Importing Car

[Watchman]

Hey guys,

Since we're on a new forum, thought of starting one of the FAQ threads we decided on last time around

So anyone up for importing a car from japan?

[nissan_fan]

Hey guys,

Since we're on a new forum, thought of starting one of the FAQ threads we decided on last time around

So anyone up for importing a car from japan?

I once posted some info in older forum. I will re-post it.

---

1. Contact a vehicle exporter in the exporting country and get the per-forma invoice.

2. Take the per-forma invoice to the bank and open a Letter of Credit. Bank will normally hold 110% of the CIF value mentioned in the Per-forma Invoice.

3. Once you successfully opened the LC exporter will be asked to submit the necessary documents through his bank in exporting country. Please wait till your bank receives document and after thorough checking bank will release documents required for clearing process.

4. Then get the TIN and VAT Certificate from Inland Revenue Dept. in Sir Chittampalam A. Gardiner Mw, Colombo 2

Form

http://www.inlandrevenue.gov.lk/forms/VATtemp.pdf

http://www.inlandrevenue.gov.lk/forms/tin.pdf

You'll need two sets of photocopies of following document

- Bill of Lading

- Commercial Invoice

- NIC/ Passport/ Driver's Licence

Also if you are PAYE tax payer you can save the visit to information branch. However you have to produce T10 certificate of PAYE tax payement or get a letter from employer that you are PAYE tax payer.

5. Then get a FORM FOR THE REGISTRATION OF IMPOTERS & EXPORTERS IN TERM OF SECTION 115 OF THE CUSTOMS ORDINANCE and fill it and submit to the ADP branch in Customs headquarters. You need TIN and VAT and form needs to be signed by Grama Niladhari and needs to paste stamp size photo and signed by JP. Also needs get certificate from bank in which you opened LC.

http://www.customs.gov.lk/adp/Reg_Imp_Exp.pdf

6. Contact a good clearing agent with experience and he will handle rest of the process for you.

All the good luck

[hakjay]

I once posted some info in older forum. I will re-post it.

---

1. Contact a vehicle exporter in the exporting country and get the per-forma invoice.

2. Take the per-forma invoice to the bank and open a Letter of Credit. Bank will normally hold 110% of the CIF value mentioned in the Per-forma Invoice.

3. Once you successfully opened the LC exporter will be asked to submit the necessary documents through his bank in exporting country. Please wait till your bank receives document and after thorough checking bank will release documents required for clearing process.

4. Then get the TIN and VAT Certificate from Inland Revenue Dept. in Sir Chittampalam A. Gardiner Mw, Colombo 2

Form

http://www.inlandrevenue.gov.lk/forms/VATtemp.pdf

http://www.inlandrevenue.gov.lk/forms/tin.pdf

You'll need two sets of photocopies of following document

- Bill of Lading

- Commercial Invoice

- NIC/ Passport/ Driver's Licence

Also if you are PAYE tax payer you can save the visit to information branch. However you have to produce T10 certificate of PAYE tax payement or get a letter from employer that you are PAYE tax payer.

5. Then get a FORM FOR THE REGISTRATION OF IMPOTERS & EXPORTERS IN TERM OF SECTION 115 OF THE CUSTOMS ORDINANCE and fill it and submit to the ADP branch in Customs headquarters. You need TIN and VAT and form needs to be signed by Grama Niladhari and needs to paste stamp size photo and signed by JP. Also needs get certificate from bank in which you opened LC.

http://www.customs.gov.lk/adp/Reg_Imp_Exp.pdf

6. Contact a good clearing agent with experience and he will handle rest of the process for you.

All the good luck

Hey this is not so complicated. But I think the hard part is clearing the car.

[jaga]

Hey this is not so complicated. But I think the hard part is clearing the car.

Yes yes , there are no places inside the harbour to park new cars. Two car carriers have been waiting out harbour for last 5 days and one is berthed last night carring 750 cars 125 vans and soome lorries and buses. Buses and Lorries will be parked out side of port premises(At Mahapola training centre) till custom cleared.

Aprox only 150 vehicles get custom clearence per day.

Acutually clearing part is very hard .

[Napster]

I once posted some info in older forum. I will re-post it.

---

1. Contact a vehicle exporter in the exporting country and get the per-forma invoice.

2. Take the per-forma invoice to the bank and open a Letter of Credit. Bank will normally hold 110% of the CIF value mentioned in the Per-forma Invoice.

3. Once you successfully opened the LC exporter will be asked to submit the necessary documents through his bank in exporting country. Please wait till your bank receives document and after thorough checking bank will release documents required for clearing process.

4. Then get the TIN and VAT Certificate from Inland Revenue Dept. in Sir Chittampalam A. Gardiner Mw, Colombo 2

Form

http://www.inlandrevenue.gov.lk/forms/VATtemp.pdf

http://www.inlandrevenue.gov.lk/forms/tin.pdf

You'll need two sets of photocopies of following document

- Bill of Lading

- Commercial Invoice

- NIC/ Passport/ Driver's Licence

Also if you are PAYE tax payer you can save the visit to information branch. However you have to produce T10 certificate of PAYE tax payement or get a letter from employer that you are PAYE tax payer.

5. Then get a FORM FOR THE REGISTRATION OF IMPOTERS & EXPORTERS IN TERM OF SECTION 115 OF THE CUSTOMS ORDINANCE and fill it and submit to the ADP branch in Customs headquarters. You need TIN and VAT and form needs to be signed by Grama Niladhari and needs to paste stamp size photo and signed by JP. Also needs get certificate from bank in which you opened LC.

http://www.customs.gov.lk/adp/Reg_Imp_Exp.pdf

6. Contact a good clearing agent with experience and he will handle rest of the process for you.

All the good luck

Thanks mate... your comments are comprehensive and helpful...

But I would like to add couple of more things that you need to know/follow when you are importing a vehicle...

1. Normally the per-forma invoice value of a vehicle will always exceed the agent value of the model. So normally its a known truth that most of the personal importers will get the invoice exactly matches with the agent value of the model and send the rest personally. I think this is illegal but seems to be the common practice now.

2. When you are opening the LC you will also have to get the HS code of the model from the importer. Its normally a 8 digit number.

[BLu3HaZe]

Can I know who exactly gives the FOB value for an imported car? The agents in SL right? Such as St***ords for Hondas and To**ta L**ka for Toyotas? But I got these forms off the Customs and it says they can quote only the same vehicle with similar options and model numbers they're importing? If so, lets say I try to get a Civic Si coupe from USA or something, then how are they going to quote the price, as they do NOT offer a 2L engine, nor the Si trim, nor any coupe? Somebody please help?

And also what about cars that may not have agents here, example like Dodge, Opel, Holden etc.?

[Chooti Putha]

I once posted some info in older forum. I will re-post it.

---

1. Contact a vehicle exporter in the exporting country and get the per-forma invoice.

2. Take the per-forma invoice to the bank and open a Letter of Credit. Bank will normally hold 110% of the CIF value mentioned in the Per-forma Invoice.

3. Once you successfully opened the LC exporter will be asked to submit the necessary documents through his bank in exporting country. Please wait till your bank receives document and after thorough checking bank will release documents required for clearing process.

4. Then get the TIN and VAT Certificate from Inland Revenue Dept. in Sir Chittampalam A. Gardiner Mw, Colombo 2

Form

http://www.inlandrevenue.gov.lk/forms/VATtemp.pdf

http://www.inlandrevenue.gov.lk/forms/tin.pdf

You'll need two sets of photocopies of following document

- Bill of Lading

- Commercial Invoice

- NIC/ Passport/ Driver's Licence

Also if you are PAYE tax payer you can save the visit to information branch. However you have to produce T10 certificate of PAYE tax payement or get a letter from employer that you are PAYE tax payer.

5. Then get a FORM FOR THE REGISTRATION OF IMPOTERS & EXPORTERS IN TERM OF SECTION 115 OF THE CUSTOMS ORDINANCE and fill it and submit to the ADP branch in Customs headquarters. You need TIN and VAT and form needs to be signed by Grama Niladhari and needs to paste stamp size photo and signed by JP. Also needs get certificate from bank in which you opened LC.

http://www.customs.gov.lk/adp/Reg_Imp_Exp.pdf

6. Contact a good clearing agent with experience and he will handle rest of the process for you.

All the good luck

thanks for da post man this is really helpful

also what about if v r getting a car down from a guy who is not registered or anything someone known to us who is working in japan....

Edited September 25, 2010 by Chooti Putha

[Napster]

thanks for da post man this is really helpful

also what about if v r getting a car down from a guy who is not registered or anything someone known to us who is working in japan....

Your question is not clear mate...

[Chooti Putha]

Your question is not clear mate...

what i wanted to know is.... say you have a friend who is working in japan & you ask him to check out a car from their & send it to SL....r the rules still the same

[wug]

what i wanted to know is.... say you have a friend who is working in japan & you ask him to check out a car from their & send it to SL....r the rules still the same

I also want to know that thing. Can any one tell the proceidure.

[Napster]

what i wanted to know is.... say you have a friend who is working in japan & you ask him to check out a car from their & send it to SL....r the rules still the same

Well that's exactly what you mean by importing a vehicle under your name... Even if you have a so called dealer is Sri Lanka, if you are importing the vehicle under your name, what he would do is to introduce you to the seller and guide you with the procedure provided above + find you a walfclark... He wont be able to help you more than that...

[luckyd]

I once posted some info in older forum. I will re-post it.

---

1. Contact a vehicle exporter in the exporting country and get the per-forma invoice.

2. Take the per-forma invoice to the bank and open a Letter of Credit. Bank will normally hold 110% of the CIF value mentioned in the Per-forma Invoice.

3. Once you successfully opened the LC exporter will be asked to submit the necessary documents through his bank in exporting country. Please wait till your bank receives document and after thorough checking bank will release documents required for clearing process.

4. Then get the TIN and VAT Certificate from Inland Revenue Dept. in Sir Chittampalam A. Gardiner Mw, Colombo 2

Form

http://www.inlandrevenue.gov.lk/forms/VATtemp.pdf

http://www.inlandrevenue.gov.lk/forms/tin.pdf

You'll need two sets of photocopies of following document

- Bill of Lading

- Commercial Invoice

- NIC/ Passport/ Driver's Licence

Also if you are PAYE tax payer you can save the visit to information branch. However you have to produce T10 certificate of PAYE tax payement or get a letter from employer that you are PAYE tax payer.

5. Then get a FORM FOR THE REGISTRATION OF IMPOTERS & EXPORTERS IN TERM OF SECTION 115 OF THE CUSTOMS ORDINANCE and fill it and submit to the ADP branch in Customs headquarters. You need TIN and VAT and form needs to be signed by Grama Niladhari and needs to paste stamp size photo and signed by JP. Also needs get certificate from bank in which you opened LC.

http://www.customs.gov.lk/adp/Reg_Imp_Exp.pdf

6. Contact a good clearing agent with experience and he will handle rest of the process for you.

All the good luck

Hi,

Thanks for the info. But, could you clarify a bit more on the PAYE tax involvement. I am importing a car and I do pay PAYE. What burden would this relieve me from? Would I still have to get a TIN even though I have a TIN for PAYE?

Cheers.

[Chooti Putha]

Well that's exactly what you mean by importing a vehicle under your name... Even if you have a so called dealer is Sri Lanka, if you are importing the vehicle under your name, what he would do is to introduce you to the seller and guide you with the procedure provided above + find you a walfclark... He wont be able to help you more than that...

you havent got my question properly. im talking about someone who is not into the car business & doing a normal job in japan...if he is to buy a car in japan & send it over to me does he need to make a performa invoice & stuff like that....

[jaga]

you havent got my question properly. im talking about someone who is not into the car business & doing a normal job in japan...if he is to buy a car in japan & send it over to me does he need to make a performa invoice & stuff like that....

The legal way of doing money transection of importing anything is through a LC. So you need a performa invoice in order to open a LC in a local bank.

[wug]

The legal way of doing money transection of importing anything is through a LC. So you need a performa invoice in order to open a LC in a local bank.

If i put the money to my friends sri lankan bank account is it illegal?

Is it a problem for clearing process?

[nissan_fan]

Hi,

Thanks for the info. But, could you clarify a bit more on the PAYE tax involvement. I am importing a car and I do pay PAYE. What burden would this relieve me from? Would I still have to get a TIN even though I have a TIN for PAYE?

Cheers.

If you are not a PAYE tax payer they'll send you to Information Branch and interview you about your income etc. If you are a PAYE tax payer and you have T10 certificate to prove it you'll be spared that hassle.

TIN is only issued once. If you have it already, you just have to VAT only.

Please take your T10 certificate to prove that you are a PAYE tax payer.

[nissan_fan]

If i put the money to my friends sri lankan bank account is it illegal?

Is it a problem for clearing process?

Regulations specifically says when importing a motor vehicle foreign exchange should be transferred through LC only.

http://www.customs.gov.lk/law/notice.pdf

[Chooti Putha]

The legal way of doing money transection of importing anything is through a LC. So you need a performa invoice in order to open a LC in a local bank.

Thanks for the info Jaga

[wrav003]

Thanks for the info Jaga

Hello, From my experiance of importing a vehicle, I could have saved about 12 laks by undervaluing a particular vehicle.

To do this you will have to T/T part of your payement to Japan. And the rest in L/C.

The main reason for this is high prices fethced in Japan for most of the high demand vehicles for Sri Lanka. So the FOB value could be higher than the value given by the agent.

Normally tax is calculated using the value given by local Agent. However if your FOB is higher than the agent value, the TAX is calculated using you FOB. Thats the way SL Customs works.

Hope this helps...

[kaushama]

Hello, From my experiance of importing a vehicle, I could have saved about 12 laks by undervaluing a particular vehicle.

To do this you will have to T/T part of your payement to Japan. And the rest in L/C.

The main reason for this is high prices fethced in Japan for most of the high demand vehicles for Sri Lanka. So the FOB value could be higher than the value given by the agent.

Normally tax is calculated using the value given by local Agent. However if your FOB is higher than the agent value, the TAX is calculated using you FOB. Thats the way SL Customs works.

Hope this helps...

Yes that had been my experience as well. The FOB value invariably exceeds the agent estimate. So one has to declare the maximum agent value in L/C. Then send rest of the money to dealer in another "route". Many car dealers do the same. Only issue is the sending the balance to the dealer unless you know him or have a contact in Japan, who does it for you.

Secondly when you buy a car from Japan, using on line auctions, one has to get it checked by JAPAN AUTO APPRAISAL INSTITUTE or other independent agency. Before you pay the dealer at the port of export you have to compare the details with the certificate. This is too an issue, if you don't have anyone there. But there may be ways of doing this. Hope it helps!

[luckyd]

If you are not a PAYE tax payer they'll send you to Information Branch and interview you about your income etc. If you are a PAYE tax payer and you have T10 certificate to prove it you'll be spared that hassle.

TIN is only issued once. If you have it already, you just have to VAT only.

Please take your T10 certificate to prove that you are a PAYE tax payer.

Thanks for the info.

From where should I get the T10 certificate. Alternatively, can I just specify my PAYE TIN no., which I know?

Cheers

[jaga]

Thanks for the info.

From where should I get the T10 certificate. Alternatively, can I just specify my PAYE TIN no., which I know?

Cheers

If you are working in the private sector and pay income tax monthly from your salary, You may ask your employer to issue T 10 certificate.

If you have the T10 certificate, It is a real advantage in Inland Revenue dept and they will never question you. It was only 15 mints job for me to obtain TIN and VAT numbers since I had T10 document with me.

rgds

[luckyd]

If you are working in the private sector and pay income tax monthly from your salary, You may ask your employer to issue T 10 certificate.

If you have the T10 certificate, It is a real advantage in Inland Revenue dept and they will never question you. It was only 15 mints job for me to obtain TIN and VAT numbers since I had T10 document with me.

rgds

Many thanks for the valuable info. provided.

Cheers.

[turboholic]

legendary info... thanks guys..

just thinkin bit outa the box.. wtf is sri lanka going to do with all these cars?? i mean can colombo (majority of market) accommodate such a influx?

[lasi]

check this site as well. they say you can buy directly from aution by biding.

http://www.singaporemotors.net/auction.html

[luckyd]

If you are working in the private sector and pay income tax monthly from your salary, You may ask your employer to issue T 10 certificate.

If you have the T10 certificate, It is a real advantage in Inland Revenue dept and they will never question you. It was only 15 mints job for me to obtain TIN and VAT numbers since I had T10 document with me.

rgds

Hello again,

I managed to get a T-10 from my employer. Now, do I have to produce this along with the pink coloured application form in order to get the TIN no.?

Or else, is the T-10 itself sufficient proof that I have a TIN no.?