How to import used cars from Japan in Republic of South Africa?

Japan is one of the leading names in the field of automobile industry. Vehicles from Japan are known for being reliable, efficient and safe. Large numbers of vehicles are produced and exported from Japan every year. Not only new vehicles, used vehicles are also exported from Japan. Along with used cars, other vehicles such as motorcycles, buses, trucks, even used parts and machinery are exported from Japan in huge amount every year. Japanese automakers have built their reputation on smooth, refined, and perfectly nerve-calming cars. South Africa located in the southern tip of Africa import many used cars from Japan.

Nowadays, due to many portals sites available, it is a trend to buy efficient and convenient Japanese used cars online. Japan is prominent for manufacturing good quality used cars at practical prices. To import a used vehicle in Republic of South Africa (RSA) importer has to follow certain rules and regulations to clear customs smoothly. The importation of used cars from Japan in South Africa is restricted and subjected to permits issued by South African Bureau of Standards (SABS) under specifically defined circumstances to protect the local motor vehicle manufacturing industry in South Africa.

Before importing a vehicle a letter of authority from the SABS must be obtained and an application for importation of a used vehicle form (IE462) is to be submitted. It may take up to five days to complete the process once all required documents are received. Importation of only right hand drive vehicles is allowed in South Africa and as per current legislation left hand drive vehicles which were not registered in RSA before 23 July 2004 may not be registered, licensed, and roadworthy and operated on a public road in South Africa. It is not allowed to import used cars for commercial purposes in the country.

Permits for the importation of second-hand passenger motor cars and Light duty vehicles from Japan used car exporters are issued in the following circumstances:

1. To immigrants:
   
   • Applications are considered when permanent residence status is issued by the Department of Home Affairs.
   • If the permanent residence is not being available, South African Revenue Services (SARS) Customs and Excise department must be approached for temporary clearance.
   • Application form IE462 must be completed along with the following documents attached:
     
     • Copy of the motor vehicle registration certificate.
     • Copy of the applicant’s foreign passport.
     • Copy of the permanent residence certificate.
2. To returning South African residents and nationals:
   
   • Import a maximum of three vehicles per person in possession of a valid driver’s license, if they return permanently to the RSA after a minimum uninterrupted period of no less than six months working, studying or conducting research abroad.
   • It is also required that the vehicle should be registered in the name of the returning resident/national for the minimum uninterrupted corresponding period of six months (working etc.) referred to above, prior to the return.
   • Application form IE462 must be completed along with the following documents attached:
     
     • Copy of the foreign motor vehicle registration certificate in the name of the applicant.
     • Copy of applicant's South African identity document or passport (page with barcode and details).
     • Proof of permanent employment abroad (this must be a typed, signed and dated letter on the company letterhead confirming that the applicant (full name) has been permanently employed and confirming the start and termination dates of employment.
Note: Salary advices, pay slips, job offers, job contracts, tax returns, work permits, etc is not considered as sufficient proof of employment.
3. To physically disabled:
   
   • Import a specially designed motor vehicle which suits the disabled person’s personal requirements.
   • Application form IE463 must be completed along with the following documents attached:
     
     • Proof in the form of a certificate, issued by a medical practitioner that the applicant is disabled.
     • Copy of the applicant’s South African passport or ID (page with barcode and details).
     • Copy of the relevant rebate permit must also be attached.
     • Full details of the vehicle must be submitted.
4. Inheritance:
   
   • Form IE463 must be completed along with below mentioned documents:
     
     • The heir must submit a copy of his/her South African ID or passport (page with barcode and details).
     • Copy of the will.
     • Copy of the deceased’s ID or passport.
     • Copy of the motor vehicle registration certificate in the name of the deceased.
     • Copy of the death certificate.
5. Vintage and Collector's vehicles:
   
   • Vintage or Collector's vehicles can be described as vehicles of 40 years old or older.
   • Vehicles regarded as collector’s items are not so easy to define. All requests for the importation of such vehicles are discussed with the industry and the South African Veteran and Vintage Association, organization that complies with international criteria. Vehicles regarded as collector’s items must be considered collector’s items internationally.
   • Application form IE463 must be completed along with the documents mentioned below:
     
     • Full details of the vintage vehicle must be provided.
     • Copy of the applicant’s South African ID or passport (page with barcode and details) must be attached to the application form.
     • An affidavit confirming the country from where the vehicle will be imported.
6. Racing cars:
   
   • Racing cars may be imported by a racing driver in South Africa after submitting the following documents:
     
     • Copy of international, national or regional Motorsport South Africa (MSA) competition racing car driver’s license.
     • Written confirmation that a copy of the import permits notification may be forwarded to MSA.
     • Copy of South African identification document or passport (page with barcode and details).
     • An affidavit confirming country from where the vehicle will be imported.
   • Racing vehicles to be imported are those to be used for circuit or track racing events only. Imported racing vehicles may not be registered locally and may not be used on SA national roads.

Note:

• Imported vehicles in the above cases may not be disposed of within a period of 24 months from the date of importation.
• No import permits are issued for the importation of used or second-hand motor vehicles for commercial/resale purposes or any other purpose falling outside of the specifically defined circumstances mentioned above.
• Used vehicles may not be sent to South Africa from abroad by returning residents prior to their permanent return to South Africa. All applications are considered on their own merits and ITAC may request that additional information be provided to supplement applications.
• Please also note that no import permits will be granted for vehicles sourced in bonded warehouses.

Documents required for customs clearance:-

• Immigrants need their permanent residence permit issued by the Department of Home Affairs (or a copy).
• Returning South Africans must show proof of emigration from SA, proof they had permanent residence abroad and evidence that the permanent residence has been withdrawn.
• A duly completed form DA304A.
• Bill of Lading (BoL)
• Commercial/ Purchase Invoice
• Registration Certificate/permit (Deregistration Certificate).
• Documentary evidence of the date on which delivery of the vehicle was taken.
• Documentary evidence of the date on which the vehicle was handed to the shipper for shipment to South Africa.
• An Import Permit
• An original Letter of Authority

If the original purchase invoice is not available, three written valuations must be obtained from used cars exporters to assist the customs clearance process in South Africa.

Customs duty applicable on the import calculated ad valorem of the used cars-

• Customs Duty: 30% (motor cars more than 20 years old are subject to 20% customs duty).
• Ad Valorem customs duty (based on a sliding scale depending on the value of the vehicle, with a minimum of 0.75% and a maximum of 20%).
• VAT : 14%

As an example, the cumulative taxes and duties payable on the car with a value of approximately R200 000 are ±70% of the market value. All vehicles with a market value for ad valorem customs duty purposes of less than R130000 do not pay ad valorem customs duty on importation into South Africa.

Shipping Ports:-

Used vehicles from Japan are shipped to South Africa through Durban port. Generally, RoRo (Roll-on Roll-off) shipping port is used for shipment of vehicle. However, on request of customers more safe yet expensive method of shipment called container shipment method is used for vehicle shipment.