Used vehicle duty calculator: cost of importing second-hand cars in Ghana

Used vehicle duty calculator: cost of importing second-hand cars in Ghana

No doubt, a duty calculator is one of the most important things if you want to ship something. In the past when there wasn't any, Ghanaians living within and outside the country were faced with the challenge of knowing the exact import duties on their vehicles. This led to financial problems of all sorts. However, since its introduction, many of these problems have been avoided.

duty calculator
Refrigerated container being loaded on a container ship. Photo: Jorg Greuel
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How is duty calculated in Ghana? The car duty calculator in Ghana provides car importers within the country and abroad a fast, convenient, and correct duty and tax calculation for every imported vehicle into the country. It is a common misconception that only the richest politicians can import cars. This used vehicle duty calculator will help you find one that is within your range.

This custom duty calculation sheet enables importers and exporters to make an intelligent and well-informed decisions when purchasing cars. With it, they know what the expenses are, and also, they can avoid unplanned taxes and duties as well as a complete seizure of their automobile.

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How to get your car through customs in Ghana

To clear your vehicle through customs in a West Africa country, you will need to meet the following requirements:

  • Title and registration
  • Original purchase invoice
  • Insurance papers and Passport
  • The model, make and serial number of the automobile packing list
  • Certificate of value and origin
  • Cars must be between five and ten years old. Note that vehicles older than ten years are subject to additional taxes and duties
  • The car cannot have more than a quarter tank of gas
  • Also, ensure to find out if Ghana requires you to file for a FERI, ECTN, BSC, or an ASHI before the vehicle enters the country.

Cost of importing second-hand cars in Ghana

How is duty calculated on cars in Ghana? The costs of shipping a car to Ghana ranges between $1150 and $1600 for sedans and regular SUVs. Most shipping companies usually take vehicles to the port of Tema in Ghana. Do you want to import cars as your favourite musicians do? Then this is your best bet.

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However, the price and the time it takes to get there depend on a wide range of factors. Some of these factors include the shipping method, budget, type of car, and place where the vehicle is located.

Ghana's customs department employs the use of value known as CIF, which means Cost, Insurance, and Freight, to calculate taxes and duties that need to be paid for a vehicle. Just like it is important to have a Ghana card, the CIF is also a must-have.

Also, the CIF value of your car is needed to enable you to have an idea of the total cost incurred during the shipping of your vehicle. The guide below should help you determine what the total cost would be when shipping your cars:

  • For import duty, it is 5, 10 or 20% of the CIF value of a car
  • A percent of the CIF value is charged for examination
  • ECOWAS development levy is 5% of CIF value
  • Export development (EDIF) levy is 0.5% of CIF value
  • 12.5% of inclusive duty value (CIF + duty) is charged for the import VAT
  • NHIL (Health insurance levy) is 5% of inclusive duty value

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How is vehicle duty calculated in Ghana?

ghana duty calculator
Aerial front view Container cargo ship full carrier container with terminal commercial port background. Photo: Suriyapong Thongsawang
Source: Getty Images

How much is the duty for cars in Ghana? Import duties on cars in Ghana are subjected to some factors. The classification of vehicles and the valuation and import duty calculation affects the import duties as follows:

Classification of vehicles

The category of vehicles being imported determines the amount of import duty in Ghana. Also, any imported or exported car (traded internationally) is listed in a customs document known as the Harmonized Code.

The Harmonized System is used to classify all imported cars that go through customs. Cars are assigned codes and categories depending on vehicle import duty Ghana specified rates.

The Ghanaian customs department checks the code of items such as cars imported into the country. This helps them to determine the category that each car belongs to.

Immediately the class and code of the items are confirmed, the department then states how much import duty and other taxes are to be paid. To save time and make the process easier, importers are advised to check the code beforehand and prepare the relevant payment.

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Valuation and import duty calculation

How is the duty calculated in Ghana? To calculate the import duty of items using the duty calculator, the item's insurance, cost, and freight values are considered. The value of any item shall be provided by the company inspecting them at the destination in Ghana.

This decision is made after scrutiny of the invoice and other documents made available by the importer. Then, a Ghana import tax calculator is used to calculate the duty to be paid. A good import duty calculator is available on the websites of shipping companies or trade websites in Ghana.

The Ghana import duty calculator is usually based on the duty rates on the CIF (Cost Insurance Freight) of the product. To calculate the CIF of your vehicle, add the value of the cargo to the FOB (cost of shipping) and the Sea Freight/Transport insurance cost.

The used duty calculator Ghana also depends on the HS code. Hence, a vehicle duty is calculated at 5%, 10%, or 20% of the CIF (CIF = value of cargo + FOB + Sea Freight/Transport) on the duty calculator.

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Ghana import duty exemptions

The following items are exempted from import duty in Ghana:

  • Machinery/equipment for agricultural use
  • Food and milk for feeding babies or infants
  • Any products owned by specified privileged government officials, institutions, and organizations
  • Items owned by individuals from diplomatic missions
  • Advertising materials. For instance, trade samples requested by the importer that will be re-exported after use
  • Baggage concessions and personal effects, aircraft parts and accessories
  • Fish caught by Ghanaian owned boats, canoes, floats, and gear
  • Educational, cultural and scientific related materials
  • Foodstuffs, including raw foodstuffs and garri. It should be noted that meat and alcoholic beverages coming in from West Africa are not exempted

Ban on overage cars in Ghana

Ghana has banned the import of cars older than ten years to help well established international companies, such as Volkswagen AG and Nissan Motor Co., set up local plants within the country. The law will also allow import-duty rebates for companies that manufacture or assemble vehicles in Ghana.

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Nowadays, used cars account for 70 percent of vehicles imported into Ghana. Hence, the customs department and even importers usually utilize the duty calculator to predict the specific import duty on any car they intend to bring into the country.

Are you planning to import a second-hand vehicle into Ghana? If you are, then you need to know about the cost of importing and how to use the duty calculator. This will help you in the planning process. You will also know what to avoid doing to make the process as smooth as possible.

Yen.com.gh has all the information you will need about GCNet Ghana's location, head office, and car values. GCNet is an EDI system that is vital in connecting various shippers and clearing and forwarding experts.

Through this system, the processing of clearance documentation was made much faster. This system also features sufficient infrastructure, which is essential in boosting a seamless workflow in the long run.

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