A Guide to Importing Used Cars from China to Mongolia in 2024

By 2024, it has already become a common practice to import used cars, from China to Mongolia. Data from 2023 also shows that provinces that are closer to Mongolia, such as Heilongjiang, China, and Inner Mongolia, China, tend to have more competitive prices. This article’s purpose is to introduce a guideline for this process as clearly as possible and use detailed knowledge and data in the description.

Identify the Mongolian Used Car Market

Mongolia has no car manufacturers and relies on imports of cars, which are mainly used cars. According to the National Statistical Office of Mongolia, in 2023 the import trade value of passenger cars into Mongolia was $ 100 million higher than in 2022. This figure is 17% of the total import trade value, and the actual number of imported vehicles increased by 7,944 units, compared to 2022. According to the data from Mongolian Customs, from January to September 2023, 53,257 passenger cars worth $ 500 million were imported into Mongolia, while in 2022, 51,700 cars worth $ 440 million were imported.

Legal Know-How to Save Time

Although Mongolia is a left-hand drive country for cars, it also allows the importation of right-hand drive used cars. The age restrictions for the import of used cars into the country are not limited, but older cars are subject to thorough investigation and higher taxes. Cars that are older than 1996 need to have the so-called ozone inspection. The newer the car, the lower the consumption tax.

Navigating the Tariff and Taxes

Mongolia’s system of taxation of imported used cars has got few layers. Knowing them may prevent additional costs spending and just comply with the law.

1.     Tariff: 5%

2.     Consumption tax:

a. For gasoline and diesel, it is between 750,000 and 65,975,000 tugriks depending on the

engine displacement and vehicle age.

b. Hybrid and LPG vehicles benefit from a reduced rate, with taxes spanning from 375,000

to 32,987,500 tugriks.

c. Electric vehicles enjoy the lowest consumption tax rates, varying from 375,000 to 5,000,000 tugriks depending on age, aligning with Mongolia's encouragement of cleaner transportation methods.

3.     VAT: 13%

Required Documents for Import

- Customs declaration of imported goods

- Transaction contract

- Invoice

- Packing list

- Bill of lading (must specify the vehicle chassis and engine number, year of manufacture, make and model, etc.)

- Contract of carriage

- Certificate of origin

- Imported goods license

- Vehicle inspection certificate (only for vehicles manufactured before 1996)

To summarize, importing used cars from China to Mongolia requires understanding the market, ensuring the car's quality, wrapping the legal angle, and planning for transportation and registration. With the right information and planning, this can be relatively hassle-free. It is also highly recommended that to inquire about Mongolian local import agents before purchasing cars from China.

Please note that used car import tax rates and policies may change over time or be adjusted according to the latest regulations from the government. Therefore, it is advisable to confirm the most current tax information with relevant tax and customs authorities before importing.