Importing a car into the Philippines

[PaulB]

Hi Everyone

 

I bought a New Kia Sportage here in the UAE last month and as left hand drive, good AC and very comfortable All Wheel Drive i was considering importing it to the Philippines when I retire in 3 years time.

I have done some research online and also spoken to many Filipino friends here in the UAE and it would appear that it would cost me more then the car is probably worth in taxes. I saw the below on the Bureau of Customs site.

8. IS THE IMPORTED VEHICLE SUBJECT TO TAXES AND DUTIES?

Yes. Whether brand-new or used, purchased or donated, the imported vehicle is subject to 40% Customs duty, 10% VAT and Ad Valorem Tax from 15% to 100% depending on its piston displacement. Its book value serves as the tax base and not the purchase price nor the acquisition cost. The book value is sourced from universally accepted motor vehicle reference books such as the Red Book, Blue Book, World Book depending on the origin of the imported vehicle.

I was hoping to hear from anyone else who has ever considered importing a car and if so what did you do or is it better to just buy one in the Philippines?

I look forward to tapping into the font of knowledge from within this forum.

Kind regards.

 

Paul

[Sander Martin]

The shipping alone will cost you a few thousand dollars + the high tax. I dont think its really worth it (unless you really love it). Will probably be cheaper to sell it and buy a new one here.

Easier for the mind aswell... Imagine all that good ol Filipino bureaucracy..

The price for the car seems alot cheaper in AUE tho according to google.

Says that in AUE they star at 55k AED (700k pesos) while here its 1,25mil pesos...

https://www.dubicars.com/dubai/new/kia/sportage

http://ph.priceprice.com/Kia-Sportage-9468/?sold_product_type=0#hPrclst

Edited May 7, 2016 by Sander Martin

[robert k]

1 hour ago, PaulB said:

Hi Everyone

 

I bought a New Kia Sportage here in the UAE last month and as left hand drive, good AC and very comfortable All Wheel Drive i was considering importing it to the Philippines when I retire in 3 years time.

I have done some research online and also spoken to many Filipino friends here in the UAE and it would appear that it would cost me more then the car is probably worth in taxes. I saw the below on the Bureau of Customs site.

8. IS THE IMPORTED VEHICLE SUBJECT TO TAXES AND DUTIES?

Yes. Whether brand-new or used, purchased or donated, the imported vehicle is subject to 40% Customs duty, 10% VAT and Ad Valorem Tax from 15% to 100% depending on its piston displacement. Its book value serves as the tax base and not the purchase price nor the acquisition cost. The book value is sourced from universally accepted motor vehicle reference books such as the Red Book, Blue Book, World Book depending on the origin of the imported vehicle.

I was hoping to hear from anyone else who has ever considered importing a car and if so what did you do or is it better to just buy one in the Philippines?

I look forward to tapping into the font of knowledge from within this forum.

Kind regards.

 

Paul

Will you be taking advantage of the SRRV special retirement visa?

[PaulB]

1 hour ago, robert k said:

Will you be taking advantage of the SRRV special retirement visa?

Robert

Am going for 13a visa.

[robert k]

3 hours ago, PaulB said:

Robert

Am going for 13a visa.

I'm no help then. Under the SSRV I believe you could import a car free one time. Since you won't be on SRRV, I recommend you sell yours and buy another car when you arrive.

[scott h]

Paul, every expat blog I have read over the years has strongly recommended AGAINST importing a car to the Philippines for many, many reasons.

But here is what I KNOW from personal experience.

My Brother in Law works for the Philippine Department of Foreign Affairs. His last overseas posting was at Guam USA at the Philippine consulate there. He purchased a vehicle while there and shipped it home at the end of his tour. He DID NOT have to pay for shipping or import tax. But he did have to pay for vehicle inspections, registration, various customs fees, licensing and portage fees. But what was worse was the paperwork involved. He had to go 4 or 5 times to various government agencies for inspections and processing before he finally got his car. Once he actually took procession of the car he could not drive it for another 30 days until he actually got the paperwork done. Total time? Six months from the time the car hit the port until he parked it in his garage. (he still doesn't have his license plates, but that's a different story )

I asked him if he would he would repeat this when he is assigned again overseas. His answer was "I might be Dumb, but I am not stupid".

Bottom line? If a fairly senior Philippine government employee who speaks the language and has some connections had this much hassle importing a vehicle, just imagine the hoops an average Expat will run into.

Good luck.

[Dave Hounddriver]

With apologies to Johnny Cash:

Quote

 

One day I devised myself a plan
That should be the envy of most any man
I'd sneak it out of there in a balikbayan box in my hand
Now gettin' caught was not desired
But I figured I'd have it all by the time I retired
I'd have me a car worth at least a hundred grand.

I'd get it one piece at a time
And it wouldn't cost me a dime
You'll know it's me when I come through your town
I'm gonna ride around in style
I'm gonna drive everybody wild
'Cause I'll have the only one there is around.

 

 

[Steve & Myrlita]

Essentially, they do want any importing here. This is an extremely nationalistic country.

[Dave Hounddriver]

10 minutes ago, Steve & Myrlita said:

Essentially, they do want any importing here.

Except for importing foreign husbands. 

[Jollygoodfellow]

One could have it chopped up and imported as parts then welded back together like a lot of the others but I agree with what the others are saying, sell and buy again.