Importing Used Vehicles from the United States to the United Arab Emirates

Importing Used Vehicles from the United States to the United Arab Emirates

The United Arab Emirates (UAE) is a thriving economic powerhouse, making it an appealing market for those interested in importing used vehicles from the United States. With low tariffs and no import taxes, the process seems promising. However, it's crucial to understand the unique regulations and restrictions associated with importing vehicles into the country.

In this guide, we will walk you through everything you need to know about the process, from purchasing a used U.S. vehicle at auction to registering and making it road legal in the UAE. While there may be some complexities along the way, importing used vehicles from the United States to the UAE can be relatively straightforward if you have the necessary knowledge.

Buying a Used or Salvage Vehicle at a U.S. Auction

There are various ways to purchase used vehicles in the United States, but online car auctions offer the best convenience. These platforms provide access to a vast inventory of used vehicles from the comfort of your home.

Getting started with an online car auction site is simple. After creating an account, you'll need to make a deposit equivalent to 10% of your bidding power. An agent will then assist you throughout the process, including bidding on your behalf if needed.

Choosing the right vehicle can be challenging, considering the restrictions imposed by the UAE on used vehicle imports. It's crucial to be aware that importing cars involved in accidents is prohibited. Therefore, thoroughly examine vehicle history reports to avoid any issues. Salvage vehicles are generally not allowed either.

If you're having trouble finding the right vehicle, inform your agent about your preferences, and they can search exclusive databases. Once you've selected a vehicle and won the bid, consult your agent to arrange shipping or transportation to a UAE port of your choice.

Arranging Shipment to the United Arab Emirates

When shipping a used vehicle to the UAE, you have two primary options. The first is traditional container shipping, where your vehicle is transported in a container. The second option is RORO shipping, which involves rolling your car onto and off the ship at the destination port.

RORO shipping offers cost-effectiveness and convenience compared to container shipping. However, it also has drawbacks, especially in the UAE. Since your car is exposed to the elements during shipping and may require movement, the risk of in-transit damage is higher. This is particularly problematic when importing used cars into the UAE, as vehicles with exterior body damage are prohibited.

If you choose RORO shipping and your vehicle sustains damage, you can still address the issue. However, you'll need to complete paperwork at the arrival port, which will prolong the customs clearance process.

Finding a suitable port in the United States to ship your vehicle to the UAE should be easy due to the country's significance in the global economy. Major ports offering services include, but are not limited to:

- Houston, Texas
- Jacksonville, Florida
- Long Beach, California
- Miami, Florida
- Newark, New Jersey
- Savannah, Georgia

In the UAE, there are four main ports where you can ship your used vehicle:

- Jebel Ali
- Khor Fakkan
- Mina (Port) Khalid
- Mina Rashid
- Mina Zayed

Jebel Ali and Mina Rashid are located in Dubai, the economic hub of the UAE. Mina Khalid and Khor Fakkan are in Sharjah, while Mina Zayed is situated in Abu Dhabi.

Clearing U.S. Customs for Your Used Vehicle

Clearing U.S. Customs for a used vehicle is a relatively straightforward process. To have your vehicle cleared, present it along with the required documents at the vehicle's port of departure to U.S. Customs. Contact the Port Director to determine the exact location of U.S. Customs in your chosen port.

The necessary documents include the Certificate of Title, which establishes your ownership and corresponds to the Vehicle Identification Number (VIN) or Product Identification Number (PIN) of the car. You'll need the original Certificate of Title, a certified copy, or two complete copies of the document. Submit these copies at least 72 hours before the scheduled ship date.

Once the paperwork is in order, U.S. Customs agents will inspect the vehicle. If it passes inspection, it will be cleared for shipping and loaded onto the ship.

For more information on clearing your used vehicle through U.S. Customs, including vehicles with foreign titles or no titles, consult the U.S. Customs website.

Clearing United Arab Emirates Customs for Your Used Vehicle

Importing used cars into the UAE requires understanding a vital requirement: the importer must either be a resident of any Gulf Cooperation Council (GCC) state (Bahrain, Kuwait, Oman, Saudi Arabia, UAE, and Qatar) or an authorized resident of the UAE. Alternatively, used cars can be shipped to businesses authorized to import and sell automobiles.

Apart from the importer requirements, several restrictions must be considered before importing a used U.S. vehicle into the UAE:

- The vehicle's exterior body must be undamaged.
- The steering wheel cannot be modified.
- Former taxis or police vehicles cannot be imported.
- Vehicles involved in accidents, rollovers, fires, flooding, or any other accidents are not allowed.
- Individuals, unless authorized as a vehicle import and sale business in the UAE, cannot import more than one car per calendar year.
- The vehicle must meet the minimum safety standards of the UAE.

If you and your vehicle meet the above requirements, clearing customs for your used automobile is relatively straightforward. Before heading to the port, gather the following documents:

- Original copy of the shipping receipt
- Certificate of Origin
- Any other certificates from the vehicle's country of origin
- Invoice or title for the vehicle
- Passport, visa, and/or driver's license
- Proof from U.S. authorities that the vehicle is not wanted for investigation

Customs authorities will use these documents to verify your ownership of the vehicle. After verification, a vehicle inspection will be conducted. Inspectors will ensure that the vehicle meets UAE's import requirements (as mentioned above) and assess its value to determine the 5% import duty.

The import duty must be paid immediately for the vehicle to be cleared and released. Ensure you have cash or a checkbook available. Additionally, you'll need to pay a 4,700 AED fee for the clearance certificate and a 700 AED fee for a container inspection if your vehicle arrived using that shipping method.

Once all fees and the import duty are paid, you'll receive export plates and a Certificate of Clearance for the vehicle. The fees for each are 60 AED and 10 AED, respectively. Attach the plates to the vehicle and keep the Certificate of Clearance with you.

The next step is to officially register the vehicle.

Registering Your Imported Vehicle in the United Arab Emirates

Vehicle registration is handled by local Roads and Transport Authority (RTA) offices in the UAE. Before visiting a local branch for registration, you must ensure that your imported vehicle undergoes a roadworthiness and safety test. The RTA can provide recommendations for testing sites.

At the testing facility, present the following documents: originals and copies of your driver's license, passport, Emirates ID, import documents, and the Certificate of Clearance. Pay the testing fee, which varies depending on the vehicle. If the vehicle passes the tests, you'll receive a Vehicle Inspection Report.

With the Vehicle Inspection Report in hand, visit a local RTA office to complete the registration process. Bring the following documents:

- Vehicle Inspection Report
- Export Plates
- Proof of Insurance
- Proof of Purchase
- Certificate of Clearance
- Driver's License and Copy
- Passport and Copy
- Visa and Copy (if applicable)
- Additional Proof of Residency

Complete a registration application form at the RTA office. Once your documents and the form are verified, you'll receive white license plates and a registration card. The registration card must be visible in the vehicle at all times.

Import Duties and Sales Tax for U.S. Vehicles Imported into the United Arab Emirates

The UAE keeps import duties and taxes simple for imported used vehicles. For cars (excluding trucks), the import duty is 5% of the vehicle's value as assessed by customs inspectors. For trucks, the duty is 12% of the assessed value. Additionally, you'll need to pay 1% of the insurance cost plus the shipping cost.

Apart from the above, there are no further duties or taxes imposed on imported used vehicles. There is no Value Added Tax (VAT), luxury tax, fuel type-based tax, or Special Consumption Tax.