You will need to pay Import Excise Duty (IED) and VAT. The tax (excise duty) depends on the engine capacity (horse power) as is as follows:
- Upto 550 cc - 15%
- 551-1600 cc - 55%
- 1601 cc and above - 100%
VAT is 15% fixed.
Example to work out the costs involved
If you wish to import a 1400cc car which costs Rs400,000 in Japan. Then:
Import excise duty = 55% of 400,000 = 220,000
VAT = 15% of (Original cost + excise duty) = 15% of (400,000 + 220,000) = 93,000
Total cost = Original cost + Excise duty + VAT = 400,000 + 220,000 + 93,000 = 713,000
- The reconditioned car should be between 18-48 months old
- You will need to get an import permit from the Ministry of Commerce and Cooperative
Documents to be submitted to the Customs & Excise Department for clearing
- Originals invoices and Bill of lading
- Cancellation of Registration Certificate
- Pre-shipment Inspection Certificate for Japan
- M.O.T. Test certificate for UK or SAARPCO Certificate for S.A.D.C countries (regarding non- stolen cars)
- be covered by an inspection certificate in the form specified in the Sixth Schedule of the Consumer Protection Regulation or containing the particulars and information required in it, issued not earlier than 2 months before the date of shipment by a branch of Bureau Veritas or Societe Generale de Surveillance (S.G.S) or a competent authority in the exporting country recognized by the Permanent Secretary, or with regard to Japan, South Africa and the U.K by the authorities specified in the Seventh Schedule of the above Regulation
Is it cheaper to import a used car yourself?
I don't know but based on the information above, you could compute how much it will cost you to get the recond car from Japan and compare that with something similar in a showroom.
The information above has been collected from the MRA website on the links here and here.
Hope that helps :)