General information of Total Landed Cost for Importing Vehicles from Japan, the source Autorec.com
Vehicles are import duty free but have different rates of Excise duty imposed on the different classes of vehicles. Excise Duty is calculated on the CIF ( value of the duty = VFD ). Following percentage of CIF price are required as Excise Duty :
- The big buses or vans, designed to carry 10 or more passengers (Toyota BB40, LH125, LH184, MMC PC5W etc )
- Sedans, Hatch-back, Coupe, Mini-vans, Station wagons, ( Toyota Landcruiser Prados, MMC Pajero etc) are designed for transport of persons with a sitting capacity of nine "9" persons or less including the driver
- Excise duty is dependent on engine capacity
- Engine capacity up to 2700cc - 60% ( TOYOTA 2L, NISSAN TD27, MITSUBISHI 4D35 etc )
- Engine capacity over 2700cc - 110% ( TOYOTA 1KZ, MITSUBISHI 4M40 etc )
- Double cabin Truck ( Toyota Hilux LN107, LN167, Mitsubishi Strada K34T, K74T etc )
- vehicles designed for the transport of goods such as utilities, single cabin trucks, dump trucks
- All are at 10% excise duty rate
- All vehicles then have GST at 10% calculated on - the Value of the vehicle plus any duty
- GST is calcuated of 10% of ( CIF + Excise Duty )
- Custom clearance fee are also required apart from Excise Duty and GST
- It cost from PNG Kina 1500 - 2000 ( US$ 500 - 700 )
Att : Custom clearance fee are slightly different depend on local custom clearance agent.
Required landed cost are included Excise Duty ( 1 ) + GST ( 2 ) + Custom Clearance fee ( 3 )
Therefore!!
Total Landed Cost are calcuated as added to CIF + Excise Duty ( 1 ) + GST ( 2 ) + Custom Clearance fee ( 3 )
You are required to ready total landed cost to purchase from Japan.
Example of Duty Calculations
Shall we confirm total landed cost using example!!
Terms of Delivery are CIF contract.
If you purchase vehicles price as US$ 3,000 CIF, total landed cost become following:
US$ 3,000 - CIF (Cost, Insurance, Freight - all included in value)
Engine capacity - less than 2700cc ( = Excise duty is 60% of CIF )
| Sedan Duties: - | Free of Import duty |
| 60% Excise duty |
| 10% GST |
| Custom Clearance Fee PGK 2,000 ( as average ) |
Value for duty (VFD) = US$ 3,000 / 0.34 (US Selling Exchange Rate)
VFD (CIF) = PGK 8,823
Estimated Duty for this Vehicle
| Excise Duty | = CIF x Rate |
| = 8,823 x 60% |
| = 5,293.80 |
| GST | = ((CIF) + Excise Duty) x 10% |
| = (8,823 + 5293.8) x 10% |
| = (14, 116.8) x 10% |
| = 1,411.68 |
| Total Duty | = Excise Duty + GST |
| = 5,293.8 + 1,411.68 |
| = PGK 6,705.48 |
Then Custom Clearance Fee PGK 2,000
= Excise Duty + GST + Custom Clearance Fee
= 5,293.80 + 1411.68 + 2,000
= PGK 8,705.48
Above PGK 8,705.48 would be needed to pay when this vehicle would be arrived at Papua New Guinea.
if contracted CIF price are US$ 3,000 ( PGK 8,823 ),
It would need PGK 17,528 ( PGK 8,823 + 8,705.48 ) as Total Landed cost ( driveaway cost )
Please contact
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if you would like to confirm expected total landed cost or contact local Custom Clearing Agent.
How To...
