GOVERNMENT has set out certain conditions that importers of second-hand vehicles are required to meet. In this issue of Tax Talk, Business reporter ROPATE VALEMEI talks to FRCA acting CEO Visvanath Das on the importation of used or reconditioned vehicles.
FT: What type of used or reconditioned (second-hand) vehicles can be imported into Fiji?
Das: To import used or reconditioned vehicles into Fiji, importers must ensure that the following conditions are met: for diesel and unleaded fuel vehicles, it must be EURO 4 standardised vehicle which are not more than five years from their year of manufacture and for Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), solar vehicles, electric vehicles and hybrid vehicles, it has to be EURO 4 standardised vehicles which are not more than eight years from their year of manufacture.
FT: What procedure should an individual follow to import used vehicles into Fiji?
Das: Prior to any vehicle being loaded on the vessel from the country of export, the individual who is importing needs to apply for an “Import Licence” from FRCA.
The application should be addressed to the CEO, Fiji Revenue and Customs Authority, Tariff and Trade Section, Private Mail Bag, Suva, Fiji.
The importer is required to provide supporting documents such as invoice, cancellation, de-registration or export certificate, and EURO 4 compliance certificate from the relevant transport authority or the manufacturer with the Import Licence application.
The importer needs to engage licensed Customs House Agent to clear the vehicle formally from FRCA.
If used motor vehicle is imported by a car dealer then a copy of Authorised Motor Vehicle Dealership licence is also required to be produced to FRCA to obtain an import licence.
FT: Why should the importer apply for “Import Licence” prior to loading of the vehicle on the vessel from the exporting country?
Das: All used and reconditioned motor vehicles imported into Fiji will be classified prohibited goods unless there is an import licence.
This is done to avoid any unnecessary delays or charges that may arise or incur because of non-issuance of import licence.
We’ve had cases where people had imported vehicles into Fiji only to be told that it cannot be allowed into Fiji as it does not meet the criteria for importing a vehicle into Fiji and hence it is deemed a prohibited import.
Prohibited goods are either exported out of Fiji at the importers expense or are forfeited.
FT: What are the duty rates applicable on importing used or reconditioned passenger motor vehicles?
Das: For a passenger vehicle with spark ignition internal combustion reciprocating piston engine (petrol engine) the duty rates are charged according to the cylinder capacity (cc) ratings:
1. Not exceeding 1000cc — fiscal duty (32 per cent or $3550 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
2. Exceeding 1000cc but not exceeding 1500cc — fiscal duty (32 per cent or $5350 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
3. Exceeding 1500cc but not exceeding 2500cc — fiscal duty (32 per cent or $9150 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
4. Exceeding 2500cc but not exceeding 3000cc — fiscal duty (32 per cent or $9150 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
5. Exceeding 3000cc — fiscal duty (32 per cent or $13,000 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
For vehicle with compression, ignition internal combustion piston engine (diesel or semi-diesel engine) the duty rates are charged according to the cylinder capacity (cc) ratings:
1. Not exceeding 1500cc — fiscal duty (32 per cent or $5,350 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
2. Exceeding 1500cc but not exceeding 2500cc — fiscal duty (32 per cent or $9,150 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
3. Exceeding 2500cc but not exceeding 3000cc — fiscal duty (32 per cent or $9,150 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
4. Exceeding 3000cc — fiscal duty (32 per cent or $13,000 per unit; whichever is greater); import excise (15 per cent) and VAT (9 per cent).
FT: What is “Luxury Vehicle Levy” (LVL) and how is it imposed?
Das: Apart from import duties stated above, Luxury Vehicle Levy (LVL) is an additional duty payable on vehicles with cylinder capacity of 2500cc and above. Vehicles with 2500cc but not exceeding 3000cc will be charged $F7500 LVL per unit and vehicles exceeding 3000cc will be charged $F20,000 LVL per unit. However, the LVL will not be applicable on LPG, CNG, solar, electric and hybrid vehicles.
FT: What is the duty rate for LPG, CNG, electric motor vehicles and hybrid vehicles?
Das: There is no fiscal nor import excise duty payable on these vehicles, however, 9 per cent VAT will be payable on the value for duty under concession code 129 part 2 of the Customs Tariff.
