How to Import a Vehicle from a Foreign Country

Do you also dream of owning a vehicle from another country? Importing a vehicle is possible, but the process comes with specific legal requirements, customs duties, and documentation. Today, MotorGuide explains everything you need to know about how to import a vehicle into Sri Lanka (or similar regions with strict import laws).

What Are the Things to Remember?

Before shipping a vehicle, you must make a foreign exchange remittance through a commercial bank under a Letter of Credit (LC). Import rules also specify an age limit for vehicles. If the vehicle exceeds this limit, you must obtain a special permit from the Controller General of Imports and Exports.

If the vehicle is imported without foreign exchange involvement, prior clearance from the Controller General of Imports and Exports is also mandatory.

How Much Customs Duty Do You Pay?

Customs duty depends on the vehicle’s value and the applicable tax rates. For motor vehicles under HS headings 8702, 8703, 8704, 8705, and 8711:

• Brand new vehicles: Customs will use the transaction value on a certified invoice issued by the manufacturer.
• Other vehicles: The declared value cannot be less than 85% of the manufacturer’s value (excluding local taxes) for a similar brand-new vehicle in the exporting country. For more details, refer to Extraordinary Gazette No. 1971/10 dated 14.06.2016.

Valuations follow the WTO Valuation Agreement for international consistency.

What is an HS Code?

HS (Harmonized System) Codes are globally recognized product classification numbers developed by the World Customs Organization (WCO). They:

• Help track international trade statistics
• Determine tax rates and restrictions
• Provide a common system regardless of language barriers

Before importing, confirm the correct HS code with the Customs Information Center or the Motor Vehicles Unit at the Customs Headquarters.

Can You Import a Used Vehicle?

Yes, you can import a used vehicle, but it must meet the legal age limit. If the vehicle is older, you need a license from the Controller General of Imports and Exports. Note that:

• Customs duties are the same for brand-new and used vehicles.
• There are no tax reductions for used imports.
• The age of a used vehicle is calculated from its first registration date to the shipment date.

Importing a Vehicle Under a Concessionary Duty Permit

If you qualify for a concessionary permit (e.g., government employees, diplomats), you must ensure:

• A valid concessionary permit is obtained.
• The value of the vehicle matches the permitted limit at the time of LC establishment.
• All other permit-specific conditions mentioned in the official gazette are satisfied.

Final Thoughts

Importing a vehicle is possible, but you must carefully follow legal requirements, customs duty rules, and documentation procedures. Whether you choose a brand-new or used vehicle, ensuring compliance with Import & Export regulations will save you time, money, and legal trouble. With proper preparation, your dream car from abroad can soon be on the roads here.