Guide
How much does it cost to import a car from Japan to the UK?
Updated
For a £20,000 car with £1,500 shipping, budget about £6,935 in UK taxes and fees, a landed cost of roughly £28,435 before the IVA test, agent fees and UK transport.
The worked example
| Line | Cost |
|---|---|
| Car (auction price + Japan-side costs) | £20,000 |
| Shipping and marine insurance | £1,500 |
| Import duty (10% of £21,500) | £2,150 |
| Import VAT (20% of £23,650) | £4,730 |
| DVLA first registration fee | £55 |
| Total landed cost | £28,435 |
On top of that, allow for the customs agent's clearance fee, port handling, the IVA test where required, UK transport from the port, number plates and your first year of vehicle tax, typically several hundred pounds more, varying by port and vehicle.
When a car from Japan pays 0% duty
The worked example uses the 10% third country rate because that is what a private used import usually pays. The UK–Japan trade agreement (CEPA) sets 0% duty on cars that originate in Japan, and a claim for it rests on a statement on origin from the exporter or on the importer's own knowledge that the car is Japanese-originating (gov.uk: trade with Japan). A car bought at auction through an agent rarely comes with either, but a Japanese-built car sold by an exporter who will issue a statement on origin can be declared at 0% duty. Import VAT at 20% is due either way, and the claim is made on the import declaration, so ask the exporter before you buy.
Source: gov.uk, trade with Japan: the UK-Japan CEPA
The process, step by step
- Buy the car, usually at a Japanese auction through an exporter or agent, who handles Japan-side deregistration and paperwork.
- Ship it, roll-on/roll-off is the cheaper option, a shared container protects the car better. Budget roughly £800–£2,000 depending on method and port.
- Tell HMRC within 14 days of arrival using the NOVA service, usually your customs agent or HMRC's CARS team does this when the car is cleared (gov.uk).
- Pay duty and VAT at import: 10% duty on car + shipping, then 20% VAT on car + shipping + duty.
- Pass the IVA test if the car has no GB type approval, true of most Japanese-market cars (gov.uk: vehicle approval).
- Register with DVLA on form V55/5 with the £55 fee, pay first vehicle tax, and fit UK plates.
The 30-year shortcut
Many 1990s Japanese icons are now over 30 years old. If the car is in original condition it may classify as a collectors' piece of historical interest under tariff heading 9705: 0% duty and a 5% VAT rate instead of 10% + 20%. On a £25,000 car with £1,500 shipping that is a saving of £7,155, see our classic car import guide.
Insure the car on its VIN before it is registered, you will need insurance in place to drive it to a pre-booked MOT or IVA test appointment.