How do I buy a car overseas and ship it to South Africa?
Affordable used vehicles advertised in foreign countries often catch our attention and the proposition is rather tempting. Unfortunately, all is not as it seems and importing a used vehicle into South Africa is wrought with paperwork, fees and special conditions that have to be met.
The internet has not only made it easy to access information and brought people in contact with other people but it's also allowed us to get a better idea of what the motoring landscape looks like in other countries. We're able to see vehicles that were never released in South Africa and put us in touch with rare or uncommon cars. Sometimes, it also shows us what appear to be cheap, used vehicles. That last one is certainly appealing.
Related: How To - Importing used cars into SA
The temptation is never far away to import a used vehicle from a country that has more stringent laws regarding the age of vehicles on their roads. The UK has the MOT system and Japan the Shaken system to ensure that vehicles over a certain age are maintained to a high level. Incentive schemes and scrapping programs encourage owners of older vehicles to offload their old car in favour of a newer one. These old cars often find their way overseas, landing in another country where affordable, used cars are needed.
Used cars and the South African law
While importing used cars from far-off destinations can work in many countries, South Africa has a thriving, local, vehicle manufacturing industry that relies heavily on new car sales, parts and services. Importing cars and parts from other countries does little to keep this critical industry alive and everyone that contributes to the ecosystem employed and in business. It's for this reason that the importation of second-hand vehicles is heavily regulated and severely restricted in South Africa.
One is only able to import a used vehicle under a very specific set of conditions. It is reserved for returning South African nationals or immigrants who have the necessary permits and are taking up permanent residence. Certain concessions are made for race vehicles, vintage passenger vehicles, inherited vehicles and special-purpose vehicles. That Honda Fit that you're interested in isn't deemed any of these by the government.
Importing a vehicle into South Africa
These heavy restrictions are deliberately put in place to dissuade one from buying a used vehicle and importing it into the country. The fees associated will often render the transaction uneconomical. However, should you still wish to proceed, you will need the following:
South African citizens
South African citizens are required to submit the following documents for approval:
- South African identity document or passport
- Letter of employment confirming permanent employment abroad reflecting the period of employment
- A certified copy of the official foreign vehicle registration document
Immigrants
Legal immigrants are required to submit the following documents:
- A certified copy of the official foreign vehicle registration document
- A copy of your South African permanent residence certificate
- A copy of your foreign passport
- Proof of study or research to be conducted if applicable
These are to be submitted to the International Trade Administration Commission (ITAC).
The process of importing a car into South Africa
You've found a car online, negotiated a deal and paid the seller for the car. You will need to arrange to ship the vehicle to South Africa. This can cost anywhere from R30 000 to R300 000 depending on the size and weight of the vehicle, the departure port, the destination port and the final destination. Various companies will be able to offer shipping services for vehicles from other countries. Note that there will be additional costs associated with the release of the vehicle once all documentation has been approved.
It is compulsory to submit your documents along with form IE462, the application for import of a second-hand or used passenger vehicle.
Once approved and your vehicle arrives at the port, you are required to pay customs duties at the South African Revenue Services. This cost is calculated based on the customs duties outlined in the Customs and Excise Act and is available on the SARS website. Be wanted that this can sometimes be as much as 60% of the vehicle's value.
