Exorting A Pick-Up Then Re-Importing It Again

[deankham]

Hi All,<BR><BR>I've not fully looked into this yet, so may be a flawed idea, but appreiciate your input;<BR><BR>I currently live and work in hong Kong and estimate I will continue to for about 3 years. I'm just starting to look to buy a car.<BR>..In addition to this I (well the wife) also has a house in Issan, where we spend a few months a year. We are also looking to buy a pick up, but can't really justify it to be left idle for most of the year. In 3 years time chances are we'll be spending a lot more time in thailand so will need a car.<BR><BR>So finally to my idea;<BR><BR>1. Buy new (or nearly new?) Pick-Up in Thailand.<BR>2. Export to Hong Kong.<BR>3. Use in Hong Kong for 3 years (maybe less or more time).<BR>4. Re-Import the same Pick-up back into Thailand.<BR><BR>So my main question is will I be allowed to do this and not have to pay Import (or Export) duty on the Pick-Up in Thailand? Will I need to register the Pick-Up in Thailand first before Exporting it?<BR>(From the Hong Kong end, I'd need to pay a first registration tax, but that seems very straightforward and you know well in advance how much this will be. Not like thailand!)<BR><BR>Is there anything else I'm missing?? Note I've said Pick-Up but would consider a car if that makes a difference. It would be a locally produced car / pick-up though.<BR><BR>I can only see this being a benefit to me if you don't have to pay any additional charges other than the cost of shipping. The reason I'm considering this option is that car deprieciate a lot in Hong Kong compared to thailand and I would like to buy a new (or nearly new) vehicle.<BR><BR>Thanks,<BR>Hamlay.

[katabeachbum]

If you buy a new pickup in LOS, you can simply delay registering it here. Export it without deducting any taxes (3% excice tax and 7% VAT). When you bring it back to LOS, its time for first time registering. Should work

You can also register vehicle here before exporting, but if its a 4 door pickup yearly road tax is 6800 baht to be payed

[deankham]

If you buy a new pickup in LOS, you can simply delay registering it here. Export it without deducting any taxes (3% excice tax and 7% VAT). When you bring it back to LOS, its time for first time registering. Should work You can also register vehicle here before exporting, but if its a 4 door pickup yearly road tax is 6800 baht to be payed

This sounds good....so I guess it all comes down to if I can Re-Import without payes any taxes or fees or tee money! Thanks

[katabeachbum]

<BR>

If you buy a new pickup in LOS, you can simply delay registering it here. Export it without deducting any taxes (3% excice tax and 7% VAT). When you bring it back to LOS, its time for first time registering. Should work You can also register vehicle here before exporting, but if its a 4 door pickup yearly road tax is 6800 baht to be payed

This sounds good....so I guess it all comes down to if I can Re-Import without payes any taxes or fees or tee money! Thanks<BR>

<BR><BR>I wouldnt do an export declared to LOS customs, just drive it to Malaysia and ship it to Hong Kong. <BR>

[JohnLeech]

I can't see what you are trying to gain, as you won't save any taxes either in Thailand or HK, and whatever you buy will be "left idle" in one or the other for part of the year. You'll pay the full tax in Thailand, shipping costs to HK and HK tax, and then shipping costs back to Thailand. If for some reason you want to sell in Hk you may find it difficult and you could lose a lot more than you would selling in Thailand - it will be a "grey" import (no dealer) and if you have bought a pick-up your options are limited: how many pick-ups do you see driving around HK?

Why??

[deankham]

I can't see what you are trying to gain, as you won't save any taxes either in Thailand or HK, and whatever you buy will be "left idle" in one or the other for part of the year. You'll pay the full tax in Thailand, shipping costs to HK and HK tax, and then shipping costs back to Thailand. If for some reason you want to sell in Hk you may find it difficult and you could lose a lot more than you would selling in Thailand - it will be a "grey" import (no dealer) and if you have bought a pick-up your options are limited: how many pick-ups do you see driving around HK?

Why??

Some valid points. To try and re-cap the Why;

I need a buy a car in Hong Kong. I want new. Typically will lose 50 - 70% of Value in 3 years if I buy new and sell in Hong Kong. It will be used for about 10 months of the year.

Correct, you don't see many pick-up's in Hong Kong but where I live out in the new Territories it would be useful to have.

Correct I'd have to pay a tax (first licence fee) when importing the car to HK. But this is quite reasonable amount.

Grey imports in HK are very common, however I wouldn't be planning to sell it in HK anyway. (First licence tax is payable on all new cars in HK whether supplied through a main dealer or sourced on the grey market.)

In about 3 years time I'll need a car in Thailand, so would have to buy it in thailand and pay the taxes on it.

So the concept is to buy a new car in thailand (local taxes paid so I can use it in thailand), export it to HK, use it for 3 years, export it back to thailand and use it again.

The only benefit really is if the cost of shipping it 2 ways is cheaper than the depreciation cost of if I buy and sell a new car in Hong Kong. I've not done the calculation so don't have the answer yet.

The real uncertain part for me is if Thai customs will allow the car to be exported & imported again without attracting any fees.

[katabeachbum]

I can't see what you are trying to gain, as you won't save any taxes either in Thailand or HK, and whatever you buy will be "left idle" in one or the other for part of the year. You'll pay the full tax in Thailand, shipping costs to HK and HK tax, and then shipping costs back to Thailand. If for some reason you want to sell in Hk you may find it difficult and you could lose a lot more than you would selling in Thailand - it will be a "grey" import (no dealer) and if you have bought a pick-up your options are limited: how many pick-ups do you see driving around HK?

Why??

Some valid points. To try and re-cap the Why;

I need a buy a car in Hong Kong. I want new. Typically will lose 50 - 70% of Value in 3 years if I buy new and sell in Hong Kong. It will be used for about 10 months of the year.

Correct, you don't see many pick-up's in Hong Kong but where I live out in the new Territories it would be useful to have.

Correct I'd have to pay a tax (first licence fee) when importing the car to HK. But this is quite reasonable amount.

Grey imports in HK are very common, however I wouldn't be planning to sell it in HK anyway. (First licence tax is payable on all new cars in HK whether supplied through a main dealer or sourced on the grey market.)

In about 3 years time I'll need a car in Thailand, so would have to buy it in thailand and pay the taxes on it.

So the concept is to buy a new car in thailand (local taxes paid so I can use it in thailand), export it to HK, use it for 3 years, export it back to thailand and use it again.

The only benefit really is if the cost of shipping it 2 ways is cheaper than the depreciation cost of if I buy and sell a new car in Hong Kong. I've not done the calculation so don't have the answer yet.

The real uncertain part for me is if Thai customs will allow the car to be exported & imported again without attracting any fees.

Shipping in 30 foot container BKK HK or Singapore HK is a few hundred usd.

[JohnLeech]

So the concept is to buy a new car in thailand (local taxes paid so I can use it in thailand), export it to HK, use it for 3 years, export it back to thailand and use it again.

The only benefit really is if the cost of shipping it 2 ways is cheaper than the depreciation cost of if I buy and sell a new car in Hong Kong. I've not done the calculation so don't have the answer yet.

I think you'd also have to factor in any price difference between buying in HK and in Thailand - overall, I just don't see how you would end up much better off financially than buying and selling in HK and then buying in Thailand. I do agree with you on depreciation in HK being higher, though, so purely financially the answer would be a good second-hand car in HK, where prices for top-end second hand cars are so low; I lived in the New Territories the first time I was in HK, and had a RD350 Yamaha which I thrashed down Route Twisk and back most weekends and which I still managed to sell second hand for around what I had paid for it as I had bough it so cheaply originally.

[rizla]

I think maybe a dumb question (i`ve had a few beers),

BUT does HK not do car visa`s like thailand, cant you just register here as normal, and get a six monthly or whatever visa for it , like brits do when bringing a car from say the UK to here? just a drunken thought..

[katabeachbum]

I think maybe a dumb question (i`ve had a few beers),

BUT does HK not do car visa`s like thailand, cant you just register here as normal, and get a six monthly or whatever visa for it , like brits do when bringing a car from say the UK to here? just a drunken thought..

thats what I would try. Register pickup in LOS, bring it to HK, most countries grant 12 months if owner is non resident, if they dont simply pay HK register fee, but not cancell LOS reg to bring it back to LOS at any point without custom hazzle.

[JohnLeech]

thats what I would try. Register pickup in LOS, bring it to HK, most countries grant 12 months if owner is non resident, if they dont simply pay HK register fee, but not cancell LOS reg to bring it back to LOS at any point without custom hazzle.

As far as I can remember the first registration fee is between 35 and 100% in increments depending on the value of the car - buy a second hand Porsche or Lexus the status hungry locals don't want and enjoy it for three years instead!

Edited July 14, 2010 by JohnLeech

[katabeachbum]

thats what I would try. Register pickup in LOS, bring it to HK, most countries grant 12 months if owner is non resident, if they dont simply pay HK register fee, but not cancell LOS reg to bring it back to LOS at any point without custom hazzle.

As far as I can remember the first registration fee is between 35 and 100% in increments depending on the value of the car - buy a second hand Porsche or Lexus the status hungry locals don't want and enjoy it for three years instead!

LOS fees, for a 2 door pickup its a few thousand baht and for a 4 door its 6800 baht, plates a few hundred in addition

[JohnLeech]

thats what I would try. Register pickup in LOS, bring it to HK, most countries grant 12 months if owner is non resident, if they dont simply pay HK register fee, but not cancell LOS reg to bring it back to LOS at any point without custom hazzle.

As far as I can remember the first registration fee is between 35 and 100% in increments depending on the value of the car - buy a second hand Porsche or Lexus the status hungry locals don't want and enjoy it for three years instead!

LOS fees, for a 2 door pickup its a few thousand baht and for a 4 door its 6800 baht, plates a few hundred in addition

Sorry, I wasn't clear - I was talking about Hong Kong first registration fees.

[LivinLOS]

I wouldnt do an export declared to LOS customs, just drive it to Malaysia and ship it to Hong Kong.

The temp export docs your supposed to do, say a maximum of 6 months..

But agree that the Malay border is wide open and I have never done the legal forms there.

[deadman]

i'd be very nervous doing something like that, guys at customs are crooks, i wouldn't be surprised if they want u to pay duty again when you re-import it. If this happened there wouldn't be much you could do, u will never get it back without paying ransom for it

[South]

Shipping in 30 foot container BKK HK or Singapore HK is a few hundred usd.

30 foot containers? Never seen one. 20', 40' and 45' yes.

[katabeachbum]

Shipping in 30 foot container BKK HK or Singapore HK is a few hundred usd.

30 foot containers? Never seen one. 20', 40' and 45' yes.

sorry, 20 foot. 40 foot holds 2 Vigo or 3 Fortuner

[deankham]

thats what I would try. Register pickup in LOS, bring it to HK, most countries grant 12 months if owner is non resident, if they dont simply pay HK register fee, but not cancell LOS reg to bring it back to LOS at any point without custom hazzle.

As far as I can remember the first registration fee is between 35 and 100% in increments depending on the value of the car - buy a second hand Porsche or Lexus the status hungry locals don't want and enjoy it for three years instead!

Yes, looking into it more closely I don't think any savings made would be worth it.

..Also as you say, I could buy any european luxury brand very cheaply in Hong Kong once they are several years old.

i'd be very nervous doing something like that, guys at customs are crooks, i wouldn't be surprised if they want u to pay duty again when you re-import it. If this happened there wouldn't be much you could do, u will never get it back without paying ransom for it

..This is exactly the 'unknown' element that I'm scared of!! As you say, if the customs boys decide they want to play silly games there is not much you can do about it

Thanks for all the comments but for now I'm going to look for a used car in HK and when I finally make it over to LOS for larger durations of the year I'll invest in a pick up then