The Process of Exporting Vehicles From Japan

[Lakshan]

Hi All,

Can anyone from Japan can explain me the process of exporting vehicles from Japan? I want to import a Car and preferably import more later for resale purpose to Sri Lanka.

I want to know the process, who are allowed to export, popular auction sites etc

Thanks

 

[Eric Lyon]

Hello Lakshan,

Been a while since we've talked.

In Texas (USA), I have sold a few cars over the years. The state of Texas allows 3 to 4 car sales per year for residents without a business license. Once you get into 4 or 5+ car sales per year, Texas does require a dealers License.

Each U.S. state is different when it comes to how many cars a resident of the state can sell before being required to get licensed.

I've never shipped a car overseas or had one shipped in before, so I figured I would see what I could dig up for you to help in your potential business venture.

Here's what I found...

Note: Bear with me, there turned out to be a lot involved, so I'll try to break it down into categories, so it's easier to follow. I'm not sure how much research you've already done, so you may already know most of what I'm about share.

Laws Governing Vehicle Imports into Sri Lanka​

• Formal Payment Method - All vehicle imports must be paid via a Letter of Credit (L/C) through a licensed bank prior to shipment; Usance L/Cs (deferred payment) are prohibited.
• Vehicle Age Limits - Imported vehicles must not exceed the permitted age by category. For example, cars = 3 years, SUVs = 3 years, light trucks = 4 years, heavy trucks/buses = 10 years. Sri Lanka Customs guidelines should have more on that locally for you.
• Importer Registration & Quotas
  • Registered importers (with the Department of Motor Traffic, DMT) may import multiple vehicles per their approved quota.
  • Unregistered individuals are limited to one vehicle every 12 months.
• Pre-Shipment Inspection & Certification - Used imports must pass a pre-shipment inspection by an approved agency. Japanese vehicles require JAAI certification for road- worthiness.
• Customs Clearance & Registration
  • Imported vehicles must clear Customs via a licensed Customs House Agent.
  • Registration with DMT is mandatory within 90 days of the Bill of Entry/CUSDEC; delays incur a 3% monthly late fee on the CIF value (capped at 45%).
• Concessionary Permits & Restrictions
  • Concessionary duty permits (diplomatic, migrant worker, etc.) are generally suspended.
  • Vehicles imported under any concessionary scheme cannot be sold, transferred, or alienated until five years after registration.
• Penalties for Non-Compliance
  • Vehicles imported in violation (over-quota, concession misuse, late registration) must be re-exported within 90 days at the importer’s expense.
  • Registered importers exceeding 25% of their approved quota in six months may face a three-year import ban.

Note: Sri Lanka vehicle importing seems like it has some really strict guidelines to follow. Be sure to do your due diligence to verify everything required from you to make this go smoothly.

Shipping Costs from Japan to Sri Lanka​

Shipping rates vary by vessel type, container size, and port pairing.

Method	Cost Range (USD)	Key Features
Roll-on/Roll-off RoRo	1,300 – 2,200	Cheapest; vehicle driven on/off via ramp
20 ft Container	2,300 – 2,500	Dedicated space; better protection
40 ft Container	2,700 – 3,500	Bulk shipments or multiple vehicles per vault

• Origin ports: Major Japanese hubs (Tokyo, Yokohama, Kobe); destinations: Colombo or Hambantota.
• Transit time: ~18–30 days.
• Extra charges: Port handling, Customs clearance (CIF basis), marine insurance, inland haulage.
• For precise quotes by RoRo or container carriers, factor in seasonal surcharges and fuel adjustments.

Requirements for Sri Lankan Residents to Resell Vehicles for Profit​

To legally import, register, and resell vehicles, a resident must satisfy these steps:

1. Business & Tax Registration
   • Register an entity (sole-proprietor, partnership, or company) with the Registrar of Companies.
   • Obtain a Taxpayer Identification Number (TIN) from the Department of Inland Revenue.
2. Import License & Dealer Permit
   • Apply for an Import Control License from the Controller General of Imports & Exports for vehicles exceeding age limits or under special schemes.
   • Register as a licensed motor vehicle importer/dealer with DMT.
3. Financial Vetting & L/C Setup
   • Open an irrevocable L/C for each vehicle; maintain a continuous bank balance equivalent to the CIF value during approval.
   • Submit audited financial statements and six months of bank statements proving affordability.
4. Documentation & Compliance
   • Furnish proforma invoices, original Bill of Lading, JAAI certificate (for Japanese used), proof of identity, and business registration documents.
   • Affidavit (for unregistered importers) confirming no other import in prior 12 months and compliance with one-vehicle rule.
5. Vehicle Registration & Holding Period
   • Register each vehicle with DMT within 90 days under the importer’s or buyer’s name; late registration fees apply as noted above.
   • Observe a five-year holding period for concession-rate imports before sale or transfer.
6. Taxation on Import & Sale
   • Pay Customs duty (5%–35% depending on type), VAT (12% on CIF), Ports & Airport Levy, Nation Building Tax, and any Ad Valorem levies upon import.
   • Collect and remit applicable VAT and excise duties at point of sale; comply with Inland Revenue reporting.

Note: Again, there seems to be a lot of red tape, requirements, legal considerations, fee's, holding periods and hoops to jump through to start a vehicle dealership business in Sri Lanka (Especially when you're importing vehicles).

Be sure to double-check everything on your end and do your due diligence to make sure you are in compliance with your local laws and have all your documents and accounts in order.

Good luck Lakshan, sounds like an interesting adventure you're considering.