Importing Used or Salvage Vehicles from the United States to El Salvador

Importing Used or Salvage Vehicles from the United States to El Salvador

El Salvador is a highly attractive destination for those interested in importing used and salvage motor vehicles, particularly from the United States. In fact, around 90% of the used vehicles sold in El Salvador come from salvage and used car auctions in the US. This presents a great opportunity for exporters and importers of US vehicles.

However, there are important factors to consider when entering the El Salvadorian used car market through US imports. Firstly, understanding the best method to purchase used and salvage vehicles from US car auctions is crucial. Secondly, one must be familiar with the process of getting the vehicles from the US to El Salvador, including customs procedures and identifying suitable cars for import. Below, we will delve deeper into these topics and more.

Procuring Used or Salvage Cars from US Auctions

For individuals interested in purchasing used and salvage cars in the US for import to El Salvador, online used car auctions are the best option. These websites connect average consumers and importers/exporters to auctions that were previously only accessible to those with dealer's licenses. By including certain dealer-only auction houses' listings on their platforms, these online car auction sites offer access to a wide range of inventory at competitive prices.

Moreover, these online platforms are user-friendly and convenient. To get started, one simply needs to create an account and place an initial deposit, which determines their bidding power. The deposit typically amounts to one-tenth of the total bidding power. For example, a 1,000$ deposit would permit a maximum bid of 10,000$ on US used and salvage cars.

Once the account is set up and the deposit is made, users can browse extensive inventories of used and salvage cars available at auctions across the US. If assistance is needed, auction brokers or agents are available to help with bidding strategies and finding suitable vehicles. These agents can also provide access to auctions and vehicles not publicly displayed. The convenience of online used car auctions is unparalleled.

Note: Importing used or salvage vehicles to El Salvador from the US is subject to certain restrictions. Passenger vehicles must be no more than eight years old, buses no more than 10 years old, and trucks no more than 15 years old. However, there are no restrictions regarding left-side or right-side-drive vehicles.

Shipping a Used or Salvage US Vehicle to El Salvador

Since used and salvage vehicles from the US are regularly imported to El Salvador, finding a port that offers shipping services should not be an issue. Most major and some smaller ports provide shipping services to El Salvador.

Choosing the shipping method is the main decision to make. The options include container shipping or roll-on roll-off (RORO) shipping. With container shipping, the vehicle is packed inside a container. RORO shipping, on the other hand, involves rolling the vehicle onto the ship at the departure port and off at the arrival port. RORO shipping is highly convenient and cost-effective but lacks the protection of a container, which increases the risk of damage during transportation.

Once the port and shipping method are selected, an arrival port within El Salvador must also be chosen. The Port of Acajulta, the major container port in El Salvador, is likely the best arrival port for US used or salvage vehicles. The Port of Cutuco is an alternative option. The former is situated on the southeastern coast, while the latter is located southwest of San Miguel.

For more information about El Salvador's major Port of Acajulta, please refer to their official website.

Clearing Your Used or Salvage Car through US Customs

Clearing US Customs with a used or salvage vehicle is a straightforward process. The necessary documentation includes the Original Certificate of Title for the vehicle and either a certified copy or two complete copies of the original. These copies must be submitted to US Customs at the departure port at least 72 hours prior to the shipping date, along with the vehicle.

US Customs will review the documentation and conduct a thorough inspection to ensure compliance and verify the vehicle's identity, ruling out any illegal substances. If everything checks out and the Original Certificate of Title matches the copies, the vehicle will be cleared for loading.

For questions regarding the location to present the vehicle to US Customs, reach out to the Port Director at the departure port. Further information about the customs process can be found on the US Customs website.

Note: Before visiting US customs at the departure port, ensure that the vehicle has undergone an emissions test. Proof of a successful emissions test is among the required documents to be presented to customs upon the vehicle's arrival at the port in El Salvador.

Clearing Your Used or Salvage Car through El Salvadorian Customs

When importing a used or salvage US vehicle into El Salvador, several essential documents must be presented to customs. These include the Original Bill of Lading, an Original Commercial or Purchase Invoice, your Driver's License, your Passport, the Original Certificate of Title, the Original Vehicle Registration, and a Certificate from the Origin DMV certifying that the vehicle is not stolen.

The original commercial or purchase invoice is used to determine the car's value. However, customs authorities may exercise their discretion in assessing the value if a dispute arises.

It is important to note that the Original Bill of Lading for the vehicle must be separate from any other household goods shipped alongside it. Furthermore, the Original Bill of Lading should contain specific information about the vehicle, such as the engine size, engine identification number, vehicle identification number (VIN), make, model, and date of manufacture.

Additionally, a Certification of Gas Emissions from the vehicle manufacturer must be presented. This document should be authenticated by the manufacturer before shipping.

For further information regarding El Salvadorian customs and clearing your vehicle, consult the Dirección General de Aduanas website.

Import Duties and Sales Tax for US Vehicles Imported into El Salvador

As a participant in the CAFTA-DR, El Salvador offers beneficial breaks on tariffs and taxes for importers of US used and salvage vehicles. However, some of these breaks have been phased out over the past decade, making it challenging to determine which ones are still applicable.

To navigate the complex regulations of the CAFTA-DR and pay the lowest import duties and taxes possible, it is advisable to seek the assistance of a customs broker when importing vehicles. Consulting a customs broker before purchasing a vehicle is also recommended, as understanding the rules beforehand maximizes potential profit.

Regarding import duties and taxes in El Salvador, passenger vehicles are subject to a 1% to 30% import tariff based on engine size, accessories, and model year, in line with the CAFTA-DR regulations. Trucks, buses, and automotive parts face a flat 1% tariff.

To determine the exact monetary value of the tariff, reference the commercial invoice, which establishes the vehicle's value. In the case of used vehicles or disputes over value, El Salvadorian customs will assess the value using sources such as Kelley Blue Book, Edmund's, and The Older Car Red Book.

Imported used automobiles, as well as new and used automotive parts, are subject to a 13% Value Added Tax. However, registered diplomats are exempt from tariffs and taxes when importing US used vehicles to El Salvador.