Three Ways to Buy a Used Car from Japan

Everyone has different tastes when it comes to their choice of cars. Some prefer classic cars, sedans, city cars, SUVs, MPVs, to luxury cars. It's no surprise that the car models available in Indonesia do not satisfy the desires, especially for automotive enthusiasts.

Japan, as one of the rulers of the "roads" in various countries, often becomes the main destination for importing used cars. The way to buy used cars from Japan is a keyword that is often searched by the general public who want to buy cars from Japan.

Several brands are recorded as the most imported from Japan. Such as Mitsubishi Triton, Toyota Alphard 2.4, Toyota Hi-Ace, Toyota Hilux, and Honda Civic Hatchback. Since factories in Indonesia have not been able to meet market tastes, importing used cars from Japan often becomes a choice. But before that, understand the regulations for importing used cars in Indonesia.

Procedure for importing used cars

Before discussing how to import used cars from Japan, it is advisable to understand the procedure for importing used cars. In fact, the Indonesian government prohibits the import of used cars for personal purposes.

The import of used cars is only open for commercial vehicles with a carrying capacity of over 5 tons. The Minister of Industry Regulation Number 14 of 2016 concerning Technical Criteria for Importing Capital Goods in Used Condition emphasizes that only capital goods are allowed to be imported.

The capital goods referred to are goods used as business capital or to produce something that is still fit for use or to be reconditioned, remanufactured, reused, and not scrap. The import of used capital goods is also only allowed to be carried out by direct user companies, reconditioning companies, and manufacturing companies.

Buy from Batam, Sabang, or Papua

Although the government prohibits the import of used cars for personal purposes, there is another way to use imported cars in free zones or bonded zones. Indonesia has established three free zones that have received exemptions from customs duties, namely Sabang, Batam, and Papua. The rule is that imported cars entering this area cannot leave to other areas. So how can the purchased car be used in our place or domicile?

There is a way to legally bring your dream car, which is by transferring the vehicle from the bonded zone by following a number of procedures set by the government. For example, by paying the VAT, arranging a road letter, and completing vehicle documents (STNK, BPKB, and other necessary documents).

Buy used cars from foreign embassies

Several foreign embassies, especially from the United States and Japan, often bring cars from their home countries to be used as official cars in Indonesia. The embassies and international agency representatives import these cars through diplomatic channels and are not subject to taxes.

Interestingly, when the term of office of these foreign officials or diplomats has expired, they do not take their official cars back but instead sell them in Indonesia. These cars are commonly referred to as form B, which means a type of car that has not paid taxes and import duties.

To be able to buy them, you need to complete a number of applications to change the status from form B to form C with the Directorate General of Customs and Excise and obtain approval from the Ministry of Foreign Affairs. Prospective buyers are also expected to pay a number of taxes on the car, which can increase by 50 percent from the price of the used car.

Buy at Customs auctions

The last way to import used cars is by selecting cars from customs auctions. The Directorate of Auctions and State Assets conducts car auctions specifically for unclaimed property that has been at the entry port (harbor) of the customs area.

The auction will be held after the car has been stagnant or held in customs for 3 to 5 years of tax. However, there are requirements that must be met, namely a minimum purchase of 1 lot with a quantity between 6 to 10 units, and the units are determined by the state auction committee.

Read also: Tips for Getting Cheap Daihatsu Cars Along with Recommendations

Author: Dinno Baskoro