Best ways to Import Used Cars from Japan into Bangladesh
The relations between Bangladesh and Japan have been good since the 1971 Bangladesh Independence movement, as Japan supported Bangladesh for getting independence. Ever since, there have been good trade relations too between Japan and Bangladesh. Japanese Used Cars have a great demand in Bangladesh. Even though the transportation expenses are high, yet Japanese Used Cars are reliable and hence are in great demand in foreign markets like Bangladesh. The demand for the used automobiles is slowly growing in Bangladesh. But before you choose to purchase a Japanese used car, you must know the basic rules and regulations to import used vehicles in Bangladesh.
Rules for importing Used Automobiles into Bangladesh
There are several rules which govern the import of foreign vehicle into Bangladesh. Here we state the major rules which will help you:
- In Bangladesh, import of vehicles older than four years is not legally permitted.
- You need to submit a certificate from Japan Auto Appraisal Institute (JAAI) which includes the model number, age, make and chassis no. of the Used Vehicle which are submitted to the customs authority.
- You can import used vehicle only from its country of origin.
Customs valuation done in Bangladesh
Customs valuation of imported vehicles is done to assess and realize the customs duty. The customs valuation is based on normal value concept. CIF (Cost, Insurance & Freight) is used to assess the custom duties. Customs Authorities collect the duties.
Duties applicable in Bangladesh for used cars
- Custom Duty rates fall in the range 0.0-40.0%.
- There will be an additional 15% Trade Neutral value-added tax applied.
- If you have a car having engine capacity more than 1,000cc, you may have to pay a supplementary duty too.
- There is now an automatic import permit system. The sole protective instrument for the majority imports is the 2.5% import permit fee.
- If you are a member of parliament, you can import automobiles for free as you won’t be subject to any Customs Duty.
Import Duty for Used Cars above 1,000 cc
We have already seen that vehicles above 1,000 cc engine will have to pay a supplementary duty. Here is more about it:
- Vehicles up to 1500 cc- 20% Supplementary Duty
- Vehicles between 1501 cc to 2350 cc- 60% Supplementary Duty
- Vehicles between 2350 cc to 3500 cc- 100% Supplementary Duty
Import Documentation and License for Bangladesh
If the transactions of your import have taken place via a bank then you may need a LCA (Letter of Credit Authorization). In rare cases when it is not mandatory, it will be stated.
If your import is not an item belonging to restricted list, you would not need an Import License. Importers will need LCA forms for the import goods.
If you are aware of the laws which govern import of vehicles into Bangladesh, it will help you the next to import a used Japanese car to Bangladesh. Japanese Used Cars are reliable and cost-effective.