II. Firms or organizations not registered with the BOFT, or natural persons who import cars, new or used, with the value over FOB USD20,000, shall apply for an Import Permit from the BOFT No. 1 Hukou Street, Tel: 886-2-23510271 Website: http://www.trade.gov.tw in advance.
III. There is no difference between the new and the used cars with regard to the method of computing import duties and other levies. Their respective amounts (including import duty, commodity tax, business tax, trade promotion service fee) are computed as follows:
Customs value = FOB value + F (freight) + I (insurance)
(1) |
Import Duty = Customs value x 24.6% (for cars with quota)
Import Duty = Customs value x 60% (for cars without quota)
|
(2) |
Commodity Tax = (Customs value + Import Duty)
Commodity Tax Rate
25% (for cars of 2000 c.c. and below)
35% (for cars of 2001 c.c. and above)
|
(3) |
Business Tax = (Customs value + Import Duty + Commodity Tax) x 5% |
(4) |
Trade Promotion Service Fee = Customs value x 0.0415% |
IV. For new cars being imported by inward passengers, no depreciation shall be allowed in determining Customs value. Used cars shall be depreciated on the basis of the FOB prices of the new cars of same or similar type and same model year. The depreciation rate for used cars of the same model year is 10¢M. For the subsequent five years, the depreciation rate is 20¢Mfor the first year, 35¢Mfor the second year, 50¢Mfor the third year, 60¢Mfor the fourth year, and 65¢Mfor the fifth year. From the sixth year, the depreciation rate will be determined rationally in accordance with the relevant data collected and investigated.
V. For used cars being imported by inward passengers, the invoice value or the price shown on the transaction documents shall not be regarded as the transaction value under the provision of Article 29 of the Customs Law since such cars have not been actually sold for export to Taiwan. The Customs value shall be determined on the basis of the Customs-assessed FOB value of the new cars of same or similar type and same model year, and likewise depreciated according to its model year. If the above-mentioned FOB value is not available, the following rules shall apply:
(1) The Customs value for used cars from North America shall be computed in reference to the data of two authoritative car-magazines published in the US: the FOB value of new cars listed in the latest issue of KELLY Blue Book (hereinafter referred to as B/B) (i.e. the Dealer Price column of the said magazine, column 3 for body and column 1 for option) with value depreciation by the years used, and the Average Trade-in prices of used cars listed in the used-car magazine, N.A.D.A. Customs will take the lower one as the assessed FOB value and include the freight and insurance together to make up the CIF value as the Customs value.
Illustration:
On Jan.3, 2005, someone imported a used Year 2001 Buick Park Avenue 3,800 c.c. four-door sedan without any options (If there are options, their prices shall be added to the price of the body for computation purposes.) from the U.S.A. Since the Customs-assessed FOB value of the new cars of same or similar type and same model year is not available, the import duty and other levies are computed as follows:
(a) FOB price in B/B depreciated = USD 30,703 (price of new body of same or similar type in Year 2001) x (1-60%) (a 2001 model year used car imported in 2005 may be depreciated by 60%) = USD 12,281
(b) FOB price of body in N.A.D.A (January 2005 issue) = USD 11,975
Choose the lower one of the above two prices as the assessed FOB value:
| FOB |
= |
USD 11,975 |
|
| I |
= |
USD 66; |
(insurance fees actually paid) |
| F |
= |
USD 600 |
(all shipping expenses actually paid or payable for shipping the car to port of entry) |
| CIF |
= |
USD 12,641 (FOB + I + F) |
|
| Customs value |
= |
USD 12,641 x 32.24 (exchange rate applicable, see Remarks 2) TWD 407,546 |
| Import Duty |
= |
Customs value x 24.6% (Cars within the quota) = TWD 100,256 |
| Commodity Tax |
= |
(Customs value + Import duty) x 35% (for cars of/above 2,001cc) = TWD 177,731 |
| Business Tax |
= |
(Customs value + Import duty + Commodity tax) x 5% = TWD 34,277 |
| Trade Promotion Service Fee |
= |
Customs value x 0.0415% = TWD169 |
| Total amount payable in this case |
= |
Import duty + Commodity tax + Business tax + Trade promotion service fee = TWD 312,433 |
(2) If the FOB value or wholesale prices of the new cars of same or similar type and same model year are not available even when applying the methods mentioned in V (1), other price data in current car market shall be applied for assessing the price of the said new cars, or inquiries shall be made to the car-agents, car-dealers, or car trade associations to obtain either the price of the said new cars with due depreciation for the purpose of Customs assessment. Otherwise, Customs may refer to the prices of used cars for direct assessment.
(3) Where the reference to car-magazines is made for the valuation of new or used cars, such reference should always be based on their latest issues available at that time.
VI. The Customs value shall be determined in accordance with Articles 29 to 35 of Customs Law for used cars imported by firms and individuals (other than inward passengers). If the declared price is abnormal in comparison with the market price, Customs shall make a scrutiny on the case.
Remarks:
1. Since the leviable amount (including import duty, commodity tax, business tax and trade promotion service fee) for imported cars in this country is still high, it might not be advisable to import used cars, even for personal use. Please take this point into your consideration.
2.With respect to the assessment of Customs value of imported goods, the conversion of the foreign currencies is based on the exchange rate applicable on the customs declaration date (This means the exchange rates posted by the Bank of Taiwan on the middle day of the preceding one-third period of a calendar month before the customs declaration date; as for the unlisted foreign currencies, the conversion is based on their exchange rates against U.S. Dollars in New York as published in any newspaper).
3. For the imported used cars, further procedures must be followed as per the governing regulations of this country, such as Emission Standards of Air Pollutants for Transportation Vehicles, Regulation on Fuel Economy Standard and Inspection and Administration of Vehicles, Traffic Security, etc.
