Every percentage on a car import is a percentage of something. Before the duty rate matters, the value it is applied to has to be settled — and for a used car, that value is not always the price on your invoice.
The short version
- The common basis is the transaction value: the price paid plus transport and insurance to the border.
- Some countries use their own schedule for used cars, so a cheaper purchase does not mean cheaper duty.
- A registration tax may use a third value, such as Ireland's open-market selling price.
- The exchange rate customs applies is set by the authority, not your bank.
Customs value in one paragraph
Most customs authorities start from what you actually paid for the car and add the cost of getting it to their border — freight and insurance — which is the familiar CIF basis. Some countries check that figure against, or replace it with, their own valuation for used vehicles. The result is converted into local currency at the authority's own rate, and duty is charged on it.
Transaction value: the price plus getting it there
In the UK, the customs value is the price paid plus transport and insurance to the UK border, and GOV.UK states that import VAT is then charged on that value plus the duty. Cyprus Customs describes the same basis: the purchase price plus freight and insurance to the port or airport of entry.
Two consequences follow. Freight and insurance are taxed as if they were part of the car, so a dearer voyage carries more duty. And the terms you buy on matter: on an FOB purchase the freight and insurance are added on top of the invoice, while a CIF invoice already contains them. See FOB, CFR and CIF for car imports.
Reference values and valuation schedules
Used cars are hard to value from an invoice, so several countries use a reference instead.
| Country | How a used car is valued | Source |
|---|---|---|
| Kenya | Against KRA's published motor-vehicle valuation schedule | KRA |
| Mauritius | From the FOB value of identical vehicles imported before, less 9% for the first month of use and 1% a month after, to a 50% maximum | MRA |
| Ireland (VRT only) | On the Irish open-market selling price, not the purchase price | Revenue |
| UK, Cyprus | Price paid plus freight and insurance to the border | GOV.UK; Cyprus Customs |
Detail and links to each authority are in the country section below.
What a schedule means for a dealer
In a schedule-based country, the duty on a model is broadly fixed whatever you paid. A cheaper car does not attract less duty, so the saving on a low purchase price is smaller than it looks — and a car bought above the schedule carries the excess as pure cost.
How does your country value the car?
| Country | How customs values the car |
|---|---|
| The customs value is the price paid plus transport and insurance to the UK border, and duty and VAT are worked out from it. | |
| Customs duty and VAT are worked out on the customs value — the invoice price plus transport and insurance — while VRT is worked out on Revenue's OMSP. | |
| Registration tax works from Transport Malta's registration value for the car, which the government's online calculator produces. | |
| The customs value is the purchase price plus freight and insurance to the port or airport of entry. | |
| KRA values a used car against its own published motor-vehicle valuation schedule rather than the invoice you paid, so two importers of the same model pay the same duty. | |
| TRA assesses duty and taxes on the customs value of the car; confirm with TRA how it values the exact model before you price it. | |
| URA assesses the car's customs value at entry; confirm with URA how it values a used car of your model and year. | |
| MRA values a used car from the FOB value of identical vehicles imported before, reduced by 9% for the first month of use and 1% for each month after, to a maximum of 50%. | |
| Duty is assessed on the car's customs value at entry; confirm the basis for your model with the Jamaica Customs Agency. | |
| Duty is assessed on the car's customs value at entry; confirm the basis with the Customs and Excise Division. | |
| New Zealand Customs works GST out on the car's value plus freight and insurance to New Zealand, and any duty payable. | |
| Customs duty is assessed on the car's CIF value — cost, insurance and freight — at entry. |
Choose a country for its full rules and the official sources, checked 27 October 2026.
How customs values the car · United Kingdom
The customs value is the price paid plus transport and insurance to the UK border, and duty and VAT are worked out from it.
- A price in a foreign currency is converted at HMRC's published monthly rate for the month of import, not at the rate your bank gave you.
- HMRC publishes each month's rates on the penultimate Thursday of the month before.
Currency and exchange rate · United Kingdom
Customs values are converted to pounds sterling at HMRC's monthly rate for the month of import.
- The rate is fixed for the whole calendar month, so a car that lands on the 1st and one that lands on the 30th convert at the same rate.
Sources for United Kingdom, checked 27 October 2026:
- Importing vehicles into the UK — GOV.UK
- Exchange rates for customs and VAT — UK Integrated Online Tariff
How customs values the car · Ireland
Customs duty and VAT are worked out on the customs value — the invoice price plus transport and insurance — while VRT is worked out on Revenue's OMSP.
- Because VRT uses the Irish open-market price rather than the purchase price, a car bought cheaply abroad does not pay less VRT for it.
Currency and exchange rate · Ireland
Ireland's customs values are in euro, so a car priced in yen, sterling or dollars carries exchange-rate exposure until it is paid for.
Sources for Ireland, checked 27 October 2026:
How customs values the car · Malta
Registration tax works from Transport Malta's registration value for the car, which the government's online calculator produces.
Currency and exchange rate · Malta
Malta's taxes are assessed in euro, so a car priced in yen or sterling carries exchange-rate exposure until it is paid for.
Sources for Malta, checked 27 October 2026:
- SOPV 02 — Registering and licensing of new and used motor vehicles (January 2026) — Transport Malta
- Vehicle registration tax calculator — Government of Malta
How customs values the car · Cyprus
The customs value is the purchase price plus freight and insurance to the port or airport of entry.
Currency and exchange rate · Cyprus
Customs values are in euro, so a car priced in yen or sterling carries exchange-rate exposure until it is paid for.
Sources for Cyprus, checked 27 October 2026:
- Vehicles from countries outside the European Union — on payment of import duty and VAT — Cyprus Customs & Excise Department
How customs values the car · Kenya
KRA values a used car against its own published motor-vehicle valuation schedule rather than the invoice you paid, so two importers of the same model pay the same duty.
- KRA's procedure page links its motor-vehicle valuation template, effective 1 July 2023. The trade usually calls it the CRSP (current retail selling price) schedule.
Currency and exchange rate · Kenya
Duties are assessed in Kenyan shillings, so a car priced in yen, sterling or dirhams carries exchange-rate exposure until the duty is paid.
Sources for Kenya, checked 27 October 2026:
- Importation procedure for motor vehicles — Kenya Revenue Authority
How customs values the car · Tanzania
TRA assesses duty and taxes on the customs value of the car; confirm with TRA how it values the exact model before you price it.
Currency and exchange rate · Tanzania
Duties are assessed in Tanzanian shillings, so a car priced in yen or sterling carries exchange-rate exposure until the duty is paid.
Sources for Tanzania, checked 27 October 2026:
How customs values the car · Uganda
URA assesses the car's customs value at entry; confirm with URA how it values a used car of your model and year.
Currency and exchange rate · Uganda
Duties are assessed in Ugandan shillings, so a car priced in yen or sterling carries exchange-rate exposure until the duty is paid.
Sources for Uganda, checked 27 October 2026:
- Uganda Revenue Authority — URA
How customs values the car · Mauritius
MRA values a used car from the FOB value of identical vehicles imported before, reduced by 9% for the first month of use and 1% for each month after, to a maximum of 50%.
- Where no such value exists, MRA starts from the retail price when new in the exporting country, less 5%, then applies the same monthly reduction.
- For cars from Japan, MRA assesses the FOB value through its online second-hand vehicle valuation system.
Currency and exchange rate · Mauritius
Duties are assessed in Mauritian rupees, so a car priced in yen or sterling carries exchange-rate exposure until the duty is paid.
Sources for Mauritius, checked 27 October 2026:
- Customs — motor vehicles — Mauritius Revenue Authority
How customs values the car · Jamaica
Duty is assessed on the car's customs value at entry; confirm the basis for your model with the Jamaica Customs Agency.
Currency and exchange rate · Jamaica
Duties are assessed in Jamaican dollars, so a car priced in yen or sterling carries exchange-rate exposure until the duty is paid.
Sources for Jamaica, checked 27 October 2026:
- Motor vehicle — general information — Trade Board Limited
How customs values the car · Trinidad and Tobago
Duty is assessed on the car's customs value at entry; confirm the basis with the Customs and Excise Division.
Currency and exchange rate · Trinidad and Tobago
Duties are assessed in Trinidad and Tobago dollars, so a car priced in yen or sterling carries exchange-rate exposure until the duty is paid.
Sources for Trinidad and Tobago, checked 27 October 2026:
- Customs and Excise Division — Ministry of Finance
How customs values the car · New Zealand
New Zealand Customs works GST out on the car's value plus freight and insurance to New Zealand, and any duty payable.
Currency and exchange rate · New Zealand
GST is assessed in New Zealand dollars, so a car priced in yen carries exchange-rate exposure until it is paid for.
Sources for New Zealand, checked 27 October 2026:
- Fact sheet: importing goods for business or commercial use (April 2026) — New Zealand Customs Service
How customs values the car · Sri Lanka
Customs duty is assessed on the car's CIF value — cost, insurance and freight — at entry.
Currency and exchange rate · Sri Lanka
Duties are assessed in Sri Lankan rupees, so a car priced in yen carries exchange-rate exposure until it is paid for — and the letter of credit fixes when that happens.
Sources for Sri Lanka, checked 27 October 2026:
- National Imports Tariff Guide 2025 — Chapter 87 — Sri Lanka Customs
- Importation of a used motor vehicle under import control licence — Department of Import and Export Control
The exchange rate customs uses
A price in yen, dollars or pounds has to be converted, and the customs authority decides at what rate. HMRC publishes monthly rates, released on the penultimate Thursday of the month before, and a car imported on any day of a month converts at that month's rate. Your bank's rate on the day you paid is irrelevant to the duty. More on the two rates in currency risk for car importers.
When customs disagrees with your invoice
- Keep proof of payment — the bank transfer, not just the invoice — and the freight and insurance documents.
- Keep the car's description consistent across the invoice, the bill of lading and the export certificate. A grade or year that differs between papers invites a revaluation.
- Ask before you ship how the authority values your model, if it publishes a schedule or reference system.
Valuation feeds straight into the duty and tax stack and the landed cost. When you are ready to price specific cars, you can send a dealer inquiry. The full process is in the dealer's guide to sourcing cars overseas.