How to import a car into Kenya via a Clearing Agent | Mombasa
With most people now able to use the internet, Kenyans are slowly getting used to the idea of buying things online especially cars. The good thing about buying cars online is the large pool of vehicles and sellers to choose from and the ability to compare prices or specifications. They are numerous car dealership websites e.g. www.tradecarview.com , www.autorec.co.jp , www.carjunction.com , www.ibcjapan.co.jp , www.autoassista.com and more, where you can browse and choose from thousands of vehicle brands and models. Most of these websites are well organized to make the purchasing a breeze with clear directions to all the steps up to the payment and shipping. When buying a car online, you will probably have to encounter International trade terms, shortened as ‘Incoterms’. These are international commerce terms to define how your shipment is treated when moving them from one country to another. This is where the trouble sets in for some people who don’t understand them. Most car dealership websites will quote an F.O.B (Freight on Board) price to a vehicle. F.O.B price will include the price of the vehicle, origin documentation charges and other related charges up to the point of loading the shipment i.e. in the origin country.
Another term would be C.I.F (Cost Insurance and Freight)-this is more of an extension of the F.O.B, the seller takes care of the entire shipment from the origin of country to the destination country. A C.I.F price also implies that the seller provides the buyer with all the necessary documentation to obtain the items from the carrier of the shipment.
Most sellers use F.O.B since C.I.F rates will vary especially due to destination country of the shipment. On request most sellers can quote for you a C.I.F price when you tell them of destination country, car models e.t.c. Your vehicle should be inspected by JEVIC (Japan Export Vehicle Inspection Centre) which specializes in pre-shipment and certification of used cars fromJapan. You don’t have to worry about this since KEBS has given JEVIC the mandate to inspect all used cars prior for export toKenya. Check the Kenya RoadWorthiness Inspection.
Kenya Revenue Authority Customs duties guidelines.
When you import anything intoKenya, for this matter a car, you will normally have to pay customs duty for the car. Also you will have to enlist a clearing agent to clear the shipment on your behalf; normally at a fee. You cannot also import a vehicle which is older than 8 years toKenya.
The duty payable on the importation of a motor vehicle is as follows:
- Import Duty: 25% of the CIF value of the vehicle
- Excise Duty: 20% of the (CIF value + Import Duty)
- VAT: 16% of the (CIF value + Import Duty + Excise Duty)
- IDF: 2.25% of the CIF value or Ksh. 5,000, whichever is higher, is payable.
The CIF value of the vehicle is also deduced from the Current Retail Selling Price (CRSP) of the vehicle. CRSP is calculated by getting the current value of a brand new vehicle and depreciating the value according to age. An updated list of CRSP is available on the KRA website.