Exporting cars involves paperwork, costs, and knowledge of domestic and foreign regulations. Negotiating low-cost freight deals and shipping multiple cars at once can save money. Customs officers require a vehicle title or declaration of origin, and taxes vary by country.
Exporting a car can be a lengthy process involving a great deal of paperwork and a variety of different costs. Typically, those interested in exporting motor vehicles should attempt to negotiate a low-cost freight deal with a commercial carrier such as a shipping company or railroad company. In addition, exporters must familiarize themselves with domestic and foreign vehicle registration regulations. Many countries place import or export tariffs on vehicles and therefore anyone considering exporting cars should try to identify the export route which is the least expensive in terms of overall costs.
Manufacturers often rely on trucks or trains when exporting cars across land borders. Freight companies sometimes offer discounted rates to business partners who purchase large amounts of cargo space; exporters often try to ship multiple cars at once rather than sending a series of shipments involving a small number of vehicles. Additionally, a firm may be able to negotiate an additional price discount by entering into a long-term export agreement with a shipping firm rather than negotiating a one-time freight arrangement. Individuals and entities that ship cars by ship often get the best deals when shipping cars on large commercial vessels as the costs are split with many other suppliers, while it can be expensive to charter a small boat just to ship a small number of vehicles.
Before a car can cross an international border, the owner of the vehicle must present a vehicle’s title to customs officers. Laws in many countries prevent people from exporting financed vehicles unless the lender has given the vehicle owner written consent to take the car across the border. Newly built cars have no titles as these vehicles do not belong to anyone yet. In such cases, the owner of the vehicle must present a document known as a declaration or certificate of origin to customs officers explaining where the car was built. Anyone attempting to export a car with a Certificate of Origin title is subject to legal issues that could include penalties.
Nations around the world require vehicle owners and distribution companies to pay taxes whenever vehicles cross international borders. The size of these fees varies from country to country, so exporters typically try to choose the shipping route that has the car crossing the fewest international borders. Additionally, anyone involved in the export of motor vehicles must factor in shipping costs and rates when determining the price of the vehicle. In some cases, exporting cars is not cost-effective if these charges mean that the exported cars are more expensive than the vehicles already available for sale in the country of destination.
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