Japanese Brand, Built Elsewhere: Why Some Cars From Japan Pay 10% Duty

2 days ago

3 min read

The EU-Japan agreement's 0% duty covers cars that originate in Japan, not cars that carry a Japanese badge or were bought in Japan. A car built in, say, Hungary, the UK, Turkey or Thailand and later sold in Japan is not of Japanese origin. No statement on origin can honestly be made for it, so it pays the EU's standard 10% duty on cars, and import VAT at 23% is charged on the value plus that duty. [1][2][3]

Why doesn't the badge decide the duty?

Customs duty follows origin, which for a car means where it was made. Under the agreement, the exporter can only make out a statement on origin on the basis of information showing that the product is originating, and the exporter is responsible for its accuracy [1]. Some models sold new in Japan are built in factories abroad, so a car can come from a Japanese auction, wear a Japanese badge and still not be Japanese origin.

How do I check where the car was built?

Look at the chassis number before you buy:

A 17-character VIN: the first character shows the region of the maker's plant. J is Japan. S is the UK; T covers countries including Hungary and the Czech Republic; N includes Turkey; M includes Thailand and India; V includes France and Spain; and 3 is Mexico [4].
A short frame number, such as GFC28-004949: cars sold new in Japan usually carry one of these instead of a 17-character VIN. A full VIN that starts with a letter other than J is the warning sign.
If in doubt, ask the seller for the manufacturer's build details before you pay.

What does the 10% cost?

Duty is charged on the customs value, which is the price plus shipping and insurance to the EU. Import VAT is then charged on the value plus the duty [3]. An illustrative example on a customs value of €8,000:

	Built in Japan, with a statement on origin	Built outside Japan
Customs duty	€0	€800 (10%)
Import VAT at 23%	€1,840	€2,024
Total at the border	€1,840	€2,824

The car built abroad costs €984 more at the border. VRT is worked out separately and doesn't depend on where the car was built.

Can another trade agreement bring the duty down?

In principle, EU agreements also cover cars built in the UK, Turkey or Mexico, but each needs its own paperwork for a shipment from that country. A car that has been sold and registered in Japan doesn't come with it. We haven't seen a used car from Japan qualify that way, so we budget for the 10%.

What happens if 0% is claimed for a car built elsewhere?

Revenue can check a preference claim after the car is released. If the information provided doesn't confirm the car is originating, it can refuse the 0% rate [5], and the duty, plus the VAT on it, falls due. That's why we check the VIN before we claim it.

Frequently asked questions

The seller says it's a Japanese car. Isn't that enough? No. The 0% depends on where the car was built, not the brand [1].

Does a statement on origin from the exporter settle it? Only if it's true. The exporter is responsible for its accuracy, and Revenue can verify the claim [1][5].

Does VRT change if the car was built outside Japan? No. VRT is calculated separately from customs duty.

Can I find out before I buy? Yes. Check the VIN or frame number in the auction listing or the export certificate.

Get it cleared

Send us the chassis number before you bid, and we'll tell you whether the 0% rate is realistic and what duty and VAT to budget for. WhatsApp 086 846 1240 or email service@cldeclarations.com; we reply the same working day. C&L Declarations are Irish customs clearance agents for imports, exports and vehicles.

Related guides

Sources

European Commission, EU-Japan EPA Guidance: Statement on Origin, fetched 11 November 2026: https://taxation-customs.ec.europa.eu/system/files/2019-12/eu-japan-epa-guidance-statements-on-origin.pdf
Revenue, EU-Japan preferential origin, fetched 11 November 2026: https://revenue.ie/en/customs/businesses/origin/eu-japan-preferential-origin.aspx
Revenue, When is VAT payable on importation?, fetched 11 November 2026: https://revenue.ie/en/vat/goods-and-services-to-and-from-abroad/imports/when-is-vat-payable-on-importation.aspx
Wikipedia, Vehicle identification number: World Manufacturer Identifier, fetched 11 November 2026: https://en.wikipedia.org/wiki/Vehicle_identification_number
European Commission, EU-Japan EPA Guidance: Importer's knowledge (quoting Article 3.24 on denial of preference), fetched 11 November 2026: https://taxation-customs.ec.europa.eu/system/files/2019-01/eu_japan_epa_guidance_importers_knowledge_en.pdf