Import Regulations

Japan 4WD is US Customs Bonded and legally imports mini trucks, mini vans, fullsized camper vans, Landcruisers and other vehicles directly from Japan. We are an importer, not a dealer. 

We are here to help with your questions


Services We Offer

We source various Japanese 4WD Kei / Mini trucks, 4WD Diesel Vans and Landcruisers, along with fullsized camper vans.

For collectors, or just those looking for a specific vehicle we can help you find the vehicle you want.

With our Customs Bond, all of our vehicles are cleared by US Customs and are in full compliance with EPA and DOT

regulations for on road vehicles.


Japan4wd has over 3 years experience importing vehicles and parts from around the world, our demands for high quality

cars, trucks, and vans means that we choose to look at and purchase only a small percentage of the available vehicles that

are available in Japan or Europe on any given day.


Every state has its own requirements, fees, inspections, and taxes when it comes to titling and registering a vehicle.

Prior to purchasing any vehicle, it is recommended to check with your local authorities to verify the procedure

and documents required. See Below;


Be Careful!

Beware of vehicles being sold as or for off road or farm use, these vehicles do not comply with all of the requirements for on road

use and it will be very difficult if not impossible to get it plated.


Fully complying with all import laws and US Customs regulations is difficult, but this work does make our vehicles fully legal

in the United States*. Please contact us for imports to the Carribean and other countries. We do have a few countries regulations

at the bottom of this page.


Japan 4WD takes the time and effort in securing the proper paperwork and rectifying any issues prior to importation.

We take great pride in our trade.


*For California please see below.


All of our vehicles are elgible for importation into all Canadian Provinces. Including regulations for right hand drive vehicles in

Quebec, New Brunswick and Prince Edward Island


CANADA and other countries regulations, please see below State Regulations. 


TEMPORARY IMPORT TO ANY COUNTRY AS A TOURIST,

Please see ATA vehicle Carnet, Carnet de Passages en Douane (CPD)


https://help.cbp.gov/app/answers


https://www.cpdcarnet.com/node/906

STATE REGULATIONS


BELOW IS A LIST OF STATE REGULATIONS, THE LIST IS A WORK IN PROGRESS. WE HAVE BEEN RESEARCHING STATE REGULATIONS AND HAVE PROVIDED A LINK TO EACH STATES REGULATION OR THEIR RESPONSE TO OUR INQUIRY.


Alabama;

http://revenue.alabama.gov/motorvehicle/pdf/memos/County%20Memo%202007-8A%20Canadian%20Vehicles.pdf


Alaska;

http://doa.alaska.gov/dmv/home.htm


American Somoa;

https://www.americansamoa.gov/


Arizona; 

http://www.azdot.gov/mvd

R17-4-206. Additional Titling Standards for Vehicles not Manufactured in Compliance with United States Safety and

Emission Standards; “Gray-market Vehicles” A. Titling standards. 1. The Division shall issue a title to a foreign-manufactured

vehicle imported to the United States if an applicant presents the following: a. A valid titling document, 

b. A completed MVD title and registration application as prescribed under R17-4-203, c. A completed Vehicle

Verification Form certifying that the vehicle passed the Division’s physical inspection, d. A document stating that the

vehicle passed an Arizona emissions inspection under A.R.S. § 49-542, and e. A certificate that the vehicle was converted

to meet: i. EPA standards, and ii. FMVSS. 2. A foreign-manufactured vehicle imported to the United States is exempt from this subsection if it is older than 25 years from its manufacture date. 3. A foreign-manufactured vehicle imported to the United

States that is between 21 and 25 years from the manufacture date is exempt from subsection (A)(1)(e)(i).

4. Titling standards for vehicles manufactured according to Canadian specifications.

a. The Division shall issue a title to a vehicle manufactured according to Canadian specifications if it: i. Is not for resale;

ii. Has a GVWR of less than 10,000 pounds; and iii. Is a passenger vehicle, motorcycle, or MPV. b. Before titling a

vehicle manufactured according to Canadian specifications, the owner shall submit to the Division manufacturer documentation verifying that the vehicle complies with FMVSS and EPA standards. i. The Division shall waive the FMVSS and EPA

labeling location requirements as prescribed in 49 CFR 571 and 40 CFR 86. ii. If manufacturer documentation indicates that a

vehicle’s speedometer or headlights do not comply with FMVSS and EPA standards, the owner shall file additional

documentation with the Division to verify completion of a modification that brings the vehicle into compliance.

c. A registered importer shall certify a vehicle manufactured according to Canadian specifications if:

i. The vehicle meets FMVSS standards except for occupant crash protection provisions prescribed under 49 CFR 571.208, or

ii. The owner did not submit manufacturer documentation as prescribed under subsection (A)(4)(b).

B. The Division shall require a registered importer’s certification of a foreign-manufactured vehicle imported to the United

States that: 1. Is not exempt under subsections (A)(2) or (A)(3), or 2. Does not qualify under subsection (A)(4).

Arkansas;

http://www.amvc.arkansas.gov/


California; 

Only 1976 and older vehicles can be registered in CA with few exceptions, Golden Rod and Interstate registrations and

New Residents See links below for options. Please contact us or the CA DMV for details.

https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/nonresident-vehicles/direct-import-vehicles/

https://www.dmv.ca.gov/portal/dmv

Regulations per CA ARB,

https://ww3.arb.ca.gov/board/res/1980/85-80.pdf

New California Residents;

https://www.dmv.ca.gov/portal/driver-education-and-safety/special-interest-driver-guides/new-to-california/

Info about Interstate & Goldenrod Registration, & Non-resident vehcles;

https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/nonresident-vehicles/interstate-registration/

https://www.dmv.ca.gov/portal/handbook/vehicle-industry-registration-procedures-manual-2/nonresident-vehicles/nontitle-goldenrod-registration/

Goldenrod Registration; Page 12-23 Sec. 12.120 CVC §4307

Interstate Registration Page 12-16 Sec. 12.060 CVC §4303

Direct Import Vehicles Page 12-14 Sec. 12.050

Direct Import Vehicle Exemptions Page 12-6 Sec. 12.020

As a Farm Vehicle or Implement of Husbandry;

https://www.dmv.ca.gov/portal/wcm/connect

p16-1 & 16-3

As Off-road Vehicle;

https://www.dmv.ca.gov/portal/dmv


Colorado;

https://www.colorado.gov/pacific/dmv


Connecticut;

http://www.ct.gov/dmv/cwp/view.asp?a=804&q=244900


Delaware;

https://www.dmv.de.gov/services/vehicle_services/titles/ve_title_used.shtml

Michigan;

https://www.michigan.gov/sos/0,4670,7-127-5647_12539_48268-179823--,00.html


Minnesota;

https://dps.mn.gov/divisions/dvs/Pages/default.aspx

The DVS, gave us the follwing response;

Thank you for contacting Driver and Vehicle Services.

The following documentation is required for vehicles imported into the United States:

1. A Manufacturers Certificate of Origin, certificate of title, or registration certificate.

2. A proper bill of sale (as per jurisdiction's requirements).

3. Proof of proper United States Customs clearance, United States Customs Entry Form, properly stamped and signed.


Mississippi;

http://www.dor.ms.gov/Pages/Title-FAQs.aspx#298


Missouri;

http://dor.mo.gov/motorv/


Montana;

https://dojmt.gov/driving/vehicleservices/


Nebraska;

http://www.dmv.nebraska.gov/dvr/mvtitles/import.html


Nevada;

http://www.dmvnv.com/

North Carolina;

https://www.ncdot.gov/dmv/vehicle/title/salvaged/

(Limited info on web)

Call  (919) 861-3500  (Gray Market Vehicles)

NC Vehicle inspection requirements;

https://www.ncleg.net/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_20/Article_3A.html


Northern Mariana Islands;

http://www.dps.gov.mp/


North Dakota;

https://www.dot.nd.gov/divisions/mv/vehicle.htm


Ohio;

http://bmv.ohio.gov/titles-import.aspx


Oklahoma;

https://www.ok.gov/omvc/

The SC DMV gave us the following response;

Thank you for contact the South Carolina Department of Motor Vehicles. Please be assured your inquiry is very important

to us.

SECTION 563160.

Foreign vehicles of resident owners.

Every foreign vehicle moved into this State the owner of which is a resident of this State immediately becomes liable for

registration and license under the provisions of this chapter, and for the purpose of this section, the term "resident of this

State" shall include every person who moves temporarily or permanently into this State for the purpose of engaging in any

business, profession or employment.

You will need DOT, EPA and Declaration documents from US Customs, plus the vehicle title. You will need to complete

all title and registration forms, pay vehicle property tax, sales tax (if applicable), title and registration fees.


See information provided and if additional information is need please follow the link provided.

http://www.scdmvonline.com/Vehicle-Owners/Titles-and-Registration/Transfer-a-Title

SC Translation Certification;

http://www.scdmvonline.com/DMVNew/forms/4030.pdf

FEDERAL REGULATIONS


We take care of all of the import paperwork prior to arrival in the USA.

We insure all of our vehicles will fully comply with all import regulations for on road use. Some companies import vehicles

for off road use, once this is done the vehicle can never be legal for on road use. Japan4WD is bonded with US Customs

to insure the vehicles meet all US regulations.


>21 years For EPA + NAFTA + NHSTA list

>25 years  For DOT + NAFTA + NHSTA list

Please see the following for more information;

https://www.cbp.gov/trade/basic-import-export/importing-car

https://www.nhtsa.gov/importing-vehicle

OTHER COUNTRIES


Belize

only duty and taxes are required;

Cars 65%-77% Total of CIF

Trucks 26%-48% Total of CIF

Totals include Revenue Replacement Duty (RRD), Exise Tax (ET) & Goverment Sales Tax (GST)

http://www.customs.gov.bz/rate_motor_vehicles.html

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Canada

Federal

>15 years + NAFTA

http://cbsa-asfc.gc.ca/publications/dm-md/d19/d19-12-1-eng.html

https://www.riv.ca/ImportingAVehicle.aspx


RIV Provincial links.

https://www.riv.ca/ProvincialLicensing.asp


Regulations governing automotive trade between the United States and Canada were first liberalized by the Canada-U.S. Automotive Trade Products Act of 1965, and further relaxed by the Canada-U.S. Free Trade Agreement of 1989, before being subsumed into the NAFTA in 1994.

Duties:

There are no customs duties on Canadian imports from the United States of motor vehicles or of automotive parts that meet the NAFTA rule of origin (in essence, 62.5 percent of the value of the vehicle must originate within NAFTA). Vehicles and components that do not comply with the rule of origin are subject to a 6.1 percent duty. (updated under USMCA)

Taxes:

All Canadian imports are also subject to sales taxes applicable at the moment of clearing customs, “goods and services tax” (GST) or “harmonized sales tax” (HST) depending on the province. They are calculated on the sum of the Customs-valued import and applicable duty.

Safety and Emissions Compliance:

Vehicles 15 years old or more based on the date of manufacture, or buses manufactured before January 1, 1971 are no longer regulated under Canada Motor Vehicle Safety Standards (CMVSS) by virtue of their age and exempt from the Registrar of Imported Vehicles (RIV) registration. While Transport Canada does not regulate the importation of such vehicles, they must still meet provincial/territorial safety and licensing requirements.


Vehicles less than 15 years old, or buses manufactured on or after January 1, 1971 may be imported provided that they are modified to comply with CMVSS and must be entered into RIV program upon crossing the border. These vehicles must also comply with the provincial/territorial safety and licensing requirements.

http://www.tc.gc.ca/eng/acts-regulations/regulations-crc-c1038.htm


Livingston International administers the RIV program on behalf of Transport Canada and can be reached at

1-888-848-8240, Fax: (416)-626-0366.

Quebec

>25 Years for RHD

https://saaq.gouv.qc.ca/en/vehicle-registration/vehicle-from-outside-quebec/

https://saaq.gouv.qc.ca/en/road-safety/modes-transportation/automobile/modified-cars/right-hand-drive-vehicles/


Saskatchewan

https://www.sgi.sk.ca/individuals/safety/vulnerabilities/safetyfeatures/righthanddrive.html


Yukon

http://www.hpw.gov.yk.ca/mv/index.html


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Argentina 

Import Restrictions:

Import ban on used vehicles

Import license required

Tariffs:

The tariff applied to cars is 21.5 percent.

The tariff applied to trucks ranges from 15.5-21.5 percent.

The tariff for auto parts (HTS 8407-08 and 8708) ranges from 1.5-19.5 percent (most in the 15.5-19.5 percent range).

Taxes:

Value Added Tax (VAT): cars (21 percent); trucks (10.5 percent)

An additional "advanced" VAT of 6-8 percent (based on CIF value plus the duty and the import statistics fee of 10 percent)

Various provincial sales taxes

Duty Surcharge (0.5 percent)

Statistical tax (3 percent)

A 3 percent advanced profit tax, charged on the custom value of goods

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Costa Rica

Import / Permanent & Temporary

http://www.costarica-embassy.org/index.php?q=node/112

Tourist Temporary Import

http://www.hacienda.go.cr/contenido/404-importacion-temporal-de-vehiculos-para-fines-no-lucrativos--turismo


Please Note; If the title has any of the following classifications they CAN NOT BE IMPORTED, according to the DIR-DGT-003-2013 circular of the Ministry of Finance.

1. SALVAGE - ANY TYPE

2. DESTRUCTION (Destruction)

3. NON REBUILDABLE (Not Reconstructible)

4. PARTS ONLY (Only for parts)

5. TOTAL LOSS (Total Loss)

6. DISMANTLERS (Dismantling)

7. NON REPAIRABLE (Not Repairable)

8. JUNK (Disposal)

9. CRUSH (Crushed)

10. SCRAP (Scrap)

Also prohibited from permanent import;

1. Vehicles with structural damage to the chassis and or problems with the VIN, or with discrepancies in the VIN on the vehicle.

2. Right Hand Drive, RHD, Vehicles

3. Have manipulation of the VIN number.

4. That have damages that impede the circulation of the vehicle.

5. That have damages that could indicate the total loss of the vehicle.

6. Vehicles more than 10 years old.


AutoValor Para Importacion

https://www.hacienda.go.cr/autohacienda/autovalor.aspx


Import tax rates vary according to the age of the vehicle: (Based on KBB)

Vehicles less than three years old - 52.29 percent

Vehicles four to five years old - 63.91 percent

Vehicles six years or older - 79.03 percent

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El Salvador

http://www.asamblea.gob.sv/eparlamento/indice

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Guatemala

http://portal.sat.gob.gt/sitio/index.php/tramites

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Cayman Islands

http://www.customs.gov.ky/portal/page/portal/cushome/restrictions/tariff

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Dominica

Enviromental >5 years $3000 ECD, <5 years 1% of CIF

Customs 3% of CIF

Exise 28% of CIF

http://www.dominicahighcommission.co.uk/pliki/Customs_Import_and_Export_Procedures.pdf


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Jamaica

http://www.tradeboard.gov.jm/tblweb/


https://tbis.fsl.org.jm/WebImports/Security/TradeLogin.jsp;jsessionid=wpHsWmXeYIqXCNMQDA6rKe-

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Mexico

>30 years + NAFTA + Border Zones

Non Resident Temporary Import  (English)

http://omawww.sat.gob.mx/aduanas/vehiculos/importacion_temporal/Paginas/aspectos_generales_ingles.aspx

http://omawww.sat.gob.mx/aduanas/vehiculos/importacion_temporal/Paginas/english_version.aspx

Online Temporary Import Application

https://www.banjercito.com.mx/registroVehiculos/#

Importaciones Definitivas & TLC (Permanent Importation & NAFTA)

http://omawww.sat.gob.mx/aduanas/vehiculos/importaciones_autosusados/Paginas/default.aspx

Importacion Definitivas Zona Frontera  (Permanent Importation Border Zone)

http://omawww.sat.gob.mx/aduanas/vehiculos/importaciones_autosusados/Paginas/importacion_definitiva_vehiculos.aspx

Importacion Definitivas de Clasicos >30 años  (Permanent Importation of Classics >30 Years)

http://omawww.sat.gob.mx/aduanas/vehiculos/importaciones_autosusados/Paginas/vehiculos_clasicos.aspx 

Sonora Only Program

http://omawww.sat.gob.mx/aduanas/vehiculos/importacion_temporal/Paginas/sonora_ingles.aspx

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New Zealand

http://www.nzta.govt.nz/vehicles/importing-a-vehicle/


http://importer.fuelsaver.govt.nz/index.html?action=logout

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Panama

Tourist Temporary Import

https://www.panamatramita.gob.pa/tramite/permiso-de-entrada-de-veh%C3%ADculos-extranjeros

Importaciones Definitivas

https://www.panamatramita.gob.pa/tramite/autorizaci%C3%B3n-para-veh%C3%ADculos-que-vienen-de-otros-pa%C3%ADses

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Republica Dominicana

(Dominican Republic)

<7 years

Se prohíbe  la importación de vehículos de siete (7) años o más.

http://www.aduanas.gob.do/servicios?serv=importacion

Mas Informacion

https://aduanasdigital.gob.do/2013/08/08/importacion-lo-legal-e-ilegal/

(Ahora hasta siete (7) años)

Prohibe La Importacion De Vehiculos Con Volante A La Derecha (JDM)

https://aduanas.gob.do/transparencia/files/leyes/normas/dga/02-08_Que_Prohibe_Import_Vehiculos_Guia.pdf

Asignación Primera Chapa

http://www.dgii.gov.do/ciudadania/vehiculosMotor/Paginas/Asignaci%C3%B3n-de-la-primera-chapa.aspx

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WORK IN PROGRESS BELOW;

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Introduction

The Compilation of Foreign Motor Vehicle Import Requirements is designed to provide motor vehicle exporters with market data and worldwide automotive import restrictions for the major automotive markets around the world.

The U.S. Department of Commerce, Office of Transportation and Machinery, Automotive Industries Team, collects, compiles, and disseminates the information available in this document. However, it should be noted that the assistance of Commerce’s country specialists (Global Market) and overseas representatives (USFCS) played an important role in making this document possible.

This document is updated periodically and every attempt is made to ensure its accuracy. Due to the numerous amounts of information sources and changes in countries’ import requirements, the Office of Transportation and Machinery cannot guarantee the accuracy of all the material contained in this document.

This document is also available on the Office of Transportation and Machinery’s homepage: http://trade.gov/td/otm/auto.asp.

COUNTRIES OF THE WORLD THAT DRIVE ON THE LEFT SIDE OF THE ROAD

Anguilla

Antigua

Australia

Bahamas

Bangladesh

Barbados

Bhutan

Botswana

British Virgin Islands

Brunei

Cayman Islands

Channel Islands

Christmas Island

Cooke Islands

Cocos Island

Cyprus

Dominica

Falkland Islands

Fiji

Granada

Guyana

Hong Kong

India

Indonesia

Ireland

Isle of Man

Jamaica

Japan

Kenya

Kiribati

Lesotho

Macao

Malawi

Malaysia

Malta

Mauritius

Montserrat

Mozambique

Namibia

Naunu

Nepal

NORTH AMERICAN COUNTRIES SURVEYED:

NAFTA

Motor vehicle trade between the United States, Canada, and Mexico are bound by the terms of the 1994 North American Free Trade Agreement (NAFTA), which may be found at: https://www.nafta-sec-alena.org/Home/Legal-Texts/North-American-Free-Trade-Agreement . Specific coverage of the automotive sector is contained in Annex 300A of Chapter 3 of the Agreement. The text is available at: http://www.sice.oas.org/trade/nafta/anx300a1.asp. An exporter’s guide may be accessed by clicking on the “NAFTA” tab of the U.S. Commerce Department’s Trade Information Center web site at: http://www.trade.gov/td/tic/.

CANADA

The Canadian Border Services Agency also maintains a web page with pertinent information for motor vehicle importers. Many of the details from that web page are found below. This page can be found at: http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html

Regulations governing automotive trade between the United States and Canada were first liberalized by the Canada-U.S. Automotive Trade Products Act of 1965, and further relaxed by the Canada-U.S. Free Trade Agreement of 1989, before being subsumed into the NAFTA in 1994.

Duties:

There are no customs duties on Canadian imports from the United States of motor vehicles or of automotive parts that meet the NAFTA rule of origin (in essence, 62.5 percent of the value of the vehicle must originate within NAFTA). Vehicles and components that do not comply with the rule of origin are subject to a 6.1 percent duty.

Taxes:

All Canadian imports are also subject to sales taxes applicable at the moment of clearing customs, “goods and services tax” (GST) or “harmonized sales tax” (HST) depending on the province. They are calculated on the sum of the Customs-valued import and applicable duty.

MEXICO -

The North American Free Trade Agreement supplanted Mexico’s Automotive Decrees on light and heavy vehicles, providing for the staged elimination of Mexican tariffs, market access restrictions, import trade balancing requirements, and market share restrictions. With only the one exception noted below, all barriers have been eliminated on imports from the U.S. that meet NAFTA rule of origin.

Tariffs:

The following free duty advantage is applicable only to vehicles, trucks, and auto parts that comply with a NAFTA Certificate of Origin.

 The tariff applied to cars is zero percent.

 The tariff applied to trucks is zero percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is zero percent.

 Regular duty 20% for non-NATFANAFTA new vehicles or trucks and 50% for non-NATFANAFTA used vehicles and trucks. Non-NATFANAFTA parts have five percent tariff but might increase depending on country of origin.

Taxes:

 Value Added Tax is 16 percent nationwide

 ISAN – New vehicle taxation applied upon vehicle’s value; as follows:

New vehicle value Extra percentage and fixed quota

Up to $233,343.40 MXP 2% no quota

More than $233,343.40 MXP 5% plus $4,666.79 MXP

More than $280,012.02 MXP 10% plus $7,033 MXP

More than $326,680.84 MXP 15% plus $11,667.19 MXP

More than $420,017.94 MXP 17% plus $25,667.73 MXP

 IGI payment (General Import Tax)

IGI payment (General Import Tax)

Model Years Mixed Tax

5 1% + USD$300

6 1% + USD$250

7 1% + USD$200

8 1% + USD$150

9 1% + USD$100

10 or more 1% + USD$50

Import Restrictions:

 Imports of used automobiles and heavy trucks have requirements for the importer and custom agent.

 Imports of remanufactured parts is allowed. However, U.S. remanufacturers cannot comply with NATFA Certificate due to the remanufacturing process in sourcing parts from overseas.

Used Vehicles:

 As originally negotiated, NAFTA allowed Mexico to continue to restrict imports of used vehicles until January 1, 2009, when a 10-year phase out based on vehicle age would commence, subject to new requirements.

 New decrees issued by Mexico came into force changing the requirements for imports of used vehicles, reducing imports. Changes dated February 14, 2005, August 22, 2015, April 26, 2006, February 1, 2008, December 24, 2008, January 26, 2009, July 1, 2011, January 31, 2013 and latest on August 29, 2014.

 The Mexican government maintains the allowed entry of used vehicles from the United States and Canada, subject to new requirements for the importers if qualify as:

o Persona Fisica: Individuals can import one used vehicle during a twelve-month period without the requirement of signing up to the Padron de Importadores, which is Mexico’s official importers registry. Once imported, vehicles should be registered in accordance with the Public Vehicle Registry Law (Repuve). If they need to import more than one used vehicle, they should be signed up in the Padron de Importadores and have a RFC (Federal Taxpayer’s Registration).

o Persona Moral: Companies or proprietors can also import one used vehicle in a twelve-month period without the requirement of signing up to the Patron de Importadores, which is Mexico’s official importers registry. For unlimited number of used vehicles they can import them as long as they are signed up at the Padron de Importadores. In addition, they are mandated to provide import records on a monthly basis to the Mexican Government Entity for Taxation (SAT).

 Requirements for Importers

Customs Agent (affiliated to custom of entry of vehicle) Bill of Lading for permanent import per car with code as Appendix 2 and Annex 2 Invoice stamped “shipper export” by US customs Reference Price Brand, make and model year NIV (Vehicle Identification Number) RFC (Federal Taxpayer’s Registration) CURP (Unique Population Registry Code – Personal ID Number)

INE (Official Elections Voting and ID card) Proof of Address Vehicle must be physically driven so as to pass customs IGI payment (General Import Tax) Preferential Duty as per FTA VAT payment (Value Added Tax) 16 percent DTA payment (Custom’s Paperwork Fee) Payment through wire transfer / check

 Importers of used vehicles are required to post a guarantee representing any difference in duties and taxes if the declared customs value is less than the established reference price. Otherwise, if a lower valuation can be formally justified or proven, the importer is reimbursed within a period of no longer than three months. Reference prices can be found in this link, as per the decree on January 26, 2009:

http://www.dof.gob.mx/nota_detalle.php?codigo=5078407&fecha=26/01/2009

IGI payment (General Import Tax)

Model Years Mixed Tax

5 1% + USD$300

6 1% + USD$250

7 1% + USD$200

8 1% + USD$150

9 1% + USD$100

10 or more 1% + USD$50

 If the VIN of a used vehicle indicates that it was manufactured in one of the NAFTA member countries, it will not require a prior permission (license or authorization to legally import) from the Secretary of Economy, or a NAFTA Certificate of Origin to be imported into Mexico.

 Vehicles under harmonized code numbers: 8704.22.07, 8704.23.02, 8704.32.07 for merchandise transportation 8702.10.05 or 8702.90.06 for transportation of sixteen or more passengers, 8702.20.02 for tractors or 8705.40.02 for other trucks.

 Rest of the Country: Individuals or companies can import used vehicles allowed if four to nine years old and five to ten years old for heavy vehicles with a 10% ad-valorem tax.

 Border Zone: Individuals or companies with location in the border zone including Baja California Norte and Sur, Sonora (Cananea and Caborca), can import used vehicles if five to nine years old with one percent ad-valorem tax. If used vehicles are 10 years old with a 10% ad-valorem tax.

 Import Restrictions

Used vehicles in a condition that is restricted or prohibited from circulating in their own country of origin, will be prohibited from importation into Mexico. Used vehicle

restrictions also apply for the following conditions, some of which may be indicated on the vehicle’s deed of title:

Parts only Assembled parts Total Loss (except those with deed of title “salvage”, “clean”, “rebuilt” or “corrected”). Dismantlers Destruction Non repairable Non rebuildable Non street legal Flood (except those with deed of title “clean”, “rebuilt” or “corrected”). Junk Crush Scrap Seizure / forfeiture Off-highway use only Water damage Not eligible for road use Salvage category whenever these types: except those with deed of title “clean”, “rebuilt” or “corrected”. DLR (Dealer License Requirement) Salvage Salvage – parts only Lemon salvage Salvage letter – parts only Flood salvage Salvage Cert-Lemon Buyback Salvage Certificate – No VIN Salvage Title w / No Public VIN DLR / Salvage Title Rebuildable Salvage Theft Salvage Title – Manufacture Buyback Court Order Salvage Bos Salvage / Fire Damage Salvage with Replacement VIN Bonded Salvage Watercraft Salvage Salvage Katrina Salvage Title with Altered VIN Salvage With Reassignment Salvage Non Removable Stolen (only when the deed of title indicates it was recovered and valid status) Frame Damage Fire Damage Recycled Crash Test Vehicle

 Custom Agent’s Obligations:

Request from the importer the original title and verify that it doesn’t mention any of the above categories and that the document is not scratched, with corrections, erasure, or any characteristic that provokes suspicion that it was modified or counterfeited. Moreover, after checking this document, it is mandatory to note on the document: “File a sworn statement that the presented document is a true copy of the original I’ve seen”. Verify with the country of origin’s vehicle through confederations, chambers, or associations that the vehicle to be imported has not been stolen, damaged, crashed,

restricted, or forbidden from circulating in their own country of origin. The Custom Agent should provide a copy to the importer where the NIV appears. This measure applies only to vehicles from the United States whose model year is less than 30 years to importation’s date. The Custom Agent should provide the following information:

a) Verify that the vehicle has not been stolen

b) Deed of title

c) NIV Decodification

d) Code and Bill of Lading, as well as RFC or CURP for the importer

 The source of information from the country of origin should have online capability for SAT to verify that the vehicle is not stolen. Likewise, the importer should also verify in the Mexican Public Vehicle Registry (REPUVE) that the vehicle was not also stolen in Mexico. Take a digital picture of the NIV and attach it to the bill of lading.

 Comply with Mexican standards for emission controls as per the NOM-041-SEMARNAT-2006 and NOM-047-SEMARNAT-1999 for vehicles and NOM-076-SEMARNAT-2012 and NOM-044-SEMARNAT-2006 for buses, trucks and tractors.

 By 2019, as per NAFTA, Mexico may not adopt or maintain a prohibition or restriction on imports of used vehicles from the United States.

Local/Regional Content Requirements:

 The NATFA Chapter 403 for Automotive Goods for a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 56 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 62.5 percent

 For a producer's fiscal year beginning on the day closest to January 1, 1998 and thereafter, 55 percent under the net cost method, and for a producer's fiscal year beginning on the day closest to January 1, 2002 and thereafter, 60 percent

 The regional value-content requirement for a motor vehicle identified in Article 403(1) or 403(2) is 50 percent for five years after the date on which the first motor vehicle prototype is produced in a plant by a motor vehicle assembler, if

o 50 percent for two years after the date on which the first motor vehicle prototype is produced at a plant following a refit, if it is a different motor vehicle of a class, or marque, or, except for a motor vehicle identified in Article 403(2), size category and underbody, than was assembled by the motor vehicle assembler in the plant before the refit.

o As of January 1, 2002, at least 62.5 percent of a passenger car or light truck’s net cost must be of value originating in North America. All other

vehicles must reach 60 percent North American content to qualify for zero duty rates.

Other Measures:

 The Mexican government requires importers to have an import license in order to import vehicles, trucks, or parts.

 Effective November 2011, the Mexican government established mandatory emission control standards for the import of used vehicles. To avoid red tape, U.S. exporters can attach emission control state certificates from Arizona, California, Texas, or New Mexico, as those states have very strict standards that are compliant with Mexican Standard 041.

Membership in Trade & Economic Agreements:

Mexico has eleven Free Trade Agreements with 46 countries, 33 agreements for investment promotion and protection and nine agreements of limited coverage as per ALADI. Mexico is a member of WTO, APEC, OCDE and ALADI.

 NAFTA

 Bilateral initiatives with member countries: Argentina, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Chile, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru and Uruguay

 MERCOSUR member (ACE 55 Automotive Chapter with Brazil)

 MERCOSUR member (ACE 54 Automotive Chapter with Argentina)

 Regional Initiatives: Pacific Alliance, Latin American Arch, Free Trade Agreement with Central America and decisions on the FTA with Central America.

 EUROPEAN UNION agreement

 ASIA-PACIFIC agreements with member countries such as: Australia, Korea, China, India, Israel, Japan, and Singapore.

SOUTH/CENTRAL AMERICAN AND CARIBBEAN COUNTRIES SURVEYED

ARGENTINA – Vehicles in Operation (in units)

Import Restrictions:

 Import ban on used vehicles

 Import license required

Tariffs:

 The tariff applied to cars is 21.5 percent.

 The tariff applied to trucks ranges from 15.5-21.5 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) ranges from 1.5-19.5 percent (most in the 15.5-19.5 percent range).

Taxes:

 Value Added Tax (VAT): cars (21 percent); trucks (10.5 percent)

 An additional "advanced" VAT of 6-8 percent (based on CIF value plus the duty and the import statistics fee of 10 percent)

 Various provincial sales taxes

 Duty Surcharge (0.5 percent)

 Statistical tax (3 percent)

 A 3 percent advanced profit tax, charged on the custom value of goods

 In February 2011, the country began requiring import licenses for a significant list of automotive parts. The licenses are not automatically granted. Even if granted the licenses can take significant time to process: http://www.buyusainfo.net/docs/x_5274375.pdf

 The import of used, rebuilt or remanufactured automotive parts is banned with the exception that Original Equipment Manufacturers (vehicle assemblers) can import and market remanufactured parts to service their own products.

Local Content/Regional Content Requirements:

The Governments of Argentina and Brazil allow local automakers to import a certain number of cars and trucks from each other duty-free. This quota is adjusted each year by the respective Governments. As of January 1, 2008, this “flex-program” is based on a ratio of Brazil (1.00) to Argentina (1.95).

Regarding local content there is no index, except for the special agreements with Brazil and Uruguay where the regional content required is of a minimum of 60%.

BOLIVIA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

218,736

231,721

245,200

Commercial Use Vehicles

295,010

353,263

410,000

Source: Ward’s Motor Vehicle Data

Tariffs:

 Bolivia has a three-tier tariff structure. Capital goods designated for industrial development may enter duty-free; non-essential capital goods are subject to five percent tariffs; and most other goods are subject to 10 percent tariffs. Heavy trucks greater than

or equal to 6 tons are considered capital goods and are subject to 5 percent tariffs. All other automotive goods are subject to 10 percent tariffs.

Other Measures:

 Not Applicable

Membership in Trade & Economic Agreements:

 MERCOSUR member

 ALADI

 Andean Community

 Bolivia

 Chile (auto only)

 Colombia (auto only)

 Ecuador

 Mexico (auto with quota)

 Venezuela

 European Community

 India

 Peru (auto only)

 Egypt

 WTO (no CKD bindings)

Taxes:

 Bolivia levies a 14.94 percent effective value-added tax and a 10 percent specific consumption tax on car sales.

 Imported goods are also subject to customs warehouse fees (which vary with volume) and customs brokers’ fees of up to 2 percent of the CIF price.

Other Measures:

 Bolivia requires pre-shipment valuation inspections.

Regional/Local Content:

 There are no regional or local content regulations or restrictions.

Import Restrictions:

 Bolivia prohibits the importation of cars over five years old, diesel vehicles with engines smaller than 4,000 cubic centimeters, and all vehicles that use liquefied petroleum gas.

Membership in Trade and Economic Agreements:

Andean Community

MERCOSUR associate member

Chile

Mexico

European Community

WTO

Brazil – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

27,490,694

29,566,116

31,339,000

Commercial Use Vehicles

7,164,275

7,705,144

8,356,000

Source: Ward’s Motor Vehicle Data

Taxes on automobiles:

Import Tax: 35% over CIF value.

Sales Tax (ICMS): state tax, varies by state. 18% in Sao Paulo

Tax on Industrial Products (IPI)

2% for 1.0 liter engine models;

8% for higher power engine models;

38% for imported cars.

Social Contribution Tax (Cofins): 7.6% of the final price

Social Contribution Tax (PIS): 1.65%

Taxes on Autoparts

Import Tax: 20%; 18%; 16%; 14% and 10% over CIF Value. Note that a large number of automotive parts are classified as “ No Tarifarios” (not locally produced) and enjoy an import tax reduction to 2%.

IPI: 5%, 12% and 15% (varies by products)

PIS: 2.62% and 2.68%

Cofins: 13.57%

ICMS: varies by state. 18% in Sao Paulo

CHILE – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

2,169,280

2,383,638

2,588,061

Commercial Use Vehicles

1,138,252

1,208,390

1,267,610

Source: Ward’s Motor Vehicle Data

The United States and Chile implemented a Free Trade Agreement (FTA) on January 1, 2004.

Tariffs:

 All new imported motor vehicles and automotive parts coming from non-treaty countries are assessed Chile's uniform tariff rate of 6 percent, based on the CIF value (see Various Trade Arrangements).

 Used automotive parts coming from non-treaty countries are assessed an additional tariff surcharge equal to 50 percent of the tariff.

 While the FTA provides an opportunity for cores used in remanufactured products to qualify under origin requirements, remanufactured automotive products are specifically excluded.

Taxes:

 Value Added Tax (VAT) of 19 percent, charged on the sum of the CIF value and the amount of the duty. This tax is chargeable to the importer, not the foreign supplier. (Imports by Chilean Government offices and Armed forces are not subject to import duties or taxes.)

 Emissions tax (Impuesto Verde) determined by levels of Mpg city, emission of nitrogen oxide and the selling price of the vehicle.

Other Measures:

 Import of remanufactured, rebuilt and/or used motor vehicle parts is allowed, however Chilean Customs tends to heavily question such imports with an apparent eye toward whether they will be used to assemble used vehicles or a significant portion of a used vehicle once in the country (see Import Restrictions below). Such investigations hamper the importation process of remanufactured rebuilt and/or used motor vehicle parts.

Import Restrictions:

 In Chile the importation of used vehicles is prohibited. Chile does allow imports of used ambulances, funeral hearse cars, fire-fighting vehicles, street cleaning vehicles,

irrigation vehicles, towing vehicles, television projection equipment vehicles, armored commercial vehicles, workshop vehicles, cement making trucks, prison vans, radiological equipment vehicles, motor homes, off-road transportation vehicles, and other similar vehicles for special purposes, different from common transportation vehicles. These used vehicles pay a 9 percent import duty plus VAT. Fire-fighting vehicles are not subject to import duties, and pay the VAT on the CIF value only. A vehicle is considered new if: 1) It is of the current year; or The model is of the last year but the importation occurred before April 30th, and 2) the vehicle has no more mileage than that required to transport the vehicle from the factory to the point of sale and according to customs it corresponds to a first transaction vehicle (i.e., the invoice is from the distributor or the factory). Special laws allow tax-exempt new/used car imports by persons returning from exile or returning after living abroad (for one complete year or more) for studies or work after a determined number of years. People domiciled in two domestic free trade zones, Iquique in the north and Punta Arenas in the south may also import used cars. Imports in these areas are exempt from customs duties and VAT. (See Various Trade Arrangements).

Membership in Trade & Economic Agreements:

 United States

 Canada

 European Union

 Central America

 Panama

 Korea

 Mexico

 MERCOSUR

 Argentina

 Ecuador

 Peru

 New Zealand

 Singapore

 Brunei

 Japan

 Bolivia

 Colombia

 Venezuela

 ALADI

 WTO

 GATT

 China

 India

 Automotive investment in Chile is governed by the "Automotive Statute", which allows any car assembly company to operate in Chile. The Statute establishes a 13 percent minimum of local content in vehicles assembled from completely knocked-down (CKD) kits and 3 percent for vehicles assembled from semi-knocked down (SKD) kits. Local vehicle assemblers and part manufacturers benefit from Article 3 of Law 18,483, which exempts imported auto parts and components from customs duties if the importer exports parts and components of specific, certified quality worth the same amount ex-factory. If exported alone, the parts must include in country value-added of at least 50 percent. If they are built into vehicles that are assembled in Chile and then exported, then the value-added component must be at least 70 percent. (This law is being replaced by a new law called the Arica Law which gives incentives to establish in the Arica industrial free trade zone for any manufacturing plant)

 An import report to the Central Bank is required, free of cost, for shipments above US$500, CIF for statistical record keeping purposes.

 In the Metropolitan Area gasoline powered vehicles under 2,700 Kgs., need to comply with TIER2 Federal/EURO 4; diesel powered vehicles under 2,500 Kgs., must comply with TIER 2/EURO 5. Vehicles over 2,700 Kgs., but under 3860 Kgs., must comply with EURO 5 or TIER 2. Buses must follow EPA 2007/EURO 5. Trucks must abide with EPA 2007/EURO 5. As of October 2014, new emissions requirements were being developed.

COLOMBIA - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

2,289,740

2,526,000

2,828,671

Commercial Use Vehicles

883,814

974,000

1,251,328

Source: Ward’s Motor Vehicle Data

Tariffs:

 The import tariff applied to cars is 35 percent.

 The import tariff applied to trucks is 15 percent.

 Automotive parts (HTS 8407-08 and 8708) tariffs range between 5 – 10 percent.

 Complete Knock Down Kits can qualify for zero tariffs under the Andean Automotive Policy.

 With the implementation of the U.S.-Colombia Trade Promotion Agreement, 53% of U.S. industrial exports received duty-free treatment. Tariffs on another 23% of exports will be eliminated over five years and the remaining 24% over ten years tariff reduction (starting in May 2012).

Taxes:

 VAT is assessed on the F.O.B. value plus applicable duties:

-- Four-wheel-drive vehicles (16 percent)

-- All other cars (16 percent); unless the F.O.B. value plus tariff is greater than or equal to US $30,000, in which case the Consumption Tax is 16 percent.

-- Ambulances and hearses (16 percent)

-- Electric vehicles for public transportation-taxis (5 percent)

 Since January 1996, all imports and sales of automotive parts and accessories transacted in Colombia are subject to a 16 percent value-added tax (IVA in Spanish). This tax applies to both locally produced goods and imports and, in the case of imports, is assessed on top of the CIF value and import tariff.

 Consumption Tax for private owned vehicles (HTS 8703-8704 and 8711) of FOB value equal or lower than USD$ 30,000 is 8%

 Consumption Tax for private owned vehicles (HTS 8703-8704) of FOB value higher than US$ 30,000 is 16% (Vehicles - Luxury Tax).

Import Restrictions:

 The Andean Automotive Policy bans imports from other countries of used cars, trucks, buses and motorcycles, as well as new vehicles from previous years. It also bans trade in these vehicles among the member nations.

 Imports of rebuilt, and/or used motor vehicle parts are not authorized.

 With the implementation of the FTA with the U.S., Colombia is accepting re-manufactured auto parts listed under Chapter Four, Rules of Origin and Origin Procedures, Section A - Rules of Origin, ANNEX 4.18 (The country is formulating policies to allow the import of remanufactured products to meet commitments under its FTA with the United States).

Local/ Regional Content Requirements:

 The Andean Automotive Complementary Agreement signed in 1999, removed the initial requirement of minimum regional/local content (24%) to reduce import duties. Automotive parts and passenger vehicles with a capacity of up to 16 persons and cargo vehicles of 4.5 tons weight (Category 1), and other type of vehicles (Category 2), will just need to comply with specific origin requirement established by the General Secretary Office of the Andean Community.

Other Measures:

 There are no limitations on the types of models imported, and no special import permits are required. However, imported vehicles must be registered with the Colombian government prior to shipment (Dynamics Certified Emissions Test conducted by Colombian Environmental Licensing Authority-ANLA). Local assemblers are free to assemble vehicles of any model and are also allowed to import vehicles.

 Colombia has required gas emission/evaporation control systems (to reduce gasoline tank and carburetor emissions) and a gas emission control system or positive ventilation valve (to control crankcase gas emissions) on all gasoline engine motor vehicles imported into or assembled in Colombia since January 1, 1994.

 Colombia has required catalytic converters to be installed on imported and locally produced vehicles since January 1, 1995.

 Colombia is distributing gasoline with 10 percent ethanol to comply with Law 693 of 2001 (for environmental protection) since November 2, 2005.

 Since January 2015, Colombia requires EURO IV - EU emission standards to heavy-duty diesel engines for freight or passenger transportation (buses and trucks), per Resolution 1111, enacted on September 2, 2013.

 Imported or assembled vehicles in Colombia need to comply with Technical Regulations applicable to seat belts, pneumatic tires, and safety glazing.

Membership in Trade & Economic Agreements:

 United States

 Mexico

 El Salvador

 Guatemala

 Honduras

 Andean Community

 CARICOM

 MERCOSUR

 Chile

 European Free Trade Association: Switzerland, Liechtenstein

 Canada

 Venezuela

 Cuba

 Nicaragua

 European Union

 ALADI

 WTO (no truck, CKD or automotive parts bindings)

FTA’s signed but not implemented

 Costa Rica

 Panama

 Israel

 South Korea

 Pacific Partnership (Chile, Colombia, México & Perú)

COSTA RICA - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

611,175

634,000

660,300

Commercial Use Vehicles

199,696

201,500

205,400

Source: Ward’s Motor Vehicle Data

Tariffs:

 passenger cars – 1-15 percent

 trucks and buses – 0-15 percent

 automotive parts – 1-10

Costa Rica held a nation-wide referendum that ratified its participation in the CAFTA-DR Free Trade Agreement on October 7, 2007. Many U.S.-origin automotive parts are

receiving tariff elimination since then. Virtually all remaining automotive parts were subject to back weighted 10 year tariff phase-outs. Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to the same back weighted tariff phase out.

 Find more information on the CAFTA-DR at: http://www.ustr.gov/Trade_Agreements/Regional/CAFTA/Section_Index.html

Taxes:

 New and used automobiles are also taxed heavily, ranging up to 54 percent of the assessed (not actual) value of the car, depending upon the age of the vehicle. Taxes on imported products are calculated on a cumulative basis and generally include: a) Ad valorem tax or duty --applied against CIF (cost, insurance & freight) value, (also known in Costa Rica as "D.A.I.")--duty rates currently range from 1 to 10 percent for motor vehicle parts; b) Consumption tax --applied against total cumulative sum of CIF value, plus the ad valorem tax --tax rates currently range from 0 to 25 percent for motor vehicle parts; c) Law 6946 tax --applied against CIF value -- currently 1 percent for all products; and, d) Sales tax --applied against total cumulative sum of CIF value, plus any ad valorem tax, plus the consumption tax, plus Law 6946 tax currently 13 percent for all products.

 The potential taxes on imported vehicles can be viewed at: http://www.hacienda.go.cr/autohacienda/Autovalor.aspx

Note: In short, about half the final price of a car in Costa Rica is comprised of a cascade of internal taxes.

Other Measures:

 To calculate tariffs and taxes on used vehicles, Costa Rica uses values reported by the U.S. N.A.D.A. Official Used Car Guide. This reference pricing for automobiles disadvantages U.S. models versus Korean models in the Costa Rican market. U.S. vehicle values are based upon NADA Blue Book values while Korean values are based upon an individual Korean company’s publication which understates Korean car prices.

 Costa Rican law requires the exclusive use of the metric system but, in practice, accepts U.S. and European commercial and product standards.

 It is forbidden to import vehicles with a right-side steering wheel.

Import Restrictions:

 The Government of Costa Rica prohibits importing used tires without rims.

Membership in Trade & Economic Agreements:

 Canada

 China

 Mexico

 Panama (AELC)

 Association of Caribbean States

 WTO

 GATT

 Chile

 Peru

 Singapore

 Central America/DR Free Trade Agreement (CAFTA – DR)

 Central America - European Union Association Agreement (AACUE)

DOMINICAN REPUBLIC – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

662,633

697,180

716,100

Commercial Use Vehicles

706,447

736,228

767,300

Source: Ward’s Motor Vehicle Data

Other Measures:

 To calculate tariffs and taxes on used vehicles, Costa Rica uses values reported by the U.S. N.A.D.A. Official Used Car Guide. This reference pricing for automobiles disadvantages U.S. models versus Korean models in the Costa Rican market. U.S. vehicle values are based upon NADA Blue Book values while Korean values are based upon an individual Korean company’s publication which understates Korean car prices.

 Costa Rican law requires the exclusive use of the metric system but, in practice, accepts U.S. and European commercial and product standards.

 It is forbidden to import vehicles with a right-side steering wheel.

Import Restrictions:

 The Government of Costa Rica prohibits importing used tires without rims.

Membership in Trade & Economic Agreements:

 Canada

 China

 Mexico

 Panama (AELC)

 Association of Caribbean States

 WTO

 GATT

 Chile

 Peru

 Singapore

 Central America/DR Free Trade Agreement (CAFTA – DR)

 Central America - European Union Association Agreement (AACUE)

DOMINICAN REPUBLIC – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

662,633

697,180

716,100

Commercial Use Vehicles

706,447

736,228

767,300

Source: Ward’s Motor Vehicle Data

Tariffs:

 passenger cars – 8-20% (generally 20%)

 trucks and buses – 8-20% (generally 20%)

 automotive parts – 8-14% (generally 8%)

 The CAFTA-DR Free Trade Agreement was implemented in March 2007. Many U.S.-origin automotive parts received immediate tariff elimination. Virtually all remaining automotive parts were subject to a 5 year tariff phase out in 5 equal stages (20% per year). Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to 5 to 10 year tariff phase-outs.

Taxes:

 Vehicles are generally subject to the Luxury Tax (Impuesto Selectivo al Consumo). It is a consumption tax for luxury imports or “non-essential” goods that ranges between 15 and 60 percent. The tax is calculated on the CIF price.

 There is a 17 percent tax on the first matricula (registration document) for all vehicles.

 The Dominican Republic assesses all imported new and used passenger vehicles (except pick-up trucks) with a variable ISC, and an eight percent sales tax. The tariff amount is not included in the calculation of the ISC; however, the sales tax is assessed on the sum of the vehicle's value plus the tariff plus the ISC. The table below explains the rates:

Dominican Republic ISC Tax Table

Price U.S. $ Basic-R.D. $ (%)* Marginal Excess (%)

0 - 7,000

0

0

0

7,001 - 10,000

0

0

15

10,001 - 14,000

5,625

(4)

30

14,001 - 20,000

20,625

(12)

45

20,001 - 26,000

54,375

(21)

60

26,001 - 32,000

99,375

(30)

80

32,001 and above

---

(45)

---

The percentages in parentheses indicate what the basic tax rate is for vehicles priced at the beginning of each range (using an exchange rate of 12.8 RD$/US$). The second percentage applies to the excess over the beginning value of the range. As an example, a car priced at US $12,000 would be subject to the basic amount of RD $5,625 or US $439, plus the marginal amount of US $600 (30 percent of US $2,000, the excess over US $10,000) = a total ISC of US $1,039.

 The system uses published official list prices for automobiles, instead of price lists supplied by the manufacturer, to determine the value upon which the ISC is based.

 The decree depreciates the value base for each model year of a car's age up to seven years according to the following scale: vehicles one year older than the current model year, 5 percent depreciation; two years older, 10 percent depreciation; three years older, 15 percent depreciation; four years older, 20 percent depreciation; five years older, 30 percent depreciation; six years older, 40 percent depreciation; seven years older or more, 50 percent depreciation. Thus, for a used car two years older than the current model year, the DR will deduct 10 percent from that model's new car price and use the resulting value as the base from which to calculate the tariff and ISC.

Import Restrictions:

 The import of automobiles and light trucks (under 5 tons) over 5 years old is prohibited under law no. 147 of December 27, 2000. This provision is however frequently overlooked.

 The import of vehicles 5 tons or heavier over 15 years old is prohibited under law no. 12-01 of January 17, 2001.

Membership in Trade & Economic Agreements:

 Association of Caribbean States

 Costa Rica

 Honduras

 Nicaragua

 El Salvador

 Panama

 United States

 WTO (no automotive parts bindings)

 GATT

ECUADOR – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

455,502

502,216

547,600

Commercial Use Vehicles

630,094

687,511

743,100

Source: Ward’s Motor Vehicle Data

Tariffs:

 As a member of the Complementary Convention in the Automotive Sector and/or Andean Automotive Policy with Colombia and Venezuela, Ecuador shares common external automotive tariffs of 35 percent for automobiles, 10 percent for trucks and buses (15 percent for the other members), and a concession rate of 3 percent for CKD kits available to assemblers participating in the regional/local content scheme (see below).

 Automotive parts (HTS 8407-08 and 8708) are subject to customs duties ranging from 5 to 15 percent.

Taxes:

 VAT: 12 percent for vehicles and automotive parts

 Special tax: 5.15 percent (Special Consumption Tax – ICE) + 25 percent uplift (Commercialization Margin)

 Special Contribution: .5 percent (Childhood Development Funds FODINFA)

Non-Tariff Measures:

 Not Applicable.

Regional/Local Content:

 Under the Andean Automotive Policy, a regional/local content scheme was established for a five-year period so that vehicles and parts could be traded amongst all three countries duty-free. For example, the 1995-96 minimum requirement was set at 30 percent for automotive parts and passenger vehicles with a capacity of up to 16 persons and merchandise transport vehicles of a total weight of 4.5 tons (Category 1), and at 15 percent for other types of vehicles (Category 2).

 To enjoy the privilege of importing CKD material with a 3 percent import duty, assemblers must incorporate local content of 33 percent for Category 1 and 18 percent for Category 2.

 The regional content requirement was 24.8 percent in 2000 and was set to increase to 34.7 percent by 2009.

Import Restrictions:

 The Andean Automotive Policy prohibits imports from other countries of used cars, trucks, and buses, as well as new vehicles from previous years. It also bans trade in these vehicles among the member nations.

 Import of CKD's is subject to a quota assignment by the National Automotive Commission and regulated by the automotive development law. Importation is limited to those brands having a distributor and/or an authorized concessionary in the country to guarantee an adequate supply of spare parts.

Other Measures:

 Importers require a “Conformity Certificate” provided by INEN (Ecuadorian National Standards Institute). Once obtained, it is presented for approval to the central bank.

 Every automobile (CDU) must come with a technical report verifying it complies with applicable environmental standards.

 There are no regulations concerning engine emissions, safety, or noise.

 Local assemblers are free to assemble vehicles of any model and are also allowed to import vehicles.

 There are no requirements or standards for parts imports, nor are there labeling requirements.

 The chaotic customs systems, creates disincentives to import goods through formal channels, and incentives for contraband. Many auto parts, for example, enter disguised as other goods that carry lower (or zero) customs duty.

Membership in Trade & Economic Agreements:

 Andean Community Member

 ALADI

 Cuba

 Uruguay

 Paraguay

 MERCOSUR

 WTO (no automotive parts bindings)

 GATT

EL SALVADOR - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

92,000

97,300

102,800

Commercial Use Vehicles

120,00

126,400

133,000

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff ranges from 1-30% for passenger cars.

 The tariff for trucks and buses is 1%.

 The tariff for auto parts (HTS 8407-08 and 8708) is 1% percent.

 El Salvador was the first country to implement the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR). Most U.S.-origin automotive parts received immediate tariff elimination when the agreement came into force. Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to back weighted 10 year tariff phase-outs (most of the tariff cut occurs in the last several years).

Taxes:

 The Value Added Tax (VAT) is 13%.

 Unlike new parts, importers of used, remanufactured and rebuilt parts do not have to show an invoice from the manufacturer to calculate the 13% which is estimated by Salvadoran Customs authorities.

Import Restrictions:

 El Salvador maintains restrictions on the import of passenger vehicles older than eight years, buses older than 10 years and trucks older than 15 years (from Article 1 of Decree No. 357 dated April 6, 2001).

Local/Regional Content Requirements:

 There are no local content requirements.

Other measures:

 The amount set forth in the commercial invoice is used to determine the tariff assessment for vehicles. If there is doubt about the accuracy of the stated price, Salvadoran Customs assesses its own value. For valuation of used cars, Customs uses N.A.D.A., Edmund's, the Truck Blue Book, The Older Car Red Book, The Truck Blue Book and the Motorcycle Red Book.

 Every automobile must come with a Certification of Gas Emissions from the manufacturer verifying it complies with applicable environmental standards. (According to Salvadoran Transit and Transportation Law, Official Publication No. 212, Book No. 329, dated November 16, 1995). This certification needs to be authenticated in the country of origin.

Membership in Trade & Economic Agreements:

 CACM - Central American Common Market

 Association of Caribbean States

 Dominican Republic

 Panama

 United States

 Chile

 Argentina

 Ecuador

 Peru

 Mexico

 Taiwan

 Colombia

 WTO

 GATT

GUATEMALA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

563,000

576,821

601,000

Commercial Use Vehicles

998,000

1,039,573

1,087,900

Source: Ward’s Motor Vehicle Data

Tariffs:

 passenger cars – (5 passengers or less) 20%, (6-9 passengers) 15%

 trucks and buses – 5-10%

 automotive parts – 20%

 The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) was implemented with Guatemala on July 1, 2006. Most U.S.-origin automotive parts received immediate tariff elimination when the agreement came into force. Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to back weighted 10 year tariff phase-outs (most of the tariff cut occurs in the last several years).

Other Measures:

 Many importers report that Guatemalan customs arbitrarily assigns values to imported products.

 In Guatemala City, model year restrictions exist preventing the operation of buses in the city by denying permits to use them.

Membership in Trade & Economic Agreements:

 CACM - Central American Common Market

 Association of Caribbean States

 Dominican Republic

 Panama

 United States

 Chile

 WTO

 GATT

HONDURAS - New Motor Vehicle Sales (in units)

2006 2007 2008

Personal Use Vehicles

2,387

2,597

2,486

Commercial Use Vehicles

9,060

14,054

13,239

Total Motor Vehicles

11,447

16,651

15,725

Source: Auto Strategies International Inc.

Tariffs:

 The tariff applied to cars is 3.4 percent.

 The tariff applied to trucks is 6.8 – 10.2 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is 0 percent.

 The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) was implemented with Honduras on April 1, 2006. Most U.S.-origin automotive parts received immediate tariff elimination when the agreement came into force. Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to back weighted 10 year tariff phase-outs (most of the tariff cut occurs in the last several years).

Taxes:

 A general 12 percent sales tax is applied to most products. Trucks are exempted from this tax.

 A Special Consumption/luxury tax on new cars is 10 percent.

Import Restrictions:

 Under the Financial Balance and Social Protection Act (Article 7 of Decree No.

194-2002 from May 15, 2002), imports of ground motor vehicles over seven

years old and passenger buses over thirteen years old are prohibited, except for

those considered to be classic collectible cars. The CAFTA-DR agreement does

not address this trade restriction.

 Imports of right-hand drive vehicles are also prohibited.

Local/Regional Content Requirements:

 There are no local/regional content requirements.

Other Measures:

 There are no import licensing requirements for imports of vehicles and auto parts.

Membership in Trade & Economic Agreements:

 CAFTA-DR (U.S.-Central America-Dominican Republic Free Trade Agreement)

 CACM – Central American Common Market

 Association Agreement European Union- Central America

 WTO

 FTA Central America - Panama

 FTA Central America –Chile

 FTA CA3-Colombia

 FTA CA3- México

 FTA Central America – Dominican Republic

 FTA Honduras-El Salvador-Taiwan

 FTA Honduras-Canada (Negotiation completed. Pending ratification in Congress)

JAMAICA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

139,000

141,400

143,800

Commercial Use Vehicles

36,000

36,500

37,000

Source: Ward’s Motor Vehicle Data

Tariffs:

 passenger cars –5-40%

 trucks and buses – 0-10%

 automotive parts – 0-25%

Other Measures:

 Import licensing is required for some motor vehicles and parts. An import license for motor vehicles can be granted every three years in the case of a private importer. The number of vehicles that may be imported by a dealer is not limited. Car dealers must meet a number of preliminary conditions: they must be approved and certified by the Ministry of Commerce and Technology and registered under the Companies Act 1965, offer guarantees to clients, and maintain spare parts facilities and stocks. Inspection and re-certification of dealers are made annually by the Ministry of Commerce and Technology.

Import Restrictions:

 The age of motor vehicles that can be imported was reduced in April 2003 from four to three years for cars and from five to four years for light commercial. Special waivers are available for older cars.

Membership in Trade & Economic Agreements:

 CARICOM - Caribbean Community and Common Market

 Association of Caribbean States

 Dominican Republic

 Colombia

 Venezuela

 WTO

 GATT

NICARAGUA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

94,300

112,000

113,200

Commercial Use Vehicles

305,000

176,000

177,600

Source: Ward’s Motor Vehicle Data

Tariffs:

 passenger cars – 5-10%

 trucks and buses – 0-5%

 automotive parts – 5-10%

 The Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) was implemented with Nicaragua on April 1, 2006. Most U.S.-origin automotive parts received immediate tariff elimination when the agreement came into force. Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to back weighted 10 year tariff phase-outs (most of the tariff cut occurs in the last several years).

Taxes:

 Although the 1997 tax law eliminated many special tax exemptions, investors still express frustration at the arbitrary and centralized decision making in taxation and customs procedures.

 Tariffs and import taxes for most used goods are not assessed on a CIF/bill of lading basis, but rather on a "reference price" determined by Customs at the time of entry inspection. This reference price can be significantly higher than the actual amount paid by importers. Presentation of a bill of sale (or other evidence of purchase price) certified by a Nicaraguan consular official is often, but not always, accepted by Customs inspectors as proof of the value of used goods.

 A luxury tax is levied through the selective consumption tax (IEC) on many items. Cars with large engines (greater than 4000 cc) face an IEC tax of 25 percent. Vehicles with smaller engines are charged between zero and three percent IEC tax.

Other Measures:

 The government has established a mandatory registration for importers (RNI). Importers claim that the RNI creates additional costs, since they must be cleared by several agencies that have nothing to do with many importer's commercial activities (i.e., the tax agency, Nicaraguan customs, the electricity distribution company, and the ENITEL telephone company).

 The Consumer Protection Law enacted in 1995, as well as its regulations promulgated in 1999, introduced product labeling standards and consumer rights to Nicaragua. While most U.S. products will likely meet Nicaraguan regulations by following U.S. guidelines, the following should be noted: the label must list product origin, contents, price, weight, production date, and expiration date.

 Although information is required to be in Spanish, historically Nicaragua has not enforced its language requirements.

Import Restrictions:

 The Ground Transportation Law (2005/524) prohibits the import of motor vehicles that are more than 10 years old.

Membership in Trade & Economic Agreements:

 CACM - Central American Common Market

 Association of Caribbean States

 Dominican Republic

 Panama

 United States

 Chile

 Argentina

 Ecuador

 Peru

 WTO

 GATT

PANAMA - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

380,401

453,510

525,000

Commercial Use Vehicles

105,201

108,117

111,700

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff applied to new cars is 18 percent of the CIF value if is less than USD$

20,000

 The tariff applied to new cars is 23 percent of the CIF value if is between USD$

20,000 and USD$25,000

 The tariff applied to new cars is 25 percent if the cost exceeds USD$ 25,000.

 The tariff applied to trucks is 10 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is between 5-15 percent.

Taxes:

 Value Added Tax is 7 percent

Import Restrictions:

 There are no import restrictions on new or used cars and trucks into Panama.

Local/Regional Content Requirements:

 There are no Local/Regional contents required for Panama.

Other Measures:

 Panama requires legalization of documents for products shipped by surface transportation. See the Guatemala section for an explanation of this procedure.

 Some auto parts import volume is limited.

Membership in Trade & Economic Agreements:

 Association of Caribbean States

 Costa Rica

 Honduras

 Nicaragua

 El Salvador

 Dominican Republic

 United States

 Canada

 Mexico

 Colombia

 Chile

 WTO

 GATT

PARAGUAY – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

379,000

350,000

334,600

Commercial Use Vehicles

95,000

104,000

112,700

Source: Ward’s Motor Vehicle Data

Tariffs:

 Motor vehicle tariffs currently range from 10 to 20 percent depending on engine displacement.

 Truck tariffs range from 10 to 16 percent.

 Automotive parts (HTS 8407-08 and 8708) ranges from 0-19.5 percent (most in the 10-16 percent range).

Taxes:

 A transfer tax is applicable on all auto sales, and a separate registration fee is also charged in addition to any applicable municipal vehicle tax.

Other Measures:

 Not Applicable

Regional/Local Content:

 For trade among the MERCOSUR countries, all products that have at least 60 percent regional content are traded among these countries with a 0 percent import tax, although trade is not free. Only Paraguay allows imports of MERCOSUR made vehicles with 0 percent import tariff without restriction.

Import Restrictions:

 Not Applicable

Membership in Trade & Economic Agreements:

 Ecuador

 MERCOSUR

 Andean Community

 European Community

 Chile

 Egypt

 Bolivia

 India

 Mexico

 WTO

 GATT

 ALADI

PERU – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

860,366

927,698

963,776

Commercial Use Vehicles

771,460

809,016

823,768

Source: Ward’s Motor Vehicle Data

Tariffs:

 Under the US – Peru Trade Promotion Agreement, tariffs are on most U.S.-made automotive goods will be phased out in a 10 year period, declining by 10 percent per year.

 The tariff applied to pick-up trucks, both diesel and gas, with maximum cargo of 5 tons is to be reduced from 7% to tariff free by 2019

 The tariff applied to other vehicles varies between tariff free and 12% (reaching tariff free by 2019).

 The tariff for auto parts (HTS 8407-08 and 8708) is between zero and 12% (all tariff free by 2014) with most already facing no tariffs.

Taxes:

 Value Added Tax (VAT) is 19% and is broken into two parts:

o General Sales Tax is 17%

o Municipal Promotion Tax is 2%

 Selective Consumption Tax for imported new cars and light trucks is 10% of the C.I.F. value and the tariff amount

 Selective Consumption Tax for imported used vehicles is 30%

 All other imported vehicles and automotive parts are exempt from the Selective Consumption Tax

Import Restrictions:

 Imports of used tires and automotive parts are banned.

 Age restrictions allow for importation of diesel engines for passenger and cargo vehicles that are 2 years old and less. Other used vehicles, excepting used diesel engines, must be 5 years or less.

 Importation of the following used vehicles with diesel engines is prohibited:

o Vehicles with under 4 wheels

o Passenger vehicles with 8 seats or less (not counting driver)

o Passenger vehicles with 8 seats or more (not counting driver) but weighing less than 5 tons of weight

o Trucks weighing less than 12 tons

 Mileage restrictions prohibit importation of spark ignition engine vehicles that reach the following mileage (kilometers) at time of

nationalization:

o Trucks (all sizes) – 31,068 miles (50,000 km)

o Passenger vehicles with 8 seats or less (not counting driver) – 49,709 miles (80,000 km)

o Passenger vehicles with 8 seats or more but weighing less than 5 tons – 55,923 miles (90,000 km)

o Passenger vehicles with 8 seats or more weighing over 5 tons – 186,411 miles (300,000)

o Trucks weighing under 3.5 tons – 55,923 miles (90,000 km)

o Trucks weighing between 3.5 tons and 12 tons – 186,411 miles (300,000 km)

o Trucks weighing over 12 tons – 372,822 miles (600,000 km)

 Mileage restrictions prohibit importation of diesel engine vehicles that reach the following mileage at time of nationalization:

o Passenger vehicles with 8 seats or more weighing over 5 tons – 124,274 miles (200,000)

o Trucks weighing over 12 tons – 248,548 (400,000 km)

 All imported vehicles must have a Vehicle Identification Number (VIN).

 Importation of a vehicle damaged in a car accident is prohibited.

 The position of the steering wheel must have been manufactured on the left side. Importation of a car whose steering wheel is on the right or whose steering wheel has been moved to the left is prohibited. Vehicles entering the ports of Ilo and Matarani for reconditioning are exempt.

 Emissions cannot exceed current legal maximum.

 The following exceptions are not bound to the quality standards:

o Public sector donations

o National Diplomatic Services imports

o Age requirement is not waved for foreign administrative personnel or employees of Diplomatic Missions, Consular Offices, Representatives and Offices of International Organizations that are authorized by the Peruvian government

o Vehicles that fall between the national subheadings of 8703.21.00.10 and 8703.90.00.90 must be at least 35 years old to be considered for collection purposes. These vehicles may be imported for repair purposes but may not be done in CETICOS or ZOFRATACNA.

Other Measures:

 Require a Unique Customs Declaration (carried out in Peru), an invoice, bill of lading/airway bill.

 Insurance is optional

 Used vehicles requires the Type-Approval number and vehicle details according to the National Vehicle Regulations as well as the VIN on the Unique Customs Declaration

 New vehicles imported by someone other than the filer of the Type-Approval are required to provide proof by the manufacturer or Peruvian representative that the vehicle to be nationalized corresponds to the Type-Approval. A Certificate of Conformity can also be presented.

 Imported used vehicles require a verifying inspection.

 Remanufactured products currently must be sanctioned by their original manufacturer and be certified by remanufacturer. A number of specific remanufacturing processes must have taken place.

Membership in Trade & Economic Agreements:

 Andean Community

 Latin American Integration Association

 Free Trade Agreements with United States, Canada, Singapore, EFTA, Thailand, Japan, Mexico, Korea, Central America and China

URUGUAY - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

625,000

695,000

740,900

Commercial Use Vehicles

82,000

88,000

93,200

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff applied to cars is generally 23 percent. Lower tariffs and some exemptions within quotas apply to cars imported from regional (MERCOSUR) countries.

 The tariff applied to trucks is 7 to 8 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is 22 percent.

Taxes:

 Value Added Tax is 22 percent

 Special tax depending on fuel type: IMESI 46.7%

 Special Consumption tax:

o < 1000 cc 23%

o between 1000 and 1500 cc: 28.75%

o between 1500 and 2000 cc: 34.5%

o > 3000 cc: 46%

 A transfer tax is applicable on all auto sales.

Note: Because of taxes, in the best of cases a vehicle that costs $10,000 CIF, is sold to the public at $20,000 and in the worst of cases, at $40,000.

Import Restrictions:

 Imports ban on used vehicles.

Local/Regional Content Requirements:

 Regional Content Requirements: For the MERCOSUR countries (Brazil, Argentina, Uruguay and Paraguay) all products that have at least 60 percent regional content (30 percent of which must be from Argentina) to be traded duty free.

Membership in Trade & Economic Agreements:

 Uruguay has bilateral investment treaties with several countries – including one with the United States (signed in 2005) – and several Double Taxation Agreements (none with the United States). Ecuador, Finland, Germany, Hungary, India, Liechtenstein, Malta, Mexico, Portugal, Romania, South Korea, Spain and Switzerland. Agreements with Belgium, United Arab Emirates and Vietnam are pending parliamentary ratification.

 Uruguay has free trade agreements, both on a bilateral basis and as a member of MERCOSUR, with most countries in South America plus Mexico.

VENEZUELA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

2,480,000

2,531,529

2,546,037

Commercial Use Vehicles

789,000

807,867

814,283

Source: Ward’s Motor Vehicle Data

 Article 10 of the new auto regime (published on October 31, 2007) requires all vehicles, both import and assembled in Venezuela, to run on natural gas and gasoline interchangeably. Minister of Popular Power for Energy and Petroleum (MENPET) and

President of Petroles de Venezuela S.A. (PDVSA) Rafael Ramirez, has said all new vehicles sold in Venezuela after January 1, 2008 must have a pre-installed natural gas converter kit. MENPET and PDVSA have imported 50,000 natural gas converter kits and will distribute them to assemblers for free. Despite vehicle sales reaching nearly 500,000 in 2007, Ramirez said PDVSA only plans on importing 100,000 kits in 2008. He added that if there was a need for more kits, PDVSA would import more. Importers and assemblers report that the dual use requirement is impossible to meet by July 1 and will in fact take years to meet because vehicles and production lines must be redesigned. Diesel engines cannot use natural gas because their method of igniting fuel cannot be altered.

 The October 2007 auto regime also imposes strict import quotas which are drastically lower than 2007 imports. Each company must submit a plan by November 30, 2008. Included in this quota is a prohibition on importing vehicles with motors larger than 3 liters.

 Strict foreign exchange controls are causing severe problems in the auto industry, restricting importation of parts and equipment.

Regional/Local Content:

 Under the Andean Automotive Policy, a regional/local content scheme was established so that vehicles and parts could be traded amongst all three countries duty-free. For example, the 1995-96 minimum requirement was set at 30 percent for automotive parts and passenger vehicles with a capacity of up to 16 persons and merchandise transport vehicles of a total weight of 4.5 tons (Category 1), and at 15 percent for other types of vehicles (Category 2).

 To enjoy the privilege of importing CKD material with a three percent import duty, assemblers must incorporate local content of 33 percent for Category 1 and 18 percent for Category 2.

 The regional content requirement in 2000 was 24.8 percent, and will increase to 34.7 percent by 2009.

Taxes:

 Value Added Tax - 18 percent (17 percent from October 1, 2015)

 Sales Tax on vehicles with conventional engine -83 percent

 Sales Tax on hybrid vehicles -30 percent (until 2017)

 Sales Tax on plugin vehicles -20 percent(until 2017)

 Sales tax on EV-10 percent

 Port Tax -1.5 percent

Import Restrictions:

 Imports of used automobiles up to two years old are allowed and that meet Israeli homologation standards

 Imports of certain remanufactured, rebuilt, and/or used motor vehicle parts is permitted

 Imports of used tires are allowed for retreading purposes only.

Local/Regional Content Requirements:

 No local content requirement exists

Other Measures:

 Import license is required for importers of vehicles and auto parts.

 Every automobile must come with a technical report verifying it complies with applicable environmental standards.

Tariffs:

 As a member of the Complementary Convention in the Automotive Sector and/or Andean Automotive Policy with Colombia and Ecuador, Venezuela shares common external automotive tariffs ranging from 20-35 percent for automobiles (most are at 35), 5-35 percent for trucks and buses (most are at 15; 10 percent for Ecuador), and a concession rate of 3 percent for CKD kits available to assemblers participating in the regional/local content scheme (see below).

 Automotive parts (HTS 8407-08 and 8708) tariffs range from 5 to 15 percent.

Taxes:

 VAT 14.5 percent, based on price of vehicle: CIF value, plus duty paid, plus customs fee

 Transfer/local customs and service tax (5 percent), based on CIF value

 Customs handling fee (2 percent), based on CIF value

Other Measures:

 Local assemblers are free to assemble vehicles of any model and are also allowed to import vehicles. However all local assemblers are subject to a "Foreign Exchange Program.”

 There are no labeling, marking or packaging requirements. Since there is some resistance by end users against non-identifiable manufacturers or countries of origin, it is advisable to print on the package or label the name of the manufacturer and his address or at least "Made in the USA". In the case of generic parts, it is helpful to list the automobile brands, model and model years for which the component is applicable.

 Luxury Tax: 10 percent over $30,000.

Import Restrictions:

 The Andean Automotive Policy prohibits imports from other countries of used cars, trucks, and buses, as well as new vehicles from previous years. It also bans trade in these vehicles among the member nations.

 Venezuela legislation published on October 31, 2007 limits vehicle imports to 219,000 units for 2008. The new auto import regime requires importers to solicit a license from the Ministry of Light Industry and Commerce (MILCO) for authorization to receive foreign exchange for the importation of assembled vehicles. According to the new policy, the approval of these licenses depends on "national need, the capacity of national production, model cost, historic sales, and the efficient use of fuel."

Membership in Trade & Economic Agreements:

 Andean Community Member

 ALADI

 CARICOM

 Chile

 Costa Rica

 El Salvador

 Guatemala

 Guyana

 Honduras

 Nicaragua

 Trinidad and Tobago

 Andean Community – MERCOSUR

 Andean Community - European Union

 Group of Three

 WTO (no parts bindings)

 GATT

MIDDLE EAST COUNTRIES SURVEYED:

IRAN – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

3,195,000

3,332,000

3,515,700

Commercial Use Vehicles

830,000

859,000

884,200

Source: Ward’s Motor Vehicle Data

 U.S. companies are not allowed to export goods and services to Iran as outlined by Executive Orders 12613, 12957, and 12959.

 In early 1992, Iran lifted its 10-year ban on automobiles.

 Individuals are now allowed to import permitted makes including: Mercedes Benz, BMW, Volkswagen, Peugeot, Volvo, Mitsubishi, Honda, Subaru and Toyota.

ISRAEL - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

2,164,385

2,246,053

2,338,687

Commercial Use Vehicles

397,230

391,198

386,054

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff applied to cars is 0 percent.

 The tariff applied to trucks is 0 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is 0 percent.

Membership in Trade & Economic Agreements:

 U.S-Israel FTA

 OECD

 WTO

JORDAN – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

819,706

891,000

969,600

Commercial Use Vehicles

129,706

131,000

132,400

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff applied to cars is 0 percent.

 The tariff applied to trucks is 0 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is 0 percent for American made and 10-30% from other countries.

Taxes:

 Sales Tax is 16 percent on all type of vehicles except farming tractors, it is 0 percent.

 Special Tax: Passenger Vehicles 56 percent, Pick Ups 30 percent, Pick Up (manufactured within the continental USA, Certificate of origin clearly states that it is manufactured in the USA, shipped from a USA Port and most importantly its rear bed length is at least 50% or more than its wheel base) 0 percent, Vans 30 percent, Trucks less than 4.5 tons 30 percent, Trucks more than 4.5 tons 0 percent, Farming tractors 0 percent.

 Income tax: 2 percent for all type of vehicles.

Import tips:

 Imports of used automobiles are allowed with no age limitation; however, personal vehicles imported cannot be more than ten years old.

 Imports of used spare parts are allowed with no age limitation.

 In order to get the full 15% exemption, vehicles must have engines that have 1600cc capacity or less, must have 3-point safety driver/passengers seat belts, outside rear view mirrors, inside rear view mirror, collapsible steering wheel column and a minimum driver’s airbag.

 Calculations are based on CFR values of vehicle converted to Jordanian Dinar. (JD1 = $1.41)

 There are also additional fees such as inspection fees by Customs Dept. and Registration Dept. Furthermore, fees are paid for inspection of vehicles at Aqaba Port. Total amount of fees does not usually exceed JOD 50.-/vehicle. ($70)

Import Restrictions:

 Imports of used trucks older than three years are not allowed.

 Vehicles tinted windows should not exceed 10%.

 Imports of used tires are not allowed except for retreading purposes.

Other Measures:

 An import license is required for imports of vehicles and auto parts to Jordan.

Membership in Trade & Economic Agreements:

 Jordan signed a Free Trade Agreement (FTA) with the U.S. and now it is fully implemented.

KUWAIT - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

1,260,000

1,326,000

1,408,500

Commercial Use Vehicles

325,000

336,000

345,600

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff applied to cars is a flat five percent on all imported products.

 The tariff applied to trucks is a flat five Percent.

 The tariff for auto parts is five percent.

Taxes:

 Value Added Tax is N/A

 Special tax depending on fuel type is N/A

 Luxury tax is N/A

 Special Consumption tax is N/A

 A transfer tax is N/A

Import Restrictions:

 More than five year old vehicles are not allowed to import.

 Imports of remanufactured, rebuilt, and/or used motor vehicle parts are not authorized.

 The import of automobiles and light trucks (under five tons) over five years old is prohibited under law no. 147 of December 27, 2000. Only Five Year Old all kind of vehicles

 Imports of refurbished and right-hand drive vehicles are prohibited.

Local/Regional Content Requirements:

 Nothing is locally manufactured, so such laws are not applicable in this sector.

Tariffs:

 The tariff applied to cars is 10 percent.

 The tariff applied to trucks is 10 percent.

 The tariff for radiators, filters and nails is 12 percent, all other spare parts is 5 percent.

Taxes:

 No VAT or other taxes added to sales price.

Import Restrictions:

 Imports of remanufactured, rebuilt, and/or used motor vehicle parts are not authorized.

 The import of automobiles and light trucks (under five tons) over five years old is prohibited under law since 2005.

Local/Regional Content Requirements:

 No local content regulations or import restrictions

Other Measures:

 None

Other Measures:

 Importers in Kuwait need an import license to import new/used vehicles. American made vehicles are imported without any issues, which means US standard are accepted here in Kuwait.

Membership in Trade & Economic Agreements:

 Egypt

 India

SAUDI ARABIA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

3,614,000

3,803,000

4,039,500

Commercial Use Vehicles

1,994,000

2,044,000

2,088,800

Source: Ward’s Motor Vehicle Data

Membership in Trade & Economic Agreements:

 Saudi Arabia signed a Trade Investment Framework Agreement with U.S. in July 2003

 Saudi Arabia joined the World Trade Organization (WTO) in December 2005

UNITED ARAB EMIRATES (UAE) - Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

1,812,000

1,945,000

2,096,700

Commercial Use Vehicles

115,000

120,000

124,300

Source: Ward’s Motor Vehicle Data

Tariffs:

 The tariff applied to cars is 5 percent (5% customs duties on value of the vehicle + 1% insurance + cost of the shipment).

 The tariff applied to trucks is 12 percent.

 The tariff for auto parts (HTS 8407-08 and 8708) is 5 percent (custom duty @ 5% on total CIF value. However, Customs may charge different increased percentages according to commodities).

Taxes:

 Value Added Tax is 0 percent

 Special tax depending on fuel type – N.A.

 Luxury tax – N.A.

 Special Consumption tax – N.A.

Import Restrictions:

 The vehicle must be in conformity to the State standards and its steering wheel must not be modified.

 There must be no damages on the vehicle’s outer body. If damage occurs at the arrival port, a certificate from the competent authorities is required to be submitted accordingly.

 Vehicles that have been subject to accidents such as drowning, fire, collision, rollover, etc., are not allowed to be imported.

 Vehicles used as a taxicab or by police are not allowed to be imported.

 The importer's residence authorization (Residency) must be valid if the importer is not a citizen of any of the GCC States.

 It is permissible to import more than one vehicle per year if the importer does not have a commercial registration legalizing business activity in vehicle sale and import.

Procedure:

 Submit the required documents including the certificates issued by the traffic department from the country of export and shipping documents to customs.

 Pay customs duties.

 Customs will view the vehicle in order to ascertain that the value given in the export declaration is correct. If the value is inconsistent with that of the invoice, one will have to pay the duties based on the customs estimation.

 After paying the customs duty, one will be given a certificate of registration addressed to the Traffic & Licensing Department.

 Approach the Traffic & Licensing Department to register the car locally.

Local/Regional Content Requirements:

All cars and buses entering UAE beginning in model year 2013 will have to abide by safety regulation imposed by the Emirates Authority for Standardization and Metrology (ESMA), viz.:

 Head restraints in all seats and air bags for the driver and the front passenger compulsory for all passenger cars and buses with capacity up to 22 passengers.

 Anti Braking System (ABS) to be installed in all new vehicles as well as safety belts.

 Extra seats in the aisles prohibited for any motor vehicle with a riding capacity of four people or more.

 Every vehicle should have an alarm to notify when drivers exceed speed limit of 120 km in cars and 100 km on buses.

Other Measures:

Required Documents:

 Original invoice (for new cars).

 Original Certificate of Origin (for new cars).

 Export declaration for the vehicle from the customs department in the country of export.

 Certificate of vehicle export from the traffic department in the country of export.

 Valid vehicle insurance certificate.

 Copy of identification document of the importer or a copy of trade license if the importer is a business person.

Membership in Trade & Economic Agreements:

 Gulf Cooperation Council Customs Union

 GCC and Singapore

 GCC and European Free Trade Association (EFTA)  Switzerland, Norway, Iceland, the Principality of Liechtenstein and New Zealand

Proposed FTA (holding agreement talks):

 Australia  The European Union  Japan  China, India, Pakistan  Korea  Group of Mercosur which include Brazil, Argentina, Uruguay and Paraguay.

ASIA, ASEAN AND OCEANIA COUNTRIES SURVEYED:

EAST ASIA

CHINA – Vehicles in Operation (in units)

2011 2012 2013

Personal Use Vehicles

43,220,000

52,165,000

55,930,000

Commercial Use Vehicles

50,280,000

52,275,000

63,580,000

Source: Ward’s Motor Vehicle Data

The Government of China has viewed its automotive sector, including the auto parts industry, as a pillar industry for many years. China continues to be the World’s largest automobile market in 2014. Auto sales grew at a compound annual rate of nearly 17 percent between 2003 and 2014, according to PricewaterhouseCoopers. Vehicles can be imported from the car manufacturers or through parallel importers, which are registered businesses in Shanghai, Guangzhou, or Tianjin Free Trade Zones.

China plans to increase production of new energy autos and parts by 35 percent annually, dedicating more than $18 billion in government support to the sector through 2020. If achieved, China will very likely become the world’s leading producer of electric and hybrid vehicles and their key components by 2030. The Chinese government’s 12th Five-Year-Plan (2011-2015) includes specific directives to steer the nation toward energy-efficient vehicles, specifically New Energy Vehicles (NEVs), as a way to combat petroleum imports and oil dependency, as well as to build new industrial capacity. The Made in China 2025 Strategy for auto industry targets 1 million in sales of pure electric and plug-in hybrid cars by 2020, and 3 million in sales by 2025.

The China Compulsory Certificate mark, commonly known as a CCC Mark, is a compulsory safety mark for many products imported, sold, or used in the Chinese market. The CCC mark is required for both Chinese manufactured and foreign imported products. The GB Standard (GB stands for Guobiao, or “National Standard”) is the basis for testing products that require certification.

Product name

HS code

GB Standard

Seat belt

8708

GB14166-2003

Tire

4011100000

4011200090

4011990090

4011100000

4011200090

4011990090

GB 9744

GB 9743

Safety glass products

7007-7008, 8708

GB 9656

Headlamp

8512

GB4599-2007

Front position lamp/ rear position lamp, parking lamp, outline marker lamp, braking lamp

8512

GB 4660-2007

GB 15235-2007

GB 11554-1998

GB 18409-2001

GB 17509-1998

GB 5920-1999

GB 18099-2000

GB 18408-2001

Turning-signal lamp

8512

Reversing lamp

8512

Front fog lamp, rear fog lamp

8512

Rear license-plate light

8512

Side-marker lamp

8512

Seat and head restraints

9401201000

9401209000

8708995900

9401901900

8302300000

GB15083-2006

GB11550-1995

GB13057-2003

Brake hose

8708309100

8708309200

8708309400

8708309500

8708309600

8708995900

8708309990

GB16897-1997

Rear-view mirror

7009100000

GB15084-2006

Fuel tank

8708299000

8708995900

GB18296-2001

Horn

8512301100

GB15742-2001

Interior trimming material: floor covering, seat shield, decorating scale boards (inside door shield/panel, front wall inner shield, side wall inner shield, rear wall inner shield, roof liner)

4016910000

GB8410-2006

Door lock and door hinge

8301-8302

GB 15086-2006

Engines

8702-8705

http://www.cnca.gov.cn/tzgg/ggxx/ggxx2015/201508/t20150805_41254.shtml

China has imposed antidumping and countervailing duties on imports of saloon cars and cross-country cars (with engine displacement >2.5 liters) from U.S. producers and exporters at the following rates:

AD Rate

CVD Rate

General Motors

8.9%

12.9%

Chrysler Group

8.8%

6.2%

Mercedes-Benz

2.7%

0%

BMW

2.0%

0%

Honda

4.1%

0%

Ford

21.5%

0%

“All others”

21.5%

12.9%

Tariffs:

 The tariff applied to motor vehicles is the MFN rate—25 percent of FOB price

Taxes Levied for Imported Vehicles:

 Value Added Tax is 17 percent

 Consumption tax depends on the engine capacity, and applies to imported vehicles only.

Engine displacement

Consumption tax

Less than 1 liter

1%

1.0 liter < displacement <1.5 liters

3%

1.5 liters < displacement <2.0 liters

5%

2.0 liters < displacement <2.5 liters

9%

2.5 liters < displacement <3.0 liters

12%

3.0 liters < displacement <4.0 liters

25%

Displacement > 4.0 liter

40%

 Purchase tax is 10 percent

The method of basing tax rate on vehicle price shall be adopted for calculating the taxable amount of vehicle purchase tax. The formula for calculating the taxable amount of vehicle purchase tax shall be:

Taxable amount = Taxable price × Tax rate

 Vehicles and Vessel Tax (varied on provinces and cities)

Engine Displacement

Vehicle and Vessel Tax Range (in RMB)

Vehicle and Vessel Tax Range (in U.S. $)

Exchange rate: 1 U.S. $ = 6.3 RMB

Less than 1 liter

60-360

9.5-57

1 liter < displacement < 1.6 liters

300-540

47.6-85

1.6 liters <displacement < 2.0 liters

360-660

57-104

2.0 liters <displacement <2.5 liters

660-1200

104-190

2.5 liters <displacement <3.0 liters

1200-2400

190-380

3.0 liters <displacement < 4.0 liters

2400-3600

380-571

More than 4.0 liters

3600-5400

571-857

Buses

480-1440

76-228

Trucks

16-120 per ton

2.5-19

Trailers

50% of trucks

1.25-9.5

Motorcycles

36-180

5.7-28.5

 Used vehicle are prohibited to be imported into China

Combined tax rate = tariff (25%) + consumption tax (1% - 40%) + VAT (17%) + Purchase tax (10%) + Vehicle and Vessel Tax + possible AD/CVD duties

Taxes Levied at the Purchase Stage for Domestic Manufactured Vehicles:

 Value Added Tax is 17 percent

 Purchase Tax is 10 percent

 Vehicles and Vessel Tax

JAPAN - Vehicles in Operation (in units)

2011 2012 2013

Taxes:

 Japan currently levies an 8 percent consumption tax on vehicles. This tax was increased from 5 percent in April of 2014. The Japanese government is considering raise the consumption tax to 10 percent on April of 2017.

 In addition to the consumption tax, there is an annual automobile tax, which increases by engine size, ranging from 29,500 to 111,000 yen. An additional 10% tax is levied on