Friday, April 26, 2024

Rules and regulations for importing cars in Kenya

The rules and regulations of importing used cars to Kenya include:

  1. Not more than eight years old. The law is very strict about this, according to the Kenya Bureau of Standards KS 1515:2000. For example, for the year 2015, only vehicles manufactured in or after 2008 are allowed.
  2. There is one port of entry for imported vehicles from Japan or other countries, and the Port is Mombasa. It is where ships offload their cargo. Accredited agents do the clearance. You will have to pay an import declaration fee (IDF) of Ksh 5000/= or 2.25%, whichever is higher, of the CIF (cost, insurance, and freight) value paid on the vehicle, (approximately $60 minimum at the current exchange rate. This could rise or fall). Customs will then calculate the custom rates applicable depending on the value of the vehicle.
  3. The car imported in Kenya must be the Right-hand drive. Left-hand drive vehicles are not allowed for registration unless they are for a particular purpose.
  4. The used vehicles must pass a safety and mechanical inspection.

Other duty payments when importing cars from Japan to Kenya

Apart from the import declaration fee paid before or during clearance, there are other tax costs. Importing other or Japanese car in Kenya, considering that imports far outbalance this country’s minimal exports. It is expensive, but there is no better option. Even before you know the costs, you need to understand the terms used, so that you know what they are paying.

CIF means the cost of the car in its country of origin, the insurance, and the freight charge, all combined. IDF is the Import Declaration Fee. On this, a minimum amount of $5000 or 2.25 of the CIF value is paid. It depends on whatever amount is higher. Sometimes, the CIF could also be calculated from the Current Retail Selling Price (CRSP) of the vehicle.

  1. The Import Declaration Fee – 2.25% of the CIF value of the imported car
  2. The import duty – 25% of the CIF value of the car
  3. The Excise duty – 20% of the (Import duty + CIF value, irrespective of the size of the engine
  4. The VAT – 16% of the (excise duty + Import Duty + CIF value)

CFS – Container Freighter Station charges are also referred to as port charges. What the Japan car exporters to Kenya pay depends on the size of the vehicle. For example, an NZE Toyota sedan would cost Kshs 22,500 to Kshs 18,500, A Toyota Prado would cost more, may be up to Kshs 34,000. There are shipping charges plus VAT that are payable to the shipping agents. The amount differs from one agency to the other.

The documents required while clearing the used cars at the port are given bellow:

  • Original Commercial Invoice.
  • Original Bill of Lading.
  • Import Declaration Form obtained from Customs.
  • Authentic Original Logbook from the country of origin. Kenya Revenue Authority shall not accept a Certificate of Export issued by Dubai Police or any other authority as a substitute for a foreign log book. If the logbook is in a foreign language, an English translation issued by the respective Embassy, High Commission or a consulate based here in Kenya, must be furnished to Customs to authenticate the foreign logbook.
  • Cancellation of the foreign Logbook.
  • Certificate of Inspection by Japan Export Vehicle Inspection Center (JEVIC)
  • Any other document that may be required by Customs.

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