THE COST OF VEHICLE IMPORTATION

Have you ever wondered how much it would cost you to import a car or truck from UK?

Kitwe Online Management Ltd offers an import service for vehicles and other goods. We can deliver the vehicle to your door step. You can also choose to collect the vehicle from the port in Namibia or Dar-es-Salaam on your own, if you so wish. Importing through Namibia tends to be about K10,000 cheaper than through Dar-es-Salaam.

Determining how much it will all cost you can be quite a challenge if you have never done it before. The table below will give you an idea how much it would cost to import a tipper truck or flatbed truck which weighs 18 tons or above.

Import duty calculations vary depending on the type of vehicle you buy, its age, the size of the engine and its loading capacity. There are different charges for different categories of vehicle. Trucks above 20 tons and tractor units are exempted from Excise Duty. Cars attract 30% Excise Duty. The currency exchange rate also varies with time.

Insurance is optional. It works out at around 7% of the sum of the combined purchase and shipping costs.

Kitwe Online charges an affordable administrative fee that includes the cost of inspecting the vehicle to ensure that the customer gets the best deal. It also includes the cost of mailing subsequent paper work.

You can email us or visit our shop in Luanshya’s 2nd class trading area, Stand No. 96, Mwaiseni Street. Mobile phone: +260 97 3980018.

EXCISE DUTY is % of (VDP + Customs Duty)	Custom Duty	Excise Duty	VAT	Carbon Tax
Motor Cars(1 to 9 passengers)	25%	30%	16%	50
Pickups & Trucks below 20 tons	15%	10%	16%	150
Trucks above 20 tons	15%	0%	16%	200
Buses (>10 passengers)	15%	25%	16%	200
Tractor Units	0	0	16%	200

The figures for the cost of purchasing and shipping up to an African port (e.g. Walvis Bay in Namibia) are easy to work out. The final figures for the taxes at the Zambian border can only be determined once the customs officers inspect and work out the value. The figures provided here are therefore just an approximation.

 

CALCULATION OF TRUCK IMPORTATION COSTS – an example
	Exchange Rate (XR)		13.0417
1. UK COSTS:
		POUNDS	KWACHA
	Purchase price of vehicle = Free On Board (FOB)	10,000	130,417
	Transport to port	500	6,521
	Insurance charges (7% of Cost + Shipping)	0	0	7%
	Freight up to Walvis Bay(Transport costs)	3,500	45,646
A.	Costs Including Freight (CIF) – Walvis Bay	14,000	182,584
2. AFRICA COSTS:
	COSTS UP TO ZAMBIAN BORDER (Kazungula)
	Port charges	54	710
	Driver payment	115	1,500
	Reflectors,Triangles,Fire extinguisher,etc	29	380
	Physical inspection fee	77	1,000
	Road toll, Insurance & Council charges	27	357
	Diesel from port to border	77	1,000
	Contingency	38	500
B.	CIF – Up to Kazungula border post	418	5,447
	CALCULATION OF TAXES
A+B	Value for Duty Purposes (VDP)		188,031
C	Customs Duty @ 15% of VDP		28,205	15%
A+B+C	Value for Excise: (a + b)
D	Excise Duty @ % of (a + b)		0	10%
E	Value for VAT purposes (c + d)		216,235
F	VAT @ 16% of (e)		34,598	16%
	ADDITIONAL TAXES:
	Carbon Emission Tax (>3001cc)		200
	Motor Vehicle Fee		128
	Asycuda Processing Fee		50
G.	TOTAL OF ADDITIONAL TAXES		378
H.	TOTAL TAXES (C+D+F+G)	4,844	63,180
	EXTRA COSTS:
	Agent on Namibian side of border		360
	Agent on Zambian side of border		1,000
	Road tolls		1,000
	Diesel from border to Kitwe		1,000
I.	TOTAL OF EXTRA COSTS	258	3,360
J.	TOTAL AFRICA COSTS	5,520	71,987
		POUNDS	KWACHA
3. LANDED COST (1 + 2):		19,520	254,571

If you are ordering a trailer without a tractor unit, you would have to add the cost of hiring a tractor unit to tow it from the port to your door step. The same applies to ordering a shipping container.

Any contents you load on the truck have to be declared and paid for separately.

[pdf-embedder url=”https://kitweonline.com/wp-content/uploads/2018/01/Motor-vehicle22052015093457.pdf” title=”ZRA Motor Vehicle Clearance”]

For more information, you can check out the Zambia Revenue Authority (ZRA) website guide: Motor Vehicle Clearance.