In most countries there are restrictions on what one can import. These vary from one country to another, but they all have one thing in common, they need to be read about and taken account of, before one proceeds with shipment. When you go to the local docks to collect your vehicle, it's too late to learn about the regulations and can often prove very costly indeed.
We cannot possibly cover, or keep up-to-date with, all the latest regulations around the world, but we'll try to provide a brief explanation of what Import Licences are all about and how they relate to Foreign Exchange controls, and Pre-Shipment Inspection, (which is covered separately).
Import Licences are mechanisms used by governments to try and control the type and value of goods being imported into the country and simultaneously the amount of foreign exchange leaving the country to pay for them. The Licences are normally obtained from the local commercial banks with the approval of the National / Central Bank, when and if there are sufficient reserves of foreign exchange to cover them. The Licence will specify the type and quantity of goods covered, the value FOB and CIF, the origin and also the expiry date. (The vehicle(s) must be shipped to arrive during the validity of the Licence).
As one of the Import Licence's primary purposes is to control the out-flow of foreign exchange, they are sometimes not required, or applicable, to imports which are paid for externally. These exceptions might sometimes include personal vehicles paid for externally by Embassy staff or externally funded vehicles supplied for the use of aid projects. It is extremely important that you check whether or not the car(s) you intend to ship will require an Import Licence or Permit. Do not rely on verbal advice from a friend - get it in writing from the local Ministry. Even if the vehicle will be paid for externally many Ministries issue Import Licence Exemption Certificates and these have to be presented to Customs, instead of the Import Licence, on arrival of the goods.
Foreign Exchange, sometimes called; "hard", or "convertible" currency, is not readily available in all countries. In many of the developing countries it is in very short supply and Import Licences are therefore very difficult to obtain. Where the local currency is not readily convertible it only has real value within the country.
In some countries where foreign exchange is scarce; what is available, is auctioned to the highest bidder. This has the advantage of generating additional local currency for the government, but it also creates an "official" two tier exchange system. This is sometimes called the "Parallel" rate or "Grey Market" rate. The "Parallel" rate will generally represent a compromise somewhere between the official exchange rate and the current "Black market" rate.
The other disadvantage is that the highest bidders are rarely auto dealers importing spare parts and even if they were, it would have the effect of dramatically increasing the price of spare parts in the market. The scarcity of foreign exchange is one of the reasons why parts stocks are so limited and their prices are very high in developing countries. This in turn is why so many temporary residents will import a small field kit of spares, at a fraction of the cost, to cover the first two years' needs.
Customs. Import duties on newly imported vehicles can range from 10% to as much as 200% of the landed value (CIF), depending on your destination. Fortunately most of our customers benefit from exemption from all local taxes and duties and can import at least one new vehicle duty-free. There are however normally restrictions, even for Diplomatic personnel, on the re-sale of the vehicle and / or the frequency of importing additional vehicles. These vary from country to country and we shall do our best to let you have the latest situation on request.
Personnel who have benefited from duty exemption are often compelled to re-sell their car (if it's re-sold within a certain period) to another person with duty-free priviledges - or alternatively to find someone locally who is also able to pay the duty assessed on it. Our recently added page "Next-to-New" will help readers to buy or sell their used cars (duty-free or duty -paid) at post.
Given the very high level of local duties it is imperative that you make absolutely sure of your duty- free entitlement and the duration of its validity.
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