Importing Used Vehicles from the United States to Uruguay

Importing Used Vehicles from the United States to Uruguay

Uruguay is well-known for its abundance of classic used cars that can be seen on its roads. This makes it an attractive market for U.S. exporters looking to capitalize on the potential opportunities. However, before embarking on the journey to import vehicles into Uruguay, it is important to note that the country has strict regulations on importing used cars. In fact, it may be difficult or even impossible for many people to import a used car into Uruguay.

Nevertheless, there are exceptions and ways to navigate around Uruguay's stringent import restrictions. In this article, we will explore these exemptions, as well as the steps involved in importing a used U.S. vehicle into Uruguay if you are able to meet the requirements. Additionally, we will discuss the used car market in Uruguay and any potential opportunities for savvy exporters/importers.

Uruguay's Ban on Used Car Imports

Uruguay imposes strict restrictions on the importation of used cars, trucks, motorcycles, buses, and other vehicles. A ban has been implemented by the government through a presidential decree, prohibiting the importation of such vehicles. Although the ban is subject to renewal every 180 days, it is still in place, except for exceptions. It is important to note that the ban does not apply to used and/or refurbished auto parts.

However, there are exceptions to this ban. Of particular interest to potential auto importers in Uruguay, there are specific exemptions for sports cars and classic automobiles that are more than 20 years old. The age is determined by the manufacturing date, not the date of sale.

Furthermore, Uruguayan citizens have the option to import one used car every three years if they meet certain criteria:

1. The citizen must have spent at least three years living abroad.
2. The vehicle must have been owned and registered in their name for a minimum of three years.
3. Prior authorization from the Ministry of Finance is required for the importation.

While this exemption might not be applicable to most people, it is a potential avenue to explore for those who qualify.

Purchasing Used or Salvage Cars at U.S. Auctions

For exporters/importers interested in the Uruguayan used car market, U.S. used car auctions can be a great starting point. These auctions offer the opportunity to find 20-year-old classic or sports cars at significantly lower prices, which can then be imported into Uruguay. In fact, it is not uncommon to find vehicles at 70-80% off their actual value, which can be beneficial considering the high tariffs and taxes imposed on imported used vehicles in Uruguay.

Most used vehicle auctions in the United States are restricted to individuals with dealer's licenses. However, online used car auctions provide a workaround. These online auctions allow anyone to access a wide range of used and salvage vehicles that can be repaired and then imported into Uruguay. Participating in these auctions is as easy as any other online auction for a product.

To get started, you need to create an account and make an initial deposit, typically representing 10% of your maximum bid. This deposit establishes your bidding power. Once your account is set up and the deposit is made, you can browse the inventory on the online used car auction site. You will also be connected with an agent or broker who can assist you throughout the auction process. It is crucial to contact this agent or broker directly, as they can provide access to their inventory of vehicles that are not publicly displayed. This is particularly important when importing used U.S. vehicles into Uruguay, as there are limitations on the type of vehicles eligible for importation.

Arranging Shipment to Uruguay

Most major ports in the United States offer shipping services to Uruguay. It is recommended to check with the ports of your choice to confirm availability. You will have the option to choose between normal container shipping or RORO (roll-on roll-off) shipping.

RORO shipping is the cheaper option and offers greater convenience, as the vehicle can be rolled onto and off the ship. However, without the protection of a container, there is a higher risk of damage during transit. This risk is a significant concern when importing used classic or sports cars to Uruguay, as repairs can be more costly compared to lower quality vehicles.

US Customs Clearance

Compared to the restrictions imposed by Uruguay, clearing U.S. customs will be relatively straightforward. Once you have selected the departure port and arranged for shipping, you will need to gather the original Certificate of Title for the vehicle, as well as certified or non-certified copies.

These copies must be provided to U.S. customs at the departure port no later than 72 hours before the shipping date. On the shipping date itself, present the vehicle to U.S. customs along with the original Certificate of Title. Customs officers will cross-reference the documents, verify the VIN number, and conduct an inspection. If everything checks out, you will be cleared to ship your used U.S. car to Uruguay.

In case you have difficulty locating the customs clearance location at the port, contacting the Port Director can provide assistance. For further information on required documentation or specific cases such as vehicles without a title or with a foreign title, United States Customs & Border Protection can be consulted.

Uruguayan Customs Clearance

When the vehicle arrives at the port in Uruguay, the landing fee must be paid to obtain the Bill of Landing. Subsequently, you will proceed to Uruguayan customs. Before going, prepare the originals and photocopies of the following documents:

1. The stamped Bill of Landing
2. Certificate of Title
3. Additional Vehicle Identification Papers
4. Certificado Ingreso del Pais (if applicable)

Once you have these documents and their copies, proceed to Uruguayan customs. The processing and verification of paperwork typically take about an hour. After processing, go to the Administracion Nacional de Puertos to complete the customs paperwork and pay the port fee. Finally, follow the instructions to obtain the "Numero de Viaje" and "Orden de Trabajo" to complete the process.

If any difficulties arise during the customs clearance, referring to the account of a foreigner who successfully navigated the process could provide helpful insights.

Tariffs and Taxes for Imported U.S. Vehicles in Uruguay

If you have a used vehicle eligible for importation into Uruguay, whether through the citizen exemption or the exemption for classic and sports cars, you will be subject to tariffs and taxes.

All cars, new or used, will face a 23% tariff based on the vehicle's CIF (Cost, Insurance, Freight). Trucks have a tariff between 7% and 8%, while parts face a tariff of 22%.

However, there is an exemption to the tariff for vehicles and parts consisting of more than 60% products made in MERCOSUR countries (Brazil, Paraguay, Argentina, etc.).

In addition to the tariff, Uruguay imposes high taxes on imported vehicles. Firstly, there is a 22% Value Added Tax based on the vehicle's CIF. There is also a Special Consumption Tax (SCT) scaled according to the engine size:

• Less Than 1000 cc: 23%
• From 1000 cc to 1500 cc: 28.75%
• From 1500 cc to 3000 cc: 34.5%
• Above 3000 cc: 46%

Furthermore, all vehicles, whether new or used, sold within Uruguay are subject to a Transfer Tax.