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Notes on Customs Clearance of Imported Used Motor Vehicles

Notes on Customs Clearance of Imported Used Motor Vehicles
(Revised 12/2011)(Re: Customs Act)

I.        Starting from January 1, 2002, new or used motor vehicles manufactured in WTO member countries are allowed to be imported to Taiwan and shall be declared under Chapter 87 of the Customs Import Tariff. Firms or organizations not registered with the Board of Foreign Trade (BOFT) or natural persons which/who import cars, new or used, with a value exceeding FOB USD20,000 are required to apply for an Import Permit from BOFT before importation. No Import Permit is required for vehicles valued at FOB USD20,000 or less.

(BOFT: Add: No. 1 Hukou Street, Taipei, Taiwan,

Tel: 886-2-23510271】


II.  The importation of motor vehicles, new or used, is subject to import duty and other applied levies including import duty, commodity tax, business tax, trade promotion service fee, etc. The applicable duty/taxes/fees are as follows:

Customs value = FOB + F (freight) + I (insurance)  

(1) Import Duty = Customs value × 17.5%  

(2) Commodity Tax = (Customs value + Import Duty) × Commodity Tax Rate (25% for cars of 2000 c.c. and below; 30% for cars of 2001 c.c. and above)

      (3) Business Tax = (Customs value + Import Duty + Commodity Tax) × 5% (Business Tax Rate)  

(4) Trade Promotion Service Fee = Customs value x 0.04% (Trade Promotion Service Fee Rate)


III. The Customs value of imported used vehicles shall be appraised and decided in accordance with Article 29 through 35 of the Customs Act.


IV. The customs value of imported used vehicles, if applied to Article 35 of the Customs Act, shall be determined using the following methods:

(1)     Where the FOB value of other identical or similar NEW vehicles of the same model year and make can be found in the Customs database, the Customs value of the imported used vehicles would be the FOB value of the identical or similar goods depreciated with years of usage plus freight and insurance fees. Where the FOB value of other identical or similar goods is not available, the DEALER INVOICE PRICE of the same model year and make of vehicles listed in the KELLEY BLUE BOOK (KBB) and depreciated with years of usage and the TRADE-IN price listed in the NADA Used Cars Magazine of the U.S. may be used. The lower of the two amounts will be applied.

(2)     Referenced market price of the exporting country plus freight and insurance.

(3)  Referenced market value information provided by car agents, dealers, or trade unions, or through valuation consultation.


V. Years of depreciation of imported used motor vehicles is decided based on the arrival of the means of transportation.(docpdfodt


VI. The calculation of Customs value of imported personal used motor vehicles shall be applied to No. III, IV, and V, of this NOTE and is illustrated as below(should Article 35 of Customs Act be applied):



On October 5, 2011, an importer imported a personal used 2006 BMW 328i 3,000 c.c., 4-door sedan with no optional equipments (If there are, the prices of these equipments should be added up to the base price of the vehicle to calculate Customs value) from the U.S.A. In case the FOB price of other identical or similar goods is not available, the import duty and other levies are calculated as follows:

(a) Suppose the new car price of a 2006 BMW 328i listed in KBB is USD31,000. The current value for the said vehicle is thus become USD10,850 [US$ 31,000 X (1-65%) = US$10,850] (a 2006 model year used car imported in 2011 may be depreciated by 65%; please refer to No. IV and V of this NOTE)

(b) Suppose the N.A.D.A. (Oct. 2011 issue) TRADE-IN price for the same vehicle is USD12,000.

(c) The FOB value of the vehicle then would be the lower amount of (a) and (b), in this case, it is USD10,850.

F = USD600 (all freight expenses actually paid or payable for exporting the vehicle to port of entry)

I = USD 66 (insurance fees actually paid)

CIF = USD 11,516 (FOB + I + F)

Customs value = USD 11,516× 30 (exchange rate, see Remark 2) = TWD345,480


A. Import Duty = Customs value TWD345,480 × 17.5% = TWD60,459

B. Commodity Tax = (Customs value TWD 345,480 + Import duty TWD60,459) × 30% (for cars of/above 2,001cc) = TWD 121,782

C. Business Tax = (Customs value TWD 345,480 + Import duty TWD60,459+ Commodity tax TWD 121,782) × 5% = TWD 26,386

D. Trade Promotion Service Fee = Customs value× 0.04% = TWD138

E: Total duty/taxes/fee payable = A + B + C + D = TWD 208,765


VII. Where the imported used vehicles had originally been exempt from duties under the provision of Article 49 of the Customs Act; holders of such vehicles should repay the duties on account of a transfer of ownership or a change in purpose-of-use subject to Paragraph 1, Article 55 of the Customs Act. The customs value of such vehicles shall be determined in accordance with the provision of Article 5 of Regulations on Tax Payment for the Imported Goods under Customs Duty Reduction or Exemption. The applicable depreciation year of the said cars shall be determined based on the year ownership transferred or purpose-of-use changed. Please refer to Article V of this NOTE. 

Re:Regulations on Tax Payment for the Imported Goods under Customs Duty Reduction or Exemption


VIII. In addition, a flat rate of 10% of Specially Selected Goods and Services Tax (SSGST) (also known as luxury tax) will be imposed on any motor vehicles with a value exceeding CIF TWD 1,945,000 (2000 cc and under) and TWD 1,870,000 (2001 cc and above).


SSGST = (CIF + Import Duty + Commodity Tax + Business tax) x 10% 


IX.  For more information on Duty/taxes/fees payable for importing vehicles into Taiwan, see (CAR-DUTY). Please note that this is for your own trial duty assessment only; actual duty/taxes/fees payable shall be decided by Customs based on real import data.



1. Tax burden (including import duty, commodity tax, business tax, trade promotion service fee, and specially selected goods and services tax) for imported vehicles in Taiwan remains considerably high, please be discreet about importing cars to Taiwan.

2. The conversion rate of the foreign currencies is based on the exchange rate applicable on the date entry is filed to Customs.

Re:foreign currency exchange rate inquiry

3. Importation of used motor vehicles is subject to environmental protection inspection, energy efficiency standard test, as well as traffic, labor security and other relevant laws and regulations. Certificates of Title are only granted when all the requirements are met.

4. All information contained in this NOTE is subject to all of the latest regulations published by Authority Concerned.

5. In case of any discrepancy between the English version and the Chinese version, the Chinese text shall govern.




  • Publish Date:2013-11-12
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