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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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  • Michael Opoku Ansah

    Please do you have any priority for teachers when it comes to clearing of cars?

    • dennis

      hi michael, I am not currently aware of any special treatment or priority for teachers with regards clearing.

  • Kwesi Essoun

    Does the age of the car policy the same for tipper trucks and tankers?

    • dennis

      I guess you are referring to the over age penalty rates, With regards tipper trucks and tankers, when age exceeds 10yrs but less than 12 yrs a rate of 5% of CIF value is used as penalty. more than 12 yrs but not exceeding 22 yrs rate is 10% and vehicles with age exceeding 22 years are charged a rate of 30% as overage penalty .

  • Kenneth addo

    Can send 2005 Nissan murano to Ghana

    • dennis

      yes kenneth , you can send it to Ghana, but just be awareof the over aged penalty charges.

  • Dakins Slinger

    if the car is 10 years is the depreciation rate 100%?

  • Dakins Slinger

    if the car is 10 years is the depreciation rate 0%?

    • dennis

      Darkins, are you talking about the over aged penalty for a 10 yr old car? if then you are right, penalty is applied when the vehicle is more than 10 years old. but if you are referring to the depreciation rate for duty purposes then the HDV of a 10 year old car would be depreciated by 50% as the actual cost of vehicle. pls do well toread this link for better understanding. http://ghanashippingguide.com/2014/12/understanding-the-cif-value-of-a-used-car-imported-to-ghana/

      • Melo God’sSon

        Hello Dennis, with all due respect I will like to have your email or contact to discuss about ”UNDERSTANDING THE CIF VALUE OF A USED CAR IMPORTED TO GHANA”.. Here is mine by the way francishamelo@gmail.com

        Francis

  • Alston Juan Fernandez

    I am looking to network with people like you who import vehicles to Nigeria, Benin, Ivory Coast and Ghana.

    I am a registered used car dealer here in Toronto Ontario with OMVIC

    https://www.omvic.on.ca/RegistrantSearch/Profile/Dealer.aspx?PID=196480

    We are also an incorporated business. I currently sell about 20 to 30 (small volume) High mileaged vehicles to local exporters here in Toronto. As always I am looking to connect with a direct importer and expand my business of buyers.

    I sell mainly toyotas and hondas and lexus. We get Highlanders, Corollas, FJ cruisers, Range Rovers and all kinds of vehicles in high mileage.

    Please take a look at my website zionautomobiles.com or xportbid.com.

    If interested in doing business let me know. Write to alston@zionautomobiles.com
    or Call 416-455-9352. No scammers please. I will not ship my cars for you to sell without money. Dont bother wasting your time

  • gustav dzidzornu

    i believe the treatment given to over aged cars is unfair. considering the depreciation rate being flat for 5 years and over. If anything, the rate for vehicles beyond 5 yr should be categorized like 5-7 yrs = 50%, 8-10yrs = 40%, 11-15yrs =35% or 30% and so on then paying penalty on over aged vehicles would not look bad.

    Policy regarding damaged vehicles should be reviewed. At least do an assessment and determine cost of repairs and based on this, a certain percentage of the duty amount will serve as a discount.

    make the system a bit flexible for us so we do not feel importation(esp. vehicle importation) is a prohibited act in Ghana.

  • CSR

    If you are looking to import cars from USA to Ghana, we can help you. At FliWheel.co, we handle the entire car purchase and export process for our clients including inspection, transportation, shipping, marine insurance and paperwork. We export both new and used vehicles and have exported hundreds of vehicles to Ghana already.

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