Import Tax Slashed By 50%

[hakjay]

Thanks Fire Dragon, BUT

The issue is 2,000,000yen was the depreciated valve. (50%)off. The toyota valuation is 4,000,000yen for a basic Hiace which make sense as a brand new in Hiace in Japan is around US$35,000.

I paid yen1,850,000 (23laks Rs) as the CIF value (Cost of car,shipping and insuarance and JAAI).

I will let you know my total cost early next month with a breakdown .. asked my clearing agent Hez confussed too, yet to clear any cars under new system.

I asked T** l**a last year how much a hiace cost and the answer was 11+million

Applogies if this sound How is the depreciation (%) value calculated. Is it a fixed % for all verticals? The agents can only give the brand new price.

[wrav003]

Applogies if this sound How is the depreciation (%) value calculated. Is it a fixed % for all verticals? The agents can only give the brand new price.

Yes it is fixed by Ministry of finance.

This has been talked in this thread few time, please go through the links above;

Anyways I have copied this from the customs website.

Less than or equal 6 months Nil Nil (Car & Van)

More than 6 months and less than or equal 1year 90% 90% (Car & Van)

More than 1 year and less than or equal 1 1/2year 80% 80%(Car & Van)

More than 1 years tmd less than or equal 2 years 80% 70%(Car & Van)

More than 2 years and less than or equal 2 1/2years 75% 65%(Car & Van)

More than 2 1/2 years and less than or equal 3 years 70% 60%(Car & Van)

More than 3 years and less than or equal 3 1/2years 55%(Vans only)

More than 3 1/2 years and less than or equal 4 years 50%(Vans only)

More than 4 years and less than or equal 4 1/2years 50%(Vans only)

More than 4 1/2 years and less than or equal 5 years 50%(Vans only)

Edited July 6, 2010 by wrav003

[Fire Dragon1]

Applogies if this sound How is the depreciation (%) value calculated. Is it a fixed % for all verticals? The agents can only give the brand new price.

Simple for cars six months or less no dep. 06months to 1yr 90% of the value, 1-1.5 years 80%. Just log on to customs web site at www.customs.gov.lk. Full depriciation table is given.

Fire Dragon

[Fire Dragon1]

Dear all,

I'm new to this forum. But I was with you more than 2 years as a guest.

Fire Dragon,

Do you know anybody who is importing for these prices?

every import since 01/06/2010

Fire Dragon

[arunajn]

Dear all,

Is there anyone in this forum, who is in a process of importing a vehicle after the tax reduction? Could you guys please explain the procedure/process of importing. (I know we have already discussed some areas, but I'm asking the total process) Also just explain the difficulties of this process.

(I heard that If individual is planning to import a vehicle he must obtain a temporary VAT registration, then the import license etc....)Hope this will be a great help for all who are planning to import a vehicle.

Thanks in advance.

[isurujosh]

Isuru you are correct auction certificate is good enough indication as proof of the state of the car. All the other fance literature come at an aditional cost. If the buyer is willing to bear all thoes costs i'm sure the importers will be happy to get them for you. Now lets see who will be willing to pay extra Rs. 50k for these certificates?

thanks for the advice X

[zerocool]

Hmm looks like the car market is same as it was before the tax change.

I have been saving money for the last two years because i didn't want to take a lease or a loan. Guess i have to wait at least 3 more months to get a Axela.

Edited July 6, 2010 by zerocool

[xXx]

Go to any seller, ask for the customs declaration for which you have a right to veryfy proper duties have been paid.

I guarantee you none of the importers will show you the custom declaration form if you are buying one from his lot. It's like going to buy a TV (or any other imported good) and asking for a similar document from the shop. It doesn’t make sense does it? That is confidential info. Selling price is based on cost and no seller (no matter what they are selling) will be happy to disclose that info. If you buy the car unreg and manage to register it without having to go through back doors (minus the tips for an efficient service) that’s a clear enough indication that the car has been imported legally.

Guys just use your common sense when buying a car. If the odo of the car says 40k but it has actually done 140k there will be visible signs. If you don't know your way around cars much just take someone who does. Take it for a spin. Do a thorough inspection. Importers are not on a vendetta to screw you over. They rely on repeat business and good word of mouth.

[xXx]

Dear all,

Is there anyone in this forum, who is in a process of importing a vehicle after the tax reduction? Could you guys please explain the procedure/process of importing. (I know we have already discussed some areas, but I'm asking the total process) Also just explain the difficulties of this process.

(I heard that If individual is planning to import a vehicle he must obtain a temporary VAT registration, then the import license etc....)Hope this will be a great help for all who are planning to import a vehicle.

Thanks in advance.

Importing a car is not rocket science. But there's a degree of risk and 'rasthiyadu' involved.

Regular importers have a greater relationship with their suppliers. They buy in bulk hence they get a better pricing or the suppliers buy cars from auctions on behalf of the importer on an agreed price. Then comes the risk involved with payment. Regular importers use L/C where as if you are doing a one off deal the supplier will insist on a bank transfer.

Yes you do require a temp VAT number. This you have to do yourself. You can't have a 3rd party do this on your behalf. Minute you get VAT number IRD get all your information. If you are dodging taxes or planning on doing so in the future this'll open up a whole new can of worms.

On the financing front, you need to have the whole amount involved in the process in your hand. Other than obtaining a personnel loan from a bank i'm not sure of other means of financing unless you go to a 'poli mudalali'.

[Supra_Natural]

I guarantee you none of the importers will show you the custom declaration form if you are buying one from his lot. It's like going to buy a TV (or any other imported good) and asking for a similar document from the shop. It doesn’t make sense does it? That is confidential info. Selling price is based on cost and no seller (no matter what they are selling) will be happy to disclose that info. If you buy the car unreg and manage to register it without having to go through back doors (minus the tips for an efficient service) that’s a clear enough indication that the car has been imported legally.

Guys just use your common sense when buying a car. If the odo of the car says 40k but it has actually done 140k there will be visible signs. If you don't know your way around cars much just take someone who does. Take it for a spin. Do a thorough inspection. Importers are not on a vendetta to screw you over. They rely on repeat business and good word of mouth.

In this day and age of electronic odo clocking, where you can get brand new looking interior bits, steering wheels and such pretty easily if you look know what you're doing and also remembering the fact that most new cars are a lot more resistant to showing their age in general than something made a decade or two ago, I find that statement distinctly amusing.

Edited July 7, 2010 by Supra_Natural

[ThilakR]

Importing a car is not rocket science. But there's a degree of risk and 'rasthiyadu' involved.

Regular importers have a greater relationship with their suppliers. They buy in bulk hence they get a better pricing or the suppliers buy cars from auctions on behalf of the importer on an agreed price. Then comes the risk involved with payment. Regular importers use L/C where as if you are doing a one off deal the supplier will insist on a bank transfer.

Yes you do require a temp VAT number. This you have to do yourself. You can't have a 3rd party do this on your behalf. Minute you get VAT number IRD get all your information. If you are dodging taxes or planning on doing so in the future this'll open up a whole new can of worms.

On the financing front, you need to have the whole amount involved in the process in your hand. Other than obtaining a personnel loan from a bank i'm not sure of other means of financing unless you go to a 'poli mudalali'.

Hi Friends,

Could anyone kindly give me an idea of the final cost of below car if I import individually.

Export size: 45.85 m3

Price: USD 5,111

FOB Price: USD 5,667

C&F Price: USD 8,469 (including delivery to Sri Lanka, Colombo port)

Thanks

Thilak

[arunajn]

Importing a car is not rocket science. But there's a degree of risk and 'rasthiyadu' involved.

Regular importers have a greater relationship with their suppliers. They buy in bulk hence they get a better pricing or the suppliers buy cars from auctions on behalf of the importer on an agreed price. Then comes the risk involved with payment. Regular importers use L/C where as if you are doing a one off deal the supplier will insist on a bank transfer.

Yes you do require a temp VAT number. This you have to do yourself. You can't have a 3rd party do this on your behalf. Minute you get VAT number IRD get all your information. If you are dodging taxes or planning on doing so in the future this'll open up a whole new can of worms.

On the financing front, you need to have the whole amount involved in the process in your hand. Other than obtaining a personnel loan from a bank i'm not sure of other means of financing unless you go to a 'poli mudalali'.

[/quote

Thanks xXx...

seems to be not practical

[zerocool]

Hi Friends,

Could anyone kindly give me an idea of the final cost of below car if I import individually.

Export size: 45.85 m3

Price: USD 5,111

FOB Price: USD 5,667

C&F Price: USD 8,469 (including delivery to Sri Lanka, Colombo port)

Thanks

Thilak

Here is a calculator, not sure if its correct though.

[SeanD]

Hi Friends,

Could anyone kindly give me an idea of the final cost of below car if I import individually.

Export size: 45.85 m3

Price: USD 5,111

FOB Price: USD 5,667

C&F Price: USD 8,469 (including delivery to Sri Lanka, Colombo port)

Thanks

Thilak

What sort of car is this? I don't know of many cars that would fit that price and still be under the 3 year age limit?

[zerocool]

I'm so confused about the depreciation value, where does it come in? Please can someone explain this using the following example.

Say an agent is going to import an used car from Japan which is 3 years old (YOM 2007) -

FOB price - USD 8,500

Insurance and Freight charges - USD 1,500

CIF value is (FOB + Insurance and Freight charges) right?

If that is correct then CIF value - USD 10,000

Now do we calculate tax for the CIF value?

OR

for the local value of a brand new car of the same model * depreciation%?

Total price will be CIF + Tariff + any additional charges like agent handling fee?

Sorry if it has been explained before, i did a forum search but couldn't find a clear explanation.

[kalana]

i think we get the value from the agent then get 70% of that value because this vehicle is made in 2007.this +ur CIF value will be the total cost if i am correct

[fayas]

I'm so confused about the depreciation value, where does it come in? Please can someone explain this using the following example.

Say an agent is going to import an used car from Japan which is 3 years old (YOM 2007) -

FOB price - USD 8,500

Insurance and Freight charges - USD 1,500

CIF value is (FOB + Insurance and Freight charges) right?

If that is correct then CIF value - USD 10,000

Now do we calculate tax for the CIF value?

OR

for the local value of a brand new car of the same model * depreciation%?

Total price will be CIF + Tariff + any additional charges like agent handling fee?

Sorry if it has been explained before, i did a forum search but couldn't find a clear explanation.

FOB = Value of a brand new motor Vehicles furnished bythe agent of such vehicle in Sri Lanka.

X

Rate of depreciation (as per the depreciationtable published by ministry of Finance)

Not the amount you paid as FOB when buying vehicle in Japan

Ex:

toyota axio can be bought FOB for 10000$

but FOB is calculated for corolla is from price at agents brand new FOB price(without taxes) X Rate of depreciation

Say brand new FOB price 21000$ X Rate of depreciation

Tc

[zerocool]

i think we get the value from the agent then get 70% of that value because this vehicle is made in 2007.this +ur CIF value will be the total cost if i am correct

FOB = Value of a brand new motor Vehicles furnished bythe agent of such vehicle in Sri Lanka.

X

Rate of depreciation (as per the depreciationtable published by ministry of Finance)

Not the amount you paid as FOB when buying vehicle in Japan

Ex:

toyota axio can be bought FOB for 10000$

but FOB is calculated for corolla is from price at agents brand new FOB price(without taxes) X Rate of depreciation

Say brand new FOB price 21000$ X Rate of depreciation

Tc

Thank you very much for the quick reply. I think i understand it correctly now.

Edited July 7, 2010 by zerocool

[xXx]

In this day and age of electronic odo clocking, where you can get brand new looking interior bits, steering wheels and such pretty easily if you look know what you're doing and also remembering the fact that most new cars are a lot more resistant to showing their age in general than something made a decade or two ago, I find that statement distinctly amusing.

You got a very good point machang. When i said 'visible signs' i was referencing to both cosmetic and mechanical hence the recommendation to get an opinion of a more experienced individual.

[ThilakR]

What sort of car is this? I don't know of many cars that would fit that price and still be under the 3 year age limit?

Hi,

It is NISSAN Note small hatch. 2008

Thilak

[Fire Dragon1]

I guarantee you none of the importers will show you the custom declaration form if you are buying one from his lot. It's like going to buy a TV (or any other imported good) and asking for a similar document from the shop. It doesn’t make sense does it? That is confidential info. Selling price is based on cost and no seller (no matter what they are selling) will be happy to disclose that info. If you buy the car unreg and manage to register it without having to go through back doors (minus the tips for an efficient service) that’s a clear enough indication that the car has been imported legally.

Guys just use your common sense when buying a car. If the odo of the car says 40k but it has actually done 140k there will be visible signs. If you don't know your way around cars much just take someone who does. Take it for a spin. Do a thorough inspection. Importers are not on a vendetta to screw you over. They rely on repeat business and good word of mouth.

Wrong. This is not a confidential info. Customs declaration is a must to veryfy the vehi has been imported legally. What if someone brings down parts, assembles a vehi, buy a book that is already registered and use that number to the vehicle. At sometime or other it will be seized and you would have been taken for a ride.

Ask for the customs declaration, chk the chasis and engin number and chk with the rmv wheather it has been legally imported.

Also be very sure that the actual chasis nu is not tampered with in the vehicle. Gov analist can detect it easily.

With regard to TV etc what you say is correct. Still the the burden of proof of the leagal importation falls on the person in possession of the item.

[Fire Dragon1]

Applogies if this sound How is the depreciation (%) value calculated. Is it a fixed % for all verticals? The agents can only give the brand new price.

Even if the value of a vehicle is high in the exporting country there is a very slim chance of the agents declaring the same in SL.

The reason is they will have to pay a higher duty. Therefore, they may declare a lesser agents value for the models they are importing. Have you seen the agents val your self. I am sure it is much less than what you have quoted.

[isurujosh]

Even if the value of a vehicle is high in the exporting country there is a very slim chance of the agents declaring the same in SL.

The reason is they will have to pay a higher duty. Therefore, they may declare a lesser agents value for the models they are importing. Have you seen the agents val your self. I am sure it is much less than what you have quoted.

fire dragon, how much do you think a very early 2008 1.5L axio X grade with auction grade 5.0 will cost to bring down here?

[Fire Dragon1]

fire dragon, how much do you think a very early 2008 1.5L axio X grade with auction grade 5.0 will cost to bring down here?

Give me the first digits of the chasis no

[JAFF]

can anyone give me the phone number of Fiat agent? i googled it but i couldnt find. actually i donno even know who are the agents of Fiat so if anyone has it just PM me..thanx in adveance