importing a car in the Philippines

Dear members,

I'm planning to import a car in the Philippines.
Actualy this is not a normal car but a car what is used for the transportation of invalid people,it contains a special lift for wheelchairs.
Can anybody tell me if i can get a lower import tax because it is used as a medical device.
It concerns a Opel Vivaro fully equiped for invalid people.
Thank you very much for your reply

Werner

Werner,

I think the only way to avoid extremely high import taxes (they may ask up to 100 % on vehicles, I heard incredible stories...)is to dissabsemble in Belgium and then import as 'car parts'

This is a common practice in Philippines for e.g. the suzuki small vans you see everywhere: they buy second hand abroad, in fact cut in two, re-assemble in Philippines, and that way it's possible to buy a van like that from 100.000 pesos ....

As I'll be setting up an import/export company in Philippines next year, maybe I can help... Don't hesitate to contact me. Might be helpfull as I am a Belgian too.

Rgds,

Joris

By the way I will probably be in Cebu end of the year...

hi Cebulover,

Heb er al weet van hoor dat het quasi onmogelijk is om een wagen te importeren , ben daarom al bezig om ginder eentje aan te schaffen en te prepareren.
Ik heb gelukkig goede contacten ginder in de auto industrie dus daar voorzie ik geen problemen mee.
In ieder geval bedankt voor je antwoord en hopelijk hoor ik je vlug (zie andere mail)^
Vriendelijke groet
Werner

I would not recommend dismantling and shipping over the car in balikbanyan boxes.  Customs has gotten wise to this practise and will likely seize it or give you a larger bill. Plus recommending it over the Internet is probably illegal.

I wouldn't exactly put it in Balik Bayan boxes, but cut it into pieces and import it as parts. Then you have 10 % import duties instead of 100 % or more..., but add of course some kind of special cusoms-fee if you know what I mean...

I think its easier to import the wheel chair lift and have it added to an Innova. The Philippinos are pretty creative in getting things to work.

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[at]werner1- you should write in English in this English speaking forum. Thank you.

Ok Christine , i will in the future , i'm sorry , thank you for telling me.
Sincerly
Werner

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Hello Brod

Can you tell me what will be the full price then for the import of the car , the 12% is based on what?
Thank you

Werner

Car Model (eg. Ford Mustang)                       
Year (year       
Acquisition price (US$)    0.00                   
Current Rate of Exchange 1    0.00                   
                       
"1In case the car was purchased in a different currency, include the current rate of exchange for the currency for which
the car was purchased (i.e. US$-Php-Euro)."                       
                       
                       
Value in US$    0.00        Duty    0.00       
Depreciation (10% per yr max of 9 yrs)    0%        Dutiable value in Php    0.00       
Dutiable value in US$    0.00        Miscellaneous    265.00       
Current Rate of Exchange    0.00        Total Landed Cost    265.00       
Dutiable value in Php    0.00                   
Rate of duty    30%        Ad Valorem Tax    0.00       
Duty (Php)    0.00        Total Landed Cost    265.00       
            Value Added Tax Base    265.00       
            Value Added Tax Rate    0%       
BIR EXCISE TAX BASIS            Value Added Tax (Php)    0.00       
                       
Value in US$    0.00        Summary :           
Depreciation (10% per yr max of 5 yrs)    0%        Duty    0.00       
    0.00        Ad Valorem Tax    0.00       
Rate of exchange    0.00        Value Added Tax    0.00       
Dutiable value in Php    0.00        Import Permit Fee (IPF)    0.00       
            TOTAL (Php)    0.00       
                       
Duty    0.00                   
Dutiable value in Php    0.00                   
Miscellaneous    7,200.00                   
Total Landed Cost    7,200.00                   
                       
Ad Valorem Base    7,200.00                   
Less:    0.00                   
    7,200.00                   
Ad Valorem Tax Rate    0%                   
    0.00                   
Add:    0.00                   
Ad Valorem Tax (Php)    0.00                   
                       
                       
Rates & bases of the Ad Valorem Tax on Automobiles                       
Net Manufacturer's Selling Prices    Tax Rate                   
Up to P600,000.00    2%                   
                       
Over P600,000 to P1,100,000.00    P12,000 plus 20% of the value                   
    in excess of P600,000                   
                       
Over P1,100,000.00 to P2,100,000.00    P112,000 plus 40% of the value                   
    in excess of P1,100,000.00                   
                       
Over P2,100,000.00    P512,000 plus 60% of the value                   
    in excess of P2,100,000.00                   
                       
"Note: This estimated computation may change at the time of actual payment due to foreign exchange factor.  Further, it's only an
          estimate and should not be taken as final.  The final payable tax will be based on the computation of the Bureau of Customs."

Sorry, give me a year, blue book value and I can run it through the BIR estimate.

Well the car is an Opel Vivaro , year 2007
The new price was 20.000 euro But ofcourse now its much more cheaper.
If the import is so expensive its maybe better to buy a second hand in the Philippines and install a carlift overthere?

Based on todays exchange rate (not sure what is was in 2007) that equates to USD27,000 or Php1,094,000 purchase price.

Summary :   
Duty    131,220.00
Ad Valorem Tax    29,034.00
Value Added Tax    84,872.28
Import Permit Fee (IPF)    1,000.00
TOTAL (Php)    246,126.28

You can buy a used Toyota Vios and install a chair lift without any issues. Plus you will be able to service it (parts wise).

yeah dhnindc is right, to be practical you must buy here a brand new car. I am a licensed customs broker, in terms of cars issues it is really hot items.

by the way there is another way which is not hustle on your part.
we can cater you by package deal, i will give you a package price it covers all expenses, processing in customs, and deliver the items door to door. just PM me. thanks!

i don't think you can import any vehicle older than 5  years  for  any amount, better  to buy here and  have  the  lift made here, should  be  no problem

Okieboy you are right if your car does not have any sentimental value to you you might buy a new one. if anyone have a problem of shipping there car to philippines just PM me. i am from cebu and davao.

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Cebulover :

I think the only way to avoid extremely high import taxes (they may ask up to 100 % on vehicles, I heard incredible stories...)is to dissabsemble in Belgium and then import as 'car parts'

This is a common practice in Philippines for e.g. the suzuki small vans you see everywhere: they buy second hand abroad, in fact cut in two, re-assemble in Philippines, and that way it's possible to buy a van like that from 100.000 pesos ....


Joris

I don't recommend this. I think you're asking for more trouble in the end, not only with customs but with whomever is riding in the van, and judging from the post about a wheelchair, I don't think it's safe for anyone, specially someone that may have a disability to be riding in the van. On top of that, the added cost on assembling the van is not practical unless you are very handy and have tools to put it together.

There's another way to competely avoid this and all legal without paying anything at all, but too lengthy to explain. 

I think you are better off in getting a decent used vehicle that hasn't been involved in any flood of some sort. Check out the used toyota vans.

Used cars are extremely expensive in Philippines, costs like double compared to Europe for the same vehicle. Assembly in Philippines on the other hand is extremely cheap, the labour cost is less then 20 % compared to Europe....

Not sure how you arrive at that conclusion. You can buy a new Ford Escape in Phils for P1.2 million (approx $30k). Same new car in US costs $23k. Escape is assembled in the Phils, same as Nissan Xtrail, Patrol, Honda city and a few others.

I was talking about used cars. New cars in Phills are slightly more expensive then same model in Europe.

Good  used cars all over, and  bank loan available, you would  spend  more  on bring parts and  assembly here, customs  and  other  tax and  red tape  would  eat  you up, importers of multi cabs are  Filipinos  with money and  resources you don't have, you don't start  an import business easy lot of  red tape  and  money

I'm certainly not looking to start a car or car-parts import business in the Philippines. I'm just saying I'd never buy a second hand car there, as I'll probably have to pay double the value. So i think it's better to save and buy a new one, and even then I doubt as most of the drivers seem totally crazy in the way they drive, and in case of accident, it's always the foreigner that is in the wrong, even when it's obvious the Filipino is responsible.

You can buy a good used car that is reasonably priced. Just stay away from the Euro models. A used Toy, Honda, Mits or Isuzu are all priced ok. Not sure where you are looking.

I have been hit by two taxis, just go to police and fill out report. In both cases, the police decided the taxi driver was at fault and ticketed him. Have insurance and let them take care of any damages.

dhnindc :

You can buy a good used car that is reasonably priced. Just stay away from the Euro models. A used Toy, Honda, Mits or Isuzu are all priced ok. Not sure where you are looking.

Good advice. The European cars are ridiculously priced cause of the tax. On top of that, for example, if you bring in a Mercedes van, and have it service at a reputable Mercedes dealer, they'll give you a hard time servicing the car at the dealer without an upfront fee because of their "trained service technician" and their "specialized tools". It's almost like a membership fee for having the car service there because your car was privately imported, unless of course you have a reputable mechanic that you know.


But, a lot of the cars nowadays have software and you need a code reader to make a diagnosis. A lot of times, you'll need one that's brand specific, where a universal code reader doesn't work on every car such as a BMW or Mercedes.

i have  a jeep Wrangler i paid  P60,000 i work on it  myself i replaced the  motor with a  larger turbo diesel, and  have  custom wheels and  a lift kit i can go just  about  any ware, if  you can afford a Mercedes or  BMW who cares what  it  cost  to have  it  worked on

Okieboy :

i have  a jeep Wrangler i paid  P60,000 i work on it  myself i replaced the  motor with a  larger turbo diesel, and  have  custom wheels and  a lift kit i can go just  about  any ware, if  you can afford a Mercedes or  BMW who cares what  it  cost  to have  it  worked on

LOL, I guess you missed my point. Besides, there are mercedes vans out  there that are as affordable as a Toyota van, you just have to know where to look. There's a lot of owners of BMW's or Mercedes, for that matter, any higher luxury car brand that once the warranty expires that they just get rid of their cars,specially when they are not handy and can't work on their own cars. It doesn't mean they can't afford the maintenance, it's just the car has more issues to deal with as the car gets older.

Well, this eventually adds up as the car gets older and no longer worth saving, might as well get a new car.
I don't know if your familiar with the Manila dealers, but there's a dealer here in Manila that I won't mention the name that want's Php300,000 up front to service the car as part of a service agreement for a privately imported car.

LOL, Just because one can afford a Mercedes or BMW, it doesn't mean one can't shop around for decent maintenance shop.

Come to Davao City no problem with dealers or  mechanics, no up front, Manila  is  the  last  place  you want to be  in the  Philippines, unless you have  no choice

Currently it is NOT advisable to Import any used Car into Cebu for "cheap".

The Customs Collector is extremely strict and plays by the Rulebook since last Year.
This is the theoretical rulebook :


The importation of privately owned vehicles (POV's) to the Philippines is very restrictive. The process is long, requires a great deal of paperwork, and a special import permit is required. This permit is available only in the Philippines, and can not be issued by an embassy or consulate office

CUSTOMER MUST BE PRESENT FOR CUSTOMS CLEARANCE
Only returning Filipino residents and foreign embassy diplomats are allowed to import motor vehicles "Duty Free"
All motor vehicles must have an Import Authority Permit issued by the Philippine Bureau of Import Service before the vehicle is shipped.
Owner must have lived abroad for at least one year and car must have been registered in his name at least six months if the car is more than three years old, vehicles more than three years old should be registered under shippers name at least one year prior to application of the Import Permit
Failure to comply with above will result in PENALTIES AND CONFISCATION of vehicle
Auto must arrive within 60 days of customer's arrival
Destination Agent must be contacted prior to shipping any vehicles
All vehicles subject to taxes and duties
Gasoline-fueled cars limited to 2,800 cc not over 1,500 kgs
Right-hand driven vehicles not permitted
Only one vehicle allowed per family
Autos five years old or older not permitted
Banned/unauthorized motor vehicles subject to seizure; owner subject to Penalties

Documents required:
        Original Registration and proof of ownership
        Import Permit from Department of Trade or Bureau of Import
        Surety Bond
        Original Bill of Sale
        Original Passport
        Certificate of arrival
        Stencils of chassis/engine number
        Deed of Sale or Commercial Invoice
        Other documents, depending on customer's immigration status

---------------

To import a car in balikbayan boxes as car parts is customs fraud and misdeclaration and I doubt they will not find the multiple boxes.
Car parts are actually also on the list of restricted items...
And then there is the issue with the registration of a foreign vehicle ...

from what I know there is more hearsay than anything else around. Everyone who has never done it, has an opinion and the ones which do it regular ( Dealers) keep their mouth shut an smile..


here is my golden advice :

Go to Cebu port and ask for the Customs Collector. Tell him your desire and start arranging. If he likes you (that is up to you and your Impression) things can go smooth. If not, better sell the car back home.

Cheers

Port Irene is going through a lot of investigations on importing used cars. Would not import any used car until after the elections and then back to business as usual. Its the Philippines.

Also remember, a lot of used cars are imported from Japan, Korea and Singapore. The cars themselves are well maintained. However, these are all right hand steering. In the Phils, they do a quick conversion to left hand drive, but dont necessarily do a good job. Make sure you find out where the car is imported from. Check the headlights, most common mistake is that they do not reaim them to point left instead of right.

I interested in returning to the Philippines Cebu cite but like to take my motor bike only while im there how do I do it where to start it will be only for about 6 week and want bike sent back to Australia after visit

no motorcycles imported, i would  like  to also send one from USA, customs told me  no way

If your visiting, you can bring it in as long as you pay the customs, which is refunded on the way out. Not sure if they will let it stay for 6 weeks, no longer than your tourist visa. Check with the Foxwoods in Aus, they did it.

better read the customs regulations, dont go by what  some one tells you second hand, also go to the  port of entry customs officals better  sorry now  than later

May we know your contact number please? we would like to seek your help, as we need a licensed customs broker.

When I was stationed at Clark a long time ago I had a truck. A truck was classified as a farm vehicle and taxed and insured way way lower than a car.
I don't know if thats still the case now or not. Another idea is get a truck with a blown engine ship it over and swap it out with a diesel.

That you cannot do. Need to have matching engine and body VINs.

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