Importing a vehicle directly from Japanese Auctions

Importing a vehicle directly from Japanese auctions can be an exciting and cost-effective way to own a high-quality car, especially with Japan's reputation for well-maintained vehicles and a wide variety of options. However, the process involves several steps, documentation, and compliance with Sri Lankan import regulations.

In this blog post, we provide a detailed, step-by-step guide to help you navigate the process of importing a car from Japanese auctions—starting from choosing the right vehicle to clearing it through Sri Lanka Customs. Whether you're new to vehicle imports or looking to streamline your experience, this guide will equip you with all the information you need to make informed decisions and avoid common pitfalls.

Research and Select a Vehicle

• Find a Reliable Auction House: Popular Japanese auction platforms include USS, TAA, JU, and CAA.

• Register with an Auction Agent/Broker: Since auction houses typically do not deal directly with individuals outside Japan, you need a trusted auction agent. The agent will assist with bidding and initial logistics.

• Vehicle Selection: Choose a vehicle that meets Sri Lanka's import regulations (e.g., engine capacity, manufacturing year).

• Pre-Purchase Inspection: Request an inspection report to ensure the vehicle’s condition aligns with your expectations.

Understand Sri Lankan Import Regulations

• Age Limits: Cars should not exceed three years (from the manufactured date), while commercial vehicles may have different limits.

• Taxes and Duties: Calculate the approximate taxes (CID, XID, Luxury Tax, VAT, etc.) applicable for the selected vehicle.

Bidding and Purchase

• Bid through Auction Agent: Inform your agent of your budget and preferred vehicle.

• Winning Bid: If successful, pay the auction price and the agent's fee (usually a percentage of the winning bid).

Shipping Arrangements

• Freight Forwarding: Your auction agent or another shipping company will arrange to ship the vehicle to Sri Lanka. The shipping method is usually Roll-On/Roll-Off (RoRo) or container shipping.

• Documentation: Ensure the agent provides:

  • Export Certificate

  • Bill of Lading

  • Auction Sheet (proof of condition)

  • Commercial Invoice

• Insurance: Opt for marine insurance to cover the vehicle during transit.

Prepare for Customs Clearance

• Appoint a Customs Clearing Agent to help with the clearance process.

• Documents Required:

  • Bill of Lading

  • Export Certificate (translated into English)

  • Commercial Invoice

  • Auction Sheet

  • Insurance Certificate

  • Import Approval Letter (if applicable)

  • Pre-Inspection Certificate (PIC)

Arrival and Clearance at Sri Lanka Customs

• Customs Declaration: Submit a Goods Declaration Form (CUSDEC).

• Pay Duties and Taxes: Calculate based on CIF (Cost, Insurance, and Freight) value. The main components include:

  • Customs Duty

  • VAT (Value-Added Tax)

  • Luxury Tax (If applicable)

  • Excise Duty

• Vehicle Inspection: Customs officers may inspect the vehicle.

Release and Transport

• Once cleared, arrange for the vehicle’s transport to your location.

• Register the vehicle with the RMV:

  • Obtain vehicle registration.

  • Get number plates issued.

Key Tips:

• Budget Wisely: Factor in not just the vehicle price but also taxes, duties, agent fees, and transport costs.

• Stay Updated: Sri Lanka’s import regulations and taxes change frequently, so verify with official sources.

• Choose a Trusted Agent: Work with reputable auction and clearing agents to avoid issues.