Import a Car from Japan with Best Cars for Sale in Kenya Ltd
To import a car from Japan, you’ll encounter costs such as; retail selling price crsp, import duty, excise duty, VAT, shipping fee, and insurance among others. Knowing these in advance helps you budget effectively. This article outlines the total cost of importing a car to Kenya from Japan.
Cost of Importing a Car from Japan to Kenya – How to Reach Us to Import
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Cost of Importing a Car from Japan to Kenya – Key Takeaways
- Importing a car from Japan involves multiple cost factors including purchase price, inspection fees, shipping methods, insurance, import duties, and additional charges upon arrival.
- The shipping methods—RoRo, container shipping, and air freight—offer varying costs and benefits, making it essential to choose the appropriate option for a pocket-friendly price.
- Understanding calculation methods for import duties, taxes, and using resources like the KRA Duty Calculator found on the kra website, can help avoid overpayment and facilitate a smoother import process.
Purchase and Export Costs
The journey of importing cars begins with understanding the initial purchase and export costs, including the car details. These costs encompass everything from the car’s purchase price to the logistics of preparing it for shipment, forming the foundation of your budget. Factors like market price, vehicle condition, and inspection fees influence these costs, so getting accurate quotes from car importers is important to avoid unexpected expenses.
These components can be broken down further.
Purchase Price
The purchase price of a car includes more than just the sticker price. It encompasses various fees such as auction fees, de-registration costs, and sometimes even shipping costs, depending on whether you receive a Freight on Board (FOB) or Cost and Freight (C&F) quote. While FOB quotes cover expenses up to loading onto the shipping vessel, C&F quotes include both the purchase price and shipping fees, excluding marine insurance.
Ensure all costs in these quotes are verified to avoid surprise charges later.
Inspection Fees
A pre-shipment inspection certificate is mandatory for all vehicles entering Kenya. This certificate ensures that the vehicle complies with Kenyan import regulations and adds to the overall cost of importing. Although relatively minor compared to other costs, inspection fees are vital for a smooth import process.
Transport to Port
Transporting your vehicle to the shipping port involves costs that can vary significantly based on the distance from the seller’s location to the port. These costs are integral to the car import process and require careful consideration for accurate budgeting.
Shipping Methods and Costs
Selecting the right shipping method is crucial once your car is ready for shipment. The main options available are Roll on Roll off (RoRo), Container Shipping, and Air Freight. Each method has its own cost implications and benefits, impacting the total cost of importing a car.
Each method has specific costs and advantages that need to be understood.
Roll on Roll off (RoRo)
Roll on Roll off (RoRo) shipping is the most pocket-friendly and popular method for transporting vehicles. RoRo vessels are akin to floating underground car parks, designed specifically for vehicle transport. Cars can be driven directly onto the ship without additional lashing or haulage, simplifying the shipping process and ensuring road worthiness.
Container Shipping
Container shipping offers two main options: dedicated containers for a single vehicle or shared containers for multiple vehicles. While dedicated containers provide exclusive use and higher security for your vehicle, they are more expensive.
Shared containers reduce costs by allowing multiple vehicles to be shipped together. Port charges for container shipments can be significantly higher, ranging from 40,000 to 70,000 Ksh.
Air Freight
Air freight is the fastest, yet most expensive method for shipping motor vehicles from japan. While it significantly reduces transit time from Japan to Kenya, the costs can be prohibitive. This method is typically reserved for high-value or urgent shipments where time is of the essence.
Marine Insurance
Marine insurance protects your motor vehicles against loss or damage during transit. Standard policies usually do not cover losses due to improper packaging or willful misconduct. Marine insurance must be purchased separately as it is not included in car export quotes.
In Kenya, this insurance must be provided by a local company, with the premium calculated at 0.4% of the car’s value, including duties but excluding VAT. The premium is influenced by factors such as cargo nature and transportation route.
Import Duties and Taxes
Various duties and taxes are involved in importing a car, essential for understanding the total cost. These costs are calculated based on the Current Retail Selling Price (CRSP) line and the actual invoice value. Aligning your costs with the market value of the vehicle ensures you do not pay higher duties than necessary.
Here is a breakdown of these duties and taxes.
Import Duty
Import duty is applied at a rate of 35% based on the higher value between the Current Retail Selling Price and the actual invoice value. This duty is a significant part of the total import cost, and understanding its calculation can help in accurate budgeting.
Excise Duty
The excise duty rate for imported vehicles in Kenya is 20%. The duty is calculated based on 20% of the customs value. This amount is then added to the import duty. Engine size and fuel type can affect excise duty, so consider these variables during the import process.
VAT
Value Added Tax (VAT) on imported vehicles in Kenya is 16%. The VAT is calculated at a rate of 16% based on the customs value. This customs value encompasses the import duty and excise duty components.
This inclusion ensures all relevant import costs are considered.
IDF Fee and RDL Fee
The Import Declaration Form (IDF) Fee is charged at 3.5% of the customs value, while the Railway Development Levy (RDL) Fee is 2%. These fees are essential components of the total landing costs, calculated from the higher of the Current Retail Selling Price value and the actual invoice value.
It is important to note that returning residents are exempted from car duty such as; import duty, excise duty, VAT, and IDF fee.
Additional Costs Upon Arrival
Several additional expenses arise upon the vehicle’s arrival in Kenya, beyond import duties. These costs can reach up to Ksh 160,800 and include port charges and clearing agent fees. Licensed clearing agents help navigate these regulations and potentially uncover savings with the Kenya Revenue Authority.
Here is a closer look at these costs.
Port Charges
Port charges for vehicle importation in Kenya typically range from 40,000 to 70,000 Ksh. The port clearance fee varies based on the vehicle’s engine size, with Ksh 15,000 for vehicles up to 2,000 cc, Ksh 20,000 for those up to 3,000 cc, and Ksh 30,000 for larger vehicles or special types.
Overall, port charges and related fees can total around Ksh 120,000.
Clearing Agent Fees
A Licensed clearing agent IS crucial for customs clearance, with fees ranging between 10,000 to 30,000 Ksh. These agents ensure efficient handling of customs processes, saving time and avoiding errors.
The cost for hiring a licensed clearing agent in Kenya is typically within this range.
Registration and Other Fees
The registration process for newly imported vehicles in Kenya involves various fees, including a first registration fee and charges for number plates. These fees are essential for legal compliance and getting your vehicle on the road.
Here is a breakdown of these costs.
First Registration Fee
Newly imported vehicles in Kenya incur a first registration fee that typically ranges from 15,000 to 23,000 Ksh. This fee varies depending on the vehicle type and engine size, with the cost for vehicles between 1000cc and 3000cc being higher. Understanding these costs is important for budgeting the final stages of the import process.
Number Plates
The cost for applying for new standard number plates for a vehicle in Kenya is set at Ksh 3,050. If you opt for new digital number plates, the fee remains approximately the same, while motorcycles incur a lower fee of around 1,550 Ksh.
Special number plates involve an additional fee of approximately 30,000 Ksh, catering to those who desire a unique identifier for their vehicle.
Tips to Minimize Costs
Strategic planning and informed decision-making are key to minimizing costs when importing a car. By understanding the various cost components and leveraging available resources, you can significantly reduce your overall expenses.
Here are some actionable tips to help you achieve this.
Understanding Current Retail Selling Price (CRSP) Values
Understanding Current Retail Selling Price (CRSP) values helps prevent overpayment and unforeseen charges during the import process. It’s advisable to discuss CRSP values with your clearing agent to ensure clarity before purchase.
The CRSP is updated regularly, including adjustments for new models like electric and hybrid vehicles. Using the KRA Duty Calculator, which utilizes the CRSP from 2019, can also aid in ensuring you do not pay higher duties than necessary.
Accurate Documentation
Providing accurate documents is key to minimizing costs and avoiding delays. Requesting condition reports and auction sheets for the vehicle ensures informed purchasing decisions. Thorough documentation ensures seamless customs clearance and prevents unnecessary fines or additional charges.
Summary
Importing a car from Japan to Kenya involves a complex array of costs, from the initial purchase and export fees to shipping, insurance, and various duties and taxes. By understanding each cost component, including additional expenses upon arrival and registration fees, you can make informed decisions and potentially minimize your overall expenses. Armed with this comprehensive guide, you’re now better equipped to navigate the import process, turning your dream of owning a Japanese vehicle into reality.
