Consideration of import duties go hand in hand with the shipping vehicle internationally. The seamless operation of international businesses has to be planned thoroughly. Businesses cross country or state borders face multiple barriers as control or protection barriers which includes these duties. Import freight forwarders have to properly consider all import expenses which, in turn, will aid businesses during budgeting. In this article, you 2019 learn everything about import duties, their reasons and how to sidestep manageable fees.
What are Import Duties?
Tariff duties, also referred to as customs or political duties, are charges imposed by the government on substituted use of public services like protection or transport to a foreign country. These charges vary with the range of items being imported, their value as well as the laws of that country. These dues mostly aim to promote local businesses, raise money, subsidize domestic industry, as well as control foreign trade.
The Application of Import Duties in Car Shipping
When shipping a car, the consideration of import duties should be given serious attention. Import taxes for vehicles will depend on:
- Place of Dispatch
Where the car is being sent has bearing on whether import duties will apply. Some countries provide certain vehicles special exemptions or preferential treatment for some vehicles if they meet certain criteria. Occasionally, a vehicle may attract no import duties if it is being imported as part of an expatriate’s shipment of personal effects or as a gift.
- Vehicle Specifications
In most global economies, the criterion used to determine the amount of import duty payable is the vehicle’s worth. Generally, this is determined based on what is paid to acquire the vehicle; however, some countries may use a valuation report to calculate or estimate the automobile’s worth. The greater a vehicle’s worth, the greater the possible import duties.
- Age Classification of Vehicle.
In certain nations, older vehicles may be subject to a higher import duty because of safety and environmental concerns. For example, certain regions impose additional fees for vehicles over 10-15 years old. To avoid unexpected duties, it is prudent to inquire beforehand with the customs agency of the country of destination to determine what, if any, requirements are imposed on the age of the vehicle.
- Grade Classification of Vehicle.
The shipment classification of the vehicle also affects the grade classification. Some nations have varying tariffs based on different grades of the vehicle. For example, they sell sedans and hatchbacks at lower prices, while sports, luxury, and oversized vehicles cost more. In other nations, electric and hybrid vehicles are sold at a loss, which means lower taxes while in operation; therefore, these vehicles would attract lower import tax.
- Country Introduced Regulations
Every country enforces its own unique set of regulations regarding the importation of vehicles, which can significantly impact the process and costs involved. These regulations may include specific requirements related to emissions, safety standards, vehicle age limits, and permissible vehicle types. Some countries may restrict or even prohibit the import of certain vehicles, particularly those that do not meet local environmental or technical standards. Additionally, there may be quotas on the number of vehicles allowed to be imported annually or additional certifications and documentation required for customs clearance. It is essential to thoroughly review and comply with the latest import policies of the destination country to avoid unexpected complications, delays, or extra charges. Consulting with a knowledgeable customs broker or international car shipping expert is often advisable to ensure full compliance and a smooth import experience.
What Steps Do I Take to Retrieve the Import Duties for My Vehicle?
To manage the possible unforeseen costs, one should take into account examining the vehicle import duties for a particular nation some time prior to travel. Here is where you can get this data:
- Contact Customs Office
Import duties are best acquired from the customs office in the petered country.
Most nations have portals detailing the import tariffs and taxes for different items, including cars. Some countries even provide duty estimations based on specific details a user enters into an online calculator.
- Align Yourself With A Reputable Vehicle Transporting Business
A reliable car transporting business like Shipping Cars will care for any international vehicle shipping. This comes in handy when dealing with customs duties as they will help you understand the finer details of what to expect. They also undertake the required documentation and advise clients on how to reduce the customs duties.
- Seek Advice Customs Brokers
Customs brokers are persons, normally commercial agents, specialized in the customs processes and import taxes for a shipment. They can also go there personally in case they still want to check for themselves the emit customs duties for your automobile considering its age and type. A broker can also ensure all documents are filled out correctly and that the vehicle complies with the rules and regulations of the country where it will be sent.
Is It Possible That I Can Skip Paying Import Duties?
Some form of import duties shall apply under certain conditions but there are many ways that can potentially lessen the burden or even eliminate it entirely:
- Use of Freight Forwarding Household Effects
Some countries has reduced or no duty at all for a certain automobile as long as it is done for personal use. If you lived abroad and intend to travel back to the country you originated, chances are you might be eligible for an exemption in paying duties and taxes. Generally, this is true when the person owned the vehicle for a specified duration as of prior to shipping normally between 6 to 12 months and plans to reside in the destination country.
It is essential to verify the policies of the destination country.
- Exploitation of Free Trade Agreements
Certain countries possess free trade agreements that completely eliminate or significantly reduce the taxes charged for imports originating from specific countries. For example, some markets might accept vehicles from the European Union or North America with lesser duties. Investigate whether free trade agreements exist between the countries for your car shipment.
- Shipping Used Cars
Some countries impose less restrictive duties on used automobiles as opposed to new ones. If you are shipping a used car, then you are likely to benefit from reduced duties. Regardless, verify the country’s regulations because some of them might have fees for older cars.
- Information Available on Eco-Friendly Cars Tax Credits
Other countries set forth tax incentives and reduced duties, or even eliminate them entirely, for electric or hybrid vehicles. If your car meets the appropriate criteria, you stand to significantly reduce the duties required or could even be granted some exemptions.
- Further Action and Discussion on Costs
Due to the import duties, if you want to move the vehicle outside the borders of the country, the following additional payments are necessary:
– Shipping Fee: This refers to the fee that is incurred when taking the vehicle to the shipping port.
– Port Charge: Port Charge covers all expenses incurred with the handling of the vehicle at the port of destination.
– Customs Clearance Charges: This fee relates to customs clearance for shipment by brokers or agencies and is incurred for the clearance at customs.
– Insurance: Insurance is recommended so that the risk of losing the automobile while in shipment is diminished. Transport insurance will being invoked for the automobile.
Conclusion:
As we’ve detailed earlier, transporting an automobile internationally has its share of complications from intricate rules concerning import duties to auxiliary surcharges that are not directly disclosed. Preparedness can be achieved as long as the responsibilities are laid out formally and the circumstances prompting various fee structures are properly understood. Do some research on the target country’s import duties and figure out how to optimally reduce the fees entangled in the shipment so that a reputable firm can be partnered with to accomplish a seamless undertaking.
For the best international car transport prices – Shipping Cars has the best expertise in the market. Reach out to us for comprehensive assistance throughout the transport process, ranging from loading to the final delivery. Don’t forget to request a price estimate right away so that you can benefit from economical and dependable transport.