ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Import A Car From Japan - Best Japanese Car exports - I Want to Import a Car from Japan

Updated on December 7, 2009

Why Import A Used Car?

Why should one be interested in importing a used car? It is either because of the following:

1. The total cost of importing the car is significantly less than the cost of similar cars in the local markets and show rooms

2. The model or the type of the car is not available in the local market

3. You are a car collector and the car in question is not in your collection.

Finding the car of your dreams

With the internet, this may take you a few hours or days depending on what you want. It is done like this: On the internet, go to Google Search and search for the car you want, say, “Used Toyota Corolla LE”, “Used Cars”, “Japanese Used Cars”, “Used Autos Exporters” and so on and so forth. Whatever you choose, Google will provide several pages with listing of probable exporters of used vehicles. It is through the web pages of the listed suppliers you will have to browse until you find the car you want.

Japanese used cars

Why Import A Used Car? If the total cost of importing the car is significantly less than the cost of similar cars in the local markets
Why Import A Used Car? If the total cost of importing the car is significantly less than the cost of similar cars in the local markets

Consider Price of the Car

You will have to consider the following:

 1. The price of the car – check if the price is free on board (f.o.b) price, cost and freight (c+f), cost insurance and freight (c.i.f) price

 2. The cost insurance and freight (c.i.f) price is the one you will need. If the supplier does not list the c.i.f price to the sea port of your destination, then you will have to email them for the c.i.f prices.

Your Local Clearing and Forwarding Agent

Now you have your chosen car and the cost insurance and freight (c.i.f) price to your local sea port. The next thing to do is to go to your local clearing and forwarding agent with your cost insurance and freight (c.i.f) price of your chosen car. You will need to ask them the following information which will be provided free and your local clearing and forwarding agent will be very happy to do so because they will be hoping to get business from you:

1. Your local clearing and forwarding agent fee to clear your chosen car through customs to your home or premises.

2. Maximum age of a car to be allowed to be imported in your country. Some countries have a limit of only 3 years; others have a limit of 8 years, whilst in some other countries there is no limitation.

3. Are there export inspection certificates required for importation of your car and which export inspection companies are allowed to do such inspection for the country where your car is originating from?

4. What are the custom duty and VAT rates for the model, age and engine rating of your chosen car?

5. Any other charges like storage charge rates, handling charges at your local sea port, etc.

6. Finally but very important: are there any other import regulations and restrictions administered by your country that would prevent importation of your chosen car?

Toyota Corolla LE used autos

What you started as a one used car importation has become accomplished selling of good used autos in high seas.
What you started as a one used car importation has become accomplished selling of good used autos in high seas.

Take Your Imported Car for a Road Test

At last your “new” car will be delivered to you. You will be happy. You can as well be sad. Take it for motor vehicle registration if they will not have done so at the point of entry. Get it a road license and get it a road insurance policy – all these cost money. Next take it for a road test, drive with your spouse and children in it, let your girl friends and boy friends ride in it, go for your dad and mum – let them hike a lift in it – they will bless it. Let everybody knows there is a new machine in town by the name “used car”. This is a great success, spread the word but do not tell them you paid anti-dumping tax.

Enough Money in Bank

With this information at hand, the next question you need to ask yourself is whether you have enough money. You need to have enough money in bank because when things start flowing, they move very fast you may not have time to look for more money, resulting in heavy penalties.

Toyota Corolla LE from Japan

And now making the final decision as to whether your chosen car is a good price so you can proceed with importation. Let’s look at an example that you are in London and you want to import a 2 years-old used car, Toyota Corolla LE from Japan. To calculate the final price of your car up to your home or premises, let’s assume your Japanese supplier and your local clearing and forwarding agent have given you the following quotes:

1. FOB price of Toyota Corolla LE equals $4700.00

2. Freight cost to a sea port near London equals $720.00

3. insurance cost up to the port equals $200.00

Total C.I.F

Total c.i.f up to a sea port near London equals 4700+720+200 equals $5620.00

4. Custom duty rate is 20% of fob price equals $940.00

5. VAT rate is 15% of c.i.f equals $843.00

6. Handling rate is $30.00 for Toyota Corolla LE equals $30.00

7. Storage rate is $0.00 for the first 5 days and $120.00 per day for Toyota Corolla LE equals $0.00 for you because you have enough cash in bank and your local clearing and forwarding agent is efficient, otherwise this is where you can regret ever attempting to import your chosen car. A delay of 15 days may mean an additional $1200 + VAT in storage charges.

8. Export inspection company fee of 2% c.i.f equals $112.40

9. Anti-dumping fee of 1.5% of c.i.f equals $84.30

Total Taxes

Total custom duties, taxes and port charges equal 940+843+30+0+112.40+84.30 equals $2009.70

10. Your local clearing and forwarding agent’s fee equals $350.00

11. Transportation charges from the sea port to your premises or home equals $90.00

Clearing and Forwarding Agent’s Fee

Total fee to pay your local clearing and forwarding agent and transportation equals $440.00

Total Cost of Importing Your Vehicle

The total cost of importing your vehicle from the Japanese supplier to your home or premises is equal to 5620+2009.7+440 equals $8069.70

Questions to Ask Yourself

If therefore the cost of a 2 years old Toyota Corolla LE is $14000.00 in the local market, you have to ask yourself the following questions in order to proceed with importation of your chosen used car:

1. Is investing $8069.70 to get a car valued at $14000.00 worthy the risks and bother?

2. If you would import your chosen vehicle successfully and make a small profit, can you import another used car and sell it through eBay so that you double your earning? And then another car, and another one?

Pro-Forma Invoice

Once you have made up your mind you want to proceed with importation of your chosen car, then you will have to get to your Japanese used car supplier and ask for the following through email:

1. Ask for a pro-forma invoice of your chosen used car from your Japanese used car supplier. The pro-forma invoice should show fob cost, insurance and freight prices. In addition it should show delivery date and that payment is by irrevocable letter of credit; repeat, payment is by irrevocable letter of credit. Its irrevocable letter of credit of credit because there is no way you are going to entrust $5620.00 to a stranger (Japanese used car supplier) you don’t know.

2. That your chosen used car will have to undergo a pre-shipment inspection by the company given to you by your local clearing and forwarding agent.

3. Name and address of your Japanese used car supplier’s bankers to enable your bankers initiate an irrevocable letter of credit.

Two Things to Do

Once you have the pro-forma invoice, there are two things you will need to do.

1. You will take one copy of the pro-forma invoice to your local office of the pre-shipment inspection company. Here you will have initiated a contract with the pre-shipment inspection company. Here the pre-shipment inspection company will send a copy of the contract to your Customs duty department to alert them of your importation of a used car. Another copy of the contract will be sent to pre-shipment inspection company offices in Japan alerting them to go and inspect your chosen used car before it is shipped.

2. You will have to take another copy of the pro-forma invoice to your bankers, foreign department dealing with letters of credit. Here, your bankers will put $5620 of your money in a reserve such that you can not withdraw that money. By initiating an irrevocable letter of credit, your bankers will confirm to your Japanese used car supplier’s bankers that $5620.00 will be sent to them immediately your chosen used car is shipped to you. Once your Japanese used car supplier receives this information from their bankers, they will ship your used car (after pre-shipment inspection) to you. The shipping company will give them a bill of landing which is as good as the certificate of ownership of your chosen used car. Your Japanese used car supplier will take the bill of landing to their bankers and will be credited with $5620.00 in return. The bill of landing will be forwarded to your banker who will give it to you. It is this bill of landing you will use to get your chosen used car from the shipping company. The whole transaction will take about 30 days and you should be able to get your bill of landing before your imported car reach your local sea port. Irrevocable letters of credit is the safest means of payment there is and is used in transacting international merchandise worthy trillions of dollars worldwide.

Bill of Landing

When you get that call from your bankers, go pick that bill of landing for your imported used car and immediately enter into a contract with your local clearing and forwarding agent to clear from customs your imported used car. Before the ship carrying your imported used car dock at your lock sea port, your local clearing and forwarding agent will have done most paper work so that as soon as your car arrives, it is immediately cleared from customs without you incurring storage changes. Penalty from storage changes is what makes importing a second hand car uneconomical - avoid it at all costs.

Get a Road Insurance Policy

At last your “new” car will be delivered to you. You will be happy. You can as well be sad. Take it for motor vehicle registration if they will not have done so at the point of entry. Get it a road license and get it a road insurance policy – all these cost money. Next take it for a road test, drive with your spouse and children in it, let your girl friends and boy friends ride in it, go for your dad and mum – let them hike a lift in it – they will bless it. Let everybody knows there is a new machine in town by the name “used car”. This is a great success, spread the word but do not tell them you paid anti-dumping tax.

Leverage for Huge Profits

Once this used car is with you, calculate again and again to see if you actually made a profit. If so, it’s time to leverage for huge profits. Ask your friends if they like your new machine of a used car. Mention the current local market prices of such cars. Note their reactions. If they do like your car, then this is the time to strike.

Showroom cum Storage

You may have noticed the ship will take a month to reach the used car to you. This should not discourage you – in fact this should be your showroom cum storage for selling used cars. With your new used car, list it on eBay. Soon your Toyota Corolla LE used car is sold off for, say, $14200. From your $8069.70 investment, you have made a cool $6000 profit.

Selling in High Seas

With your $6000 profit, repeat the same process this time importing 2 such used cars. But now you will need to ask your Japanese used cars supplier for fullest details and specifications including photos and videos. Once these two cars are shipped and are in high seas, list them with eBay such that when you make a sale, you will have your local clearing and forwarding agent deliver the used cars to your buyers instead of delivering them to your home or premises.

Accomplished Seller of Used Autos

So you see, what you started as a one used car importation has ended with you being accomplished seller of used autos who sell good used cars when they are on high seas.

The hubber's website is designed to help beginners and average readers make money online to supplement the few dollars they may be earning from their online trading – details of which you can find in my profile here, if you will.

International Copyright

The content of this hub is protected by international copyright and thereby protected throughout the planet earth from being copied by publishing on the internet or in any other manner used illegally. In the event of it being used illegally, proceedings will commence in any country without reference to the thief.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Japanese car exporter 

      6 years ago

      Browse Global star LTD Japan for all Japanese Used Cars. Categories: Auction, GLOBAL STAR LTD. is the trading company as exporter of Japanese used vehicles cars.

      http://www.gs-limited.com/

    • profile image

      gul 

      6 years ago

      i neade corolla japani car

    • profile image

      Calvi Young 

      6 years ago

      I need to know the ITS Fee for Mozambique

    • profile image

      raaj 

      7 years ago

      how can you tell the age of the japanese toyota vehicle

    • profile image

      Mizzblk 

      7 years ago

      Great car from Japan. Wow

    • profile image

      Brad 

      8 years ago

      We imported our car from Japan to Australia. We were living there so the import regulations are a little easier but it was the best option and made a nice little profit on the car as well.

      Great hub!

    • profile image

      imran 

      8 years ago

      i would like to know about to import car from japan to india

    • profile image

      Baby Crib Bedding 

      8 years ago

      This is an interesting hub. It may be time to do some research. Thanks for the infor.

    • earnestshub profile image

      earnestshub 

      9 years ago from Melbourne Australia

      Very informative and completeub thank you for thi most uefull nformation

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)