Import duty, excise and VAT on Chinese cars are calculated on the CIF value — FOB price plus ocean freight plus insurance — not on what you paid the seller. Duty typically runs 10-35%, excise is often engine- or CO2-based and can exceed the duty itself, and VAT of 14-20% then compounds on CIF plus duty plus excise. Total taxes frequently add 60-90% for markets like Kenya.
Key Facts Table
| Tax layer | Base | Typical range |
|---|---|---|
| Import duty | CIF value | 10-35% |
| Excise / luxury tax | CIF+duty; engine, CO2 or age based | Can exceed duty in African markets |
| VAT / GST | CIF + duty + excise | 14-20% |
| Levies | IDF, railway, port handling | Varies |
| Reference values | Kenya CRSP, UG/TZ schedules | Charged on reference if invoice is lower |
Worked example
A USD 12,000 FOB SUV with USD 1,300 freight and USD 150 insurance gives CIF USD 13,450. At 25% duty (USD 3,363), 20% excise on CIF+duty (USD 3,363) and 16% VAT (USD 3,229), landed cost before local fees is roughly USD 23,400 — nearly double FOB.
Where EVs win
Ethiopia, Nepal, Sri Lanka, Costa Rica and several EU-aligned markets apply reduced or zero duty, lower excise or VAT relief to BEVs. RCEP and China-ASEAN FTA certificates cut duty for Southeast Asian importers; correct HS classification (passenger car vs goods vehicle vs EV) changes the rate materially.
Warning: never under-declare. Destination customs now cross-check Chinese export declarations; mismatches trigger reassessment, penalties and detention.
FAQ
Is duty calculated on the FOB price? No. Nearly all markets use CIF (FOB + freight + insurance); some, like Kenya, use published reference schedules if your invoice is below them.