Best way to Import used Vehicles in Bangladesh

Since Independence in 1971 good relations are maintained between Japan and Bangladesh as Japan helped Bangladesh in its independence war. More than 90 percent of Bangladesh's imported cars, trucks, buses are reconditioned or used cars, mainly from Japan. Despite the high cost of transportation, the purchase of used cars and other vehicles from Japan to most countries is still profitable, due to the relatively low cost and good condition of the vehicles being exported from reliable Japanese used car dealers.

In year 2010 a total of 33,000 cars were imported, bit lower than 37,634 cars in 2009. But demand for used vehicles is rising in Bangladesh.

Know the rules to import used vehicles in Bangladesh:

1. No importation for vehicles more than four years old.

2. A certificate containing age, model number and chassis number of the used car will have to be submitted to the customs authority from Japan Auto Appraisal Institute (JAAI).


How Customs Valuation is done

The customs valuation of imported goods is done for assessment and realization of customs duty based on the normal value concept. Custom duties are generally assessed on the basis of the CIF (cost, insurance, freight and other charges cost of goods). Duties are collected by Customs authorities under the Bangladesh Customs and Excise Departments of the Ministry of Finance's National Board of Revenue.


What Duties are applicable

1. Customs duty rates have been compressed to a range of 0.0-40.0%.

2. The 2.5% import permit fee is the only other protective instrument for most imports. The import permit system is now automatic.

3. A Trade Neutral 15% value-added tax is also applied

4. A 2.5% infrastructure development surcharge is levied on imports.

5. A supplementary duty is payable on luxury items like cars with engine capacity greater than 1,000 cc.

6. Used car importers need to pay 20% to 350 % duties on different slabs.

7. Members of Parliament can Import cars free of Custom Duties.


Import Licenses not required:

Import licenses are not required for any imported items except those on the restricted list. However, importers need to use Letter of Credit Authorization (LCA) forms to import goods.


Import Documentation required:

Unless otherwise specified, all imports transacted through a bank require a Letter of Credit Authorization (LCA) Form.


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