How Import Duties Affect Truck Costs
Importing a used truck can be a cost-effective way to expand your fleet or start a transport business—especially when buying from countries like Japan, where vehicle quality is high. However, many buyers underestimate the impact of import duties on the total cost.
Understanding how import duties work and how they influence truck pricing is essential for making smart purchasing decisions.
What Are Import Duties?
Import duties are taxes imposed by a country on goods brought in from abroad. These duties are meant to:
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Protect domestic industries
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Generate government revenue
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Regulate trade flows
When you import a truck, you typically have to pay import duties based on the value of the vehicle, and sometimes also on its weight, engine displacement, or emissions level.
Key Cost Factors Affected by Import Duties
1. Total Landed Cost
The “landed cost” is the final price you pay for the truck after it has arrived in your country. It includes:
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Truck purchase price
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Freight/shipping charges
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Insurance
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Import duties and taxes
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Port and clearance fees
Import duties can sometimes double the original purchase price, especially in countries with high tax rates.
2. Value Added Tax (VAT) or Sales Tax
In many countries, import duties are added to the truck's value, and then VAT is charged on top of that. This means you pay tax on the tax.
Example:
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Truck Price: $15,000
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Import Duty (25%): $3,750
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VAT (15% of $18,750): $2,812
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Total Cost: $21,562 + local fees
3. Vehicle Type and Engine Size
Duties are often higher for:
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Heavy-duty trucks
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Trucks with large engine sizes
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Vehicles with high emissions
Understanding your local tariff structure is crucial before selecting a model.
Tips to Manage Import Duties
✅ Check Country-Specific Duty Rates
Before purchasing, consult your country’s customs authority or a licensed customs broker to know the applicable duty rates for commercial trucks.
✅ Choose the Right Truck Category
Some countries offer lower rates for "commercial-use vehicles" or for "agricultural-use trucks." Choosing a truck that qualifies for a reduced rate can save thousands.
✅ Use a Trusted Exporter
Work with companies like EVERYCAR.jp, who can help prepare proper documentation (invoice, bill of lading, inspection certificates) to avoid overvaluation or customs issues.
✅ Consider Total Cost, Not Just Truck Price
A low upfront cost may be misleading if the import duty is disproportionately high. Always calculate the landed cost before finalizing your purchase.
Conclusion
Import duties are a critical part of the international truck buying process. They can significantly impact your budget and determine whether a deal is truly cost-effective. With careful planning, transparent information, and the right exporter, you can navigate the import process efficiently.
At EVERYCAR.jp, we not only provide high-quality used Japanese trucks, but also guide our customers through the import process—including advice on taxes, documentation, and total costs. Our goal is to help you make confident, informed, and profitable purchases.
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