Exporting your Car Overseas from UAE

Many people come from different parts of the world and work in the UAE. But not everyone is eligible to live in the UAE. For different reasons, the residents in the UAE want to relocate to their home country. When people relocate they will make all the efforts to sell their assets in their local area. If the assets are valuable or if the user has attachment towards the assets then they will have a plan to get the assets back to their home country. 

For residents in the UAE who are relocating to other countries one of the big decisions is to either take the car with them or sell the vehicle before traveling to their home country. To select the best available option for shipping the car to the home country and finding out the ways for clearance of the vehicle is primarily important. 

The home country may have restrictions on importing certain types of vehicles. The importing country may have regulations that will not allow it to import certain types of cars. For example, left-handed cars are not allowed to be imported to India. 

Legal Tax implications for Exporting Car

Shipping your car within the GCC countries will not be an issue. Since the rules and regulations within the member countries are agreed upon there will not be any complications. If you are shipping a car to a European country then there might be some additional process associated with exporting your car. 

The transportation of your car will have to go through a different process and countries compliance requirements. There are other factors such as vehicle emission acceptance levels and internal compliance requirements which have to be met for clearance. The import duties and the national and local body tax requirements are also significant for the shipment of the car into the home country. 

There are some countries where the cost of the car would be less and the taxes will be more. In countries like India, there are high expenses charged for non-resident individuals (NRI) who are importing cars to their country. Usually, the foreign nationals should pay 125% of the value of the car in the form of taxes and duties. This is done to encourage domestic car companies and discourage imports from foreign countries.

If the resident is willing to ship the car to the Philippines then they have to pay 150% of the value of the car. There are some countries that charge less fee such as Pakistan which charge between 15 to 80% of the car value. 

In advanced countries like the USA, the taxes are less and this will range from 2.5% to 5%. There are no taxes and import duties applicable if you are relocating to a European country and importing the car in the form of relocating goods. However, you have to understand that if shipment of the car is done without relocating to Europe then the import duties and taxes will be applied. If the person from Europe imports a car from the UAE, then the import duties and taxes will be applied.  

The shipping companies in the UAE will provide a facility to relocate from Emirates allowing the vehicles to load in a crate where even the household materials can also be transported. 

This facility will be very useful for making a cost-effective deal as both the household equipment such as furniture and fittings, domestic household requirements and all other shifting equipment can be shipped. There are other fees associated with local government which include approval fees, registration and transportation fees. 

If resale value is higher in the home country people prefer to transport the car and then sell the asset. Since the car is a depreciating asset and the taxes are more expensive it becomes a slim chance for resale in the home country. 

Documentation requirements

The documents required will be different from country to country. The agent from the shipment will provide you with the details of the paperwork that is required. The following documents will be needed. 

• Original Passport
• Commercial license for dealers
• No sale certificate for private buyers - This is a declaration that you will not sell the car until two years
• Landing bill
• Driving License

Car Inspection Report

In the UAE, the shipping company will inspect the car and appraise the value of the car and also the trucks. The inspection report will provide a detailed report including the painting, damages on the car, car body structure, chrome, rust and other defects. The car engine is also inspected and comments are provided. 

The inspecting team will take the car on a test drive and test for any defects while driving. The photos of the car body, interior and exterior, wheels, are all thoroughly checked and provided in the inspection report. The process of inspection may be different from company to company and the time to provide an inspection report will also be different. 

Car Insurance during Car Export

The insurance will be covered in the car shipment cost. It is also important that you have checked your car insurance policy and the coverage it provides during transit. If you are not aware of this, call your agent or check with your insurance company. The shipping agent will provide you with details on insurance which is suitable for your car and also to the importing country. 

Transit Cost

The expenses for transporting a car from the UAE to your destination home country will depend on the country you are transporting to. The car model, size, technology and other factors are also considered in determining the transit cost. The expenses such as management fees, shipment fees, car insurance cost, picking and dropping charges are included in the transit cost. 

The expense will depend on the shipping company and the add-on services that are selected by the user. To decide on whether to ship the car or not when you are relocating will be done once you get clearance on rules and regulations from the importing country.