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Wow, Vehicles are Expensive in Cambodia! Why??

phnom penh bound

I saw most 2002 toyota camry are $15,000 to $16,000
In manila you can buy a 2005 camry v6 for $12,700 negotiable!

See also

Driving in CambodiaFood Truck or CartDriving Licensetraveling from Bavet to Phnom Penhcar taxi
Aaliyah01

cz theyre imported from Japan .. most of them

phnom penh bound

Ok, but so are the cars in the Philippines. They have a ford motors plant but will close it next year. No  other cars are made in the Philippines.

Aaliyah01

.. well.. ask a dealer .. whats their answer to that ?

phnom penh bound

Dealers are geared to make money. This is a forum so I'm asking anyone that might know or has bought a car there.

phnom-penh-services

phnom penh bound wrote:

Dealers are geared to make money. This is a forum so I'm asking anyone that might know or has bought a car there.


You have an interesting point.

There are many price anomalies here, why is chocolate more expensive here than in Thailand, why are many properties so expensive here, many toiletries are as expensive here as in the west.

You could blame import tax, but with so many things imported, this somehow does not make sense.

Iankyddmiller

150% import duty and tax om motor cars..

phnom-penh-services

Rates of Customs Import Duty:

Tariff structure was changed in 2001 when the number of tariff bands was reduced from 12 to 4 and the maximum rate dropped from 120% to 35%, thus narrowing the spread. The tariff bands are now:

0% for exempt goods such as medical and educational materials (covering 5% of tariff lines)
7% for primary products and raw materials
15% for capital goods, machinery and equipment, locally available raw materials
35% for finished products, alcohol, petroleum products, vehicles, precious metals and stones

phnom penh bound

I'm referring more to used vehicles.

Here is a sample of a 1998 Toyota Camry

Phnom Penh  $8,800 USD 



Manila, Philippines $4,563.00 USD

Djaid48

Have a look at phnompenh.com amd you will have a lot to compare to. I found that most of the prices are only half of what I would pay here in Oz and cheaper than Thailand in a lot of cases.

thierrysavoie

Iankyddmiller wrote:

150% import duty and tax om motor cars..


ok, it is a simple calculation to make...

let's say you buy a car in Japan, you pay it there 1000usd, first you pay the export tax, it is the cheapest part...
Then you add the shipment, local bound...
and finally arrives the time for the customs clearance...
so, for any goods there are fix costs like Cam control, import certificate, the stamp on your invoice... total cost about 1350usd... now the customs tax is 71% up to 120% depending of the power of the vehicle and the customs agent), the VAT is 10%

here it is :
1000 + 1350 + 710 + 171 = 3231USD + shipment (cargo ab. 960usd) + tips and some small expenses.... then you add the comission of the seller (fair enough, and not so big sometimes as the process to do the clearance can be a loads of work and negociations)...
After all this add from 18 to 90usd for the number plate

thierrysavoie

phnom-penh-services wrote:

Rates of Customs Import Duty:

Tariff structure was changed in 2001 when the number of tariff bands was reduced from 12 to 4 and the maximum rate dropped from 120% to 35%, thus narrowing the spread. The tariff bands are now:

0% for exempt goods such as medical and educational materials (covering 5% of tariff lines)
7% for primary products and raw materials
15% for capital goods, machinery and equipment, locally available raw materials
35% for finished products, alcohol, petroleum products, vehicles, precious metals and stones


hum... it looks the customs officers don t have any clue about this rule :)
The first time i have imported vehicles here i had the same web address and printed it out to show them... but in the real life it is a bit different ...
in fact yes, tax can be based on this barem, but when you add all the side costs then you reach the 120%.... even more.

So far i import many goods from China, Japan and USA, it is possible to make economies but not so much... I use to show to my customers the offers i have from my factory in China, then explain them all the costs and tell them the exact amount i take for comission... (from 25 to 700 USD, depends how difficult it is to import the goodies and its price out of the factory)...

thierrysavoie

concerning the other products like chocolate or other things, the biggest post for the calculation of its price is the shipment, check the prices to send parcels over 7 kgs and you will know what i am talking about...