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5 THINGS TO NOTE BEFORE IMPORTING A USED CAR INTO GHANA

     Importing a used car into Ghana may seem a great idea especially when the importer happen to get a good deal on the price of the car especially through an auction. It is however very important to note the following to prevent disappointment once the car gets to Ghana.

usd cars to Ghana
importing used cars to Ghana
  •           The Home delivery price of a vehicle (HDP)

      In evaluating a used car for customs duty purposes, the home delivery price or the manufacturer’s price as at the year of manufacture of the vehicle is taken into consideration. Customs would usually use the CIF value (cost ,insurance and freight) of a car to work out the payable duties and other taxes However in arriving at this “cost” customs uses the manufacturer’s price and apply the rate of depreciation depending on the age of the vehicle. The cost deduced plus  other handling charges is then added to the insurance and freight to get the CIF value to be used for customs clearing purposes.

  For instance, A 2010 mazda 3 with a home delivery price of $30,000 , handled at the origin port at a charge of $300, shipped to Ghana with an insurance package of $400 and a paid freight of $1300.

      This car is 4 years old as at 2014 so the rate of depreciation applied is 60%

                              60% of 30,000 = $18,000.

     Cost (HDP +handling charges = {18000 +300} =18300

                           This implies CIF = {18300 + 400 + 1300}

       CIF value for duty purposes = $20,000.

 Also Read UNDERSTANDING THE CIF VALUE OF A USED CAR IMPORTED TO GHANA

  • Over aged penalty.

     It’s also important to consider the age of the vehicle because in Ghana a vehicle which is more than 10 years old from the year of manufacture is considered to be over aged and an over aged penalty rate is applied to it adding up to the total cost of clearing.

      It should be noted that the age of a vehicle is deduced from the year of manufacture and not the year of first registration of the car. So a Toyota corolla manufactured in 2006 and first registered in 2007 is actually 8years as at 2014 and not 7 years. The year of manufacture for vehicles manufactured from 2001 can be identified from the 10th position of a 17 case alpha numeric chassis number counting from left eg, GHIJKLMNS4P794561 this means year of manufacture is 2004.

   Vehicles manufactured before 2001 also have special alphabets allocated as codes at the 10th position which is used to determine the year. The year of some vehicles are also determined from a manufacturer’s chart matrix. Whiles there are certain deviation to some of the rules with regards some car manufacturer.s it is very important to make sure to know the age of the vehicle you import into the country. Over aged penalty rates,

       Private vehicles

   Age exceeding 10yrs but less than 12yrs    — 5% of CIF value

   Age exceeding 12yrs but less than 15yrs    — 20% of CIF value

   Age exceeding 15yrs                                    — 50% of CIF value.ETC

Other rates are also applied to commercial vehicles as well.

 

  • No special treatment for damaged vehicles.

Some years ago, customs applied different valuation method for damaged vehicles, however due to abuse of this system by some vehicle importers who deliberately cause minor damages to vehicles, customs now apply the same valuation method to all used vehicles into the country whether damaged or in a good condition.

   So why import a damaged vehicle if you can afford a good condition one unless of course you have a better deal with the damaged vehicle.

Also Read How to estimate the cost of clearing an imported car from Ghana’s ports

 

  • Right hand steering vehicles

  The law about importing vehicles into Ghana does not permit the importation of right hand steering vehicles into the country unless otherwise authorized by the appropriate ministry. Some importers however still import such vehicles into the country but it’s important to take note since you may never know when the law  catchs up with you.

 

  • Forfeiture of vehicles

Under the current law on the importation of vehicles, any vehicle that remain unentered and uncleared within 60 days after discharge from the port would risk forfeiture by the state. Also in the case of overland vehicle, from the date it crossed the national border into Ghana shall also be forfeited to the state if not cleared within the same period of time.

Please leave your comments and you can also share this article with your friends. you can also join the discussion in the forum about the transport minister’s call on a ban on importation of second hand  or used cars to Ghana

 

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