Step-by-Step Guide to Importing Cars to Bangladesh (A to Z)

Importing a car to Bangladesh involves specific steps, compliance with regulations, and significant financial considerations. Here’s a detailed guide to navigate the process:

1. Understand Import Regulations

Age Restriction:

• Bangladesh allows the import of reconditioned cars up to 5 years old.
• New vehicles have no age limit but are subject to customs regulations.

Vehicle Types Allowed:

• Sedans, SUVs, Hatchbacks, Hybrid Cars, and Electric Vehicles (EVs) are commonly imported.
• Check the specific regulations for commercial vehicles, if applicable.

2. Research and Select the Car

Choose the Source Country:

• Japan: A popular source for reliable and fuel-efficient reconditioned cars.
• UK: Known for premium cars but may require modifications for left-hand driving.
• Singapore: Often exports high-quality used cars.

Select the Model:

• Ensure the car is suitable for Bangladesh’s road conditions, fuel availability, and climate.
• Consider fuel efficiency, maintenance costs, and availability of spare parts.

3. Find a Reliable Exporter

• Work with reputable exporters or auction houses such as USS Auctions in Japan or dealers in the source country.
• Check the exporter’s reviews and track record for delivering vehicles in good condition.

4. Calculate Costs

Vehicle Price:

• Includes the auction or purchase price.

Shipping Costs:

• The cost depends on the size of the car and the shipping method (containerized or roll-on/roll-off (RoRo)).
• Ports like Chattogram or Mongla handle most imports in Bangladesh.

Customs Duty and Taxes:

Customs duties are significant. The cost depends on:

• CIF Value (Cost, Insurance, Freight): Includes the car’s purchase price, insurance, and shipping.
• Engine Capacity (CC): Higher engine capacities (above 1500cc) attract higher duties.
• Type of Car: Hybrid and EVs have lower duties.

Approximate Customs Duties Breakdown:

1. Customs Duty: ~25-30%
2. Supplementary Duty: ~60-300% (depending on engine size)
3. Value Added Tax (VAT): 15%
4. Advance Income Tax (AIT): 5%
5. Advance Trade VAT (ATV): 4%
6. Regulatory Duty (RD): 3%

5. Arrange Necessary Documents

You’ll need the following documents:

1. Proforma Invoice: From the seller/exporter.
2. Bill of Lading (B/L): Issued by the shipping company.
3. Export Certificate: From the exporting country.
4. Inspection Certificate: Ensures the car meets Bangladeshi standards.
5. Customs Declaration Form: Submitted upon arrival.
6. NOC (No Objection Certificate): If applicable for specific models or usage.
7. Bank Documents: For proof of payment, including Letter of Credit (L/C), if used.

6. Choose a Shipping Method

1. Container Shipping:
   • Offers more protection.
   • Slightly more expensive than RoRo.
2. Roll-on/Roll-off (RoRo):
   • Cost-effective.
   • Car is driven directly onto the ship.

7. Clear Customs at Bangladeshi Port

• Appoint a clearing and forwarding (C&F) agent to handle customs clearance.
• Submit all required documents, including the original Bill of Lading, to customs.
• Pay applicable duties, taxes, and port fees.

8. Register the Vehicle

Road Transport Authority (BRTA) Registration:

• Submit all documents, including the Customs Clearance Certificate.
• Pay the applicable registration fee based on the car's engine capacity.
• Obtain your car’s number plate.

9. Ensure Compliance with Emission Standards

• Bangladesh follows certain emission standards for environmental compliance. Ensure the vehicle meets these requirements.

10. Obtain Insurance

• Purchase comprehensive car insurance to protect your investment.

11. Modify and Service the Car (if needed)

• Adapt features like left-hand drive or emission control systems.
• Conduct a thorough service and check before driving on Bangladeshi roads.

12. Final Steps

• Get your car road-ready by ensuring it has:
  • Road Tax Sticker.
  • Fitness Certificate (for older vehicles).
• Familiarize yourself with Bangladesh's traffic rules.

Estimated Timeframe

The entire process can take 6–8 weeks or longer, depending on shipping and customs clearance.

Tips for First-Time Importers

1. Work with experienced agents or brokers to avoid delays and unexpected costs.
2. Ensure all documents are accurate and up-to-date to prevent customs issues.
3. Budget for duties and taxes as these can significantly increase the car's total cost.
4. Research fuel and maintenance options for your chosen model.

By following these steps, you can successfully import a car to Bangladesh while navigating its regulations and requirements effectively.