The Ins and Outs of Importing

Posted in Main, Porsche by John on the April 18th, 2008

(This was run as Part 2 of the Perky piece)

 

The main advantage of buying from abroad is obvious: better choice. Most Porsche production was exported, with the USA the biggest customer, and the vast American market offers a selection of cars far beyond what is available here in the UK. Thanks to this extensive supply, prices for most cars on the American market have remained low in relation to ever-increasing European prices. Combine this with a US Dollar priced very low against Sterling and the Euro, and it’s no wonder that huge numbers of people are importing vehicles from the ‘States; cars like this SC are cheap.

 

Copyright Mike Bailie 2008

 

To some people, talk of US imports conjours up images of sunburnt 356s, and scruffy but solid early 911s, brought to the UK as cheap entries into classic Porsche ownership. Importing from dry states remains a useful method of acquiring rust-free base vehicles, but the current flow of Porsches across the pond spans the spectrum, from would-be restos to full-blown RSR replicas and all manner of exotica. This time last year, I spoke to a pair of Porsche enthusiasts who had snapped up a couple of Carrera GTs from a dealer in downtown New York when the dollar rate hit what was then an all-time low.

 

Buying abroad is one thing, but getting your purchase home is another. It is possible to organise transport to the port, paperwork at point of export, insurance, shipping and Customs clearance etc on arrival oneself, but most people chose to use a shipping company to handle everything, and many Porsche fans use Kingstown Shipping (www.kingstownshipping.co.uk). Kingstown has been shipping cars all over the world since 1986, with the majority travelling from the USA to the UK. Kingstown’s Alan Shores sheds some interesting light on best shipping practise.

 

“There are two options for shipping: Roll-On/Roll-Off (RO/RO - like a car ferry) and using containers” says Alan. “We prefer container shipping for classic and cherished cars, and there are several points throughout the USA where we offer shared container rates. The advantage of container shipping is more security and less hassle: cars can be non-runners and have loose parts inside. Shared container rates are an average two to four hundred pounds more expensive than RO/RO”.

 

“RO/RO services from East Coast USA are all fully booked for 6 to 8 weeks, partly due to the dollar rate, therefore it is difficult to get RO/RO bookings at the moment. Container shipping is also backing up now due to volume, but it’s not as bad as the RO/RO services”.

 

The continuing low dollar rate means that companies like Kingstown are up to their eyes in work. “We’ve been very busy for a few years now”, Alan tells me. “For the past five years, VW campers have been the most popular imports, along with Porsche 911s from the 1970s, big Dodge Ram pickups, Mustangs and so on. There are concessions for duties on vehicles of a certain age, so it’s always worth people ringing us if they’re not sure where they stand”.

 

The prospect of dealing with HM Customs and Excise is enough to put many people off the idea of personal imports, but the import procedure is usually straightforward and trouble-free.

 

Where cars over ten years old are imported into the UK from within the EU, the process could not be easier. Before arrival in the UK, the car is insured, using the chassis number. Upon arrival in the UK, the car is taken for an MOT, also using the chassis number. Once the MOT is passed, the insurance, MOT and foreign registration documents are taken to the local DVLA office, where you pay a £50 first registration fee, buy your road fund licence, and fill in a V55/5 to register a used vehicle. A few days later, you get the certificate showing your UK registration number and allowing you to order number plates, the V5C follows soon after and that’s it.

 

For cars over ten years old coming to the UK from outside the EU, different import duty and VAT rules apply. EU-manufactured cars imported from outside the EU by private individuals must first pay £50 import duty. This a nominal sum intended to cover duty on parts fitted outside the EU. Traders importing EU-manufactured vehicles must pay 10% import duty. Cars returning to the EU within three years of the original date of their departure/manufacture are usually exempt from duty. All importers have 17.5% VAT levied on the total cost of their purchases, which is calculated as purchase price plus shipping plus duty.

 

UK VAT is reduced where a vehicle is deemed to be of historical significance, but such status is almost impossible to attain. VAT is not payable where those moving to the UK import vehicles as part of their personal effects, but you will have to prove at least 12 months residency in the country of origin, and that you owned and used the vehicle for at least six months prior to import.

 

In many other EU countries, the VAT rates governing imports of classic cars are lower than here in the UK, but entry via these countries usually requires residency, and on lower-value cars (up to £20k or so) the process is generally not financially viable. I looked at coming in through Ireland, Holland, Sweden and France when importing my own car, and the numbers did not stack up in my case.

 

Cars under ten years old imported from inside the EU will have to show evidence of Type Approval, or that left-hand drive vehicles have been adjusted for safe use on UK roads. This is a very simple process. Cars under ten years old imported from outside the EU will have to pass a Single Vehicle Approval (SVA) test, which checks that the vehicle is suitable for use on UK roads. This is slightly more complicated, and feedback on SVA testing is mixed, with some cars passing relatively cheaply and approval on others costing a small fortune. Careful research is the key.

 

Essential reading for those contemplating the personal import process can be found at the Government’s information portal: www.direct.gov.uk/en/motoring.

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