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Trip Paperwork Covers all documentation, carnets, customs and country requirements, how to deal with insurance etc.
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Old 30 Dec 2010
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Join Date: Jan 2009
Location: Touring Europe
Posts: 43
RAC Carnet rip off

I have been looking (like lots of others I'm sure) at the UK Carnet multiplication factor.

As far as I can work out, in Egypt the maximum import tax is about 240%. I believe a Swedish Carnet reflects this at 235%. In the UK it is 800%.... FFS why ?

As for the other expensive countries, namely: Iran,Pakistan, India, Bangladesh and Nepal, which are charged at 500% by the RAC, I have done some research into their import duty rates. The results I have come up with are as follows. (The justification and references are at the bottom).
Iran, 100%
Pakistan, 120%
India, 102%
Bangladesh, 87%
Nepal, 94%.

Now I understand, in the event of a claim, there will be a lot of inflated fees to be paid, but how the extra 400% can be justified is beyond me.

It's nice if you can afford to tie up a large chunk of money at the bank and then still afford to actually travel but in reality, it boils down to insurance, namely Lloyds of London through R.L. Davidson (who also indemnify the ADAC in Germany).
On top of that is a clause that in the event of a claim, they will of course pay out, but Lloyds are fully entitled to claim back their losses from guess who....

This is what they say....
http://media.rac.co.uk/pdf/rac-private-prop.pdf
3. It must be clearly understood that this insurance guarantee, if taken up, does not relieve you of paying duty should the necessity arise. Lloyd’s Underwriters are entitled under the Indemnity to recover from you the amount paid. Our Guarantee merely enables you to take the vehicle out of Great Britain without having to freeze a lump sum in this country.

Makes you wonder what insurance realy is.

So why is it so expensive - the multiplier that is ?
In Germany a carnet for a ϵ15,000 bike (£12,800) for Egypt is ϵ3000
In the UK it is, for a £12,800 bike, 12k x 8 = £102.4k x 10% = £10,240 of which you get back £5,120 (ϵ6,000) if no claim is made.
Basically 4 times as much up front and 2 times as much when finished satisfactorily.

The Germans will take you to court for any losses they incur. The Brits (Davidsons) will take your money (as they are an insurance company ) then let Lloyds make their claim to you to recover their losses.

Is it worth it ????? or are we better of winging it with the exception of countries that will not let you in at all without a carnet, Kenya for example. As can be seen below many will allow entry at a fraction of the cost.
Nepal for example will allow motorcycles in without a carnet for 100 Nepalese Rupees per day, about £0.90 per day for up to 30 days, thereafter £4.50 per day, wheras a carnet will allow up to 6 months in a year.

Extorionate madness. Is someone in the upper echelon of the RAC married to a director of Davidsons or Lloyds.

This BTW is in no way meant criticize Paul Gowan at the RAC in any way as I understand from many posts that he is an extremely helpful guy but he does not set the rates.

Feel free to comment, I realy would love to be completely wrong...

----------------------------------------------------------------
This is the best I can find for the various countries, some from government customs sites, some not. References and relevant data.

Iran – 100%
Ref Automotive industry in Iran - Wikipedia, the free encyclopedia
IMPORTS
Car imports have risen, from $184 million in 2002 to $1.5 billion in 2007.[23] In 2006, the government lowered the automotive import tariff levels to 90 percent for light weight vehicles and since then a huge influx of imported vehicles has been witnessed in the country.[17] The tariff level for import of heavy vehicles is even lower at 20 percent, due to low levels of local production and high demand.
Indicative listing of import tariff rates in 2006[35] Item Tariff rate chemical products 10% ordinary metals 10% measurement instruments 10% medical equipment 10% food industry 15% mining raw production 15% leather industry 15% paper and wood fabrics 15% mechanical machinery 15% agricultural raw production 25% electric machinery 25% automotive vehicles 100%
Pakistan – 120%
Ref: http://www.mofa.gov.pk/Downloads/ImportofVehicles.pdf
This is for normal new imports. It is not possible for foreign nationals to improt used.
Assessed value is typically 140% of actual value as they include all shipping charges etc as part of the cost.
Say vehicle value of 1200 cc bike = £10,000 X 140% = £14000
Add duty £14,000 x 60% = £8,400
Add Sales tax (£14,000 + £8,400) x15% = £3,360
Add Income tax (£14,000 + £8,400 + £3,360) x 0.05% = £13
Add federal duty tax (£14,000 + £8,400) x 1% = £224
Total taxes for a £10,000 bike = £11,997 or 120% of original value
Type of veh, Customs Duty, Sales Tax, Tax on Sales Tax, Federal Duty
From 1001 CC to 1300 CC, 60.00%, 15.00%, 5.00%, 1.00%

India – 102%

Ref: http://www.chennaicustoms.gov.in/imports/car.htm
There is a sliding scale for used vehicles, 1 year 16%, 2 year, 28%

The present rate of duty on import of Car is as below:

Total effective duty works out to 101.91%, which includes the following.

BREAKUP OF CUSTOMS DUTY ON CAR IMPORT(2000-2001)
BASIC CUSTOMS DUTY
35%
SURCHARGE ON CUSTOMS DUTY
10%
ADDITIONAL DUTY
16%
SPECIAL EXCISE DUTY
24%
MOTOR VEHICLE CESS
0.125%
SPECIAL ADDITIONAL DUTY OF CUSTOMS
4%



Bangladesh – 87%


Ref: BANGLADESH Policies ( Exim Policy ) :: Trade in Bangladesh,Bids in Bangladesh,Tenders in Bangladesh,B2B Business in Bangladesh,Bangladesh Trade Gallery
Example:
1300 cc car, C&F value $ 10,000
Insurance (1% or actual) 100
Landing Charge (1%)1 100
Assessable value 10,200

a. customs duty @ 45% $ 4,590
b. supplementary duty @ 10% $ 1,020
c. duty paid value $ 15,810
-VAT at 15% of duty paid value 2,371.50
--advance income tax 2.5% of assessable value $ 255
--license fee 2.5% on assessable value $ 255
--total duties and taxes $ 8,491.50

Our $ 10,000 vehicle's landed cost is therefore $ 18,691.50.


Nepal – 94%


Ref: http://trade.gov/wcm/groups/internet...debarriers.pdf

NEPAL
 An import license is required.
 The import duty is levied at around 94 percent on public carriers and around 117 percent on mini-buses (customs duty of 25 percent on public carriers and 40 percent on mini-buses, 32 percent excise duty on the gross of Invoice Value plus Customs Duty, 1.5 percent local development tax on invoice value, 5 percent special tax on invoice value, and 13 percent value added tax (VAT) on the gross of invoice value plus additional duties and taxes).
 The import duty on other vehicles is around 176 percent (80 percent customs duty, and additional duty and taxes as applicable on mini-buses and public carriers).

Ref: Normal Tariff

12. Special provisions relating to import of Vehicles:
…………
(2) Vehicles of personal use brought in by tourists under a carnet shall be allowed to stay in Nepal continuously or now and then for a period of 6 months during the span of 12 months (one Year) from the date of the first entry into Nepal without payment of import duty. Vehicles thus imported, if not taken back within six months, shall be ipso facto confiscated.
…………..
(3) The temporary importation of vehicles such as motorcars, station wagons, land rovers, jeeps, trucks, tractors, lorries, vans and motorcycles including their trailers except those brought under a carnet shall be charged customs duty as follows:
…………..
(b) Import duty shall be levied on vehicles, having no carnet, imported temporarily on the following rates:
…………
Motorcycles and Scooter Rs. 100 per diem, (About £0.90/ day– Dec 2010)
…………
Vehicles thus imported with the payment of temporary import duty shall not be permitted to stay in Nepal for more than 30 days in a year.
…………
(d) Vehicles and means of transport thus imported temporarily must be taken back. Vehicles specified in clause (a), (b) and (c) above may be seized if found to have overstayed from the period declared in the customs declaration form (Pragyapanpatra),
…………..
Nevertheless, vehicles may be allowed to be taken back after paying duty for overstayed period at the rate of Rs. 500/- per diem in the case of motorcycle
………………..
__________________
New bike, Retired Nomad.

Last edited by Old Git Ray; 30 Dec 2010 at 21:35.
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