Enthusiast Car Import Regulations

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VetteGP
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Re: Enthusiast Car Import Regulations

Post by VetteGP » Sat 31 Dec 2016, 05:42

I am enjoying this post.
With regards to the LHD comments and opinions. The safety issues regarding driving on SA roads in a LHD car comes down to individuals who use them.
Two of my cars are LHD vehicles and I drive them on a regular basis. When I am on the road, I intentionally change my driving habits from what I would do in a RHD car. So where I would feel comfortable taking a gap to overtake in a RHD car I don't even think about it in a LHD. Even if I am stuck behind a vehicle moving at 40km/h.

I do this for two reasons.
1st - I enjoy driving my cars and it is my responsibility to be safe on the roads, so I don't take chances.
2nd - cops on the road have tendencies to pull me over more in the LHD cars than in my RHD and that's just to have a look at the car. Don't want to give them reasons to pull me over and start harassing on how I drive.

My opinion is that each person who drives on our roads is responsible to be safe, irrespective of the car they drive, but so many South Africans do not have patients on our roads. Until that changes, our roads will always be dangerous.
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IndianaJones
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Re: Enthusiast Car Import Regulations

Post by IndianaJones » Sun 01 Jan 2017, 19:23

ZA Perana wrote:I did the sums on importing a Ferrari 308 from the UK...
Did you do calculations on a RHD or LHD car?
ZA Perana wrote:watch this space because I am hearing that there are people taking proposals to government...
Want to share more details?
zahistorics wrote:...it was all a lot unnecessary fuss and bother about a simple harmonisation of the regulations, and failure to understand that...
I hope this isn't the issue again, dealing with politicians it could be. Otherwise all fair points you mention.
ZA Perana wrote:The whole whoo ha about LHD dates back to 1998-99 when I believe certain sectors complained about what a flood of LHD cars might do to their local market.
Interesting, care to name the sectors?
ZA Perana wrote:I feel nothing for manufactures in SA, their right to be protected to me is moot seeing as they obtain massive government subsidies from the Motor Industry Development plan, thus this extra protection is to me overkill. Once again how many cars are actually manufactured in SA. The vast majority are imported.
Perhaps not the smoothest outlook, but agree that the extra protection is overkill. One must also remember that the regulations is indeed outdated, there was a time when the industry may have been in need of protection, although I can't see in hindsight that it helped.
As an example of outdated rules, the import regulations also regulate vehicle components, and make an especially big deal about the importation of used differentials, and only bona fide diff re-conditioners may import them. OK fine, but our major passenger vehicle differential manufacturer, Borg-Warner, later Gearmax, which was so instrumental in the success of the local content regulations of the 70's, and until recently owned by another major differential manufacturer, Dana, has been sold in 2013 and I suspect no longer produces complete new differentials, as they seem to focus on the differential aftermarket. If anyone has some insight into this, please share.

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ZA Perana
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Re: Enthusiast Car Import Regulations

Post by ZA Perana » Sun 01 Jan 2017, 19:43

IndianaJones wrote:
ZA Perana wrote:I did the sums on importing a Ferrari 308 from the UK...
Did you do calculations on a RHD or LHD car?
ZA Perana wrote:watch this space because I am hearing that there are people taking proposals to government...
Want to share more details?
zahistorics wrote:...it was all a lot unnecessary fuss and bother about a simple harmonisation of the regulations, and failure to understand that...
I hope this isn't the issue again, dealing with politicians it could be. Otherwise all fair points you mention.
ZA Perana wrote:The whole whoo ha about LHD dates back to 1998-99 when I believe certain sectors complained about what a flood of LHD cars might do to their local market.
Interesting, care to name the sectors?
ZA Perana wrote:I feel nothing for manufactures in SA, their right to be protected to me is moot seeing as they obtain massive government subsidies from the Motor Industry Development plan, thus this extra protection is to me overkill. Once again how many cars are actually manufactured in SA. The vast majority are imported.
Perhaps not the smoothest outlook, but agree that the extra protection is overkill. One must also remember that the regulations is indeed outdated, there was a time when the industry may have been in need of protection, although I can't see in hindsight that it helped.
As an example of outdated rules, the import regulations also regulate vehicle components, and make an especially big deal about the importation of used differentials, and only bona fide diff re-conditioners may import them. OK fine, but our major passenger vehicle differential manufacturer, Borg-Warner, later Gearmax, which was so instrumental in the success of the local content regulations of the 70's, and until recently owned by another major differential manufacturer, Dana, has been sold in 2013 and I suspect no longer produces complete new differentials, as they seem to focus on the differential aftermarket. If anyone has some insight into this, please share.
On the 308 I worked it out on a RHD car. Duties put the cost way beyond what even a totally over priced one in SA sells for. With less duties the cost worked out to around 20% cheaper than a buying one in SA.

Cant really say too much about the sectors concerned as a lot of it is very second hand information and may be hearsay but I have been told there are plans afoot to try and allow some LHD cars to be brought into SA for a time period.

LHD is to me another issue, the real issue is excessive duties which are quickly making even mundane cars very unaffordable to the average South Africa, a golf GTI, over R500k, that's doesn't compute to me based on the fact its locally made!

Classic car prices in SA have in my opinion been driven by the following

"Oh its costs that in the UK, add duties add VAT and well that's my price in SA + 10% or more". I cannot agree to pricing cars like that, its nonsensical in my opinion because we don't live in the UK and the ZAR hardly has the same buying power as the pound.

Again all this this is driven by duties which should they be reduced would lead I suspect to some pricing parity and perhaps a restock of classic cars in SA. Just yesterday I see a very rare Porsche has left SA and is now for sale in the UK.
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IndianaJones
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Re: Enthusiast Car Import Regulations

Post by IndianaJones » Sun 01 Jan 2017, 21:04

Let me ask another question, how informed are the general public, as to the regulations in place? Do I need to post a summary of the guidelines here for everyone to see? I know it is the festive period, and forum visits are in a slump, but I thought it would be a more popular topic.

Leaving the LHD issue aside for a while, to just graphically illustrate the situation for those that might not be aware, I’ve attached some pictures of really great RHD enthusiast/specialist cars we miss out on, as they were never officially imported to South Africa, or perhaps the few that were here have been exported. Not every collector or specialist car is represented, but all models are younger than 40 years, thus not eligible under the current classic car regulation, and would have to be applied under the collector car category, except for the few models which you might still be able to find new. However in most cases, the application for cars like these are being turned down, often stating importation cannot be allowed, as similar or substitute vehicles are for sale locally. The regulations, does not allow for differences in specification, i.e. a Ferrari and a 1.3 Corolla are both passenger vehicles.

I’ve left out the very famous Japanese sports coupes of the 90’s, as they seem to be allowed importation on and off, and have also left out the cars from well respected tuning houses such as, Alpina, Brabus, RUF, etc

I have no knowledge of how successful applications for exotic cars have been. Cars like Ferrari, Lamborghini, Koenigsegg, Jaguar XJ220, Bugatti, some De Tomasto, McLaren F1, Pagani, Spyker, these I consider all to be instant classic or collector cars, but the deciding parties might also be using the “similar or substitute vehicle” clause to turn them down.

Then there are some cars, I’m not sure if they were ever, or still are officially imported, such as Morgan’s, Noble, TVR, Ultima, Westfield, Tesla.
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zahistorics
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Re: Enthusiast Car Import Regulations

Post by zahistorics » Mon 02 Jan 2017, 14:24

how informed are the general public, as to the regulations in place? Do I need to post a summary of the guidelines here for everyone to see?
Yes, please. That's a good place to start. Post links to the official sites of you can too please.

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IndianaJones
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Re: Enthusiast Car Import Regulations

Post by IndianaJones » Mon 02 Jan 2017, 17:12

OK, here goes...

ITAC web adress:
http://www.itac.org.za/
“IMPORT CONTROL GUIDELINES PERTAINING TO THE IMPORTATION OF USED OR SECOND-HAND VEHICLES, TRUCKS, BUSES, TAXIS, COACHES, MOTORCYCLES, ENGINES, GEARBOXES, DIFFERENTIALS AND USED OR SECOND-HAND SPARES FOR HEAVY DUTY TRUCKS.
Most used or second-hand goods can be imported from certain countries at extremely low prices. Despite the normal import duties applicable to used or second-hand goods, an appreciable amount of such goods enter South Africa. Because of the safety, health, environmental and quality compliance issues raised by the importation of such goods, the importation of used or second-hand goods is subject to import control measures in terms of the provisions of the International Trade Administration Act (Act No. 71 of 2002). Passenger vehicles, mini-buses, buses/coaches, light; medium and heavy commercial vehicles are manufactured/assembled in South Africa. About 124 000 people are employed in assembly and component manufacturing and this sector contributes about 20% of total manufacturing in South Africa. In view of the importance of this sector and safety issues, strict control is applied to the importation of used vehicles and import permits are issued only in very specific and defined circumstances.

The prevailing import control policy with regard to the different categories of goods is as follows:
(a) Used or second-hand motor vehicles for personal use
Permits for the importation of used or second-hand passenger motor vehicles are issued in the following circumstances:


To immigrants for the importation of private passenger motor vehicles and LDV’S. Application form IE462 must be completed and applications can only be considered when permanent residence status has been issued by the Department of Home Affairs. Attach a copy of the motor vehicle registration certificate, a copy of the applicant’s foreign passport and a copy of the permanent residence certificate to the duly completed application form for consideration. Imported vehicles may not be disposed of within a period of 24 months from the date of importation. (In the event of permanent residence not being available, SARS, Customs and Excise must be approached for temporary clearance.)


To returning South African residents and nationals. The returning resident or national may import his/her used or second-hand passenger vehicle or LDV for a maximum of three vehicles per person in possession of a valid drivers license, if he/she returns permanently to the RSA after a minimum uninterrupted period of absence of no less than six months working, studying or conducting research abroad. It is also required that the vehicle be registered in the name of the returning resident/national for the minimum uninterrupted corresponding period of six months (working etc.) referred to above, prior to the return.



Application form IE462 must be completed. Attach a copy of the foreign motor vehicle registration certificate in the name of the applicant, a copy of applicant’s South African identity document or passport (page with barcode and details) and proof of permanent employment abroad (this must be a typed, signed and dated letter on the company letterhead confirming that the applicant (full name) has been permanently employed and confirming the start and termination dates of employment. (Please note that salary advices, pay slips, job offers, job contracts, tax returns, work permits, etc are not considered as sufficient proof of employment.) The imported vehicle may not be disposed of within a period of two years from the date of importation.

To physically disabled. South African citizens/nationals to import a specially designed motor vehicle which will suit the disabled person’s personal requirements. Application form IE463 must be completed and proof in the form of a certificate, issued by a medical practitioner that the applicant is in fact disabled is required. A copy of the applicant’s South African passport or ID (page with barcode and details) and a copy of the relevant rebate permit must also be attached. Full details of the vehicle must be submitted and the imported vehicle may not be disposed of within a period of two years from the date of importation.

Inheritance. Permits are issued to South African citizens/nationals for the importation of inherited passenger motor vehicles and LDV’S. Form IE463 must be completed. The heir must submit a copy of his/her South African ID or passport (page with barcode and details), a copy of the will, a copy of the deceased’s ID or passport, a copy of the motor vehicle registration certificate in the name of the deceased and a copy of the death certificate. The imported vehicle may not be disposed of within a period of two years from the date of importation.

Vintage and Collector`s passenger vehicles. To South African citizens/nationals for the importation of passenger vintage vehicles and vehicles that are regarded as international collectors’ items. Vintage vehicles can be described as vehicles of 40 years old or older. Application form IE463 must be completed. Full details of the vintage vehicle must be provided and a copy of the applicant’s South African ID or passport (page with barcode and details) must be attached to the application form. An affidavit must also be provided, see here-under for details.

Vehicles regarded as international collector’s items are not so easy to define. All requests for the importation of such vehicles are, inter alia, discussed with the industry and/or the South African Veteran and Vintage Association, which organisation complies with international criteria. Vehicles regarded as collector’s items must be considered collector’s items internationally. Application form IE463 must be completed, full details of the vehicle must be submitted and the applicant must also attach a copy of his/her South African ID or passport (page with barcode and details).

An affidavit containing his/her name and physical address, the vehicle details, confirmation that he/she will not sell or otherwise dispose of the vehicle for two years after importation into SA, confirmation where (which country) the vehicle will be imported from and that it is not sourced from a bonded warehouse must also be provided. The imported vehicle may not be disposed of within a period of two years from the date of importation.
Racing cars. South African citizens/nationals for the importation of racing cars: Racing cars may be imported by a racing driver. The proposed importer must submit a copy of his/her international, national or regional Motorsport South Africa (MSA) competition racing car driver’s license. An affidavit containing his/her name and physical address, the vehicle details, confirmation that he/she will not sell or otherwise dispose of the vehicle for two years after importation into SA, confirmation where (which country) the vehicle will be imported from and that it is not sourced from a bonded warehouse and confirmation that a copy of the import permit notification may be forwarded to MSA must also be provided. A copy of his/her South African identification document or passport (page with barcode and details) must also accompany the application.
Racing vehicles to be imported are those to be used for circuit or track racing events only. Imported racing vehicles may not be registered locally and may not be used on SA national roads. The imported racing vehicle may not be disposed of for a period of two years from the date of importation.
Note:
No import permits are issued for the importation of used or second-hand motor vehicles for commercial/resale purposes or any other purpose falling outside of the specifically defined circumstances referred to herein above. Please also note that used or second-hand vehicles may not be sent to South Africa from abroad by returning residents prior to their permanent return to South Africa. All applications are considered on their own merits and ITAC may request that additional documentation/information be provided to supplement applications. Please also note that no import permits will be granted for vehicles sourced in bonded warehouses.

(b) Specially designed vehicles
Permits are issued for the importation of specially designed vehicles, for instance mobile cranes and similar vehicles if the particular type of vehicle or a similar/substitute vehicle is not available locally. Technical specifications of the specially designed vehicle may be required for consideration of the application. Duly completed application forms IE230 (for first time importers) and form IE461 must be submitted for companies intending to import specially designed vehicles. (Note that a SARS tax clearance certificate is required on completion of form IE230.)

(c) Used or second-hand buses, trucks, taxis and coaches
Taxis, trucks, buses and coaches are available from local manufacturers. Import duties are not a suitable method of supporting local manufacturers and guarding against the disruptive importation of the above-mentioned used or second-hand vehicles, as well as supporting safety considerations. Stringent import control measures are, therefore, maintained and no permits are issued for the importation of used or second-hand vehicles other than for vehicles mentioned in (a) and (b) above. The existing policies are reviewed from time to time.
New vehicles (passenger vehicles), trucks, taxis, buses and coaches are not subject to import control measures. The applicable duties are however payable.

(d) Used or second-hand motorcycles
Motorcycles are not manufactured locally and import permits for the importation of used or second-hand motorcycles are issued freely. For personal or private imports form IE463 must be completed with full details of the motorcycle, including the engine capacity. A copy of the applicant’s South African ID or passport (page with barcode and details) must be attached. Duly completed application forms IE230 (for first time importers) and form IE461 must be submitted for companies intending to import used or second-hand motorcycles for commercial purposes. Imported used or second-hand motorcycles may be sold or disposed of after importation without restriction. The importation of new motorcycles is not subject to ITAC import control measures.
(e) Used engines and gearboxes
Import permits for the importation of used petrol engines for passenger vehicles and LDVs of an engine capacity not exceeding 3 000 cc, used diesel engines for passenger vehicles and LDV’S of an engine capacity not exceeding 3 500 cc and gearboxes for passenger vehicles and LDV’S, are issued to a value of 50% of an importer’s previous years allocation as an initial issue for the current year. Duly completed application forms IE230 (for first time importers) and form IE461 must be submitted for companies intending to import the above-mentioned engines and gearboxes. (Note that a copy of the applicant SARS tax clearance certificate and a copy of the SAPS Second-hand Goods Act certificate are required on completion of form IE230.) New entrants or first time importers of used engines and gearboxes are issued a maximum amount of R500 000.00, in total, for proposed engine and gearbox imports, for a six month period, covering January to June and then July to December of a calendar year. A 15% increase is normally allowed after each full calendar year of importing.

(f) Used differentials
Import permits for the importation of used differentials for passenger vehicles and LDVs are issued to bona-fide re-conditioners only. All imported differentials must be reconditioned prior to resale or use, by the importer on his own premises and with his own reconditioning equipment. Duly completed application forms IE230 (for first time importers) and form IE461 must be submitted for companies intending to import the above-mentioned differentials. (Note that a copy of the applicant SARS tax clearance certificate and a copy of the SAPS Second-hand Goods Act certificate are required on completion of form IE230.)
(g) Used or second-hand spares for passenger vehicles and LDVs
Import permits for the importation of used or second hand motor vehicle mechanical and body parts (excluding engines, gearboxes and differentials referred to above) are issued to private individuals only for repair of privately owned, accident damaged vehicles on condition that such parts are not available from local sources and on receipt of documentary proof which includes the owner’s identity document, motor vehicle registration certificate, South African Police Service’s accident report and insurance report. Application form IE463 must be completed for all spares and parts required for the repair of the vehicle, and must be submitted together with a copy of the applicant’s South African ID or passport (page with barcode and details), and the required documentation as indicated above.
(h) Used or second-hand spares for heavy duty commercial trucks
Import permits for the importation of used or second-hand heavy duty commercial truck spares and parts are issued on condition that similar or suitable substitute spares or parts are not available from local sources or suppliers. The importation of used or second-hand commercial truck/bus chassis is not allowed. Import permits for the importation of used parts such as diesel engines, gearboxes and differentials for commercial trucks are issued for the importation of that particular spare or part only, and may not include any other mechanical or body parts/components which are not integral parts of the spare or part mentioned in the permit. Duly completed application forms IE230 (for first time importers) and form IE461 must be submitted for companies intending to import the above-mentioned used or second-hand commercial truck spares or parts. (Note that a copy of the applicant SARS tax clearance certificate and a copy of the SAPS Second-hand Goods Act certificate are required on completion of form IE230.)

(i) General information
Persons/firms that wish to or intend importing a used or second-hand vehicle and/or used or second-hand spares and parts described in sections (a) through (h) are strongly advised, before placing an order or buying/shipping a vehicle or vehicle spares/parts to South Africa, to first apply for and obtain an import permit. In cases where the applicant clearly qualifies in terms of the above guidelines, and the correct documentation is submitted, permits are issued within an average of four to five working days. In other cases where the merits of the specific application have to be evaluated, it takes longer, depending on the nature of the particular case.

Import permit application forms are available from the Director: Import and Export Control, Private Bag X 192, Pretoria, 0001. Application forms are also available and can be downloaded from the International Trade Administration Commission website on www.itac.org.za (import > application forms). Further information can be obtained from the above address or by phoning Mr Sanjay Devnath or Ms Maritha Raman.

NOTE: All imported vehicles are subject to the issuing of a Letter of Authority by the National Regulator for Compulsory Specifications (NRCS), www.nrcs.org.za or telephone number (012) 482-8700.
Legislation changed from 27 May 2009 with regard to left hand drive vehicles stating that such vehicles which were not registered in the Republic before 23 July 2004 may not be registered, licensed, roadworthied and operated on a public road in South Africa.
Please note that these guidelines may change without prior notice. Import guidelines January 2016.”

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IndianaJones
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Re: Enthusiast Car Import Regulations

Post by IndianaJones » Mon 02 Jan 2017, 17:20

For importation you would also need a LOA (Letter of Authority) from NRCS (National Regulator for Compulsory Specifications).

NRCS website:
http://www.nrcs.org.za/

The LOA application form is available from the website,
http://www.nrcs.org.za/siteimgs/LOA%201.pdf

But for probably a year and a half there haven't been any publicly available guidelines on the process, criteria used, or which models must comply to whatever standard, the website simply stating:
“LOA information under review, please contact NRCS office at 012 482 8700 for new requirements”

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zahistorics
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Re: Enthusiast Car Import Regulations

Post by zahistorics » Mon 02 Jan 2017, 18:06

Those rules don't look too bad.

Just the NRCS and LOA stuff need clarification.

My opinion: I would expect the NRCS to require the car to meet the regulations at in force at the time of manufacture. Number plates will have to be modern. It would not surprise me if amber indicators, and rear reflectors were required.

LOA is just a legal confirmation that your vehicle meets one of the requirements stated at http://www.itac.org.za/, and that it meets NRCS.

So questions/limitations of the current import regime:

* Newer classics - problem here is South Africa's vehicle fleet is so old, these look too much like 'current' cars

* Duty - are the import duties reasonable?

* Left Hand Drive - I doubt you will change anyone's mind on this easily

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IndianaJones
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Re: Enthusiast Car Import Regulations

Post by IndianaJones » Mon 02 Jan 2017, 20:17

Yes, they don’t “look” too bad. But how are they executed in reality? In reality, these cars are very easily not approved, ITAC in a lot of cases state the reason as, similar or substitute vehicles are available locally. Remember they don’t take differences in specification into account. An applicant has no insight into the actual consideration process, and it is not clearly defined, what is meant when they state applications are discussed with the industry? Are modern classics discussed with SAVVA? Is a vintage vehicle association the appropriate organization to do it? The perception is that an application is discussed with the manufacturer in South Africa, which should not be the only evaluation. As an example, and this is just hypothetical, say a collector wanted to import a 2002-2003 Ford Focus RS Mk1, this was the highest performance model in the range, limited production and only sold in Europe, now ITAC discuss it with Ford SA, and Ford SA does not like it, and recommends the applicant try to source the lesser high performance variant, but higher volume Focus Mk1 ST170 which they sold new, or buy a new Focus RS. ITAC accepts the suggestion as the models are similar and can be substituted, but the collector wants neither, as neither were or are destined to become the collector car he was after. Also because the criteria is not clearly defined, it is very difficult to lodge an appeal.

I feel the regulations need more than just clarification, they need revision/updating.

As far as the enforcement of compulsory specification goes, the NRCS regulations are based on vehicle categories as laid out by UNECE (United Nations Economic Commission for Europe), but while UNECE have updated and implemented new categories, the NRCS have not, consequently some vehicles are imported under categories not suited to them, or denied a LOA, because they cannot conform to a category the NRCS implements.

The NRCS, at the moment, also requires applicants to prove classic vehicles complies with the same EEC (European Economic Community) safety and compulsory standards as new vehicles, which is ridiculous. It is impossible for a 1960s or 1970s car to comply with the latest crash safety regulations, as it was built before such standards were in place, and impossible for an applicant to have such models tested. It is also contrary to the practise used, until a few years ago, and contradicts sentiments on a LOA1 application form which states: “ALL VEHICLES FROM YEAR MODEL 1997 ONWARDS NOT MANUFACTURED IN RSA: PROOF OF COMPLIANCE TO SOUTH AFRICAN COMPULSORY SPECIFICATIONS OR EQUIVALENT STANDARDS TO BE SUBMITTED WITH APPLICATION (EEC / ECE)” Thus by deduction, vehicles pre-1997 do not need proof of compliance. Without a LOA you can under no circumstances register your vehicle, as the LOA is the official instructions the Department of Traffic uses to register an imported car on NATIS. Forum member Buckaroo, will attest to this, as he has stated so on this very forum.

The fact that SA’s vehicle fleet is old, and that these imports appear similar, just cements the fact that it will have no impact on new vehicle sales, and the vehicle manufacturers don’t need added protection.

Are the import duties reasonable? No.

Why do I say it’s not reasonable? Let’s look at duties in other countries, and remember we have import duty @ 25%, plus a loaded VAT @ 14%.

Import duty on used cars in Australia is 5%. If the vehicle is 30 years or older, no import duty applies. They do however charge a Luxury Car Tax @ 33% upon importation for vehicles priced above a certain price point, for the 2016-2017 financial year, this was a vehicle with a GST inclusive value above AU$64000.

New Zealand have since 1998, no import tariffs on motor vehicles.

In the UK, there is no import duty when a vehicle was imported from within the EU, in some cases you don’t even have to pay VAT on a used vehicle, for instance if VAT had already been payed in another EU country. When importing from outside the EU, Non EC Manufactured Cars - 10% import duty and 20% VAT for private and commercial imports. Historic Cars and Vehicles (pre 1950) - only 5% VAT.

In Germany import duty is 10%, but 7% for vintage cars and collector’s vehicles under certain circumstances.

In Canada, import duty is only applicable to non-NAFTA vehicles and is calculated at 6.1%. NAFTA cars are vehicles that have been manufactured or have been assembled in Canada, the US or Mexico with a minimum of 55% content. A NAFTA vehicle is exempt of ANY tariffs, duties or taxes when sold in Canada, the US or Mexico.

In the USA, foreign-made vehicles imported into the U.S., whether new or used, either for personal use or for sale, are generally dutiable at 2.5% for motor vehicles.

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