Customs clearance on arrival: duties, VAT and the documents you need

When the ship arrives, the car is not yet ready to drive: it must first be cleared through customs. It is a simple step when the file is complete. Here is what to expect.

Who handles it?

You can clear the car yourself or hand the formalities to a customs broker at the arrival port. Most of our clients choose a broker: they know the local procedures, file the declaration and arrange the car's exit from the port. We brief you or your broker on the file beforehand.

The documents to present

• the bill of lading (BL), which shows the car is consigned to you;
• the commercial invoice and the sales contract, which set its value;
• the UAE export certificate;
• depending on the country, the GSO certificate, the certificate of conformity (COC) or other documents;
• your ID and, for a company, its registration documents.

We send you the whole set before the ship arrives, so the declaration is ready.

How duties and taxes are calculated

In most countries, the calculation follows the same logic:

1. the customs value: the price of the car, plus shipping and insurance to the arrival port;
2. customs duty: a percentage of that value, which depends on the type of vehicle;
3. VAT (or an equivalent tax): calculated on the customs value plus the duty.

In the European Union, duty is generally 10% for a passenger car, and higher for some commercial vehicles and pick-ups; VAT is that of the arrival country, 20% in France for example. Elsewhere, rates and additional taxes vary a lot: your destination page gives the benchmarks for your country, and our quote includes an estimate.

A simple example

For a passenger car bought for €30,000, with €2,500 of shipping and insurance, arriving in France:

• customs value: €32,500;
• customs duty (10%): €3,250;
• VAT (20% of €35,750): €7,150.

That is €10,400 of duties and taxes, plus port and broker fees, then registration. This calculation is a guide only; the exact amount is set by customs.

A special case: moving house

If you are moving your main residence to the European Union and have owned and used the car for at least six months, it can be imported free of duty and VAT, subject to conditions. Ask your customs office or your broker before shipping.

Costs not to forget

• port charges (handling, unloading the container);
• the broker's fees;
• storage at the port: after a few free days, the port charges for every extra day. Hence the value of having the file ready when the ship arrives.

Next: registration

Once the car is cleared, you receive proof of clearance (in France, form 846A), which you need to register it. The approval steps are in our import guide and, for American models, in this article.

The right reflex: ask for the estimate of duties and taxes with the quote, before you buy. That is what turns an attractive price into a total cost under control.