Import rules and regulations on Japanese used vehicles in Sri Lanka

Japan is the world's leading source of automobiles and is known for ages for delivering high quality vehicles at competitive prices. Importing a used car from Japan is very frequent because of their reliability and authenticity. Large numbers of used vehicles are exported from Japan every year to many countries. With the advancement in technology it has become easy to import a Japanese used vehicle. There are many used vehicle exporters in Japan that help buyers to import a used vehicle. Importers just have to be aware of all importing rules and regulations in their country for smooth customs clearance.

Sri Lanka located in Southern Asia is also a major importer of Japanese used vehicles. Sri Lankans are fond of Japanese vehicles for their reliability, comfort and durability. Large number of Japanese imported second hand vehicles can be seen on the roads of Sri Lanka. It is important that the used vehicles from Japan, imported to Sri Lanka must be registered, insured and roadworthy to drive on the roads.

Age of used cars imported in the country should be under two years, whereas vehicles (vans and dual purpose) should not be more than five years old. Importation of only Right-Hand Drive (RHD) vehicles is allowed in Sri Lanka. All Japanese used vehicles imported to Sri Lanka must be JAAI (Japan Auto Appraisal Institute) certified for roadworthiness.

Documents required for port clearance:-

• Owner's passport
• Purchase Invoice
• Original Bill Of Lading (BOL)
• Transport Ministry Approval- It must be obtained by the importer prior to the shipping of left hand drive vehicle.
• Insurance Certificate
• Original Registration Certificate- The certificate should have an English translation.
• Import License

Tax concession:-

Maximum Cylinder Capacity	Tax Concession (%)
1000 cc	50%
1600 cc	55%
2000 cc	60%
2600 cc	70%

Import Taxes rates:-

• Duties: 5-35%
• Motor vehicles: 25%
• VAT: 12%
• Ports and Airport Levy (PAL) - Generally 5% of the CIF value, or in some cases at a reduced rate between 0% and 2.5%, of the CIF value.
• Ad valorem rates- 1%- 45% (of the CIF value).
• Nation Building Tax - Two percent of the sum of the CIF value X 110 percent, customs duty, cess, excise duty and PAL.

Sri Lanka Government officer permit:-

• Officers under this can import a used vehicle that is less than one year old.
• The maximum cylinder capacity of the vehicle should be 2000 cc for petrol and 2600 cc for diesel. The maximum C.I.F. value should be US$ 25,000 or equal amount of any other currency.
• The permit holder is required to pay Value Added Tax, Port Development Charges, Nation Building Tax and a certain percentage of Excise Duty in accordance to the order.
• Officer should not transfer the imported vehicle to any other party before the completion of three years.
• An officer eligible is entitled to only one duty/ tax concession permit, irrespective of the number of posts held by the officer.
• If the information given in the application is incorrect, issued duty/tax concession permit will be cancelled.

The most common shipping ports in Sri Lanka are maritime port of Colombo and Hambantota. Generally, RoRo (Roll-on, Roll-off) shipping method is used for vehicle shipment. However, on request of customers another method called container shipping method is arranged.