This guide provides information for importing a vehicle from Japan yourself to save money. It estimates savings of up to Rs. 7 lakhs by importing yourself versus other options. The guide outlines key steps like choosing a vehicle, selecting an import agent, understanding costs, investigating the best time to purchase, and important vehicle details to consider. It aims to help novice importers understand the process and avoid being taken advantage of by unscrupulous agents.

1. IMPORT YOUR DREAM VEHICLE
FROM JAPAN BY YOURSELFFROM JAPAN BY YOURSELF
Guide for those who do it first time.
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2. Purpose of this GuidePurpose of this Guide
Some of the key objectives of sharing my short experience of importing a
vehicle with you are noted as follows.
1. Decision of purchasing a vehicle, if so, may be the most costly decision in
lif H i i i h k f h d hmost our life. Hence, it is our right to know for what we pay and why so.
2. In this industry, agents will earn money more when your subject
knowledge is low If you know the process they can not chase youknowledge is low. If you know the process, they can not chase you.
3. In addition to the price benefit, if you follow process carefully, you can
get good vehicle for the price you pay and no chance to get inferior oneget good vehicle for the price you pay and no chance to get inferior one.
4. Even purchasing vehicle is one time effort, what you experienced (bad or
good) may not share with others and you may just forget or tell only to g ) y y y j g y
your friend. However, if one can share it, many will not go wrong.
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3. How much you can expected to saveHow much you can expected to save
Always you need to pay more for the risk (exchange rate & customAlways you need to pay more for the risk (exchange rate & custom
duty fluctuations) and knowledge (how to import) involved in this
vehicle business. Those who ready to face risk and having good
knowledge will get more benefits.
Rough saving you can expect as follows.
(E l t k T t A i H b id 2015)(Example taken: Toyota Axio Hybrid 2015)
1. Buy vehicle from local car sale => Rs. 5,100,000 (Zero Saving)
2 Import by agent itself for you => Rs 4 850 000 (Rs 2 5 Lakhs Saving)2. Import by agent itself for you => Rs.4,850,000 (Rs. 2.5 Lakhs Saving)
3. Import you through agent* => Rs. 4,650,000 (Rs. 4.5 Lakhs Saving)
4. Import yourself as agent => Rs. 4,400,000 (Rs. 7 Lakhs Saving)
This guide will explain above 3rd way* of importing the vehicle.
Lets see answers to 20 key question most of us faces during this process
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Lets see answers to 20 key question most of us faces during this process.

4. ContentContent
1 How to choose your Dream Vehicle1. How to choose your Dream Vehicle
2. What are the buying options
3 What are the Technology options3. What are the Technology options
4. How to invest for the Vehicle
5 How to select Vehicle Import Agent5. How to select Vehicle Import Agent
6. What you should ask from the Agent
7 When will be most economical to buy7. When will be most economical to buy
8. What you should know on your vehicle
9 What will be your payment plan9. What will be your payment plan
10. How to search vehicle at online Auction
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5. Content (cont )Content (cont.)
11 How to read an Auction sheet11. How to read an Auction sheet
12. How to open LC to import the vehicle
13 How to Settle the Balance payment13. How to Settle the Balance payment
14. How to track the vehicle Cargo‐ship
15 How to Settle LC & collect documents15. How to Settle LC & collect documents
16. How to settle the Custom Duty
17 How to collect vehicle from local port17. How to collect vehicle from local port
18. How to register the vehicle
19 What are the optional accessories19. What are the optional accessories
20. How to do Services of your vehicle
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6. 1 How to choose your Dream Vehicle1. How to choose your Dream Vehicle
Many ways to select your dream vehicle;y y y ;
1. Ask from friend who know the subject or using of such
2. Visit vehicle sale centers and check by yourselfy y
3. Search the web for “best selling cars” and “technologies”
http://www.best‐selling‐cars.com/japan/2015‐q1‐japan‐best‐selling‐car‐manufacturers‐brands‐and‐models/
4 Further search manufacturers websites on “features”4. Further search manufacturers websites on “features”
http://www.toyota.com http://www.honda.com www.nissan‐global.com
5. Search local automobile selling websites for “price”g p
www.autolanka.com www.ikman.lk/Cars http://riyasewana.com
http://www.hitad.lk/EN/vehicle http://www.carmudi.lk/ http://riyapola.com/
6. Visit website of Vehicle Importer’s Association of Sri Lanka6. Visit website of Vehicle Importer s Association of Sri Lanka
(VIASL) to ask from Importer http://www.viasl.com/
7. Do not forget to ask from your family on their preference…!
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7. 2 What are the buying options2. What are the buying options
Depend on your buying power and preferences,Depend on your buying power and preferences,
1. Import Brand new Vehicle – Good option for permit
holders and those who can invest more
2. Import Recondition Vehicle – Price depends on millage,
auction grade, etc (web; http://jpnauction.com), but
custom duty same (can import any less than 3 yrs only).
3. Buy Used Vehicle locally – Good option for first users with
average economical condition. But fully check the vehicle
(go to local agent and get full checkup report – cost
around Rs 6 10K) before payaround Rs.6 – 10K) before pay.
However, if you prefers to have good one and to use more than 5
years, better to go for Brand new or Import Recondition.years, better to go for Brand new or Import Recondition.
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(Notation “1K” = 1 x Rs.1000)

8. 3 What are the Technology options3. What are the Technology options
Depend on your preference, several technology optionsDepend on your preference, several technology options
of vehicles are available in the market,
1 Petrol or Diesel Vehicle – Most personal use cars are1. Petrol or Diesel Vehicle Most personal use cars are
petrol and commercial vehicles are Diesel
2. Automatic or Manual Transmission Vehicle – Most new2. Automatic or Manual Transmission Vehicle Most new
vehicles are Automatic and higher resale value.
3. Hybrid Vehicle – Higher fuel efficiency and technology y g f ff y gy
now tested and successful in locally too.
4. Electric Vehicle – Good in terms of environmental
concerns but problems on charging/ maintenance as still
new to local users. However custom duty much low.
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9. 9

10. 10

11. 4 How to invest for the Vehicle4. How to invest for the Vehicle
Several options based on your economic level;Several options based on your economic level;
1. Invest by yourself – Most cost‐effective & less hassle way
2. Borrow from family members – Better than lease or loan2. Borrow from family members Better than lease or loan
3. Obtain Leasing facility – Many places but know pay‐plan before go
4. Obtain Loan facility – Go with trusted Bank, but check possibility!y p y
NOTE:
• Once you know the expected cost, you may first select suitable option/s (one or more)
above and verify with Bank/ Leasing firm on how much you can get.
• In most of the time, you may go for more than one option and must pay the balance.
Also better to ready some extra money (Ex: 50 ‐ 75K) than the budget.
• If your investment capacity low, better to select vehicle that can manage rather go for
higher investment. If so, rethink on your dream vehicle again & go for option 2.g , y g g p
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12. 5 How to select Vehicle Import Agent5. How to select Vehicle Import Agent
Once you finalize with your vehicle type, the next step is toOnce you finalize with your vehicle type, the next step is to
select the import agent.
He will coordinate until your vehicle collected from the localHe will coordinate until your vehicle collected from the local
port and even till you get it registered too.
List of vehicle importers are at; http://www viasl com/List of vehicle importers are at; http://www.viasl.com/
Key concerns/ qualities of agent that you should select are;
1 Who gives you the lowest quote (with cost breakdown)1. Who gives you the lowest quote (with cost breakdown).
2. Having good past experience (with your friend’s import).
3. Reputed company under known brand name.3. Reputed company under known brand name.
4. Who explain full process and give comprehensive quote.
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13. 6 What you should ask from the Agent6. What you should ask from the Agent
Once you finalize with your agent, make an appointmentOnce you finalize with your agent, make an appointment
with him and clarify with the followings, with details.
1 His expected price (CIF Hambanthota) in LKR for your vehicle1. His expected price (CIF Hambanthota) in LKR for your vehicle.
2. Do they allow you to select vehicle on online auction (he may
ask you to pay advanced payment around Rs.100 – 150K).ask you to pay advanced payment around Rs.100 150K).
3. Other cost you should pay in addition to LC value (Ex:
Advanced payment, Balance payment, Clearing charges, RMV p y p y g g
Registration charge, Other costs for options & what else?).
4. Delivery period from the date of LC to local port (most say 21
days but will take around 35 ‐ 45 days).
5. Ask for cost breakdown (printed quote on his company letter
head) with exchange rate he assumed (sample quote annexed)
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14. 14

15. 7 When will be most economical to buy7. When will be most economical to buy
Final price you have to pay will depend on many factors p y p y p y
and if you are keen on those, you can save a lot.
1. Some vehicle categories with low tax after government new budget g g g
(Ex: Electric vehicles, http://www.viasl.com/ > New Tax Rates).
2. Exchange rate YEN reduces in some period in year (Ex: check pattern
h // / h/?f JPY& LKR& 1 )at http://www.x‐rates.com/graph/?from=JPY&to=LKR&amount=1 )
3. When new vehicle model introduces in Japan, price of the old model
reduces drastically Keep on touch at manufacturer web sitesreduces drastically. Keep on touch at manufacturer web sites.
4. Price of any vehicle with auction grade “S” (No defects) and “Zero
Mileage” (0 – 10km) is higher. But with grade 4‐5 with <10,000Km
also good & price less. After careful checking, you may select such.
5. Some experienced import agents can bid at lower price for good
hi l H b fit t t t i tvehicles. However, benefit may not pass to customer in most cases.
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17. 8 What you should know on your vehicle8. What you should know on your vehicle
Once you finalize with your dream vehicle, need to know much
more on the same as many options (models) are available with
the same vehicle type and price will differs.
List of vehicle details to know (example given in red)
Vehicle Name: Toyota Corolla Axio Hybrid
Manufacturing Month & Year : 05/ 2015Manufacturing Month & Year : 05/ 2015
Vehicle Grade: X (Not G)
Transmission: Automatic
Model No: DAA ‐NKE 165 (New Face)
Auction Grade: S
Auction Mileage: 0 ‐ 10 Km
Body Color: Pearl White (070)
Interior: Black/BeigeInterior: Black/Beige
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18. 9. What will be your payment plan9. What will be your payment plan
It is better to get some idea on your steps of major payments
in importing the vehicle as to ready on time;
1. Advance payment to the agent: Around Rs 100 – 150K to start
bidding at the vehicle auction sitebidding at the vehicle auction site.
2. Letter of Credit (LC): Once the Performa invoice (PI) of vehicle
received, you may open LC with private commercial bank. Needreceived, you may open LC with private commercial bank. Need
adequate money at bank account or discuss with manager.
3. Balance payment to the agent: Vehicle auction winning price is
higher than LC value and to reduce tax, balance money send as black
money by local agent to foreign agent in Japan. Also commission of
both agents (around Rs 250K) also included in thisboth agents (around Rs.250K) also included in this.
4. Custom duty: Depend on the vehicle model. Duty for Hybrid vehicle
as annexed. More details at http://www.viasl.com/ > New Tax Rates
5. Clearance charges: Pay around 25 – 35K to the port clearance agent.
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19. Date schedule of the key events and payments
during the Vehicle Import process
19

20. New Custom Duty for Hybrid vehicley y
Applicable exchange rate (as on the date you pay the duty) available on
http://www.customs.gov.lk/exchangerate.html
You may multiply X Rate (usually issued one value per week) withYou may multiply X-Rate (usually issued one value per week) with
relevant CIF (given for each model) to know the duty component.
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21. 10. How to search vehicle at online Auction10. How to search vehicle at online Auction
Agent having access to bid online at the Auction website,
h h k th b f fi th dhowever you can check those before confirm the order.
1. First Register yourself at http://jpnauction.com and get the password
2 Once logged in select Type > Model > Year > Mileage > Condition >2. Once logged in, select Type > Model > Year > Mileage > Condition >
Color > Gearbox > Status (Not Sold) , then Search yourself.
3. You may also get the Lot Number, Chassis Id or Model of the selected y g
vehicle (as from your Agent) to check details of the same.
4. Once you select good one, see photos of the vehicle and then note
down “Lot Number” “Chassis Id” and save “Auction sheet” copydown “Lot Number”, “Chassis Id” and save “Auction sheet” copy.
5. All your future references by “Chassis Id”, hence keep it with you.
6 Then inform your agent on your preference/s He is the most capable6. Then inform your agent on your preference/s. He is the most capable
person to bid for good one and you need to propose/ conform him (you
first learn on how to read an “Auction sheet”, refer next slide).
7. Once agent won the bid, Performa Invoice can be requested.
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22. 11. How to read an Auction sheet11. How to read an Auction sheet
Even most of the text on any Auction sheet written in Japanese
language you must read and understand it as the only informationlanguage, you must read and understand it as the only information
you get for your vehicle before send LC money to Japan.
Following websites gives good explanations on the above subjectFollowing websites gives good explanations on the above subject.
• http://www.eliteautoexportjapan.com/japanese‐used‐car‐
auctions/ussauction‐sheets‐explained/
• http://www.prestigemotorsport.com.au/upload/PrestigeMotorsportAuction
Guide.pdf
• http://pacificcoastjdm com/auctionsheet• http://pacificcoastjdm.com/auctionsheet
Normally following key information are adequate to knowNormally, following key information are adequate to know.
Auction Sheet no, Chassis Id, Model no, Auction Grade, Color code, Mileage,
Engine capacity, Physical damage points (if so) and Pictures of the vehicle.
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23. 23

24. 12. How to open LC to import the vehiclep p
• As your agent now won the bid for your preferred vehicle, you can
collect “Performa Invoice” (PI) from Japan through the agent You willcollect Performa Invoice (PI) from Japan through the agent. You will
get CIF value (Cost, Insurance & Freight) in YEN on this PI.
• Once you have the PI, you can go to a private commercial bank to y y g p
open a LC. You may consult agent as he will direct you to his known
bank (if so) and help to get better Exchange rate.
If h d d di d• If you have no account, need to open and credit adequate money
before LC. You may also discuss with Bank Manager to open LC with
some money at account, however to be credited full before settle LC.y ,
• Every bank having own set of forms to be filed. In most cased, your
agent fill those and forward you to just place the signature.
• Get LC confirmation with LC number from the bank and forward to
the agent. Within 7 – 14 days from LC, vehicle will shipped at Japan.
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25. 13. How to Settle the Balance payment13. How to Settle the Balance payment
• Once you open LC, probably your local agent ask you to credit the
balanced money to his bank account It is better to credit the agreedbalanced money to his bank account. It is better to credit the agreed
amount soon as the Japan agent will not arrange the shipment
documents until he get his commission (included in this payment).
• This payment includes, black money to settle PI – LC difference,
commissions for both local and foreign agents, admin charges, etc.
Wi hi 7 14 d f LC d B l d ill• Within 7 – 14 days from LC open and Balanced payment, you will
receive scanned copied of the vehicle documents to your email.
• This set includes; Bill of loading Commercial Invoice VehicleThis set includes; Bill of loading, Commercial Invoice, Vehicle
Inspection Certificates, Export Certificate, Insurance certificate, etc.
• After around 15 – 20 days from LC, contact your bank and check
whether the original documents received to the bank or not. Give a
remind call after 10 days to the person at bank to verify the same.
S di f h bl k i t l l (b f l)• Sending of such black money is not a legal process (be careful)
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26. 14. How to track the vehicle Cargo‐shipg p
• You can ask agent on the exact date of the vehicle shipment at Japan.
Also the Bill of loading copy received contain shipment information.Also the Bill of loading copy received contain shipment information.
• If you know the name of the ship/ vessel, log in to the web
https://www.marinetraffic.com/en and search the current location.
• Facility also available on this web to set email notification of the vessel
location on daily basis with expected date to the local port.
l l l f h h f• You may also contact local agent of the shipping company to conform
on the scheduled date of the vessel to the local port.
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27. 15. How to Settle LC & collect documents
Approximately before one week of the shipment, original
vehicle documents receiving to the bank and can be collectedvehicle documents receiving to the bank and can be collected
after settling the LC.
• Bank officer will inform once the documents are received from JapanBank officer will inform once the documents are received from Japan.
• Applicable exchange rate can be negotiated with the bank manager
(usually handled by agent) and nominal rate publishing daily at bank
websites. Negotiated rate usually less than 0.10 – 0.15 (Ex: Published
rate 1.195, Negotiate 1.045) and considerable LKR saving. Customer, if
required can wait one week more to get better rate (risk if raised)required can wait one week more to get better rate (risk if raised).
• Bank charges are usually 10 – 15K and within 2 ‐3 hrs, documents can
be collected. This set includes; Bill of loading, Commercial Invoice, g
Vehicle Inspection Certificates, Export Certificate, Insurance certificate,
Japan Origin Certificate, etc.
O h d i d d i f h l i• Once the documents received, need to inform to the clearing agent.
27

28. 16. How to settle the Custom Dutyy
Once the original documents collected from Bank after settle the
LC next step is to pay the relevant Custom dutyLC, next step is to pay the relevant Custom duty.
• You as the importer, need to register at customs. Relevant Form at
http://www.customs.gov.lk/downloads/vat/Reg_Imp_Exp.pdf
• Completed form with originals of the vehicle documents to be submit
to Customs through the agent and obtain the Assessment notice.
l ll l h h f l (• Clearing Agent will enter details through e‐CDN facility (you need not
worry). Registration guide at http://www.customs.gov.lk/eCDN.html
• As per Assessment relevant duty to be paid “Director General of• As per Assessment, relevant duty to be paid Director General of
Customs” through bank pay order obtain from any bank.
• Once the payment settled, Custom entry (custom 53) paper can be p y y p p
collected with approvals to release vehicle from the port.
• Make appointment with clearing agent to collect vehicle from the port.
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29. 17. How to collect vehicle from local portp
• Once the clearing agent conform you date to collect, you may go to the port.
• Vehicles can be collected from local Port (Hambanthota) from 9am – 4pm onVehicles can be collected from local Port (Hambanthota) from 9am 4pm on
weekdays at the main entrance gate (not allow to go inside).
• Clearing agent will inform you the time you can collect the vehicle (usually
d 11 30 3 ) d i haround 11.30am or 3pm) and you may wait at the entrance.
• Once you got the vehicle, collect all the original documents (keep a list) with
port documents (including port issue note) from the agent.p ( g p ) g
• You may check the available accessories (wheel covers, Tire repair kit, DVD
setup if available, etc) as per the Vehicle Inspection certificate and
immediately inform agent if anything missingimmediately inform agent if anything missing.
• If all ok, you may settle Clearing agent’s fee (agreed amount early) to him.
• If the vehicle with adequate fuel and operating condition (no dash board q p g (
fault indications), you can leave. Remember to fix Chassis No plates (print on
paper and ready early) at both sides and keep port issue note (temp. permit
to ride from port to home, that day only) on cabin during your ride to home.to ride from port to home, that day only) on cabin during your ride to home.
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30. 18. How to register the vehicleg
Before riding your vehicle on the road, you should have the followings;
1 It is better to get Insurance cover (Including; Natural Disaster Riot &1. It is better to get Insurance cover (Including; Natural Disaster, Riot &
Civil Commotion risk, etc) before collecting vehicle from port and
show the vehicle to any branch on the way.
2. Then, Register at Department of Motor Traffic and Get Number
plates. Procedure & Application form at
http://www.motortraffic.gov.lk/web/index.php?option=com content&view=article&id=89&Itemid=119&lang=enhttp://www.motortraffic.gov.lk/web/index.php?option com_content&view article&id 89&Itemid 119&lang en
http://www.motortraffic.gov.lk/web/index.php?option=com_content&view=article&id=127&Itemid=155&lang=en
3. Revenue License can be taken from any Urban council (even at RMV)
after Insurance & RMV certificate on hand Procedures atafter Insurance & RMV certificate on hand. Procedures at
http://www.gic.gov.lk/gic/index.php?option=com_info&id=1745&task=info&lang=en
4. E‐Revenue License can also be taken from www.srilanka.lk
Once all the above ready, you need to have originals of those documents
inside the vehicle and have a safe driveinside the vehicle and have a safe drive.
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31. 19. What are the optional accessoriesp
Your vehicle comes with standard accessories and usually DVD player,
Spare wheel, Carpets, etc many not included. With some extra money,Spare wheel, Carpets, etc many not included. With some extra money,
you can add those to your vehicle locally as follows.
• DVD setup: Chinese setups with reverse camera can be fixed for 20 ‐
25K from any Car Audio center. However, branded setups such as
Kenwood (local agent PETCO LANKA) and Pioneer (local agent DAMRO)
can be fixed at 55 – 65K range with warrantycan be fixed at 55 65K range with warranty.
• Carpets & Seat covers: For your specific vehicle type, carpets can be
purchases at 3 – 4.5K and fabric or leather seat covers for your color/
material choice can be fixed at 18 – 23K.
• Spare wheel: Most new vehicles comes with Tire repair kit, instead of
h l B tt t h Al i i ith d ti ( t 5spare wheel. Better to purchase Aluminum rim with used tire (cost 5 –
8K) of same size as others and kept at the vehicle for safety.
• Any other accessories like window Tint mud covers etc can try !Any other accessories like window Tint, mud covers, etc can try..!
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32. 20. How to do Services of your vehicley
• Most of the Japanese Domestic vehicle models (Not International
models) comes with owners/ operating manuals in Japanese languagemodels) comes with owners/ operating manuals in Japanese language
and no any English translation available.
• Hence, service frequencies and specifications of consumables/ spares
are unknown for the customers but the local agent (ex: Toyota Lanka)
of the vehicle are trained and equipped with those details.
• No other option but to contact Local agent for service and repairs• No other option but to contact Local agent for service and repairs.
• During the first 1000Kms, ensure speed less than 70Kmph (for better
engine life) and go for the first service at 5000Kms. Your local agentengine life) and go for the first service at 5000Kms. Your local agent
will help to schedule your service plan then after.
• However, it is better to know for what to pay you at service/ repair,
hence try to read your owners manual. Lets try to find at
http://www.toyota.com/owners/resources/owners‐manuals and use Google
translator to know English meaning of any Japanese wordstranslator to know English meaning of any Japanese words.
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33. If you do maintenance by yourself, following tips may helpful.
• During your first service with local agent, identify model no of Oil filter,
Air filter, Cabin filter, etc which you may need to replace regularly
(during any service they just do basic cleaning plus replacing filter/ oil
only as most Toyota vehicles are maintenance free)only as most Toyota vehicles are maintenance free).
• If you can not find English manual, try to translate (word by word) of
Japanese manual with Google Translator https://translate.google.com/p g p // g g /
• Try to translate sections; “Maintenance”, “Spares/ Specification” and
“Dash board indicators”, where you will not depend on local agent
( ) d l(most cases) and save unnecessary expenses long‐term.
• However, do not take more risk as any damages due to careless/
unskilled attempts of repairs will cost more (with possible vehicleunskilled attempts of repairs will cost more (with possible vehicle
system defects/ errors) than your payment to the agent.
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34. Thank for reading this Guide.
Do not forget to email this Guide to your friends
who suppose to import a vehicle !who suppose to import a vehicle…!
Document Version: 01 (August 2015)
Creator: kawshalyat@gmail com
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Creator: kawshalyat@gmail.com