A list of the top banks in Japan
A list of the top banks in Japan, including SMBC, MUFG Bank, Mizuho Bank, Resona Bank and Kansai Mirai Bank.
Thinking of buying a new car from overseas?
Japan is one of the most popular destinations for imported vehicles into the UK. This is possibly because of its reputation for high quality cars and unique models you can’t find anywhere else.
If you are looking to buy a Japanese car and import it into the UK, read on.
We’ve put together a helpful guide covering everything you need to know about how to import cars from Japan to the UK.
It’s a process that will be new to most people, so it’s useful to have some information on the procedures and paperwork.
We’ll cover it step by step below, along with details of how to register your vehicle with the DVLA once it arrives in the UK.
Need a secure way to pay for the car and costs overseas? Check out the Wise account – a universal account for sending, spending, and receiving money with transparent, low fees* and multiple layers of security.
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Let’s start by looking at why you might want to import a car from Japan in the first place, rather than buying it in the UK. We’ll also run through any potential pitfalls you need to look out for.
Pros:
Cons:
Yes, you can import a car from Japan, but there are some rules you should be aware of before starting the process.
Firstly, you’ll need to make sure the vehicle you’re importing meets the UK’s environmental and safety regulations.
For any vehicle not registered in the EU, you’ll need to apply to the DVLA for Individual Vehicle Approval (IVA).¹
There are some exemptions to this rule, such as for some vehicles manufactured over 10 years ago.¹ You can check the list of exemptions here, to see if any apply in your case.
Also, if the car you’re buying is classed as ‘seriously damaged’ (i.e it cannot be repaired and will need to be written off) then you won’t be able to register it in the UK.¹
Here’s how to import a car from Japan to the UK:
Now, let’s delve a bit deeper into these different steps, as it can be a slightly complicated process.
The first step is to find a car you want to buy. If you live in Japan or can take a trip there, you’ll be able to visit dealerships, car auctions or private sellers in person. This is important, as you’ll need to physically inspect the car (and perhaps take a test drive) before buying.
If you’re based in the UK and can’t get over to Japan, see if you can find someone to check out the car in person before you commit to the purchase.
You’ll also need to be very careful of scams if you’re buying a car in another country - or making any large purchase, for that matter. Do your homework on the seller, to make sure they’re legitimate.
You should also make sure to read the small print and uncover any hidden fees before sending over funds.
And when the time comes to make a payment, make sure to use a secure service to transfer your money, like Wise. You can send large sums with Wise, with no hidden fees and fair, mid-market exchange rates for converting your GBP to JPY. It could be much cheaper than using your bank.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
💡Read more: What bank details are needed for an international bank transfer from the UK? |
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The Toyota Prius is one of the most popular Japanese imports you’ll see on UK roads.² Other commonly imported models from Japan include:
With your dream car bought, it’s time to think about shipping.
It’s tempting to simply choose the cheapest company, but this could be a false economy. You’ll save on shipping costs, but could end up with a damaged or delayed car and inadequate insurance to cover your losses.
It’s more important for your car to arrive in the UK safely, quickly and with all the paperwork in order. So, look for car shipping agencies which:
You might also want to look for firms which offer tracking services, or tools to simplify the UK customs clearance process.
There are a few different ways you can ship your newly purchased car from Japan to the UK. These are:³
Roll on/roll-off. This is where cars are simply driven into a ship’s cargo area, along with other vehicles. It’s one of the cheapest options, but only suitable for working/driveable vehicles.
Shared container service. This is where your car is shipped with other vehicles inside a shipping container. The costs are shared between everyone using the container. It can be more secure, and is a good option for non-functioning cars, but it can take longer. This is because you’ll need to wait until the container is filled before it can be loaded and shipped.
Full container load. With this method, you’ll get the shipping container all to yourself. It’s the most expensive option, as you’ll be responsible for all charges. However, it can be quicker as the container can be shipped at any time.
You’ll also need to decide whether to use a UK or Japan-based shipping company. It could be worth choosing a UK-based agent, as you’ll both speak the same language. This minimises the risk of miscommunication, or you not understanding what is and isn’t included in the price you’re quoted.
Before your car sets off on its journey to the UK, it’s recommended to take some photos (or arrange for someone else to take them). You should do the same once your car arrives.
Focus on key points of contact where your car will be secured, such as side skirts, axles and wheels.
Armed with this photographic evidence, you’ll be able to identify and claim for any damage caused during the journey.
You should also research insurance options, both for the journey and for when the car arrives in the UK.
Now we come to the less fun part - the paperwork. You’ll need certain documents to make sure your Japanese import clears customs in the UK. It’ll also be needed for registering the car with the DVLA.
Here’s what you should have ready:⁴
Document | Where to get it |
---|---|
Import declaration | The Customs Handling of Import and Export Freight (CHIEF) system - although your shipping agency can handle this for you |
Proof of ownership - such as the invoice or bill of sale for your vehicle (needed for the import declaration) | The seller/dealer |
Shipping note and bill of lading (BOL) | Your shipping agency |
Vehicle registration certificate or the vin/chassis number | The seller/dealer |
Proof of Individual Vehicle Approval (IVA) | DVLA |
You’re also likely to need a form of photo ID, such as your passport.
💡Read more: What is cash against documents? |
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Once your vehicle has cleared UK customs, you’ll have two important things to get sorted.
Firstly, you need to tell HMRC within 14 days of the car arriving.⁴ They’ll tell you if any VAT or duties are due, and you’ll need to pay them if so.
Only once you’ve done this, can you move onto the second task - registering the car with the DVLA.
This involves filling in some forms and providing supporting documents. DVLA may also ask to inspect the vehicle. Once you’ve submitted your application, it can take up to 6 weeks to receive your V5C registration certificate.⁵
Make sure you have these documents ready to register your Japanese import with the DVLA:⁵
Lastly, you’ll need to get your Japanese car ready and road legal before you can drive it. This includes getting a UK number plate, insurance and paying Vehicle Excise Duty (VED).
For certain Japanese cars, you might need to make other adjustments. If your chosen vehicle doesn’t pass the Individual Vehicle Approval (IVA) process, you’ll need to pay for modifications to be made. This could relate to safety features, or another requirement to legally drive a car in the UK.
Importing a car from overseas will always come with costs. So even if you find a bargain in Japan, you’ll need to budget for things like shipping agency fees and import duties.
The costs can vary depending on the agency you use and other factors. But here’s a rough guide to some of the costs you can expect:
Type | Cost |
---|---|
Shipping agency fees | Starting from £1,000 (based on £10,000 car value)⁶ |
Import duty (if applicable) | 10%⁶ |
VAT (if applicable) | 20%⁶ |
DVSA inspection fee for Individual Vehicle Approval (IVA) | £199 to £294⁷ |
Use this UK import tax calculator to calculate the customs duty you need to pay.
If you’re paying any of these fees in JPY, pause before using your bank. Take a look at the Wise account instead, as it could save you money.
You can send money worldwide with Wise for low fees* and fair exchange rates. It’s convenient, secure and speedy, even for large transfers. So, you can get your new car on its way to the UK quickly.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
After reading this guide, you should have a better idea of the process of importing a car from Japan to the UK.
This includes the documents you’ll need, what order to do things in and how much it costs. You’ll be ready to hit the road in no time.
Sources used:
Sources last checked on date: 03-May-2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
A list of the top banks in Japan, including SMBC, MUFG Bank, Mizuho Bank, Resona Bank and Kansai Mirai Bank.
The complete guide to buying property in Japan as a Brit, including the latest Japanese property prices.
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