Ethiopia, Ghana, and Egypt have their own used car markets. Ethiopia is mainly imported, especially from Djibouti, to import a large number of used cars, and at the same time promote the development of electric vehicles. Ghana is characterized by a significant ban on the import of used cars for more than 10 years, encouraging the construction of local factories, and especially exempting cars for people with disabilities. The used car market in Egypt has become more active in the context of new cars***, especially affected by inflation and currency depreciation. While supporting the development of electric vehicles, Egypt has tax-exempted pure electric used cars, providing development opportunities for new energy vehicles. The following is a detailed description of the used car import policies of these three countries:
(1) Basic information
Geography & Population:
Located in northeastern Africa, the capital is Addis Ababa.
The land area is 11040,000 square kilometers with a population of 1200 million, making it the second most populous country in Africa.
Economic Situation:
In 2021, GDP reached $99.3 billion, a year-on-year increase of 28%。
GDP per capita is about $940.
China-Egypt**:
In 2021, the bilateral ** amount between China and Egypt reached 26600 million US dollars, a year-on-year increase of 35%。
China's exports to Ethiopia were 22900 million US dollars, a year-on-year increase of 27%。
Imports are 3$700 million, an increase of 88%。
(2) The automobile market
Driving Settings & Car Ownership:
Ethiopia is a car left-hand drive country, which is permittedImported left-hand drive and right-hand drive converted to left-hand drive vehicles
The number of cars per 1,000 peopleAbout 10 cars.
The state of the automobile industry:
The automotive industry has a weak foundation, with more than 100 companies licensed to assemble cars, but only a few projects are actually operational.
Automobile consumption is mainly dependent on imports.
Imports:
The annual import volume is aboutAbout 100,000 units, of which 85% are used cars.
Used cars mainly passImported from Djibouti, ** including countries in the Middle East and Europe.
Japanese brands account for about 80% of the total number of imported used cars.
Best-selling used models:
The best-selling second-hand models in the local area include Toyota Hiace, Toyota Vitz, Toyota R**4, Toyota Coaster, Toyota Corolla, Toyota Hilux, Mercedes-Benz S-Class, etc.
(3) Policies and regulations on the import of second-hand cars
1. Import policy
Currently, Ethiopia's regulations on imported used cars are relatively relaxed. However, the Ministry of Transport has proposed to ban the introduction of second-hand cars older than five years, while the Ministry of Finance has suggested considering the introduction of a progressive consumption tax increase based on the age of the vehicles.
2. Tax policy
Vehicles imported into Ethiopia are subject to high taxes and feesIncluding customs duties, consumption tax, value-added tax, additional tax, income tax, etc., the details are as follows
Tariffs: The tariff on passenger cars is 35%.(Import of automobiles by manufacturing enterprises is exempt from tariffs).The tariff on commercial vehicles is 10%.
GST:A distinction is made between passenger vehicles and commercial vehiclesThe excise tax on commercial vehicles is zero.
Different tax rates apply to passenger cars according to different displacements, as follows:
VAT:Levy on all vehicles15% VAT
Additional Taxes:Levy on passenger cars10% surtax
Withholding Tax:Levy on all vehicles3% withholding tax
Income Tax:Levy on all vehicles3% income tax
Tax reform supports the development of the electric vehicle industry
The range covers vehicle models:
Imported and assembled electric vehicles, including public transport, private cars and vans.
Tax Exemption Policy:
Exemption from VAT, GST and surcharge.
Duty Reduction:
Imported electricTariffs on auto parts have been reduced to 5%.
Electric vehiclesThe import duty on finished vehicles has been reduced to 15%.
Promoting green development:
It aims to reduce the impact of transport on people's health, climate and biodiversity.
Promote the consumption of electric vehicles and drive the green development of Ethiopia.
3. Documents required for import
Bill of lading (including information such as VIN number, engine number, displacement, year of manufacture, make and model of the vehicle).
Original certificate of ownership, vehicle registration invoice and purchase certificate
Authorization from the Department of Transport and Communications of the Roads Authority (issued to shippers by organizations or diplomatic missions).
Customers are required to present a valid driver's license and an international insurance policy.
Purchases or receipts, etc.
(1) Basic information
Geographical location and transportation advantages:
Egypt is located in the northeast of Africa, which is the transportation center of Europe, Asia and Africa, and has a shortcut to the sea route connecting the Atlantic Ocean and the Indian Ocean.
Capital and population:
The capital is Cairo, with a land area of about 1 million square kilometers and a population of about 1100 million.
Economic data:
According to the International Monetary Organization, Egypt's GDP in 2021 was $361.8 billion, a year-on-year increase of 954%, with a GDP per capita of $3,852.
China-Egypt relations:
China is Egypt's largest partner, with a bilateral import and export volume of 199 in 2021700 million US dollars, a year-on-year increase of 371%。Among them, China exported 182 to Egypt600 million US dollars, a year-on-year increase of 339%；Imported from Egypt 17100 million US dollars, down 848%。
SUEZ (TEDA) Economic and Trade Cooperation Zone:
By the end of 2021, the Suez (TEDA) Economic and Trade Cooperation Zone jointly built by China and Egypt has attracted 123 enterprises to settle in, with an actual investment of more than 1.3 billion US dollars, cumulative sales of more than 2.6 billion US dollars, and more than 1 tax payment$900 million. The cooperation zone directly employs more than 4,000 people and drives the employment of 40,000 people, and has become an important platform to promote cooperation between the two countries.
(2) The automobile market
Driving Xi and car ownership:
Egypt is a left-hand drive country, with about 60 cars per 1,000 people.
New car sales:
According to the World Automobile Organization, 27 new cars were sold in Egypt in 202180,000 units, a year-on-year increase of 264%。
Since 2022, Egypt's inflation and depreciation of the pound have led to a decrease in spending power, and the new car sales*** market has been hit.
New Car Market Conditions:
The ongoing Russia-Ukraine conflict has led to chain disruptions and shipping costs, further impacting the Egyptian new car market.
According to the Egyptian Automobile Dealers Association, new cars in 2022** are 15% higher than last year**, and the annual increase is expected to reach 20%.
The used car market is active:
New cars*** have pushed Egyptian consumers to shift their demand to the used car market, leading to an increase in used car trading activity.
Consumers have a high demand for used cars from mainstream brands that are younger and have higher retention rates, showing a preference for stable and affordable options.
Used Car Imports**:
Dubai, South Korea, Europe and other countries and regions export a large number of first-hand cars to Egypt every year.
Main export ports:
Port Said is the first choice for exporting used cars to Egypt, followed by Alexandria, Suez and other ports.
Best-selling brands:
The best-selling used car brands in the region mainly include Hyundai, Kia, Toyota, Nissan and Mitsubishi.
(3) Policies and regulations on the import of second-hand cars
1. Import policy
Import Requirements:
Egypt only allows the import of left-hand drive cars, and the main body of imported used cars must obtain themCommercial Registration (Importer) or Professional License (Individual).
Vehicle Type:
Passenger cars: Imports onlyNearly three years of productionof hybrid used cars, pure electric used cars, and used passenger cars for the disabled equipped with medical equipment.
Commercial Vehicles:Large transport vehiclesThe age of the car can be greater than 10 yearsOther commercial vehiclesThe vehicle is required to be less than 10 years old.
cargox registration:
From 1 July 2021, used vehicles exported to Egypt must be registered with Cargox or they will be returned and fined.
New Energy Vehicle Policy:
In order to encourage the development of new energy vehicles,Egypt exempts imported pure electric used cars from customs duties
2. Tax policy
Different types of used cars in Egypt are subject to different taxes and fees, and the specific taxes and fees are as follows:
Pure electric vehicles:
Pure electric used cars are exempt from customs duties, development fees, plan taxes and other tax items, and only 14% VAT is levied.
Hybrid Vehicles:
Hybrid vehicles are subject to different taxes and fees depending on the engine displacement.
Handicapped special vehicles:
Policies:
Exemption from VAT, customs duties, etc.
Only 3% of the development fee is required.
Requirements for the import of used cars for the disabled:
Must be imported in the name of a disabled person.
Submission Statement Instructions:
(1) Have not enjoyed tariff exemption for medical equipment vehicles or bicycles within 5 years.
(2) Provide a doctor's certificate with a disability level of not less than 35%.
— Vehicles must be equipped in accordance with the report of the General Medical Council.
— The engine must not exceed 4 cylinders and the displacement must not exceed 1600ml.
Commercial Vehicles:
Import Requirements:
The car is less than 10 years old.
Customs and other tariff items:
Tariffs ranging from 3% to 60% are levied, which are determined according to factors such as the type and age of the vehicle.
Other tax items such as VAT are required.
Example of tax rate:
Commercial vehicles, single-row trucks: 492%；
Chassis: 378%。
Light passenger car: 606%。
Truck front: 207%。
3. Documents required for import
Import license number.
Business ID tax identification number.
Proof of business tax registration.
Registered as a ** merchant in the customs.
Invoices and certificates of origin are authenticated by Egypt and the embassy and other relevant departments.
(1) Basic information
Location & Area:
Ghana is located in West Africa, with the capital city of Accra, with a land area of 2380,000 square kilometers.
Population:
The population is about 31.49 million people.
Economic data:
According to the International Monetary Organization, GDP in 2021 was $75.5 billion, up 10. year-on-year4%, with a per capita GDP of about $2,413.
China-Canada ** relationship:
China's position in Ghana's foreign world has risen and it has become Ghana's largest partner.
In 2021, the amount of bilateral ** between China and Canada was 95$700 million, an increase of 126%。
China's exports were US$8.1 billion, a year-on-year increase of 198%。
Import 14700 million US dollars, down 155%。
(2) The automobile market
Driving direction and car ownership:
Ghana is a left-hand drive country for automobilesThe number of cars per 1,000 people was 46.
Automotive Industry Overview:
The automotive industry is mainly made up of imported used car retailers and some dealers engaged in the retail sale of new cars.
About 100,000 cars are imported every year, of which about 90% are used cars.
Imported vehicles are mainly from regions such as the United States, Japan and Germany.
Policy and development direction:
In 2019, Ghana formulated the Automotive Development Policy aimed at:Produce affordable new cars and reduce reliance on used cars
Signed assembly agreements with OEMs such as Volkswagen, Nissan, Toyota, and Suzuki for vehicle production.
The local company Katanka Motors*** uses Chinese CKD kits to assemble the Kantanka series of vehicles, mainly producing sedans, SUVs and some military vehicles.
(3) Policies and regulations on the import of second-hand cars
1. Import policy
Prohibited Import Types:
Ghana is prohibited from importingAccident cars and scrapped cars.
Regulations for Imported Used Cars:
Imported used cars must be left-hand drive vehiclesRight-hand drive vehicles require a special application.
Right-hand drive vehicles need to be modified in the port after importation, and customs confirmation is required after the modification is completed before they can be driven on the road in Ghana.
Vehicle Age Limit & Penalty Policy:
Since October 2020, Ghana has banned importsMore than 10 yearsof used cars.
Previously, for used cars imported more than 10 years ago, it was required to payCIF price 5-100%."Overage fine".
Policies to encourage local manufacturing:
The ban on the import of used cars for more than 10 years is aimed at encouraging international companies to set up local factories in West African countries and promote Ghana as a car manufacturing hub in West Africa.
2. Tax policy
Used cars imported into Ghana are subject to a feeCustoms duties, VAT, National Health Insurance premiumsand other taxes, specifically:
Tariff:It is applicable depending on the type of vehicle, displacement, number of seats, etc% and other different tax rates
a.Passenger car displacement and tariff ratesThe details are as follows:
b.Number of seats in used buses and tariff ratesThe details are as follows:
VAT:0% or 125%
National Health Insurance Tax (NHIL):0% or 25%.
Export Development** (EDIF) Fee:0% or 25%
aulevy：
Economic Community of West African States (ECOWAS) ecowas taxed:
Import and export taxes:
Inspection Fee:
Special Import Duty:
3. Documents required for import
Name and address of the manufacturer.
Year of production. Used car home delivery value.
Certificate of Ownership and Registration.
Purchase invoice (original).
Insurance policy (original).
Bill of lading (original).
International Driver's Permit. Customs**c-12(SAD).