Importing ABC’s

With Hurricane Ivan leaving thousands of vehicles out of commission, many people are now looking to import a car.

There are various fees and procedures to keep in mind to make the process go smoothly.

Also, it’s always a good idea to make sure that there are dealers on island for the make of vehicle that you are buying and that they can supply parts that may be needed down the road.

Once you’ve purchased the vehicle, you will need to provide the shipping company with the title – the legal document showing ownership – along with the bill of sale. (Note: no personal effects may be placed inside the vehicle).

Paying duty

Once your vehicle arrives in Cayman, take the paperwork provided by the shipping company to the Customs Department on Airport Road to pay your import duty.

There, you will need to fill out a form (which you purchase there for 25 cents) for customs to process. The form is relatively self-explanatory but customs officers can assist if you are having trouble.

Rates of duty

The import duty depends on the value of the vehicle. It is calculated on what is known as CIF (cost, insurance, freight). This is the cost (value) of the car plus the insurance premium for its travel by ship plus the sea freight charges.

The fees are:

? CIF up to CI$20,000 – 27.5%

? CIF up to CI$25,000 – 30%

? CIF up to CI$30,000 – 35%

? CIF from CI$30,000+ – 40%

You will also need to pay an environmental fee of CI$250 per vehicle.

Duty reduction on replacement vehicles after Ivan

Those replacing a vehicle destroyed by Hurricane Ivan can take advantage of a 10% import duty discount until 30 June.

To receive the discount, you must first be approved for eligibility by the Department of Finance and Economics, located on the second floor of the Glass House (Government Administration Building). Application forms are available at the reception desk at the Glass House and at major car dealerships. Include a copy of your driver’s licence along with a copy of a Certificate of Termination from the Vehicle Licensing Department (VLD) with your application.

To terminate a vehicle, you must turn in your logbook, licence coupon, licence plates and certificate of insurance to the licensing department (located on Elgin Ave., next door to the Central Police Station). The department will then provide an official stamped receipt.

This receipt is proof that the vehicle has been terminated and should be presented to customs to receive the 10% import duty discount on a replacement vehicle.

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