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Europe News

Cyprus

July 24, 2008

Both import and sales of used vehicles have increased this year (2008) in Cyprus. Two factors have contributed to this trend. Firstly, Cyprus government has made it easy for even a private individual to import a used vehicle. Many new importers have stepped into the game. For now Japanese and Korean cars have gained but it is hoped that Thailand vehicles will follow soon.

The second policy that help increase trade was a move by the government to get old cars off the road and replacing them with new, more recent models. Owners of cars that are older than 15 years were offered money to replace their vehicles with more environmentally friendly cars. People could get between 256 Euro and 1,708 Euro depending on what they were withdrawing from registry or how efficient a car they were buying.

The Cyprus government considers this scheme a huge success for the country and the environment. They are looking forward to possibly continuing the scheme in 2009.

Source - Cyprus Mail

Putin Tightens Import Taxes for Used Cars in Russia

June 3, 2008

Recently, the new Prime Minister Putin held a meeting on the condition of the Russian motor vehicle industry. In his opinion, foreign cars are stifling the success of national brands of Russia. To raise the competitiveness of Russian car makers, used car imports will now have higher taxes at a younger age.

Before the tax wall to keep out old cars from Russia was at 7 years and older, now importers will need to pay an considerable more if the car exceeds 4 years of age. Currently, we don’t know what the exact rates table will be, but we’ll let you know when we do.

Russian Car Importers Hold Protest

April 17, 2008

Last Tuesday Russian Car Importers held a protest against changes made starting April 1st in Vladivostok, Far East Russia, which have caused huge delays getting imported vehicles cleared.

On April 1, two customs posts – Vladivostok Auto Transport and Vladivostok Central – were combined into one - Vladivostok Commercial Port - by officials intended to smooth the process. In reality, the reshuffle has caused much chaos, delays, and as a result, money lost. Because of the large backlog and daily storage fees of about $20 per a car, auto businessmen acquire considerable lost which are bringing in double and triple digit numbers of cars each day. Ships are even being delayed as they must wait a few days before they can offload their vehicles.

In protest, traders decorated their vehicles with orange ribbons and the slogan “Car Dealers against Bureaucracy” and marched in front the Far Eastern Customs Department. Importers are look for the government to step in, cut, and normalize the clearance time. April may be a sluggish month for Japanese used car exports to Russia. Businessmen are looking forward to getting back to schedule.

New VRT Rates Start 1 July 2008 for Ireland

June 20, 2008

From 1 July 2008 in Ireland, Category “A” cars will be taxed based on the level of CO2 emissions and not engine size as before. Also, the 50% discount of VRT payable for hybrid electric and flexible fuel vehicles is replaced by VRT relief of up to €2,500 depending on the car’s age (for hybrids only). This will only apply to car registered after 30 June, while cars imported before will continue under the old system.

According to The Irish Revenue Commissioner’s Leaflet:

New Tax Regime

From 1 July 2008, VRT payable on category A vehicles will no longer be based on the engine size but rather on the level of CO2 emissions from the car. Linking the VRT rates to the level CO2 emissions will mean that individuals purchasing cleaner, low emission cars will pay less VRT while those opting to purchase higher emitting vehicles will pay more.

A seven-band CO2 emission system will apply. VRT will now be charged as a percentage of the OMSP (Open Market Selling Price) in accordance with the following table:

CO2 Emissions (CO2g/km)	VRT Rates
0 - 120g	14% of OMSP
More than 120g/km up to and including140g/km	16% of OMSP
More than 140g/km up to and including 155g/km	20% of OMSP
More than 155g/km up to and including 170g/km	24% of OMSP
More than 170g/km up to and including 190g/km	28% of OMSP
More than 190g/km up to and including 225g/km	32% of OMSP
More than 225g/km	36% of OMSP

Importers of Japanese used cars must have the CO2 Emissions levels declared on their Export or Deregistration Certificate, or have a printout emissions certificate for your particular model from the Japanese Ministry of Land, Infrastructure and Transport. If you don’t have proof, you will be charged the highest rate (36%) regardless of how efficient the car is.

Also, as an incentive to by eco-friendly cars, you can get reductions based the car age for hybrids. That is, the younger the car is, more money is deducted. Of course there is a minimum amount that still must be paid, but here are the discount rates:

Hybrid, flexible fuel and electric vehicles

The current relief of 50% reduction of the VRT payable on Hybrid and Flexi Fuel vehicles is withdrawn from 30 June 2008.

A VRT remission up to a maximum of €2,500 will be available on such cars registered between 1 July 2008 and 31 December 2010.

This relief is limited, on a sliding scale, depending on the age of the vehicle. The scale is as follows:

Age of vehicle	Maximum amount which may be remitted or repaid
New vehicle, first registration	€2,500
Not a new vehicle but less than 2 years	€2,250
2 years or over but less than 3 years	€2,000
3 years or over but less than 4 years	€1,750
4 years or over but less than 5 years	€1,500
5 years or over but less than 6 years	€1,250
6 years or over but less than 7 years	€1,000
7 years or over but less than 8 years	€750
8 years or over but less than 9 years	€500
9 years or over but less than 10 years	€250
10 years or over	Nil

With effect from 1 January 2008 to 31 December 2010, series production electric vehicles and electric motorcycles are exempt from VRT.

Note: There is no change for Category B (crew cabs, etc.), Category C (commercial vehicles) or Category M (motorcycles – other than electric motorcycles).

-Source: Change to the Tax Base

 

Auto Import News from Africa

Uganda Imports Hit By Kenya Rift

March 11, 2008

In January, the Uganda Revenue Authority (URA) collected Ush10.75 billion from car imports (new & used) compared to the average monthly revenue of Ush11.49 billion. Kenya is to blame as transport from the Mombasa seaport is restricted from civil unrest.

Uganda, not being on the coast, must import vehicles through either Kenya (Mombasa) or Tanzania (Dar-es Salaam). Importers prefer to go through Mombasa, which is considerably cheaper after road or rail transport into Uganda is added.

Importers also argue this isn’t the only thing affecting their sales, but also the high taxes imposed. Car imports is one of the largest sources of revenue for the Uganda government.

Luckily for importers, tensions in Kenya are starting to loosen, allowing trade to return to previous levels. Japanese exporters can sigh relief that this dip in trade is only temporary.

 

Auto Import News from Asia

Bangladesh looking at new vehicles repackaged as reconditioned vehicles to save duty

June 24, 2008

The National Board of Revenue (NBR) of Bangladesh is looking into the possiblity of people importing brand new cars as “reconditioned” cars, mostly from Japan.

As many Japanese used car exporters are aware, brand new vehicles are quickly registered and de-registered to circumevent Japanese laws forbidding anyone besides the manufacturer from exporting new vehicles. Technically, in the eyes of the law these are no longer brand new vehicles, just new or “as-new” vehicles. Why this matter to Bangladesh NBR is that they make 50% higher import duty on cars imported as new.

To counter this, it is proposed for the new budget that for a vehicle to be considered a “reconditioned” car, it must have a space 365 days between registration and deregistration and have clocked at least 1,000 km of mileage. They hope this will close the loop hole.

It’s not all bad news for importers though. Also in the proposed budget, the government will reduce supplementary duties from 60 percent to 20 percent on import of ordinary non-luxurious microbuses with and engine size between 1500 to 1800 CC which are used for transportation of industrial raw materials and/or passengers.

Source - The New Nation

Bangladesh Proposes Higher Import Duty on Used Cars

June 12, 2008

In the proposed budget for the 2008-09 fiscal year (FY) the government has suggested the following:

• 20 per cent SD (Supplementary Duty) on vehicles of up to 1500cc
• 60 per cent SD on vehicles between 1,501 and 2,350cc
• 100 per cent SD on vehicles between 2,351cc and 3,500cc.

This rates are only applied to used, also called reconditioned, cars. It may change before the budget is put into effect as the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) argues it should be reduced.

BARVIDA believes that raise the taxes on reconditioned car imports will hold back the current progress the economy is experiencing. The connection is that many small and medium businesses rely on the cheaper used car imports to do their business. We will have to see what comes as most vehicles imported come from Japan.

- Source: The Daily Star

New Law from Dubai Tightens Imports

June 10, 2008

The recent decision of the Cabinet’s Services Committee will further restrict the imports of used vehicles into UAE starting January 2009. There will be an import ban on used light cars that are older than 5 years, and heavy vehicles are not allow if older than 7 years.

In good news, light cars over 20 years old are banned in the United Arab Emirates. This will push people to buy newer, better cars. And those vehicles can be from Japan.

Pakistan Automakers Push Import Ban

May 27, 2008

Pakistani automakers are lobbying the government to ban the imports of used cars into Pakistan.

They argue the high demand that local vehicle producers couldn’t cope with a few years ago has dropped and there is no need for allowing older vehicles in for import. They also cite the fact that local producers have invested billions of rupees to increase their production rate. Since demand dropped and supplies have skyrocketed, they believe their local investment may become the losers if imports are allowed to continue.

New Rules for Importing Vehicles in Iran

April 21, 2008

Iran’s Ministry of Commerce has announced new regulations for import of vehicles as a measure to ensure only the latest models get into the country.

Nourlaw.com reports that the Technical Committee for Vehicles has informed importers that in the current Iranian year (March 21, 2008 to March 20, 2009) following registration and entry of the vehicle through an official customs post the vehicle must not have passed one year since the date of its manufacture if it is a passenger car, two years for trucks and five years for motorized construction and mineral extraction machines.

The new regulations are in accordance with the by-law of the regulations for imported vehicle.

Source: Press TV

Sri Lanka increases import taxes

In a strange attempt to cut the trade deficit, the Sri Lanka government passed a new tax that equals out to 10% more over the already insane taxes equaling out to between 250 to 350 percent.

Sri Lanka has consistently have problems dealing with their trade balance as each year they import more than they export. To deal with the problem, they try to cut the amount of imports of the biggest category: cars. The problems with doing this include sky-rocketing prices for used cars. This is because Sri Lanka doesn’t produce any used cars, and if the government kinks the imports (by raising costs), demand go up and supply plummets.

Of course, the average person in Sri Lanka cannot afford a used (4-years old) Corolla that costs over $40,000. So what happens? The government indeed cuts off trade, but at the expense of its people. More sad days ahead for would-be consumers.

State Worker’s Tax Discounts End In Sri Lanka

April 8, 2008

Sri Lanka has finished a scheme that gave tax-slashed cars to state workers from today and no new applications would be taken, the finance ministry said.

State workers who have been issued tax slashed import permits but have not opened letters of credit before the end of last month (March 31) would not be able to open letters of credit to import vehicles.

However the tax discounts would continue for buying a locally produced or assembled car.

State workers who have already applied and who qualify for the tax concession would be issued a permit to buy locally produced or assembled car, the finance ministry said in a statement.

Earlier reports said around 17,000 state-workers have applied to import tax-slashed cars.

Source-LBO.lk

Sri Lanka Customs Revenue Takes Hit

March 20, 2008

Just last month, we reported how Sri Lanka raised import taxes by 10%. This month we are seeing the protest of importers have effect. Instead of raising revenue the government gets from imports, they actually get less.

In 2007, the Sri Lanka Customs made Rs.8 Billion less overall than expected. They expected Rs.283 Billion and only made Rs.275 Billion. While there was an overall increase, income from vehicle imports drop by Rs.11 Billion. They were expecting Rs.26 Billion from vehicle excise tax, but only got Rs.15 Billion.

There are a number of reasons for this. First, in 2006, nearly 70% of car imports were from Japan and this year it was only 46% that were mostly buses and vans. The other imports were coming from places such as China, India, and Korea. This other countries make and sell their cars cheaper, so as a result, that means less income for Sri Lanka.

The second reason for less revenue, is because many car imports are being imported by civil servants which get duty free import permits. As people know, Sri Lanka has among the highest duty rates so getting duty free permits really help imports and really reduce import revenue.

This is not the end of this. If import duties continue to stay high, they can continue to expect less revenue. One official says while the revenue target from motor vehicle imports for 2008 is estimated at Rs. 35 Billion, it will be difficult to make even 40% of that estimate. Hopefully, we can see a change of heart and a drop in the super high import taxing.

For more information on importing into Sri Lanka, visit:
Japanese Used Car Exporting.Info - Importing Help For Sri Lanka

 

Vietnam Plays with Tariff Rates, Business Confidence Drops

May 27, 2008

Within the last 16 months, the Vietnamese Government has changed the tariff rate for importing vehicle 5 times.

The current rate of 83% - effective since April 22nd - was particularly effective at dropping business confidence given that it was put into effect on a one day notice. All previous agreements were charged the new rate despite the fact they were made well before anyone new of the new rate.

Luckily for importers and exporters alike, Vietnam not to long ago joined the WTO which put a ceiling on how much the tariff rate can go up. So importers shouldn’t expect more raise unless Vietnam plans to violate their WTO agreement.

Vietnamese Prime Minister Goes After Car Imports

April 7, 2008

The Prime Minister of Vietnam, Nguyen Tan Dung, asked the Vietnamese Ministries of Finance and Industry & Trade to use technical barriers and tariffs to restrict imports of automobiles and automobile components for less than 12-seat cars. Besides the raising of Import Tax done last month, both automobile and automobile components are now on the list of “import-restricted” items.

Attempting to reverse the ever growing trade deficit, the Prime Minister asked that imported goods be classified into three categories: essential, controlled, and restricted. All goods categorized in the controlled and restricted groups will face extra difficulties now.

These technical barriers and tariffs that will be applied include: the raising of import tax rates; limiting the access of importers to foreign currency loans; using technical barriers, etc. Japanese used car exporters should expect a slow down on cars exported to Vietnam when these blockades start coming into effect.

Import Tax Upped In Vietnam

March 18, 2008

Vietnamese Government have decided to raise import taxes for both new and used car imports by 10%. The new rates come into effect at the beginning of April.

After a few years of lowering import taxes to keep vehicle prices down, this year marks yet another change in policy. The government claims they want to restrict the amount of cars being imported and bought to slow down the amount of traffic increases. Traffic jams are at all time intensities, and they feel reducing imports will fix this problem. The real problem is poor urban planning for the only two cities that have real traffic problems: Hanoi, the capitol in the north, and Ho Chi Minh in the south.

Another problem is arising for many importers, not just in Vietnam, but globally. Many countries, like Vietnam, trade in US Dollars. The problem is the value is sinking like a rock and importer who have to wait a month for their consignments to arrive are having a difficult time making profit. I don’t know how longer countries will continue to use the US Dollar, but trade can sure use a switch.

Import News For the Philippines

March 10, 2008

Apparently, the Filipino Government has finally become active against illegal imports of used cars “smuggled” into their country. Laws which have banned the importation of used cars (heavily lobbied for by new car importers) have been around for a while, but before the government never really actively enforced these laws. Recently there has been changes as Customs have started seizing many cars throughout the Islands.

This is unfortunate news to Japanese exporters as last year over 11,400 vehicles were exported for the Philippines. Many Filipino importers have now canceled orders as their government have started to use X-ray machines on containers. For now, trade will have to wait till everything is sorted out.

 

Tianjin, China’s Automobile Imports Increase

April 9, 2008

Xinhuanet reported that, in January and February 2008, 25,400 automobiles have been imported through Tianjin Port, worth 890 million US dollars. China Customs statistics reveal that imports in these two months increased 1.2 times and 1.3 times, respectively, over the same period last year.

Tianjin Port’s automobile import growth is a result of the gradual implementation of the national automobile import policy. In recent years, the Chinese government has promulgated policies related to automobile imports, including import license registration, Administration of Automobile Brand Sales Implementing Procedures, Landed Duty Paid, automobile consumption tax adjustments and tariff adjustments. Along with these implemented policies, policies related to car imports are being implemented, car import policies are stabilizing, and the number of imported cars are growing; new automotive administration procedures will be implemented, according to the Tianjin Customs District.

Source: People’s Daily Online

Japanese Exporters may want to see what is happening over in your neighbor’s land. China has been increasing its consumption at huge rates and more Chinese will be looking for affordable cars soon.

 

Oceania Import New and Used Vehicle

Samoa converts to RHD

April 25, 2008

On 18 April, a Samoan law was passed that will now make driving on the left with RHD vehicles the proper way to drive on roads. This is good news for Japanese used exporters and importers who just a few years ago were banned from selling non-LHD cars in Samoa. This will be implemented somewhere in mid-2009.

Previously, only LHD vehicles were importable to driven on the right side of roads. This made it difficult to get a car as major markets around Samoa (New Zealand, Australia, and Japan) have cheap used RHD vehicles. Now, Samoans will be able to get more affordable cars.

Additionally to this new law, the government is also considering extend the age limit for importing used cars. Currently a car can be imported at an 8 years maximum age, but the prime mister’s plans would extend it to 12 years old.

This and next few years will bring a significant number of cars traded as people will start to trade in the LHD vehicles for RHD vehicles. Exporters can look forward to 2009.

 

Import new used cars Americas news

Information Seminars On Importing Vehicles Into Canada

March 17, 2008

Canada Border Services Agency has begun holding free seminars in various cities throughout Canada about importing cars into Canada. These seminars are very helpful and informative to anyone thinking about purchasing a vehicle in another country and importing it into Canada. Typically these seminars will have 5-8 guest speakers from various government agencies, including Canada Border Services agency, Transport Canada, RIV, and the Ministry of Transportation of Ontario. Topics covered include:

• requirements
• documentation
• prohibitions
• costs
• regulations of the Canada Border Services Agency, Transport Canada, Canadian Food Inspection Agency and the provincial government

Attendees will be given helpful literature and example paperwork related to importing vehicles into Canada. There is also time given to address specific questions or concerns that you may have about the importation process.

For dates and times of the seminars, or to register for a seminar in your area visit the Information Sessions and Seminars section on the Canadian Border Services agency website.

Source: ImportCartoCanada.info

More Caribbean News

March 6, 2008

Dominican Republic, a Spanish speaking nation, have put a 5 year age limit on cars imported. Any car imported that is over 5 years old from date of manufacturing will face a hefty fine determined by the Republic’s Customs.

Dominica, a English speaking nation also in the Caribbeans, have put a 4 year age limit on cars imported. Any car imported that is over 4 years old from date of manufacturing will face an additional 140% excise tax.

 

RHD Thailand cars in RHD and LHD countries of the world

Driving On The Right Side… Of The Road Or Car?

April 11, 2008

As many of you may be aware, Thailand is a RHD (Right Hand Drive) vehicle country like the UK and Japan. According to Wikipedia, about 34% of the world by population drive on the left, and 66% on the right. By roadway distances, about 28% drive on the left, and 72% on the right. To visualize this please take a look at the map below:

Those in blue are RHD and those in red are LHD. The terms left or right hand drive refer to where the driver sits in the motor vehicle not where the car is on the road. So in the case of Thailand and Japan, the steering wheel is on the right hand side.

Most markets that are already RHD will find much value in Thailand new and used vehicles. Areas such as South-East Asia, Oceania, Southern Africa, Eastern Africa, Ireland and the British Isles are major importers. Because they use the same system as Thailand, there are less hassles getting the vehicles imported. But just because a country doesn’t drive the same way as Thailand and Japan doesn’t mean RHD vehicles can’t be imported.

For example, Russia is officially regulated for LHD traffic, but Japanese RHD cars are the single largest supplier of used cars to Russia. Last year over 440 thousand vehicles where exported from Japan into Russia. Russia is estimated to have more than 1.5 million RHD vehicles on its roads. In the far eastern regions, such as Vladivostok or Khabarovsk, RHD vehicles make up to 90% of the total. Many other LHD nations are also importing RHD in the thousands without any problems such as Canada, UAE, Chile, Mongolia, Cyprus, and Peru.

There are two considerations for importers. First, are RHD vehicles legally able to be imported, and more importantly, driven in your country. Even in the case that RHD autos cannot be used on your roads, many governments allow the vehicle to be modified so that it is switched to LHD.

The second consideration is if you are willing to drive “on the wrong side” or will you be able to sell cars to customers that are RHD. It is not a matter of being a safety hazard if the driver sits on the other side. A Canadian study showed that RHD drivers were more careful, thus less likely to get into accidents, than those who drove like normal.

It is also not about not getting able to feel comfortable driving RHD drive in a LHD nation. Most drivers who experience this challenge are able to overcome the awkwardness of driving differently within the first few hours on the road. The main issues are do you mind standing out a little bit and will it bring to much inconvenience to your lifestyle? For example, you’ll need a passenger to help you through drive-thru’s and at toll booths. If you don’t mind, and you can import, there are plenty of benefits.

Image and Statistics from Wikipedia under the terms of the GNU Free Documentation License.

Importing Aftermarket parts from Soni Motors

March 31, 2008

We offer a lot of aftermarket parts that improve performance or appeal. Can you import cars that have aftermarks parts?

Recently, there has been a lot of news of Mine’s and Amuse breaking track records with their aftermarket parts. Aftermarket companies are also constantly developing new parts that increase power or improve aerodynamics or just lighten the vehicle. Some of these kits are only offered in Thailand, while others maybe be found elsewhere. A question that often comes up is whether you can import cars that are upgraded. If not you can buy just the aftermarket parts and accessories.

Ultimately, you need to ask to your customs, environment, traffic, and/or road safety government agencies. For some countries, the laws on importing car a simple and may not be concerned about aftermarket parts. On the other side of the spectrum, some countries refuse entrance to any modified vehicle.

Another case includes that you can import modified vehicles, but they need to pass normal and maybe additional test. You country might have also an approval list of parts that are acceptable.

In general, importing a modified vehicle would cost possibly significantly more. If you are able to find the aftermarket parts sold in your country, you may find it easier to import a stock car then have additional modification installed after the car is legalized and import process is completed. You might (if your country allows) be able to import aftermarket kits and mod later as another option.

 

 

 

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