Defender 110 Pickup Import (Custom) Duty

[Prasanna Gamage]

Hi Guys,

can one of you please tell me approximately how much i should be expecting to pay as custom duty to import a defender 110 puma pickup (2007). rough figure would do as i need to plan my budget. Thanks

Edited February 13, 2012 by Prasanna Gamage

[CARBON B4]

Go to http://www.customs.gov.lk/ and click on the tariff calculator, it will give u a excel spreadsheet.

[priyanka]

Go to http://www.customs.gov.lk/ and click on the tariff calculator, it will give u a excel spreadsheet.

you can never calculate the real duty in that way as we all know that we have to under-value the vehicle, otherwise the cost will be sky high. the options will not be depreciated like the agent's FOB..... and most important thing is that the real formula which is used by the custom is not like that.. really complicated..they will put tax on tax....finally the duty will depend on the way you prepare your invoice, as a simple error will cost you lacks..(that has happened to me once)

so mr. prasanna gamage you have to consider all these things ............. and i think the rough rough figure of 2 million as the duty for your vehicle but cannot comment on the exact figure without knowing about the vehicle. and you must expect lot of hidden costs like port charges, bribes etc

but make sure you deal with an experienced exporter and a wharf clerk

good luck.......

[The Don]

you can never calculate the real duty in that way as we all know that we have to under-value the vehicle, otherwise the cost will be sky high. the options will not be depreciated like the agent's FOB..... and most important thing is that the real formula which is used by the custom is not like that.. really complicated..they will put tax on tax....finally the duty will depend on the way you prepare your invoice, as a simple error will cost you lacks..(that has happened to me once)

so mr. prasanna gamage you have to consider all these things ............. and i think the rough rough figure of 2 million as the duty for your vehicle but cannot comment on the exact figure without knowing about the vehicle. and you must expect lot of hidden costs like port charges, bribes etc

but make sure you deal with an experienced exporter and a wharf clerk

good luck.......

I think your post is misleading. The duty value can be accurately calculated but you require one key ingredient. The agent valuation for the vehicle in question. If you have that you can apply the formula. Unfortunately nobody has contributed that vital piece of information.

This is of course if the government policy does not change suddenly which does from time to time when the government runs out of money (the fuel price hike being a good example when world oil prices have actually fallen).

The complete cost of import is unfortunately a different can of fish as it is affected by currency rate of exchange fluctuations, variable clearing costs.

[priyanka]

I think your post is misleading. The duty value can be accurately calculated but you require one key ingredient. The agent valuation for the vehicle in question. If you have that you can apply the formula. Unfortunately nobody has contributed that vital piece of information.

This is of course if the government policy does not change suddenly which does from time to time when the government runs out of money (the fuel price hike being a good example when world oil prices have actually fallen).

The complete cost of import is unfortunately a different can of fish as it is affected by currency rate of exchange fluctuations, variable clearing costs.

the customs will consider the agents FOB only if your invoice value is less than that... same thing with the freight, insurance........ finding the agents FOB is not a big issue, for an example the land rover agents will tell you that information free of charge if you have the chassis number of the vehicle............

if you think that you can calculate the duty by just knowing the agents value?????........ try this simple example

vehicle - land rover freelander 2 GS auto (let's think of a vehicle registered in march 2010)

engine CC 2179

H.S.CODE: 8703.32.94

agents FOB usd 23900 (CIF usd 24888)

you tell me your value and after that i will post a scanned image of a custom's sheet for a such a vehicle

Edited February 13, 2012 by priyanka

[CARBON B4]

Priyanka,

The method of calculating the custom duty is fixed, I agree there are taxes on taxes but all of this has been incorporated in to the spread sheet so there is nothing complicated.

But what I don't know is the exact amount of customs & excise duty % that will apply, since this will depend on the HS code ( And will change depending on the type of vehicle or purpose for which it was imported )

Although the most car importers may under value invoices this is a criminal offence, and there have been instances where a few importer were taken to task for doing this, or importing vehicles under wrong HS codes by bribing customs officers. I personally think taking such risks is not worth it if you are a individual. Trying to save a few thousand rupees will end up in bigger mess.

Also if you under value, how exactly will you remit the difference back to the supplier ? This will be a exchange control violation. I dont say people don't do it but its at the risk of getting caught..

[priyanka]

i agree to one point, that is the customs formula is fixed ( but mind you they have made amendments - and its not always in the web )

what you need to calculate the exact duty is the "DUTIABLE VALUE" of the vehicle

dutiable value is the sum of = FOB (agents FOB after depreciation / your invoice value, whichever is higher)

+

freight (your invoice / standard freight - whichever is higher )

+

insurance ( your invoice / standard - whichever is higher)

+

options/ fittings ( will be calculated by a customs inspector - a place where people play )

this value will be put in to that formula......... and you get your duty

so i think it s clear that this dutiable value is different from one vehicle to another, even if they are the same make/ model/age

regarding the undervaluing....................

this is why there is a thing called a black market.......

i know it s illegal, but the different is not in thousands my dear, it lacks ........ that s why people do it........

if you have import at least one vehicle and you were conscious about what was happening...... i m sure you would have understood that

if you are not aware about the import procedure, do not try this kind of a venture..... go and buy a car from a car sale, that may be cheaper than this

by the way i dont want to lecture you all regarding the import procedure......... you meet one good wharf clerk / importer, he will tell you that

if that import procedure is so simple we dont need the service of those clearing agents............

[priyanka]

RE; "But what I don't know is the exact amount of customs & excise duty % that will apply, since this will depend on the HS code ( And will change depending on the type of vehicle or purpose for which it was imported )"

this is a place you need the support of a clearing agent..............

Edited February 14, 2012 by priyanka

[Prasanna Gamage]

RE; "But what I don't know is the exact amount of customs & excise duty % that will apply, since this will depend on the HS code ( And will change depending on the type of vehicle or purpose for which it was imported )"

this is a place you need the support of a clearing agent..............

i agree - i had done a bit of reasearch on Customs and impt/expt dpt websites and found that spreadsheet too. But non mention anything about the DUTY %. If anyone can tell me it will be really healpful.

i am planning to import from UK a 2007 LR defender 110 hi-capacity pickup which is about £14000 in UK

[priyanka]

i agree - i had done a bit of reasearch on Customs and impt/expt dpt websites and found that spreadsheet too. But non mention anything about the DUTY %. If anyone can tell me it will be really healpful.

i am planning to import from UK a 2007 LR defender 110 hi-capacity pickup which is about £14000 in UK

first thing you should do is find out the chassis number of a such a vehicle.... then you go to the land rover agent, get their FOB (it was something like usd 32000 as if i can remember- but i m not sure )... roughly the duty is 125-150 % of the depreciated FOB.(i guess as i ve never import a commercial vehicle)

( But to get that kind of a low duty you have undervalue the vehicle............. and send the balance money by the black market)

if you do not undervalue it, the duty will be like;

(FOB+FREIGHT+INSURANCE) *125/100

14000 + 1100 + 200 (nearly, actual may be high or low) * 1.25

15300 * 188 * 1.25 = SLR 3595500

you have to add another 100000 for the local costs

here we have not considered the options/fittings

i hope you will realize about the story..............

i think you would understand the fact that the people who import vehicles will never tell you the exact cost as they are doing a business, but if you have a friend attached to a clearing agency, then you will get it, in fact they have records of the vehicles they have cleared...... but before anything else find out the chassis number, preferably a log of a vehicle............

Edited February 15, 2012 by priyanka

[Prasanna Gamage]

first thing you should do is find out the chassis number of a such a vehicle.... then you go to the land rover agent, get their FOB (it was something like usd 32000 as if i can remember- but i m not sure )... roughly the duty is 125-150 % of the FOB.(i guess as i ve never import a commercial vehicle)

( But to get that kind of a low duty you have undervalue the vehicle............. and send the balance money by the black market)

if you do not undervalue it, the duty will be like;

(FOB+FREIGHT+INSURANCE) *125/100

14000 + 1100 + 200 (nearly, actual may be high or low) * 1.25

15300 * 188 * 1.25 = SLR 3595500

you have to add another 100000 for the local costs

here we have not considered the options/fittings

i hope you will realize about the story..............

i think you would understand the fact that the people who import vehicles will never tell you the exact cost as they are doing a business, but if you have a friend attached to a clearing agency, then you will get it, in fact they have records of the vehicles they have cleared...... but before anything else find out the chassis number, preferably a log of a vehicle............

Thanks. I have a fair idea now. However, Landrover pickup falls under commercial category and hence i guess the tax % is lot less than 125%. Does anyone know how much that is?

[kush]

Dude all pickups are catagorised as dual purpose, unless it is a single cab.

Your duty structure will be based on HS Code, find the correct HS Code for the vehicle you intend to get down and finding the duty will not be an issue.

[priyanka]

Thanks. I have a fair idea now. However, Landrover pickup falls under commercial category and hence i guess the tax % is lot less than 125%. Does anyone know how much that is?

125% is for the commercial vehicles........... for the passenger vehicles - cars/jeeps it is something like 250% ( as if i can remember)