Jump to content
  • Welcome to AutoLanka

    :action-smiley-028: We found you speeding on AutoLanka Forums without any registration! If you want the best experience, please sign in. Safe driving! 

Prius


james

Recommended Posts

I am interest in buying prius 2013 s model. what are the main things i should concern.

Under below topics,

Current Market price -

Taxes i have to pay -

clearing charges -

TT Payment -

Invoice value and the different with TT payment -

Mileage -

Grade (S / S TOURING / L)-

Auction Grade -

DVD and other options -

any other -

Directly import from japan auction.

Thanks

Link to comment
Share on other sites

yes i went through i search a lot even google. but i didnt able to find clearing procedure. TT payments, and how the tax is calculated for the given invoice value. i thought the forum guys really helpful but it want :sad-smiley-050:

Edited by james
Link to comment
Share on other sites

yes i went through i search a lot even google. but i didnt able to find clearing procedure. TT payments, and how the tax is calculated for the given invoice value. i thought the forum guys really helpful but it want :sad-smiley-050:

As far as I know T/T payments are not allowed for vehicle imports. You have to go through L/C (Letter of Credit) only.

(1) Go to nearest bank - Check with them how to open a L/C. Get a L/C application and read it. Then you will have some idea.

(2) Contact a Clearing and forwarding agent - You can understand how to clear the goods and taxes involved.

Whole import procedure is very lengthy to describe here. Forum members are unable to describe each and everything. I have given you the point where you can start the thing.

Edited by Sampath Gunasekera
Link to comment
Share on other sites

yes i went through i search a lot even google. but i didnt able to find clearing procedure. TT payments, and how the tax is calculated for the given invoice value. i thought the forum guys really helpful but it want :sad-smiley-050:

Further to Sampath's post above let me try to explain you why many people do not understand nitty gritties of how the tax is calculated. For example excise duty formula is as given below. (Terminology, abbreviations and symbols borrowed from the Ministry of Finance and Planning). This is just one part of the duty calculation. Usually there will be eight or nine lines of similar complexity for the total tax calculation.

Excise (Special Provisions) Duty (e)

=[[(1.15 + 1.1 rt) * re v ]+ [( d + s + c + p ) * (1 + rt))] * re] / [1 – (re * rt)]

Where

v = CIF value in Rupee

c = Cess levy under Sri Lanka Export Development Act

d = Customs Duty

s = Surcharge

e = Excise (Special Provisions) Duty (ED)

t = Value Added Tax (VAT)

i = Regional Infrastructure Development Levy (RIDL)

p = Port and Airport Development Levy (PAL)

l = Social Responsibility Levy (SRL)

re = Rate of Excise (Special Provisions) Duty (ED)

rt = Rate of Value Added Tax (VAT)

Now I hope you understand why the calculation is so complicated for ordinary people like us.

If you try to get into details of clearing procedures and LC procedures they are unnecessarily complicated. But all you need to do is to place the signature in the right place of the LC application (bank clerk would do the rest) and hand over the import documents to a clearing agent when the goods arrive.

  • Like 4
Link to comment
Share on other sites

  • 2 weeks later...

ok everything is done, want to clarify followings.

LC opened - Currently yen rate is going down. Is it needed to give the instruction to bank to hold the Yen rate bcz currently it in the lowest rate.

TAX - What is the TAX amount i have to pay (PRIUS 2012 / 08 ZVW30). some says it is between 2,400,000 to 2,500,000. And some say it is between 1,900,000 and 2,000,000. How i know the exact amount? Is it based on a fixed FOB value? if the car is 2012 any depreciation value for FOB?

LC- Bank it self not filling the LC as they told some customers claim them against some document issues. so i filled it myself with help of one of my friend.

Edited by james
Link to comment
Share on other sites

You cannot ask the bank to hold the Yen rate for you AFAIK because the LC transaction will be effected at the time when the bank endorses the original import documents (Commercial Invoice, Bill of Laden, packing list etc sent to your bank through shipper's bank). The best person to ask for the tax amount is your clearing agent. But even then you would not get an exact amount because the Yen rate (perhaps even the tax basis) may change by the time you receive and clear the shipment. The Customs gazette the applicable exchange rate on a weekly basis.

Link to comment
Share on other sites

You cannot ask the bank to hold the Yen rate for you AFAIK because the LC transaction will be effected at the time when the bank endorses the original import documents (Commercial Invoice, Bill of Laden, packing list etc sent to your bank through shipper's bank). The best person to ask for the tax amount is your clearing agent. But even then you would not get an exact amount because the Yen rate (perhaps even the tax basis) may change by the time you receive and clear the shipment. The Customs gazette the applicable exchange rate on a weekly basis.

i discuss with bank they told it can hold the rate, as per the today rate. and it will be the rate to release the LC when BL received to the bank.

Link to comment
Share on other sites

Ok, I will explain you briefly.

Import Taxes will be charged here (in Sri Lanka) based on CIF Value. (Not based on FOB Value) . Please check equation posted by Rumesh in previous post.

CIF Value = Cost + Insurance + Freight

Here cost means FOB value.

CIF Value = FOB + Insurance + Freight


There is a term called "Incoterms" in international trade. This defines the cost should bear by whom and also the responsibly of each sub event in the import-export process.

Free on Board (FOB) - This is the price of your car up to deck of the vessel at loading port and seller paid all cost up to this point.
Freight - Sea freight to transport your car from Japanese port to Hambanthota port
Insurance - Marine insurance for the vehicle

You can check below table.

http://ibnewsmag.com/wordpress/wp-content/uploads/2014/01/Incoterms.jpg
Incoterms.jpg



There are two banks involve in this transaction on behalf of you (Buyer) and exporter (seller/beneficiary).
Buyers bank = Issuing Bank (Your bank, in Sri Lanka) . L/C issues by this bank.
Sellers (Beneficiary's) bank = Advising Bank(Car exporters bank in Japan)

http://www.letterofcredit.biz/images/Letter-of-Credit-Advising-Process.png

Letter-of-Credit-Advising-Process.png


L/C is an agreement/contract between above two banks on behalf of buyer and seller.

When you open a L/C, your money will be hold with your bank (Issuing Bank).(Your Money will transfer/remit to shipper's side after goods shipped and process explained below.)

After shipper(also known as beneficiary/exporter) handed-over your car to vessel, shipping line (captain of the vessel) issue the Bill of Lading or B/L to shipper (to your car exporter). B/L is the title of the goods like deed of your land.
Exporter/shipper will submit B/L with other relevant documents (known as Original shipping documents) to his bank (Advising Bank).
(Normal shipping document set contains: Commercial Invoice , B/L, Packing List, Marine Insurance Policy,Certificate of Origin.....)

Advising Bank directly send this Original Shipping Documents set to your bank (Issuing Bank) by courier
http://www.mantissa.co.uk/main/quickguide/Grafs/step7.gif

step7.gif


Once Issuing bank(your bank) receives Original Shipping Documents, Issuing Bank release money to Advising Bank.(This is the point your money transfer from Sri Lanka to Japan). Because now both banks checked shipping documents and satisfied that shipper has been already shipped the goods. So safe to release your money to shipper's/Exporter's side)
Advising bank release money to Exporter.

Hope now you can understand why your bank(Issuing Bank)charge on you on the exchange rate when they release money to advising bank.

After this L/C payment settled, you can get original shipping documents to your hand from your bank(Issuing Bank).

Then handover it to clearing agent. He will do getting Delivery Order(DO) and future steps on behalf of you.

At clearing process, Sri Lanka Customs will charge you import taxes based on the rules and tax rates valid at clearing date.
(When I import my vehicle , while my vehicle is on sea water, Sri Lankan government increased import tax rate. So when it reached to Colombo port I had to pay additional Rs,100,000 under new tax rate.)

It is a lengthy and complicated process, but I summarized as much as possible.
Hope you got some basic idea on this.

Edited by Sampath Gunasekera
  • Like 4
Link to comment
Share on other sites

Ok, I will explain you briefly.

Import Taxes will be charged here (in Sri Lanka) based on CIF Value. (Not based on FOB Value) . Please check equation posted by Rumesh in previous post.

CIF Value = Cost + Insurance + Freight

Here cost means FOB value.

CIF Value = FOB + Insurance + Freight

There is a term called "Incoterms" in international trade. This defines the cost should bear by whom and also the responsibly of each sub event in the import-export process.

Free on Board (FOB) - This is the price of your car up to deck of the vessel at loading port and seller paid all cost up to this point.

Freight - Sea freight to transport your car from Japanese port to Hambanthota port

Insurance - Marine insurance for the vehicle

You can check below table.

http://ibnewsmag.com/wordpress/wp-content/uploads/2014/01/Incoterms.jpg

Incoterms.jpg

There are two banks involve in this transaction on behalf of you (Buyer) and exporter (seller/beneficiary).

Buyers bank = Issuing Bank (Your bank, in Sri Lanka) . L/C issues by this bank.

Sellers (Beneficiary's) bank = Advising Bank(Car exporters bank in Japan)

http://www.letterofcredit.biz/images/Letter-of-Credit-Advising-Process.png

Letter-of-Credit-Advising-Process.png

L/C is an agreement/contract between above two banks on behalf of buyer and seller.

When you open a L/C, your money will be hold with your bank (Issuing Bank).(Your Money will transfer/remit to shipper's side after goods shipped and process explained below.)

After shipper(also known as beneficiary/exporter) handed-over your car to vessel, shipping line (captain of the vessel) issue the Bill of Lading or B/L to shipper (to your car exporter). B/L is the title of the goods like deed of your land.

Exporter/shipper will submit B/L with other relevant documents (known as Original shipping documents) to his bank (Advising Bank).

(Normal shipping document set contains: Commercial Invoice , B/L, Packing List, Marine Insurance Policy,Certificate of Origin.....)

Advising Bank directly send this Original Shipping Documents set to your bank (Issuing Bank) by courier

http://www.mantissa.co.uk/main/quickguide/Grafs/step7.gif

step7.gif

Once Issuing bank(your bank) receives Original Shipping Documents, Issuing Bank release money to Advising Bank.(This is the point your money transfer from Sri Lanka to Japan). Because now both banks checked shipping documents and satisfied that shipper has been already shipped the goods. So safe to release your money to shipper's/Exporter's side)

Advising bank release money to Exporter.

Hope now you can understand why your bank(Issuing Bank)charge on you on the exchange rate when they release money to advising bank.

After this L/C payment settled, you can get original shipping documents to your hand from your bank(Issuing Bank).

Then handover it to clearing agent. He will do getting Delivery Order(DO) and future steps on behalf of you.

At clearing process, Sri Lanka Customs will charge you import taxes based on the rules and tax rates valid at clearing date.

(When I import my vehicle , while my vehicle is on sea water, Sri Lankan government increased import tax rate. So when it reached to Colombo port I had to pay additional Rs,100,000 under new tax rate.)

It is a lengthy and complicated process, but I summarized as much as possible.

Hope you got some basic idea on this.

However the tax isnt calculated on the 'actual' CIF rather on an undervalued CIF figure. Back then(5 years or more) car importers/exporters under value a lot, almost half the actual CIF but then I guess the customs started imposing a fine on them. Still they do undervalue but not much as before. probably under value 1/4 of the actual CIF. The clearing agents will know the value you should have on the LC document.

Link to comment
Share on other sites

thanks for the long details.

I have found the current tax values for ZVW 30

FOB VALUE - 2,410,000 YEN

AND THEIR CIF = 3000 + 70493 (INS + FREIGHT)

TOTAL CIF = 2,483,493 YEN

SO TAX 92% = 2,486,562 LKR (EXCHANGE RATE 1.13)

And i heard there are gang of robbers in Hambanthota port, SD Card, Changing of carpets, rivers camera, keys they will stolen. so i plan to courier SD card and extra key. But other things will left. There are videos in the you tube those people doing rhis. How the country is corrupted?

Link to comment
Share on other sites

Sooo in that case arent there cars advertised for a lower price than what you will be paying?

this fob value and cif value fixed so it will not change base on the invoice value unless invoice value is higher than the custom fixed value. depending on the exchange rate there will be 100,000 min or max to the actual value to be paid or not.

Link to comment
Share on other sites

this fob value and cif value fixed so it will not change base on the invoice value unless invoice value is higher than the custom fixed value. depending on the exchange rate there will be 100,000 min or max to the actual value to be paid or not.

Is you invoice FOB lower than this value? I highly doubt so

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

AutoLanka Cars For Sale

Post Your Ad Free [Click Here]



×
×
  • Create New...