How to ship a vehicle to a foreign country.

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payydg

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An unofficial guide to shipping a vehicle abroad from the UK

Shipping a vehicle to a foreign country is quite the challenge. Unless you’re a logistical wizard, it takes time and financial commitment. If you’re a complete rookie (i.e. two bumbling medical students) there isn’t a huge amount of guidance regardless of where you look, and its not something you want to make a mess of. Hopefully our experiences can act as a bit of a starting point for anyone else embarking on a similarly exciting venture!



We must stress, we have no expertise in this matter and this page is not to be relied on as a sole source of guidance. At all points of the process, advice from expert organisations such as those outlined below should be sought. This is simply a narrative on our experience for anyone wanting to know where to start. We hope it’s of use!



To start with, lets discuss the process as an overview.



There are a few organisations you will need to liaise with throughout the process:

UK based Freight Forwarding Agent
Carnet issuing agency (e.g. RAC)
UK DVLA
UK Customs
Clearing agent in the destination country


Basically you need to make contact with these people very early (>3-4months), get the relevant documentation from the UK (Carnet de Passage en Douane), liaise with your Freight Forwarding Agent and see that the shipping documentation (Bill of Lading) is absolutely flawless for your destination’s customs requirements, then your destination Clearing Agent coaxes your vehicle through customs in a variable amount of time, and away you (hopefully) go! All sounds so simple…..



Customs

One of the first considerations with shipping a vehicle abroad is the challenge of import and export outside of the EU. A permanent move abroad with a vehicle in tow is a different matter, and the process is largely more beaurocratic and expensive. On the other hand, the temporary import of a vehicle into a country when the traveller plans to take the vehicle back home with them involves much less cost, and relatively less paperwork hassle – fortunately! A temporary import/export of a vehicle requires a form of ‘car-passport’ called a Carnet de Passage en Douane (CPD).



Carnet de Passage en Douane (CPD)

So a Carnet de Passage is a ‘car-passport’ (CPD is different from an ATA Carnet which is predominantly for small goods). The purpose of a Carnet de Passage is to ensure that the vehicle is legally imported into a country, and exported again back to the home country. This ensures that the vehicle isn’t illegally sold abroad without paying the required taxes and duty. By doing so, a Carnet facilitates the smooth passage of a vehicle through customs without the unnecessary enormous cost and hassle of a permanent vehicle import. Brilliant!

carnet

To get a Carnet de Passage, in the UK you can approach a Carnet issuing agency such as the RAC (Royal Automobile Company) – who are very helpful. In the UK, they issue Carnets on behalf of the Fédération Internationale de l’Automobile (FIA). They are a member club in the UK, and so are authorised to issue the Carnet on the FIA’s behalf. If you’re applying for your carnet from outside of the UK, the ‘member clubs’ link on their website outlines who is authorised to issue carnets in each country in the world. A Carnet comes in variations of 5, 10 and 25 pages, with each page constituting an import/export transaction (which includes import/export from/to the UK).

In the true mechanics of how a Carnet actually works, essentially it’s an agreement that you enter into to promise not to illegally sell or dispose of the vehicle whilst abroad. If you do, then you will be liable for enormous fines which for most countries are at least 400% of the chassis value of your vehicle. Its a system designed to make it completely financially non-viable to illegally import/export vehicles – for example a £5000 vehicle will land you with upwards of £20’000 in fines. Not really worth it. What that does mean, is, be careful. It is not a light undertaking. When you apply for the Carnet, you are required to also apply for a bank to act as your guarantor and pay up, should you decide you want to become an international criminal/be rubbish with your paperwork. This means that they will come for the money back from you, and nobody needs a bank chasing them for £20k.

What it also might mean (and we’re not particularly sure of this) is if you have a bad credit rating, you might not get a bank to agree to underwrite your carnet. In which case you’re somewhat stuck for options as unless you can demonstrate the funds yourself, you may not be awarded the carnet.

It is a good idea to apply for your Carnet earlier rather than later, because a lot of the subsequent steps require you to present it for inspection. The application process can take upwards of a good couple of weeks if there are issues so dont leave it to the last minute. CPD is valid for 1 year from the date of issue and can be extended under some circumstances by the issuing body if required. But be aware, the completed paperwork which documents that you have returned to the UK with the vehicle must be returned to the issuing body within 3months of the Carnet’s expiry dates for your liability to be released.

When applying for a carnet, you will need certain documentation depending on your issuing body, but broadly pertaining to:

Scanned copy of the DVLA V5C (vehicle owner’s) Document
Passport of the intended carnet holder (must be the vehicle owner and details match the V5C)
Completed application form
A few passport photos
Driving license photocard and paper counterpart
Signed bank underwriting application
Carnet Cost:

Entirely dependent on the value of the vehicle, the number of countries you intend to visit (and so a 5, 10 or 25 page carnet) and which countries you visit. The issuing body will calculate your costs for you, but there is a component which is a non-refundable payment, and a substantial part which is refundable on adequate completion of the carnet (return home with the vehicle and all the paperwork filled out). Just as a rough guide, for a £4000 vehicle with a 10 page carnet valid for 1year in India and Nepal cost £1700, of which ~£700 is refundable upon return.

Completion of Carnet de Passage:


The Carnet has to be completed by customs at each border crossing, and failure to do so is the carnet holder’s responsibility. Essentially each page of the carnet has a 3 sections – an importation voucher, and exportation voucher, and a counterfoil at the top. When you import into the country, customs will stamp the importation voucher at the bottom and detatch it for their records. They will also stamp the import part of the counterfoil at the top. Upon export from the same country, customs will stamp the export voucher and detatch it for their records, and stamp the export section of the counterfoil at the top. The overall result of this is that upon return home, you should have only the small counterfoils at the top remaining, stamped for import AND export from each country you have visited. Any discrepancy in this is costly so make sure it’s done properly!

For a bit more carnet information:

Carnet de Passage | Application Form | RAC Driving Information | RAC

CPD | Federation Internationale de l'Automobile

Federation Internationale de l'Automobile

Shipping the vehicle

Approaching the logistics of actually shipping the vehicle can be tricky without any guidance. Even with help and a good knowledge of the system you need to be available to deal with documentation changes and requirements throughout the process; good to know if you’ve got to juggle this with a job. The other thing is, be meticulous about your paperwork. It’ll come back to catch you out if you skim over the details.

Frieght Forwarding Agents:

The most practical thing to do is to approach a Freight Forwarding Agent. These are the liaison between yourselves and all of the organisations involved in shipping your vehicle; from the loading of the vehicle, to the arrangements with the shipping line and preparation of all of the official documentation. It is wise to approach a few of these early (>3 months) so you can get a bit of a rapport going with them, and see how helpful you think they’ll be in a last minute crisis. It’d also be worth trying to search for some web reviews of specific agents. A freight forwarding agent’s core work is commercial rather than private transport and logistics, so it’s worth asking specifically how much experience they have with shipping a vehicle under CPD. The finer details will run far smoother with someone who is experienced in this less common form of vehicle transport. A directory of the freight forwarding agents and a guide to their role can be found from the BIFA & BIS web-address at the end of this section. Once you have identified your Freight Forwarding Agent, get in touch with them about your plans. It is worth noting, you have to arrange each leg of the journey individually and the same freight forwarding agent may not be able to facilitate your return journey – check this early to see if you need to search for an additional company from your return country.

Types of vehicle shipment:

Broadly, there are two main modes of vehicle transport abroad by sea freight:

Roll-on-Roll-off (RoRo)
The vehicle will be driven onto the ship by port authorities, parked in a space and driven off at the destination port by port authorities.

Container shipment
The vehicle is loaded into a 20ft or 40ft container and the container loaded onto a ship. At the destination port the container is unloaded and stored. The shipment will be labelled as dangerous goods – but dont be alarmed, this is standard procedure for such unverified vehicles. Maximum height is2.5m for container shipment.

The decision as to which is best for your needs is multifactorial. Some of the issues to consider include:

Is the vehicle working or not? RoRo requires a working vehicle that can be driven onto and off-of a ship by the port authorities.
The size of the vehicle – Larger vehicles (including some 4x4s above 2.10m in height) may excede a maximum vehicle size for RoRo shipment and so have to be container shipped or shipped RoRo Heavy/High goods (very expensive).
Level of security – purely a management of personal anxiety, but some may be more comfortable with a container than RoRo for the purposes of security at the destination port. Containers remain sealed until you arrive to start the release process with customs.
Budget – In short, Container shipment costs ~£300-400 more. This is in the form of loading and unloading costs, and customs processing fees.
Our personal experience is of container shipment, due to the vehicle’s size we were unable to opt for RoRo, so our main discussion will be around Container shipment. But if you want a RoRo shipment, then ensure you take detailed photos of how to reconnect the battery/batteries, how to start your vehicle, as well as the location of the chassis number and the engine number of your vehicle. These will be required by the port authorities and customs for loading/unloading the vehicle, and customs processing – it would be easy to forget until the vehicle has left and it’s too late! The shipping agent coordinated by the freight forwarding agent should handle the loading and unloading of the vehicle by RoRo – this shouldn’t require you contacting an extra organisation.

Starting with the Freight Forwarding Agent, they will want to know whether you will require container shipment or RoRo. They can advise on the appropriateness of each, and you should ask what documentation they require at an early stage to get the process moving and obtain a quote. Initially for a quote most will ask for:

Origin country (and maybe port/city)
Destination country/city/port
Type of shipment (RoRo/Container)
Dates of travel
Vehicle type
Vehicle dimensions (may help decision between RoRo and Container shipment)
Securing shipment booking:

Once you have a potential destination from your freight forwarding agent – it is advisable to start contacting potential clearing agents (later section). They will be best suited to advise which particular port will cater for receiving RoRo or Containers at the destination – these can differ. For example, Mumbai Port, Mumbai caters for RoRo, however Nhava Sheva Port, Mumbai caters for container shipments.

After a quote has been offered, information you might be asked for to take the shipment further will include:

Scanned copies of the vehicle’s V5C document pg2 (vehicle owner’s logbook)
Name, address and contact details of Carnet holder as the UK shipper (also must be vehicle owner on V5C document)
Passport scan of UK shipper/Carnet holder
Name, address and contact details of the destination importer (as advised by destination clearing agent) – this may be themselves or the Carnet holder C/O the clearing agency, depending on their own policies and the country’s customs requirements.
Details of CPD progress and issuing company (some might not require yet)
Shipment dates:

This is a somewhat stressful issue if you’re working towards a deadline; if you have particular requirements to have your shipment arrive on a specific date it’s probably best not to set your hopes too high. Shipping lines only publish their shipment dates 1 month in advance, so if you have quite complex plans this can leave much anxiety as to when the whole process will actually go ahead. Some destinations might only offer a few shipments per month, or even one per month. If you give them your own personal arrival date at the destination port, the fortunate thing is that the Freight Forwarding agent should take this into consideration, and nearer the time of booking confirmation be scouring the schedules for the most appropriate dates of shipment – regardless of the shipping line. The best approach is to arrange the shipment to reach its destination prior to your arrival as close as possible, and have the minimal storage fees the other end before you manage to begin the customs release process.

Note – it is important that the Freight Forwarding Agent are aware of your arrival date to meet the cargo at destination and start the customs clearing process. On preparation of the Bill of Lading any anticipated demurrage periods (storage before customs) should be detailed in advance if possible.

The shipment may take up to 1 or 2 months depending on your destination so do give yourself more time in advance if your destination is the other side of the world! Just as a guide – UK to Mumbai is 30 days. If you have approached them well in advance, it’s maybe advisable to ask them when to get back in touch again to confirm the shipment dates. The loading date for the vehicle is likely to be 3-4 days prior to the scheduled departure date of the vessel.

Insurance:

One of the scary aspects of shipping a vehicle in a container marked as ‘Dangerous Goods’ is it then becomes the sacrificial lamb of the ocean liner. The crew on board are aware that the contents are unverified and may present a fire hazard, and so any fire that may break out in the container may (we’ve been told) see the container ejected from the ship to save the remaining cargo. Which doesn’t bear thinking about. Fortunately, your Freight forwarding agent should be able to offer you Fire, Damage and Loss insurance in such an eventuality for the duration of the shipment at a comparatively small fee (£250 or so), which we think is money well spent. This needs to be arranged with your booking before it is confirmed, so it would be a good idea to discuss their policy with them.

Finalising the shipment booking:

When you have the dates you want, then finalising the booking with the shipping company is the next step, who will usually require payment on or around the loading date of the vehicle by CHAPS bank payment. Note that sometimes this payment can take 3-4 working days so do factor this in.

The confirmation of your shipment being booked is in the form of a Shipping Note document, which needs printing and taking with you to the vehicle loading and is discussed further below.

Preparing the vehicle for shipment:

Fluids
Some companies suggest the to load a vehicle into a container, the fuel tank, engine, differentials and gearboxes all need to be drained of oil and diesel by a third party company to avoid fire risk and then refilled with a form of filler resin to avoid corrosion. Dont do this. It is not necessary for shipping regulations for some companies, and promises only a world of hassle and cost. Not least having to immediately source the replacement fluids in your destination country to purge out the filler solution. Most Freight Forwarding Agents wont require this – consider searching elsewhere if they demand this of you. For this reason, the shipment will be shipped under Dangerous Good Cargo, which will incur slight increased charges but not more than such a third agency.
You wont be able to ship any surplus fluids in the back of the vehicle, due to fire hazard to do take this into account when loading your vehicle if you dont want to be out of pocket having to ditch a few hundred pounds of nice backup oil.
Electrics
Batteries are disconnected inside the container and placed in the vehicle footwell for fire hazard risk, so do consider this if you have a GPS tracker installed and wish to track it with the ship.
Fuel
Most Freight Forwarding Agents will require that you leave the vehicle with only ¼ of a tank of fuel, to again reduce fire hazard risk.
What can I ship in the my vehicle?
Pretty much anything for your adventure that you require can be sent with your vehicle. It must all be loaded in the vehicle and not around the vehicle in the container. Obvious exclusions apply: rare species, drugs, explosives, people. The usual.


Clearing agents involvement in this process:

It is good to get your clearing agent engaged at all stages of the shipment development. A proactive Freight Forwarding Agent would do this on your behalf, but not necessarily and it’ll save you a big headache later on even if it seems like hassle initially.

Storage at destination:

There may be an interval of time between the arrival of the shipment and your own arrival. This will result in pre-customs storage (Demurrage) which can be costly depending on where in the world you are. This can be limited by negotiations with the help of the clearing agent, which can see a free storage period stipulated on your bill of lading. If you are shipping your vehicle long in advance of your arrival, the other (brave and maybe unwise) option is to send your passport to the clearing agent ahead of you, which they can use to start the clearance process in your absence.

Final documentation:

Shipping note
This is your booking confirmation when you arrive with your vehicle at the dockyard. The loading company will require the shipping note printed so bring a few copies with you. It might be useful to take the name of the individual loading your vehicle just in case of any queries, and you can request your copy to also be signed for your personal records. They will sign, complete and retain one copy to go with your shipment.
Carnet
Upon loading your vehicle, your freight forwarding agent will arrange for first export counterfoil to be stamped by your home customs department. It is important to get this done as soon as possible after you deliver your vehicle to the shipyard.
Letter of Authority (Optional)
This is required only if the freight forwarding agent in the UK or the clearing agent at your destination are to be the named sender (consignor) or recipient (consignee) of your shipment, regardless of whether they have your name on top of their address on the Bill of Lading.
This might be stipulated by either the shipping line or the destination customs regulations (as is the case in India).
This requires a signed document between yourselves and the shipping company, and yourselves and the destination clearing agent (as appropriate). This can be arranged by your freight forwarding agents.
Draft Bill of Lading
The bill of lading is an important document which confirms the shipping line’s receipt of your shipment and their agreement to deliver it to your destination. It is also the document used by customs at your destination so take time to make sure it is well thought through and amend the draft if required.
This should be reviewed by the clearing agent as soon as it is received from the shipping line (via Freight forwarding agent). Typically a draft B/L is generated after the vehicle has been delivered to the shipyard, and often after the shipment sets sail. It is essential that this document is perfectly prepared to avoid any customs headaches at your destination. The deadline for finalisation is usually imposed by the shipping line itself and is often ~1week after the shipment has departed. Amendments can be made after this date, but at a fee and a presumed disruption to the customs process at destination.
Final Bill of Lading
After review and alterations by the destination clearing agent, the Bill of Lading will be finalised by the shipping line and sent to the Freight Forwarding Agent. You should receive and retain a copy of this, and the Freight Forwarding agent will Telex message the finalised B/L to your destination clearing agent. Do check that it has arrived safely with them.
Tracking the shipment:

Most container ships can be tracked by the shipping line, who will give you a container number for your shipment. The bill of lading will detail the name of the vessel the container is being shipped on, and a website such as the one below can allow you to track the vessel in real-time throughout the journey.

Live Ships Map - AIS - Vessel Traffic and Positions - AIS Marine Traffic

Cost:

Really variable – as a guide, UK to Mumbai by 20ft container cost £1250. Realistically, impossible to say until you obtain a range of quotes.

UK department of Business, Inovation and Skills guide to Freight Forwarding

https://www.gov.uk/freight-forwarding-moving-goods

British International Freight Association guide to logistics

http://www.bifa.org/_attachments/Resources/525_S4.pdf

Clearing the vehicle at your destination

A clearing agent is important to get involved at the earliest opportunity. Realistically they need to be consulted throughout the main steps of formalising the shipment from your origin.

In chosing a clearing agent it is often advisable to go by the freight forwarding agents experience with certain organisations at your destination – effective communication will ensure smooth arrangements and handling of your shipment.

They will usually require copies of specific documents in advance of the arrival of your shipment:

Scan of the ID page of passport of Carnet holder
Scan of 1st page of Carnet de Passage
Scan of counterfoil pages of Carnet de Passage
V5C registration document
Scan of Visa page demonstrating Indian Visa
Draft Bill of Lading (by telex from freight forwarding agent)
They will then require the production of the original documents upon your arrival to start the clearing process:

Original Carnet de Passage book
Original passport of the Carnet holder
Copy of the Vehicle V5C document
Final Bill of Lading Original (By Telex from Freight forwarding agent)
Some specifics on Indian customs:

The Indian customs organisation is called the Special Intelligence and Investigation Beaurea – SIIB. They are in charge of admitting your vehicle, and will be the ones who are required to stamp the counterfoil page of the carnet – however it is the CARNET HOLDER’s responsibility to check that this is both done, and done correctly.

How long does clearing a vehicle take?

Depending on the location, the process should be fairly efficient with a good clearing agent. In Mumbai we have been advised to expect 1-2 days of unloading time after the vessel has docked, then 3-4 days of customs clearance process. We will see how this goes…

After the clearing process:

You can either drive away with your vehicle, or pay for it to be stored for a few more days in the clearing agent’s warehouse.

Cost

Variable depending on the location, but as a guide clearing a 20ft container vehicle on CPD in Mumbai cost ~£750 + Demurrage charges + any warehouse charges after clearance.
 

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