When it comes to ensuring sustainable growth of a nation, it is essential to let the transport section flourish. To put it another way, the economic progress of a country is dependent on their automobile sector. This is especially true in a developing country like Burundi. A landlocked country in the African Great Lakes region of East Africa, Burundi is surrounded by flourishing economies, including the Democratic Republic of Congo in the west, Tanzania to the east, and Rwanda in the north. Its new market industry is still small. However, it shows great potential for car exporters.
Since Japanese vehicles are known to be durable enough to withstand harsh conditions, they are also popular in Burundi. Some of the known names in this country include Mitsubishi, Toyota, Nissan, and Suzuki. It is not surprising to learn that many businessmen in Burundi would prefer to buy a used Fighter truck from Japan. After all, Japanese trucks, sedans, and SUVs are reliable and their spare parts are easily available in the country.
Important Regulations for Importing Vehicles in Burundi
Over the past few years, the car industry of Burundi has seen consistent progress. However, it is not still reliably stable. As such, people opt to turn to Japanese vehicle exporters for durable, quality, and low-cost vehicles. When importing vehicles in Burundi, you can select from three main ports:
- Dar Es Salaam in Tanzania
- Mombasa in Kenya
- Durban in South Africa
Left-hand drive vehicles are primarily used in Burundi. However, the government also allows right-hand drive cars in the country. If you want to drive a vehicle in Burundi, you simply need to get a valid driving license. There are no age limitations for used vehicles. Moreover, the government does not require mandatory inspection on pre-owned cars.
How to Calculate Used Car Import Fees, Duties, and Taxes in Burundi
Every week, thousands of premium Japanese vehicles are added to auctions across the country. Since the auctions are now available online, people from Burundi have great opportunities to find quality and cost-effective used vehicles. Instead of purchasing brand new cars at a higher price, they find it wiser to invest in a slightly used Fighter truck from Japan.
If you are planning to import a car to Burundi, you must conduct sufficient research about the import rules and regulations This will help you prevent getting unpleasantly surprised along the way. For example, before you hit the ‘Buy Now’ button, you must compute the import taxes, duties, and fees first.
Here at Carused.jp, we have a plug-in that allows you to calculate the estimated total price of the vehicle based on some factors you select. On the other hand, we still understand that some people prefer knowing how their fees are computed. As such, we’ve put together this article to give you a better understanding of how car import fees, duties, and taxes in Burundi are calculated.
Disclaimer:
Please note that the prices illustrated in this article do not necessarily reflect the exact advertised rates of the vehicle in our catalog. If you want to know the actual cost of the car, you can always visit our site or talk to one of our friendly sales representatives.
Defining Terms:
FOB – This stands for ‘Free on Board’ which is the imported vehicle’s actual cost before insurance, inspection, duties, and transport fees. This is typically the price you see on online used vehicle catalogs.
CIF– This is the abbreviated term which stands for ‘Cost, Insurance, and Freight’. It is the combined amount of the FOB, inspection, freight, and insurance fees.
It can be overwhelming to try and compute the overall cost of the vehicle you plan to import in Burundi, especially when you do not have all the necessary information. As such, we’ve put together a systematic guide on calculating your car import taxes in Burundi:
Step 1: Collect the Necessary Information on the Vehicle
The first thing you have to do is select a car make and model from our online listing. Once you’ve chosen a specific vehicle, write down the following information:
- Car make
- Car model
- Engine size
- Year of manufacture
- Model code
- Fuel type
- FOB
So, for instance, when you go to our listing and click a used Fighter truck from Japan, you will see the specifications of the vehicle. Let’s say you’re eyeing a 1999 MT Mitsubishi Fuso Fighter FK629J. You must write down the details as so:
- Car make: Mitsubishi
- Car model: Fuso Fighter
- Engine size: 8,200 cc
- Year of manufacture: 1999/8
- Model code: FK629J
- Fuel type: Diesel
- FOB: 10,440 USD
Step 2: Write down the Vehicle’s CIF
Once you’ve collected the important information on the vehicle, you must choose a port of delivery and country of destination. This will allow you to get the CIF of the vehicle. Let’s say the CIF of your selected truck is 14,247 USD.
Step 3: Convert the Amount to Burundian Franc
When you go to car exporter sites, you will find that most of the prices shown are in US dollars (USD). Of course, the exchange rates change from time to time. So, it is essential that you use a reliable tool to convert USD to Burundian Franc (BIF). An easy way to do this is to go to Google and search for “USD to BIF”.
On the other hand, it is likely that you will make transactions and payments through your local bank. So, it would be best if you visit your bank and ask a representative about their current exchange rate. It is also worth noting that the rates vary from one bank to another.
In our example, let us assume that 1 USD is equivalent to 1,779 BIF. So, the CIF worth 14,247 USD would be 25,345,413 BIF.
Step 4: Calculating the Overall Expenditure
All imported vehicles in Burundi are subject to car import duties and taxes. These rates are dependent on the size of the vehicle and its CIF. The duty rates on imported vehicles in Burundi are as follow:
• Diplomat vehicles are subject to a 1% handling fee.
• If the vehicle carries more than ten passengers, the duty will be 15% of the CIF.
• Vehicles used for tourism will be subject to duties ranging from 40% to 100% of the CIF.
• There is a handling fee worth 4% of the CIF.
• All imported vehicles are subject to transactional tax worth 17% of the CIF, duties, and handling fees.
Now, let’s go back to the example. Since you’re planning to import a truck, it will fall under the over 10-passenger vehicle category. So, the duty will be 15% of the CIF:
15/100 x 25,345,413 BIF = 3,801,811.95 BIF
Next, we’ll calculate the handling fee:
4/100 x 25,345,413 BIF = 1,013,816.52 BIF
Finally, we will compute the transactional tax:
17/100 x 25,345,413 BIF + 3,801,811.95 BIF + 1,013,816.52 BIF = 5,127,377.05 BIF
So, the total duties, taxes, and fees you must pay is:
3,801,811.95 BIF + 1,013,816.52 BIF + 5,127,377.05 BIF = 9,943,005.52 BIF
If we add that amount to the CIF, the total cost of your Mitsubishi Fuso Fighter (inclusive of taxes, duties, and fees) will be 35,288,418.52 BIF.