Import Taxes On Vehicles Question

[alliek]

Hi guys,

My family is planning on shipping their car from the U.S. here when they move this year but are running into some questions regarding import taxes on said car.

How are import taxes determined on vehicles entering Argentina? Is there a formula for how the government determines the value of imported vehicles? I heard the value of your vehicle could be taxed as much as 75% of the value of the vehicle--but again, how do they determine this value? I take it they don't use Kelly Blue Book.

Any insight would be appreciated.

 

[Rich One]

Hi guys,

My family is planning on shipping their car from the U.S. here when they move this year but are running into some questions regarding import taxes on said car.

How are import taxes determined on vehicles entering Argentina? Is there a formula for how the government determines the value of imported vehicles? I heard the value of your vehicle could be taxed as much as 75% of the value of the vehicle--but again, how do they determine this value? I take it they don't use Kelly Blue Book.

Any insight would be appreciated.

Customs uses 50%? of the Blue Book Value. Depends on the vehicle value and Model. Go to Customs office in Plaza de Mayo and find out in person.

 

[steveinbsas]

Hi guys,

My family is planning on shipping their car from the U.S. here when they move this year but are running into some questions regarding import taxes on said car.

How are import taxes determined on vehicles entering Argentina? Is there a formula for how the government determines the value of imported vehicles? I heard the value of your vehicle could be taxed as much as 75% of the value of the vehicle--but again, how do they determine this value? I take it they don't use Kelly Blue Book.

Any insight would be appreciated.

If your parents are moving to Argentina they will need to have temporary residency at the least to "import" their car and they may not have to pay an import duty (if the car is valued at less than $15,000 USD).

Here is more info (found almost instantaneously with a Google search of "importing automobile Argentina"):

Importing a Vehicle

Details on bringing a vehicle to Argentina, with details on temporary entry and importation...

Vehicles may be brought into Argentina in one of two different ways:

• A temporary entry permit
• Importation

A temporary import will be completed at the point of entry into Argentina. The information below is intended as a simplified guide to what is an extremely complex process for both temporary entry and for importation.
The first step is to contact the Argentinian consulate in the country of residence to start the procedure for bringing a car to Argentina.
According to Law No. 25,871 and its amendments and the Decree No. 616 of May 6, 2010, the following people may import cars:

• Foreigners with permanent residency in Argentina and returning Argentinian citizens
• Foreigners with a temporary visa
• Diplomats and military personnel

Foreigners with Permanent Residency

Returning Argentinian citizens and foreigners with a permanent resident visa may import one used car and/or one motorcycle, and no more than two vehicles per family. The vehicle owner must be at least 21 years old and the vehicle must be registered in their name and have been used by them for at least three months prior to arrival. Permanent residency must be obtained before the vehicle arrives in Argentina. The import of new vehicles is subject to regulations - only certain makes and models may be imported.
Vehicles with a value of less than or equal to fifteen thousand dollars (U$S 15,000) or its equivalent in another currency are excempt from import duties, taxes and other contributions. If the vehicle exceeds a value of US$ 15,000, estimated costs are approximately 80 to 100 percent of the vehicle's value, which includes tax and freight.
The vehicle may arrive in Argentina no more than three months before the owner's arrival in the country and no later than six months afterwards. The car will only be released after the arrival of the owner in Argentina. If the vehicle arrives in Argentina before its owner, it will remain at customs until the owner's arrival in the country.
The vehicle may not be sold in Argentina during the first two years after import.
Temporary Entry

The authorities allow the importation of one car and/or one motorcycle temporarily for the same period for which the owner's visa is granted and may be renewed as often as the visa is renewed. After this period the car/motorcycle must leave Argentina.
Documents Required

The following documents are required to bring a vehicle to Argentina:

• Proof of identity, passport with the appropriate visa or DNI (national identity document)
• Foreigners with permanent residence in the country, the certification issued by the National Directorate of Migration
• Original purchase invoice of the car/motorbike
• Original driving licence
• Original car/motorbike registration documents
• Three original Ocean Bill of Ladings in the shipper's name
• Certificate of residence: Returning Argentinian citizens must provide a certificate of residence from their previous country of residence proving that they have lived abroad for the last two years. Foreigners must provide a certificate of residence stating that they have lived in the country of origin for at least 12 months. This can be obtained from the Argentinian Consulate in the place of residence
• A Pre/Shipment Inspection Certificate (Certificado de pre-embarque)

All documents issued abroad must be certified and authenticated by the Argentinian Consulate with jurisdiction in the country. Documents in a foreign language must be translated by a certified public translator (Traductor Publico Nacional).
Diplomats and military personnel can obtain the necessary documents for import from the Argentinian Ministry of Foreign Affairs.

Source: http://buenosaires.angloinfo.com/information/transport/vehicle-ownership/importing-a-vehicle/

 

[nlaruccia]

It might be meow trouble than it's worth to import it. If the parts of the car aren't manufactured in Argentina you might no be able to get them if the car needs repair. I bought a used car and sold it three years later for almost the same price because of inflation. Consider buying one and selling it.

 

[nlaruccia]

It might be more trouble than it's worth to import it. If the car parts aren't manufactured in Argentina you might no be able to get them if the car needs repair. I bought a used car and sold it three years later for almost the same price I had paid because of inflation. Consider buying one here and selling it. It's another alternative.

 

[syngirl]

It might be meow trouble than it's worth to import it.

the typo accompanied by your photo is fantastic!

 

[ElQueso]

Customs uses 50%? of the Blue Book Value. Depends on the vehicle value and Model. Go to Customs office in Plaza de Mayo and find out in person.

I'd say the question is which Blue Book? From what I've been told by a gestora that's helping a friend of mine legalize a Toyota Forerunner that was brought by a French couple on vacation (they drove it down from the States, where they bought it, while on vacation, and sold it on arrival here) since it's a model that's not sold here there is no "blue book". The value is decided by looking at how much the car was worth new in the States given the year it was made and then applying a formula to it here (the result of which is probably not far off from the new price in the States). The problem with used cars here is that they don't really lose value very quickly like in the States. I even saw someone once make a comparison where their new car (bought here) appreciated in value (peso terms, probably better to say they price increased, not the value) over the price they paid for it.

So don't think of the value of the car being reasonable because it's used. The import taxes will be significant.

As nlaruccia mentions, given the probable difficulty of finding parts for a car not manufactured here (you can't even really order them from the States and have them shipped here, at least not yet), and given that mechanics know how to work on cars that are here and I wouldn't necessarily trust them to work on something they're not familiar with (for the most part), and given how much it will cost to import it, I'd sell the car there and buy one down here.

I left a '98 Mustang convertible, 5 liter engine, racing tires, black-on-black with leather interior, when I came down here. I bought a 5 door Renault Megane with a 1.8 liter engine family car here. I miss my Mustang but would never bring it down here unless I had more money (and at least in this case, sense) than I knew what to do with.

Another reason for not bringing a car down here is to make sure they actually want a car down here before they go to the trouble and expense of importing. Public transportation is big here. Ongoing monthly licensing/registration (luxury tax, really) for an auto is somewhat expensive (though insurance is more reasonable than what I remember in the States) but one of the biggest reasons may be that people are relatively insane driving here.

Personally, it doesn't bother me that much. I've driven here for 7 years or so, but many people freak out. I've driven in countries where the drivers are worse, but I'm a confident driver and a bit aggressive, which is needed here. I have an acquaintance who drives here and is afraid to move. He keeps to the right lane all the time, driving slowly, and is cut off by taxis and buses and other traffic situations constantly. I get so frustrated riding with him - he's twitchy and uncertain and I feel like we're going to get hit any minute because he drives like he's in California (where he's from) and not in Argentina.

 

[Rich One]

I'd say the question is which Blue Book? From what I've been told by a gestora that's helping a friend of mine legalize a Toyota Forerunner that was brought by a French couple on vacation (they drove it down from the States, where they bought it, while on vacation, and sold it on arrival here) since it's a model that's not sold here there is no "blue book". The value is decided by looking at how much the car was worth new in the States given the year it was made and then applying a formula to it here (the result of which is probably not far off from the new price in the States). The problem with used cars here is that they don't really lose value very quickly like in the States. I even saw someone once make a comparison where their new car (bought here) appreciated in value (peso terms, probably better to say they price increased, not the value) over the price they paid for it.

So don't think of the value of the car being reasonable because it's used. The import taxes will be significant.

As nlaruccia mentions, given the probable difficulty of finding parts for a car not manufactured here (you can't even really order them from the States and have them shipped here, at least not yet), and given that mechanics know how to work on cars that are here and I wouldn't necessarily trust them to work on something they're not familiar with (for the most part), and given how much it will cost to import it, I'd sell the car there and buy one down here.

I left a '98 Mustang convertible, 5 liter engine, racing tires, black-on-black with leather interior, when I came down here. I bought a 5 door Renault Megane with a 1.8 liter engine family car here. I miss my Mustang but would never bring it down here unless I had more money (and at least in this case, sense) than I knew what to do with.

Another reason for not bringing a car down here is to make sure they actually want a car down here before they go to the trouble and expense of importing. Public transportation is big here. Ongoing monthly licensing/registration (luxury tax, really) for an auto is somewhat expensive (though insurance is more reasonable than what I remember in the States) but one of the biggest reasons may be that people are relatively insane driving here.

Personally, it doesn't bother me that much. I've driven here for 7 years or so, but many people freak out. I've driven in countries where the drivers are worse, but I'm a confident driver and a bit aggressive, which is needed here. I have an acquaintance who drives here and is afraid to move. He keeps to the right lane all the time, driving slowly, and is cut off by taxis and buses and other traffic situations constantly. I get so frustrated riding with him - he's twitchy and uncertain and I feel like we're going to get hit any minute because he drives like he's in California (where he's from) and not in Argentina.

Queso don't confuse the issue the price issue is the USA Blue Book Value/Kelly. As stated to me by a customs agent in Plaza de Mayo Office in person !!! get an Argentine plate.
How could your friend sell a car here with a foreign plate it beats me. How do you do the transfer?? a private sale ticket receipt on a piece of paper...?

Attention... you can drive in Argentina a car as a tourist , however to nationalize (get an Argentine plate) must comply with the all the regulations.

 

[ElQueso]

I'm not confusing the issue, Rich One. According to the gestora, who has done many of these, they do not look at the Kelly Blue Book. Perhaps she is wrong, but I doubt it as we have had experience with her over many things, and she has never proved us wrong. Personally, I'd trust her statement over that of a customs agent before anything has been settled - I can't count the number of times I've been told by an official in customs or immigration something that turned out to be completely wrong. The gestora my friend is using says that because used car values here are so much different than in the States is why the Kelly Blue Book is not used - at least the Kelly Blue Book from the States - maybe they have a version of it here and that's what they use, but that wasn't my understanding. Maybe she's wrong, we'll see.

My friend is not selling the car here, he bought it here. The car was originally purchased by the French couple in the US and the title was transferred from the owners to my friend legally, in the States. There is a tramite that has to happen to show that although the French couple brought the car in, the current legal owner is a legal resident here. The car entered Argentina legally. It can be nationalized here legally, which is the process that my friend is going through now. It doesn't matter if the car came in by boat or came in by crossing the border as far as it being imported and then nationalized. They are right now running the VIN (and other numbers, like the number on the frame, the motor, etc) to ensure that it hasn't been reported as stolen.

I'm very familiar with what's going on in this case because I'm acting as the translator between my friend and the gestora because my friend's Spanish is not up to the task.

I will say that Alliek's folks would have an easier time of importing their car as it crosses the border under their ownership. That has indeed complicated things for my friend, but it's just among the list of tramites that must be completed to nationalize the car.

 

[Rich One]

I'm not confusing the issue, Rich One. According to the gestora, who has done many of these, they do not look at the Kelly Blue Book. Perhaps she is wrong, but I doubt it as we have had experience with her over many things, and she has never proved us wrong. Personally, I'd trust her statement over that of a customs agent before anything has been settled - I can't count the number of times I've been told by an official in customs or immigration something that turned out to be completely wrong. The gestora my friend is using says that because used car values here are so much different than in the States is why the Kelly Blue Book is not used - at least the Kelly Blue Book from the States - maybe they have a version of it here and that's what they use, but that wasn't my understanding. Maybe she's wrong, we'll see.

My friend is not selling the car here, he bought it here. The car was originally purchased by the French couple in the US and the title was transferred from the owners to my friend legally, in the States. There is a tramite that has to happen to show that although the French couple brought the car in, the current legal owner is a legal resident here. The car entered Argentina legally. It can be nationalized here legally, which is the process that my friend is going through now. It doesn't matter if the car came in by boat or came in by crossing the border as far as it being imported and then nationalized. They are right now running the VIN (and other numbers, like the number on the frame, the motor, etc) to ensure that it hasn't been reported as stolen.

I'm very familiar with what's going on in this case because I'm acting as the translator between my friend and the gestora because my friend's Spanish is not up to the task.

I will say that Alliek's folks would have an easier time of importing their car as it crosses the border under their ownership. That has indeed complicated things for my friend, but it's just among the list of tramites that must be completed to nationalize the car.

Good luck I hope you have the courtesy to post if your Gestora was misinformed !! You and your Gestora don't know yet what criteria applies to estimate the amount that must be paid to get an Argie License Plate.....? I went thru the process....