentiality for import of a self driven car by the applicant.
(d) Import of only one car upto 1600 CC engine capacity will be allowed.
(e) Car shall not be allowed to be sold or otherwise disposed off or possession parted with, or pledged, mortgaged or hypothecated, at any time. However, in special circumstances, and for valid reasons, and subject to such conditions as may be laid down, the Director General of Foreign Trade, New Delhi, may on request, relax this condition.
(f) The importer shall produce his driving licence within 6 months from the date of import, to the licensing authority with whom ‘No Sale Bond’ is executed.
(g) The Customs duty may be paid in Indian Rupees.
J. HONORARY CONSULS OF FOREIGN GOVERNMENT :
(a) Import of one passenger car is permitted on the recommendation of the Ministry of External Affairs provided the cost of the car, including freight and insurance, is borne by the foreign government and the Customs duty is paid by the applicant in Indian Rupees at the time of Import.
(b) Import of a second car will be permitted after a period of five years from the date of importation of the first car subject to the condition of re-export of the previous vehicles or its sale to the State Trading Corporation of India or an eligible importer covered by any one of the categories C, D, E and F mentioned in this Public Notice.
On import of the vehicle into the country, it should be registered in the name of the importer. The importer, except those covered by categories ‘A ‘ and ‘B’, shall execute a bond in the prescribed form, for an amount equal to Customs assessed CIF value of the vehicle in favour of the President of India at the regional licensing office concerned of the Director General of Foreign Trade, undertaking to fulfill the conditions applicable to import. The bond shall be valid for a period of five years and it may not be supported by a bank guarantee.
If the importers are employees of the Central Government, State Governments or Public Sector Undertakings posted in Indian Embassies/High Commissions abroad or in foreign Offices of Public Sector Undertakings they may make the payment of the Customs duty in Indian Rupees. In their case, the sale of the vehicle will not be permitted for a period of two years from the date of importation. However, if they make the payment of Customs Duty in convertible foreign exchange, there will be no restriction on the sale of the imported vehicle.
The provisions of the Public Notice may be relaxed on merits by the Director General of Foreign Trade.
See the The Indian Department of Road Transport & Highways for more information.
An import license is required. The import duty on mini-buses and public carriers is levied at around 154 percent (70 percent regular customs duty, 55 percent additional duty and 20 percent sales tax). The import duty on other vehicles is 201 percent (70 percent regular customs duty 55 percent additional duty and 20 percent sales tax
80% of Thailand made vehicles arriving on Karachi port are exported by Bloomstar, Jim Autos and our affiliates. A great article on import into Pakistan in our Jim Autos Dubai site at http://www.dubai-car-dealer.com/import-cars-pakistan.html.
Pakistan permits the importation of motor vehicles as a personal gift, or as personal baggage accompanying a returning Pakistani after a residence abroad. The schedule of duties is listed in Appendix G of the Import Trade and Procedure Order, 2002-2003 (www.paksearch.com). Duties have been modified in 2007 budget.
Exemption from Customs Duties: The Government of Pakistan exempts custom duty on the import of certain categories of motor vehicles by diplomats, tour operators/travel agents and privileged organization/offices/agencies as defined under Customs Rules and Procedures 2002-2003 (www.paksearch.com). Prohibited Import Items: HS Code Description 8710.0000 Tanks and other armored fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles.
Investment Measures: On a case-by-case basis, with the permission of the Government of Pakistan, organizations engaged in infrastructure projects such as petroleum, gas, refinery, CNG, LPG, energy conservation, environment and safety control are exempt from duties and taxes on vehicles not manufactured locally. Local Content Requirements: Pakistani companies that manufacture automobiles must comply with local content requirements. Within a specified time period the Pakistani plant must adhere to a specific local content ratio on the production line. The local content requirements vary for different types of vehicles and are determined by the Engineering Development Board of Pakistan (EDB). Further information may be obtained on EDB’s website: http://www.engineeringindustry.info.
Safety and Emissions Standards and Certification Procedures: Pakistan does not have regulations concerning automobile safety and emissions standards and certification procedures. All U.S. and European vehicle specifications are accepted
Frequently Asked Questions on Import of Vehicles into Pakistan
Q 1: As an overseas Pakistani can any one import a vehicle from abroad? Where will I find the relevant information?
Ans: Yes; every overseas Pakistani, subject to fulfilment of eligibility conditions as laid down in The Import Trade and Procedure Order, 2006 can import a vehicle from abroad. However, students receiving remittances from Pakistan, non earning member of families of the Pakistani National and those who have imported/gifted vehicle during the last two years cannot import a vehicle under the said Rules.
Q 2: What types of vehicles are importable under Personal Baggage/Gift Scheme and TR Scheme?
Ans: New or up to 5 year old Car, Bus, Van, Truck and Pickup and 4×4 vehicles are importable under Gift, Personal Baggage Scheme and TR Scheme are importable under as per Import Trade and Procedure Order, 2006.
Q 3: My Brother went abroad one year ago for studies and now he is returning after completion of study. Can he bring a car?
Ans: A student receiving remittance from Pakistan is not eligible to import a under Import Trade and Procedure Order, 2006. If your brother is not receiving any remittances from Pakistan and the vehicle is purchased from his own earnings abroad he is allowed to import under the Rules.
Q 4: We have appointed a foreign national in our firm on contract basis. Can he bring a car along with him?
Ans: Yes, a non privileged foreign national who comes to Pakistan on a specific contract of service with any local and foreign firm or with a Government or semi-Government Authority in Pakistan can bring a car as personal baggage. The vehicle can only be released on production of employer’s contract (service certificate) and on payment of custom duty and other taxes.
Q 5: How can an overseas Pakistani bring a new car on his return to Pakistan?
Ans: An overseas Pakistani who has been residing abroad for the last seven months and has spent 180 days abroad during the last seven months can bring a new car under the Import Trade and Procedure. However, if he brings a vehicle of 1800cc and above or 4×4 vehicles, customs duty and other taxes will be paid in foreign exchange supported by bank encashment certificate.
Q 6: I am returning from abroad after a two month stay? Can I bring a car or any other vehicle as part of my baggage?
Ans: The minimum stay requirement for bringing a vehicle in baggage is 180 days. Since, your stay is only 60 days you are not eligible to import a vehicle under the Import Trade and Procedure.
Q 7: My brother spent 8 months in UK and intends to return next month. Can he bring a car? If yes, what types of vehicles he is allowed to import?
Ans: Yes, your brother is eligible to import one vehicle under the Import Trade and Procedure, but the used vehicle must not be more than five years old (from the date of entry into Pakistan) under baggage scheme. The five years old vehicle means a vehicle which is manufactured five years before the date of import, e.g. a vehicle manufactured in August, 2001 is importable up to the August of 2006.
Q 8: My relative is returning from abroad after more than 180 days but he does not know the procedure of importing a vehicle in baggage. Could you please clarify as to what documents will be required and what procedure be followed?
Ans: He is entitled to import one new or up to five years old vehicle, if he is returning from abroad after completing 180 days from the date of departure from Pakistan to the date of arrival in Pakistan according to the current Import Policy of 2006. He is required to fill form CR-PB/G and produce the following documents to Customs Authorities.
(i) Purchase receipt of the vehicle.
(ii) Bill of lading (this document is issued by the shipping company at the time of booking of the vehicle for Pakistan).
(iii) Photocopy of full passport duly attested by the Embassy / Consulate of Pakistan abroad.
Q 9: I have lived abroad for more than 3 years and intend to gift a vehicle to my family. Can I do that and what documents are required to be produced?
Ans: You can gift a vehicle to your family which includes parents, sisters, brother, husband, wife and children above the age of eighteen. The car, however, should not be more than five years old and your stay abroad shall at least be 700 days during the past three years. The gift can only be made to a family member residing in Pakistan. You are required to fill a gift undertaking* and earning certificate* form which will be duly attested by the Pakistan Mission (download gift undertaking and earning certificate forms from the website).
The other documents required for the Gift scheme are as under;
1. Purchase receipt (Invoice of vehicle);
2. Gift undertaking form attested by the Mission which should not be more than six month;
3. Earning certificate attested by the Mission;
4. Attested photocopy of full passport attested by the Mission;
5. Bill of Lading (showing name and address of consignee); and
6. NIC of Donee.
Q 10: I remained in the UK for three years. Now I am shifting back to Pakistan and transferring all my household goods. Can I bring a car as part of my baggage and what I have to do? What allowances are applicable in my case? Also tell me what documents are required for Transfer of Residence?
Ans: Yes, you can bring the vehicle along with your baggage and upon arrival in Pakistan submit a written declaration in duplicate to Customs who shall return one copy duly acknowledged. The depreciation at the rate of 2% per month subject to a maximum of 50% would be allowed. You are required to file an application as per form CR-TR accompanied with the following documents;
1. Purchase receipt;
2. Attested photocopy of passport or Pakistan Origin Card (original passport or Pakistan Origin Card may be required to be checked by the customs at the time of clearance);
3. Valid driving licence;
4. Bill of Lading (dated not later than 120 days from the date of arrival of applicant); and
5. Declaration given to the Customs upon arrival.
Q 11: My brother resides in foreign country. He wants to send us two cars. Can he send them and what will be the procedure?
Ans: Gifting of two cars is not permissible. He can gift only one new or up to five years old car during the last two years of stay abroad to a family member. The family member means father, mother, wife, brother, sister and children above 18 years age provided he has been residing abroad for 700 days during the last three years.
Q.12: Can I bring tractor, Bulldozers, laser land leveller or combined harvesters under the gift, personal baggage and transfer of residence scheme?
Ans: Yes, the Personal Baggage, Transfer of Residence, Gift Scheme (Import of Vehicles) Rules, 2006 allow import of tractors, bulldozers, laser land levellers and combined harvesters subject to same conditions as are applicable for import of vehicles, excluding the requirement of registration. The import under gift scheme will be allowed once after every year.
Q.13: I have a British passport and Pakistan Origin Card, can I take a car under Personal Baggage or Transfer of Residence?
Ans: Yes, you can take a car under personal baggage if you have lived for 180 day abroad and avail Transfer of Residence if you have completed 700 days during the last three years. Overseas Pakistanis holding Pakistan origin card are entitle to avail the facility.
Q 14: If I am unable to pay the duty, taxes assessed on my car, what will happen? Can I send my car back?
Ans: The car will be liable for disposal through auction. You can however claim the sale proceeds after deduction of all leviable duty, taxes and other charges. However you can send it back after obtaining NOC from Ministry of Commerce and State Bank of Pakistan.
Q 15: What would be the duty on car of 1800 cc?
Ans: The duty and taxes on cars from 1601 cc to 1800 cc (Asian makes only excluding Jeeps) would be US $ 21,000/- or equivalent in Pak Rupees.
Q.16: What are duties and taxes on cars of different capacities?
Ans: The amount of Custom duties, Sales tax, with holding tax and CVT as worked out on current rates and payable by the importers of following vehicles shall correspond to the following prescribed scales:
Duty and taxes in US $ or equivalent in Pak. Rupees
| Up to 800 cc
(Asian makes only)
|$ 4000 or equivalent in Pak Rupees|
| Up to 800 cc
(other than Asian makes)
|$ 6000 or equivalent in Pak Rupees|
|From 801 cc to 1000 cc||$ 5000 or equivalent in Pak Rupees|
|From 1001 cc to 1300 cc||$ 10,000 or equivalent in Pak Rupees|
|From 1301 cc to 1500 cc||$ 14,000 or equivalent in Pak Rupees|
|From 1501 cc to 1600 cc||$ 17,000 or equivalent in Pak Rupees|
| From 1601 cc to 1800 cc
(Asian makes only but excluding jeeps)
|$ 21,000 or equivalent in Pak Rupees|
| From 1601 cc to 1800 cc
(other than Asian makes)
|65% Custom Duty. 15% Sales Tax 6% withholding tax|
|From 1800 cc and above||75% Custom Duty. 15% Sales Tax 6% withholding tax|
|Buses/coaches||20% Custom Duty. 15% Sales Tax 6% withholding tax|
|Trucks/pick-ups||60% Custom Duty. 15% Sales Tax 6% withholding tax|
| Motor vehicles for the transport of ten or more
Others (below 10 persons)
| 20% ad val. 15% sales tax 6% withholding tax
75% ad val., 15% sales tax 6% withholding tax
|Motorcycles and Scooters||90% ad val., 15% sales tax 6% withholding tax|
Download Documents for Import of Vehicles into Pakistan
- Earning Certificate (Annex-I)
- Gift Undertaking (Annex-II)
- Checklist for Documents required for import of vehicle
Sedan cars and wagon type vehicles must be under three years old. Commercial vans, trucks, dump trucks, buses etc can be under 5 years old. Please note that registration month is important, Vehicles must be shipped in the month mentioned on Registration paper.
Tariffs: According to Chapter VI of the 2001 Sri Lanka Country Commercial Guide, Motorcars are subject to a 25 percent import tariff. There is an additional excise duty, which is currently set at 15 percent for petrol cars and 65 percent for diesel cars. Other taxes include a 6.5 percent national security levy, a 12.5 percent Goods and service tax which is a value-added tax and an excise tax on cigarettes, liquor, petrol and motor vehicles. All taxes are also charged on locally manufactured goods.
Taxes: Sri Lanka also assesses a 20 percent turnover tax, charged on the CIF value plus import duty. On diesel vehicles there is also a 50 percent of C.I.F. excise tax. Other Measures: No import licenses are required, however vehicles should be less than 3 years old (5 years for commercial vehicles) from the date of manufacture and equipped with right-hand drive. Imports for diplomatic missions are duty-free. Senior public servants including doctors, engineers, lawyers and senior administrators are allowed to import a motor vehicle at 25 percent import duty. This concession is available to this group once every five years. They also get a partial waiver on the turnover and excise taxes.
The Middle East
In early 1992, Iran lifted its 10-year ban on automobiles. Individuals are now allowed to import permitted makes including (Mercedes Benz, BMW, Volkswagen, Peugeot, Volvo, Mitsubishi, Honda, Subaru and Toyota).
A uniform purchase tax rate of 100 percent, a VAT of 17 percent, and a 1.5 percent port tax is levied on automobiles. Israel accepts European motor vehicle standards, but not those of the United States. Most U.S. lighting and safety standards are accepted, however, headlamp standards are still a problem. Lead free gasoline is now becoming more readily available. All new automobiles with engines over 2,000 cc’s must run on unleaded gasoline.
Beginning January 1, 1997, the Israeli government began using a car’s value, rather than its engine size, as the basis for income tax valuation. Similarly, engine size no longer forms the basis for car registration fees. The 2,000 cc engine size ceiling for government fleet procurement was also eliminated.
There are no restrictions on vehicle imports. A 4 percent ad valorem import tariff is in effect. Imports of motor vehicles more than five years old are restricted. Unleaded gasoline is difficult to find, causing problems with U.S.-built cars with catalytic converters
There are no local content regulations or import restrictions. The import tariff is 12 percent of C.I.F. value. Imported vehicles, new or used, must be equipped to operate on leaded gasoline, therefore cars should not be equipped with catalytic converters. Historically, Saudi Arabia has not enforced their vehicle standards. However, the officials of Saudi Arabian (SASO) standards organization have reported that they intend to increase enforcement of their vehicle standards.
United Arab Emirates
There are no local content regulations or import restrictions on vehicles. The import tariff is 4 percent ad valorem of C.I.F. value.
Jim Motor’s other services to Asia
(1) We can freight genuine and quality third party parts and accessories to any part of Asia
(2) SKD’s: Semi Knocked Down’s. We can SKD new vehicles, including Buses, Land Cruisers and pickup trucks to your country’s SKD specifications
Note: This page is still under construction, if you have relevant information, please don’t hesitate to drop in a line at [email protected].