Cost of Car Customs from Dubai; How to Calculate Vehicle Import Duty?

The cost of car customs from Dubai is a big consideration. With the automotive market growing, customers are turning toward bringing in automobiles from foreign markets, with the top source coming from Dubai. The appeal comes in more models to choose from, newer models, and occasionally cheaper prices compared to domestic versions. But taking a car across borders is not as simple as buying and driving. With customs regulations and several layers of Dubai car import tax and charges, the procedure can be complex. This article breaks down every step of importing a car from Dubai so that you can get an idea of what to expect, how much it will cost, and how to plan best.

Understanding the Appeal of Vehicle Import Transfer Dubai

What are the reasons that Dubai is the best place for importing cars?

• Location:  The location of Dubai is strategic among other famous cities, and it is easy and affordable to ship.
• Diverse Market: Dubai provides a wide selection of new and used cars, from inexpensive sedans to luxury vehicles with good cars customs.
• Clear Histories are available for Cars: The majority of automobile makers provide verifiable service histories, and the city is highly particular about roadworthiness.
• Lifting of Iran’s Import Ban: Since the Iranian government eased restrictions on car imports in May 2022, demand for foreign vehicles, especially from trusted nearby markets like Dubai, has increased.

You can check car models on Shozon.com along with technical features and prices.

Rules, Regulations, and Restrictions to Know Before You Import

Importing a car is not just about buying it from a dealership and shipping it to our destination. You need to ensure that the vehicle complies with regulations and that you’re eligible to import it.

a. Vehicle Age and Engine Size Limitations

To ensure imports align with national standards and emission regulations:

• Age Limit: Only cars that are 5 years old or newer are permitted for import.
• Engine Capacity: Vehicles with engine sizes over 2.5 liters are generally not allowed, unless there’s an official exemption, usually limited to diplomatic or special-use cases.
• Steering Orientation: Right-hand drive cars are strictly banned. Only left-hand drive vehicles are permitted.

b. Approved Brands and Models

The Iranian Trade Promotion Organization (TPO) regularly updates a list of approved brands that are allowed for vehicle import transfer Dubai. Recently, brands like Hyundai, Kia, Nissan, Toyota, Renault, and some Chinese manufacturers are on the approved list. Luxury automakers such as Mercedes-Benz, Lexus, or BMW are often excluded from this list because of restrictions on high-end imports.

If you want to know about the cost of vehicle ownership transfer in Dubai, read this article.

Who Can Import a Car from Dubai?

Not everyone can import a vehicle. Here’s what the government needs:

• Official Representation: Importers must either represent or be in partnership with the car’s manufacturer to provide after-sales service and support.
• Currency Source Verification: The Central Bank must approve the source of funds used for the purchase.
• Environmental Standards: The car must meet specific emission and safety standards as dictated by authorities.

Shipping Options and What They’ll Cost You

When you’ve selected a car, it’s time to arrange transportation. Shipping method directly influences your total cost and delivery time.

1.     Sea Freight

• Roll-on/Roll-off (RoRo): Vehicles are driven onto the ship and secured for transport. This method is efficient and affordable, typically costing $1,400 to $1,800, depending on the size of the car.
• Container Shipping: This method offers enhanced protection from environmental exposure. It’s ideal for luxury or delicate vehicles. You’ll have to pay a few hundred dollars more than RoRo, but it is much safer.

2.     Air Freight

While people use this method rarely because of its high costs, air freight is the fastest. Shipping via air can be considered for luxury or high-value vehicles, and car customs range from $10,000 to $25,000, depending on aircraft type, cargo weight, and destination.

Understanding Import Costs and Taxes

Many buyers want to know how many different fees apply to vehicle imports and how much does it cost to import a car from Dubai. It’s important to break down the true cost so you can budget exactly:

Customs Duties

Customs duty is calculated based on the vehicle’s engine size and type:

• Gasoline Cars
  • Up to 1,000 cc: 20%
  • 1,001–1,500 cc: 70%
  • 1,501–2,000 cc: 95%
  • 2,001–2,500 cc: 135%
  • 2,501–3,000 cc: 165%
  • Above 3,000 cc: 175%
• Hybrid Vehicles: A much lower rate of 10% applies.

Value Added Tax (VAT)

VAT is 9%, but it’s calculated on both the CIF value (Cost + Insurance + Freight) and the customs duty. This is a stacked cost, meaning it increases rapidly with vehicle value.

Other Fees and Levies

Here’s a breakdown of additional costs you may face:

• Red Crescent Contribution: 1% of the customs duty.
• Inspection and Standardization: 0.8% of CIF value.
• Scrappage Certificate: 1.5% of the car’s value (intended to offset older cars remaining in circulation).
• License Plate Fee: 10% of the customs value.
• Property Transfer Tax: 3% of customs value.
• Municipal Fees: These vary by region and vehicle type.

Sample Cost Calculation: Importing a 2023 Toyota Corolla

To explain the total cost of car customs from Dubai, let’s see a real example.

Vehicle: 2023 Toyota Corolla
Engine: 1.8L
Purchase Price: $20,000
Shipping & Insurance (CIF): $2,000
Total CIF: $22,000

Now, let’s calculate the costs:

Grand Total (CIF + Fees): $22,000 + $28,345 = $50,345

So, importing a standard sedan like the Corolla can cost over $50,000.

How to Reduce Costs and Simplify the Import Process

If you checked websites like Shozon.com, selected the type of car, and you’re serious about importing, you can take smart steps to reduce unnecessary expenses and streamline your experience:

• Look for engine sizes under 2.5 liters to avoid high duties.
• Consider hybrid or electric models, which have lower tariffs.
• Cross-check approved models with the TPO list before purchasing.
• Work with authorized importers who can handle paperwork, inspections, and approvals faster.

Do you ask How can I check my UAE VIN number? Click here.

Is It Worth Importing a Car from Dubai?

Bringing a car into Dubai isn’t exactly easy; there’s a lot of paperwork and the costs can add up fast. But for many people, the benefits make it worth it. Whether it’s better gas mileage, newer safety features, or just having more car models to choose from, Dubai opens the door to options that places like Iran still can’t offer.

 If you take the time to understand the rules, calculate fees, and work with the right shipping partners, the whole process becomes much smoother. Thinking about importing your next car from Dubai? Make sure to check the latest laws, and it’s always smart to talk to someone who’s done it before. A little advice can save you a lot of trouble and money.

 Conclusion

The cost of car customs Dubai can be high, but with proper planning, it’s manageable. Knowing how to calculate vehicle import duty from Dubai helps avoid unexpected fees and delays. By choosing eligible cars, keeping engine size under limits, and working with trusted importers, you can simplify the process and make your investment worthwhile. To consult more, contact us today.

FAQs

• How much does it cost to import a car from Dubai?
  The cost of importing from Dubai ranges from 20% to 175%, depending on engine size and fuel type.
• Can I import any car model from Dubai?
  No, only approved brands and models under 5 years old are allowed.
• Are hybrid or electric cars taxed less?
  Yes, hybrid cars are taxed at only 10%, and some electric vehicles may be exempt.
• What is the average total cost of importing a $20,000 car?
  With duties, VAT, and fees, it may cost around $50,000 in total.
• Is it better to use sea or air freight?
  Sea freight is more cost-effective, while air freight is much faster but more expensive.