How to Import cars From Japan?
Here Are some of the things you should know..
an article i've extracted from tradecarview.com
Step.1 Check Points
In order to import a car from Japan, you need to be familiar with Japanese used car import procedures, import regulations, money transfer methods and common trade terms. Below are some areas that you should research into as you prepare to import a car from Japan. Having a good understanding of the points below will make your business interaction with Japanese used car exporter more pleasurable.
1)Import procedures and government regulations
To ensure smooth import process, you need to understand the import procedures and government/custom regulations in the country of destination e.g. regulation on emissions, age of vehicle, steering, aftermarket products and vehicle test necessary before importation etc. In almost all countries, there is a set of rules and regulations that must be followed by importers of used cars. Acknowledging these regulations is the first step towards successful import of used cars from Japan.
2)Payment methods
Most Japanese used car dealers prefer TT (telegraphic transfer) money transfer method with the exception of countries that strictly use LC (Letter of Credit) money transfer method. While there might be dealers who accept credit card, most of the exporters do NOT accept credit cards. Please consult the used car exporter and your local bank about how to transfer the money.
3)Custom clearance
Do you have experience in clearing a vehicle with the customs? Once the vehicle arrives at the port, it will be your responsibility to take it from the port and perform custom clearance. If you are not in a position to clear the vehicle personally, you can hire a local dealer to perform custom clearance. Please familiarize yourself with the necessary steps to be followed.
4)International Commercial Terms
Trade terms or Incoterms are a uniform set of international business rules used commonly in international contracts for the sale of goods. They define the obligation of the buyer and seller at every stage of goods transaction. Below is a list of terms that will be common when importing a Japanese used car:
FOB - Free on board)
In FOB terms, the seller delivers when the goods pass the ship’s rail at the named port of shipment. The buyer has to bear all the cost and risk of loss or damage to the goods from that point. The seller takes the responsibility to clear the goods for export. FOB is only used for sea or inland waterway transport.
CIF (Cost Insurance and Freight)
In CIF, the seller delivers the goods when the goods pass the ship’s rail in the port of shipment. The seller pays the cost and freight necessary to deliver the goods to the named port of destination and also procures marine insurance. The seller is only required to obtain minimum insurance coverage. However, the risk of loss or damage of the good and any additional costs due to events occurring after the time of delivery are transferred from the seller to the buyer. The seller takes the responsibility to clear the goods for export. CIF can only be used for sea and inland water way transport.
C&F (Cost and Freight)
The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller pays the cost and freight necessary to deliver the goods to the named port of destination. However, the risk of loss or damage of the good and any additional costs due to events occurring after the time of delivery are transferred from the seller to the buyer. The seller takes the responsibility to clear the goods for export. C&F is only used for sea or inland waterway transport.
Bill of landing
A bill of landing is issued by a carrier as proof for receipt of goods and acts as a contract of carriage. Bill of landing describes the goods, details of intended voyage and specifies the conditions for transport.
Invoice
An invoice is a document sent by the seller to the buyer. The invoice contains a list of goods sold to the buyer. It shows the name and address of the buyer and a detailed description of the goods sold. It includes details of the product, quantity, Price, delivery point, charges and other significant details of the transaction.
Pro-forma Invoice
A Pro-forma Invoice is the first draft of a seller’s bill to the buyer. It is a quotation sent from the seller to the buyer containing description of goods to be delivered. It includes the product details, quantity, value, buyers name and address etc. Based on the Profoma invoice, the buyer decides whether to proceed on with the order.
Step.2 Inquiry
Use our search engine to search for used cars on the website. The Japanese vehicles are classified into to two categories; stock and Local Market Stock(LMS). After you have found the vehicle that you want, click on ask or request more information button to send the inquiry. You will be requested to register. Once you submit your inquiry, it will be dispatched to Japanese used car exporter.
Step.3 Negotiation
Once you have sent your inquiry, Japanese used car dealers will contact you via email or phone. However, you can also call the dealer for a faster response. The Japanese car exporter will furnish you with information about the Japanese vehicle you inquired on. Utilize this time to inquire from the Japanese car exporter about the condition of the car, price of the car and any other question that you might have regarding buying a car from Japan. All the prices on this website are FOB prices. Please ask the Japanese used car exporter for CIF or C&F prices if necessary.
Step.4 Payment
Once you have reached an agreement with Japanese car exporter on price and condition of the Japanese vehicle, the exporter will send you a pro-forma invoice followed by an invoice. The invoice indicates the quantity and price to be paid for the goods. You will be required to sign the invoice and send it to the Japanese car exporter followed by the transfer on of money as agreed on the invoice. Almost all Japanese car exporters will require wire transfer (also called telegraphic transfers or”TT”) with the exception of countries that must use”LC” only. Most Japanese used car dealers will not accept credit card means of payment. Please consult the dealer regarding method of payment and bank information.
Step.5 Shipping
After Japanese car exporter has confirmed your payment, he will arrange the shipping of the vehicle to the port of destination. The dealer will also send you necessary documents such bill of landing and vehicle de-registration form among other documents that will be necessary during custom clearance. Shipping period will differ from country to country depending on the availability of space in the vessels bound for various destinations among other factors. Once the vehicle has arrived at the port of destination, you will be required to follow custom clearance procedures in your country.
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