Archive for June, 2008

Bangladesh Investigates New “Used” Imports

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

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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

Importing Japanese Car Info Video

June 19, 2008

A little video for your enjoyment with a little reminder of where to go for information on importing Japanese used cars from Japan.

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.

Japanese Auto Auction Series Part 5 – Bay Auc

June 6, 2008

Bay-Auc - Japanese Auto Auction in Osaka, Japan

Official Website: www.bay-auc.com
Founded: 1977; Established: 1982
Location: Osaka; Patners: MAA, SUAA
Auctions Held: Wednesday

Bay Auc is a well known auto auction in Japan. One particular advantage this auto auction has over many other auctions is its location. It is situated in an very good location in Osaka, one of the biggest international shipping ports of Japan. The city itself is second only to Tokyo in economical power. You will find that many Japanese used car exporters are either based in the Osaka area or heavily use the Osaka Port for shipping vehicles.

The car auction promises to exhibit at least 3,500 to 4,000 cars every Wednesday starting at 9 AM. It has two simultaneous auction “lanes” running at 400 images an hour. Auction lanes are where they have more than one car being auctioned at any moment. This makes getting through the thousands of cars possible. Bay Auc is not the biggest auction, but they do a good job and have many cars to go through.

Related:
Japanese Auto Auction Series Part 1 – USS
Japanese Auto Auction Series Part 2 – JAA
Japanese Auto Auction Series Part 3 – Zip
Japanese Auto Auction Series Part 4 – AAAi / ARAI

Putin Tightens Import Taxes for Used Cars

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.