Importers find it complicated and difficult to understand how to calculate duty when importing a car into Kenya , so we’re going to look at the whole process of calculating duty and the relevant charges on the same in this article.
- Customs Duty
Customs duty depends on several factors to be considered as detailed below: This varies according to the vehicle you have imported.
- Car Brand – i.e., Toyota, Nissan, Honda, BMW, Land Rover, etc.
- Car Model – i.e., Corolla, Discovery, Sunny, 318i, Camry, etc.
- The Car Class – i.e., Station Wagon, Van, Sedan, etc.
- Manufacturing Year and Month – i.e., 2009/02 (February), 2010/06 (June), 2011/12 (December), etc.
- Engine Capacity – i.e. 1300 cc, 1500 cc, 1800 cc, 2000 cc, etc.
- Engine Transmission – i.e., Automatic or Manual.
- Fuel Type – i.e., Hybrid, Petrol or Diesel.
The reason why all of the above information is relevant is that when you buy a brand new car from the showroom, all the details listed above influence the total Current Retail Selling Price (CRSP) of the car.
Basically, CRSP is the price you are going to pay for a brand new version of the car you are importing (that is, if you import a 2003 BMW 520i, the CRSP is the brand new car price from the showroom).
- Calculation of Motor Vehicle Duty
Customs take the CRSP (Current Retail Selling Price) while calculating duty and then removing margin profit, depreciating it to the year of manufacture of the cars as per the stated depreciation rate, and subtracting the percentage taxes levied on the price. What Customs bases its values on is the remaining amount. The fees are calculated as follows:
- 25% of the amount as Import Duty
- 20% of the amount + Import Duty as an Excise Duty
- 16% of the amount + Import Duty + Excise Duty as VAT
- 25% of the amount as IDF Fee
As Customs Duty, the total is payable to the NBK (Kenya National Bank)/CO-OP bank (Kenya Co-operative Bank).
- CFS/Port Charges
The CFS (Container Freight Station) varies with the unit’s size (volume or cubic measurement) and the Yard, which the vessel unloads/discharges. The charges for vans such as Toyota Hiace is about Ksh. 30,000/- to 26,000/-, 4 wheel drive cars such as Prado is about Ksh. 34,000/- to 30,000/-, Saloon Cars such as Toyota Corolla NZE 11cbm about Ksh. 22,000/- up to 18,500/-. If cleared within a given period stipulated by the customs (i.e., 7 days), this is what you will pay. This is payable against Invoice from the Port/CFS.
- IDF Fees
The IDF (Import Declaration Form) are charged at a rate of 2.25% of the Customs Value cost. Irrespective of your imports, Ksh. 5,000/- must be paid in advance through the National Bank / Co-op Bank to the Treasury.
- Charges for shipping line-Delivery order fees
It usually averages Ksh. 10,000/- + VAT, which is equivalent to an average of Ksh. 12,000/-. Payable to the Vessel/ship agents who delivered your cargo and charged against their Invoice.
- Fees for Clearance
Clearing and Forwarding fees usually depend on your arrangement with the Clearing & Forwarding Agent. Mostly, it is going to range from Ksh. 15,000/-to 30,000/-for units and from 25,000 for containers. It is a negotiable fee paid to the clearing agent. Other costs that may be involved, but depending on your arrangement, are:
- Insurance – (according to your insurer)
- Driver Charges – (charges for the driver)
- Delivery – (fuel to your destination)
- Minor Car Service – (an excellent way to keep the car clean when delivered)
In the event that you have any further questions, feel free to ask. Alternatively, use the link below to access the online Car Import Customs Calculator.