Import rules and regulations on Japanese used vehicles in Ethiopia

Located in the Horn of Africa, Ethiopia is bordered by Eritrea to the north, Djibouti and Somalia to the east, Sudan and South Sudan to the west, and Kenya to the south. Being an African nation, the country is a huge market for used vehicles. Large numbers of Japanese used vehicles are imported in the country every year. People prefer to go with used cars as they are the most convenient option to own a vehicle. In fact, purchasing a used vehicle is a sensible decision as one gets a quality vehicle at reasonable rates.

Few years ago, for many cars were considered a luxury item, a symbol of high class status. But today, with the change in the lifestyle they are considered as a basic necessity. The economic boom and emerging middle class are also contributing towards the growing demand of vehicles in the country. Many vehicles on the roads of Ethiopia are used vehicles from Japan. The country is the pioneer of the automobile industry and is known for its creativity and perfection. Buying a used vehicle from Japan gives good value for money.

With the advancement in technology importing a used vehicle in the country is not a difficult task. The reason that people are attracted towards used vehicles is that one gets a good vehicle at cost price around 50% less than that of new ones. Even the duties on used vehicles are less in comparison to the new ones. While importing, importer should be aware of import regulation of its country to make the process of customs clearance smooth.

Left-hand Drive:-
Importation of only left hand drive vehicles is allowed in Ethiopia.

Inspection:-
Used vehicle imported in Ethiopia should be inspected.

Required Documents:-

• Certificate of Title and Registration
• Commercial/Purchase Invoice or Receipt
• Drivers License & International Insurance Policy (green card)
• Bill of Lading
• Letter of Support (non-Diplomats, schools, private organizations, NGOs, etc.)
• Authorization of the Road Authority Transport and Communication Ministry (issued to the shipper by an organization or Diplomatic Mission).

Duties and Taxes on vehicles imported:-

• Vehicles with spark–ignition engine of cylinder capacity of 1000-1300cc
  
  • Duty Rate: 35%
  • Excise Tax: 30%
  • Sur Tax: 10%
• Vehicles with spark–ignition engine of cylinder capacity of 1300-1800cc
  
  • Duty Rate: 35%
  • Excise Tax: 60%
  • Sur Tax: 10%
• Vehicles with spark–ignition engine of cylinder capacity greater than 3000cc
  
  • Duty Rate: 35%
  • Excise Tax: 100%
  • Sur Tax: 10%
• Diesel vehicles with cylinder capacity not exceeding 1300cc
  
  • Duty Rate: 35%
  • Excise Tax: 30%
  • Sur Tax: 10%
• Diesel vehicles with cylinder capacity of 1300-1500cc
  
  • Duty Rate: 35%
  • Excise Tax: 60%
  • Sur Tax: 10%
• Motor vehicles for the transport of goods
  
  • Duty Rate: 10%
  • Excise Tax: 0%
  • Sur Tax: 0%
• Public transport type vehicles (diesel/semi-d) seat capacity greater than or equal to 15 passengers
  
  • Duty Rate: 10%
  • Excise Tax: 0%
  • Sur Tax: 0%

Note- For all vehicles, Withholding tax is 3% and VAT is 15%

Shipping Method:-
Used vehicles are generally shipped through port of Djibouti. RoRo (Roll-on Roll-off) shipping method is used for vehicle shipment. On request of customers another safe and expensive method of shipping, container shipping is used. These ports provide straight forward clearing procedures and outstanding security for the used car and its content.