Buyers usually compare FOB prices and then get surprised at the port. Duty and taxes are calculated on the CIF value, not on what you paid the seller, and they compound.
How customs values the car Most countries follow WTO valuation: CIF value = FOB price + freight + insurance. Some markets ignore your invoice entirely and use a published depreciation schedule based on the model and year (Kenya uses the CRSP, Uganda and Tanzania use similar reference values). If your invoice is below the reference value, duty is charged on the reference value.
The usual tax stack 1. Import duty — a percentage of CIF, typically 10-35% depending on country and engine size. 2. Excise / luxury tax — often tied to engine capacity, CO2 or vehicle age. In several African markets this exceeds the duty itself. 3. VAT / GST — charged on CIF plus duty plus excise, so it magnifies everything above it. 4. Railway or infrastructure levies, IDF fees, port handling, customs processing. 5. Registration, plates and roadworthiness inspection after clearance.
Worked example (illustrative) 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 on the total (USD 3,229), landed cost before local fees is roughly USD 23,400 — nearly double the FOB price. Always model this before committing.
Where EVs change the maths Many markets deliberately favour electric vehicles: reduced or zero duty, lower excise, or VAT relief. Ethiopia, Nepal, Sri Lanka, Costa Rica and several EU-aligned markets apply materially lower rates to BEVs than to petrol cars. If EV incentives exist in your country, a Chinese BEV often lands cheaper than a comparable used petrol car.
Legally reducing the rate - RCEP and China-ASEAN FTA certificates cut duty for Southeast Asian importers. - The China-Gulf and bilateral arrangements affect some GCC re-exports. - Correct HS classification matters: passenger car, goods vehicle and EV codes carry very different rates. - Buying FOB and arranging your own freight can lower the declared CIF value legitimately, if your customs accepts actual freight cost.
Do not under-declare. Customs in most destination markets now cross-check Chinese export declarations; a mismatch triggers reassessment, penalties and detention.
Use the landed cost calculator on any CarSourceHub listing to model duty, freight and port fees for your destination before you place an order.