Clearing a car you bought in Japan

First, the number that matters: what Customs adds on top

Here is the rule most buyers learn the expensive way. On a car, Customs charges duty on the price you paid plus the shipping, because the exporter puts the shipping on the same invoice. Then it adds a 1% processing fee, a $250 environmental levy, and 10% VAT on everything so far. Four charges, stacked.

The duty rate depends on the engine and the age of the car:

• Car under 10 years old with a 1.5 to 2.0 L engine: 45%
• Car over 2.0 L, or a truck or van under 10 years old: 65%
• Hybrid or electric up to $70,000: 10%. Over $70,000: 25%
• Any car over 10 years old: 65%, plus a levy of 20% of the landed cost instead of the flat $250. An old bargain rarely stays a bargain.

That is 75% of the price of the car, before the broker’s fee, the port charges, the $10 security fee Customs lists for vehicles, and licensing at Road Traffic. Budget the whole figure or do not bid.

Why the shipping is taxed here but not on your Amazon parcel

When you buy online and pay a courier separately, that freight is not dutiable. It only joins the landed cost that VAT is charged on. A Japanese exporter works differently. The car and the sea freight come on one invoice, so Customs treats the whole invoice as the value of the goods. Duty and the processing fee are worked out on the car plus the shipping.

The papers, and why they must land before the car does

A car sitting on the dock while you chase a missing document costs storage every day. Have this pack in your broker’s hands before the ship arrives:

• The exporter’s invoice or bill of sale, showing the price you paid and the shipping.
• Proof of payment, such as the wire transfer receipt. If the invoice looks low against the market, Customs will ask for it.
• The Japanese export certificate (the de-registration) with its English translation.
• The bill of lading from the shipping line.
• Your identification and your tax identification number.

Your broker will tell you if the port or the shipping line wants anything else for your particular sailing.

What your broker does, step by step

You cannot file a vehicle entry yourself. A licensed broker files the C13 entry in Click2Clear, the Customs online system, and declares the car under heading 8703 with the engine size and year. Customs assesses the duty, fee, levy and VAT. You pay, usually through the broker. Customs may inspect the car against the papers. Then the broker gets the release and the car leaves the port.

From there you go to Road Traffic for inspection, licensing and plates. That part is outside Customs and outside this guide.

One exception worth knowing

If you are a Bahamian returning home after living abroad, you may bring in household effects up to $10,000 and one vehicle valued up to $30,000 free of duty, once every five years. Conditions apply and the entry is handled differently, so speak to your broker before the car ships, not after.