Step 1
When buying and importing a car from Japan to Kenya, start by visiting any major Japanese Car seller website and identify the Car you want to Buy; in most cases I use these 5 companies:
- Befoward Japan
- Tradecarview
- Alain Japan
- Autocom Japan
- SBT Japan
Step 2
In the second step of buying and importing a car from Japan to Kenya, identify the Car that you want e.g. Brand name, Year of Manufacture etc. It’s very important to note that Motor vehicles of over 8 years old are not allowed into Kenya as per the KS 1515:2000 quality standard by the Kenya Bureau of Standards. Kenya Customs enforces this requirement. This year (2015), customs allows vehicles manufactured in the year 2008 and thereafter.
Step 3
In the third step of buying and importing a car from Japan to Kenya, make a Purchase Order (PO) from the seller, A PO is basically a Request from the Buyer instructing the Seller to issue you with a Proforma Invoice, in this stage I would also like to Clarify 2 things:
- A) There’s FOB (Freight on Board) which in most cases you will see on the website – This is not the Complete Cost of the Vehicle because the Car has to be Inspected by JEVIC which is like the Kenyan Kebs to ensure quality standards are adhered to before shipping
- B) CIF – This is Cost Insurance and Freight – This is basically the Final Cost of the
Vehicle , Most sellers will allow you to negotiate this Cost down by 500 USD depends on how many units you have bought from them before and also on your negation skills .
Step 4
Accept the Motor Sale Agreement Contract (Invoice ) by basically remitting cash to the provided Bank account by the Seller ,
In Most cases you have to remit Cash via Telegraphic transfers which is commonly known as T/T by Kenyan Banks, ensure that you attach the Invoice on the transfer order so and instruct the teller to Copy main details onto the Transfer form, these are (Car Brand , engine and Reference number ) . These details are extremely important.
Step 5
Scan the Transfer form and submit it to the Seller, The Seller will then notify you via email that your car is now ready to be shipped to Kenya, It takes about 1 week for inspection and to transfer the car to the loading bay (Japanese Ports ) ,
Step 6
The Seller will ask you to confirm the Shipping address for your B/L (Bill of Lading) copies , B/L Copies are basically proof that the vehicle belongs to you,
The B/L copies are in most cases sent Via DHL or FedEx services in Kenya , in Most Cases your B/L copy will be ready in 2 weeks so no need to panic .
Step 7
Once you have received the B/L Copy, then you will have to transfer the Clearing services to a Listed Agent with KRA, this is a List by KRA for Agents who have registered with KRA click here.
An importer will have to enlist the services of a clearing agent who will process the import documentation through Kenya Customs electronically on the Simba 2005 system and clear the goods on your behalf.
To view a listing of licensed clearing agents, click here.
An import declaration fee (IDF) of 2.25% of the CIF Value subject to a minimum of Ksh. 5,000.00 is payable.
Customs will assess duty payable depending on the value of the item(s) and the duty rate applicable. The East African Community Common External Tariff laying out the duty rates of imported items is available.
Step 8
Once your Clearing Agent has declared the vehicle with customs, then he will be issued with a Tax report, the duty payable on the importation of a motor vehicle is as follows:
Import Duty: 25% of the CIF value of the vehicle
Excise Duty: 20% of the (CIF value + Import Duty)
VAT: 16% of the (CIF value + Import Duty + Excise Duty)
IDF: 2.25% of the CIF value or Ksh. 5,000, whichever is higher, is payable.
CIF – This is the customs value of the vehicle i.e. the Cost, Insurance & Freight paid for the vehicle.
The CIF -value of the vehicle is also deduced from the Current Retail Selling Price (CRSP) of the vehicle.
In Most cases when buying and importing a car from Japan to Kenya, you will have to pay duty through a Bankers Cheque addressed to the Commissioner of Customs KRA, the agent will then use this receipt to clear the car on your behalf.
Step 9
You will finally have to pay the Clearing Agent some fee together with some other port handling charges, this amount in most cases is Approx. 50,000 KES, the port handling Charges differ from vehicle to vehicle.
Step 10
You can organize with your Clearing Agent to have your car delivered to your doorstep but this is primarily based on Trust in most cases they will charge about 10,000KES
Very informative article.. What do you mean by whichever is higher is payable?