Share and Enjoy
Ugandan citizens just like any other in Africa’s developing countries prefer importing cars especially from Japan. The cars may be new or used hence some regulations have been put in place to manage this process. There is no age restriction for cars imported in Uganda. Both Left and Right hand drive vehicles are permitted.
However, there is the compulsory inspection of the car to ensure it meets certain standards. Used cars must undergo a “Road Worthiness Inspection” performed by JEVIC. The inspection ensures the car has genuine mileage, tires, brakes and lights are in good condition. The car must not be hostile to the environment like emitting toxic gases due to malfunctioning engine and rusted parts.
The person importing the car may use either the port of Mombasa in Kenya or Dar-Es-Salaam in Tanzania since Uganda is a land locked country. There is no much difference in terms of cost between the ports and the option is merely based on the importer’s preference. The importer may choose to follow the procedures personally or use an agent for clearance. In addition to the JEVIC inspection which verifies suitability of the car, there are documents and payments needed to facilitate clearance. The road worthiness inspection is conducted to prevent dumping of unroadwothy vehicles into the country which not only poses a threat to the life of citizens but also may be a great threat to the environment. This is especially due to the reason that there is no age limit on the cars imported.
Taxation on importing used cars in Uganda
The dutiable value on imported cars in Uganda is determined in accordance with The General Agreement on Trade and Tariffs (G.A.T.T) valuation method. The taxes include an import duty of 15% of dutiable value; Value added tax (VAT) is 17% of VAT value, 2% import commission of Dutiable Value, Withholding Tax is 6% of Dutiable Value and there is an excise duty of 10% on selected cases.
Some of the documents required in clearance of the imported vehicles include: Original bills of lading, inventory in triplicate, the consignee’s original passport, an invoice or valuation for the vehicle and original logbook of the car. These measures are put in place to protect tax evasion by some unscrupulous citizens.
The importers have the option of following the procedure personally or hire the services of an agent. Agents are familiar with requirements, regulations and tax so they are in a position to offer the clearance services. It is advisable to use a trusted agent in the process as this will save the importer many troubles. For instance, an agent may transport the car up to the Uganda border for the owner to collect it there as opposed to traveling to the port.