Import Rules, Regulations, Policies & Procedures To Import Japan Used Cars In Sri Lanka
Check all the key points related to import rules, regulations, policies, documentations, duties and taxes, inspections, restrictions, shipping ports, etc. which you should keep in mind while importing Used Cars from Japan to Sri Lanka
Year Restriction
Max. 3 Years Old
Destination Port
Colombo and Hambantota
Time of Shipment
RoRo (14-24 Days)
Vessel Schedule
RoRo (Fortnightly)
Shipping Line
_
Inspection
JAAI
Used Car Import Rules & Regulations in Sri Lanka
Right-Hand Drive Vehicles
Importation of only Right-Hand Drive (RHD) vehicles allowed in Sri Lanka.
Inspection
There is a compulsory inspection JAAI that should be passed in Japan. Inspection original certificate needed to complete customs clearance upon arrival. It will also need as an additional document for LCA transaction (Letter of Credit Authorization).
Age Restriction
1. Age of used cars imported should be under 2 years, whereas vehicles (vans and dual purpose) should not be more than 5 years old.
2. Also, the age Limit of Buses (10-12 passengers, including Driver), Motor Cars, Sports Utility Vehicles (Jeeps), All-Terrain Vehicles (Beach Bikes), Ambulances, Motor Bikes are 3 Years.
3. Age Limit of Single Cabs, Double Cabs, Lorries/ Trucks (GVW Less than 5MT), Refrigerated Trucks (GVW less than 5MT) 4 Years.
Road-worthiness Inspection
All Japanese used vehicles imported to Sri Lanka must be JAAI (Japan Auto Appraisal Institute) certified for roadworthiness.
Used Cars Import Duties And Taxes In Sri Lanka
Duties & Taxes
- Duties :- 5-35%
- Motor vehicles :- 25%
- VAT :- 12%
- Ports and Airport Levy (PAL) :- Generally 5% of the CIF value, or in some cases at a reduced rate between 0% and 2.5%, of the CIF value.
- Ad valorem rates :- 1%- 45% (of the CIF value).
- Nation Building Tax :- Two percent of the sum of the CIF value X 110 percent, customs duty, cess, excise duty and PAL.
Valuation of Motor Vehicles
How does Customs determine the value for computation of Customs Duties?
Value of motor vehicles falling within HS headings 8702, 8703, 8704, 8705 and 8711, value determined as follows:
1. In case of a Brand New vehicle imported on an invoice issued or certified by the manufacturers, the transacted value shall be applied.
2. For all other vehicles, the value shall not be below 85% of the manufacturer’s value, excluding local taxes, of a similar or identical brand new vehicle at the country of export. (Please see Gazette Extraordinary No. 1971/10 of 14.06.2016 for more information)
For other vehicles, applicable value the transacted value, adjusted according to the provisions of Articles to the WTO Valuation Agreement.
Classification of Motor Vehicles
What is a HS Code?
In short, HS stands for Harmonized System. These codes introduced under Harmonized Commodity Description and Coding System formulated by the World Customs Organization, which covers 98% of the world trade. These codes applied to internationally traded goods for various reasons. The most relevant reason is trade statistics. Also, they help identify local tax rates and legal restrictions and prohibitions on imports. These codes used by almost all the countries in the world, and help uniform identification of internationally traded commodities, irrespective of language and other trade related barriers.
How does Customs calculate the age of a used vehicle?
The age of a used vehicle is the period between the date of first registration and the date of shipment from the country of export. The date of first registration available on the export certificate while the date of the Bill of lading/ Air Way Bill taken as the date of shipment.
Importation of Motor Vehicles on Concessionary Permits
In addition to the requirements to fulfilled in importing a vehicle in to the country, as explained before, you must make sure that
1. You possess a valid Concessionary permit
2. The value, as determined in terms of the regulations explained above, is within the permitted limit, at the time of establishment of the relevant letter of credit.
3. The other conditions relevant to the permit must fulfilled. (These condition can found on the permit itself, and the relevant Gazette Notification under which concessionary permits issued)
Importation of motor Vehicles by Sri Lankans Employed overseas
The vehicle must be within the permitted age limit. If not, a permit from the Controller of Imports & Exports must be obtained prior to importation. Also, if the vehicle is imported on No Foreign Exchange Involved basis, necessary clearance must be obtained from the Controller General of Imports & Exports prior to importation.
Customs Clearance Process of Motor Vehicles
Under the provisions of the Customs ordinance, the Customs clearance documents must be presented and the clearance formalities completed by a licensed Customs House Agent. However, Motor Bicycles brought in as part of unaccompanied personal baggage can be cleared by the passenger without a Customs House Agent.
Verifying the Authenticity of Your vehicle
This can be verified from Customs. You need to make a request with all details (I.e. Chassis Number, CusDec Number etc.) to the ICT Directorate, at 3rd floor, Customs Headquarters, Colombo 11.
Importation of Motor Bicycles under Duty-Free Allowance
Technically, a Motor Bicycle having engine capacity up to 350 cc can be brought in under baggage allowance. However, whether such a motor bicycle can be cleared duty free depends on your duty free allowance entitlement and the valuation of the vehicle. If the value of the motor bicycle exceeds the duty free allowance, Customs duty calculated proportionately has to be paid. You are strongly advised to consult the Motor Vehicles Unit before importing such a vehicle, so that you could be aware of the duty liability in advance.
Used Cars Import Documentation in Sri Lanka
- Original Bill Of Lading
- Owner’s passport
- Purchase Invoice
- Transport Ministry Approval :- It must obtained by the importer prior to the shipping of left hand drive vehicle.
- Insurance Certificate
- Original Registration Certificate :- The certificate should have an English translation.
- Import License
- Customs Goods Declaration
- Letter of Credit
- Bill of Lading or Air Way Bill (in case of air freight)
- Delivery Order issued by the Shipping Agent
- Value Declaration Form
- Export Certificate
- Pre shipment inspection certificate issued by an approved inspection agency