Bahrain, an island state located in the Arabian Gulf, has a lively car market that has been having high need for second-hand vehicles which are mostly sourced from China. Due to its strategic location as well as economic stability, this country has become a favorite place for used car imports. In this article there will be discussion of Bahrain’s regulations on importation of second hand vehicles from China which includes import policies, taxation, documentation required and market insights.

Overview of Bahrain’s Automotive Market

Bahrain has seen growth in its automotive industry resilience and driven by economic development at home as well as demand for private transportation:

•     The used-car market takes a significant share in Bahrain’s automotive segment with an inclination towards models suitable for its climate and terrain.

•     Recent sales data indicate good market performance where 24,700 units were sold during the first 10 months of 2023 indicating a 17.7% increase compared to the previous year.

•     Toyota’s market leadership in terms of sales stands at 32.4% which means that it is highly demanded and trusted by customers in Bahrain.

Import Policies for Used Cars from China

The import policies designed to ensure that Bahrain maintains quality and safety of its automobiles into this market include:

•     Left-hand drive vehicles are the only ones allowed for importation, in line with Bahrain's driving regulations.

•     Importing cars now have a longer age limit of 10 years thus broadening consumer choice for used ones.

•     Used cars must be imported through Bahrain's primary port, which has facilities designed to handle the inspection and clearance process.

•     Importers must ensure that used cars comply with Bahrain's safety and environmental standards.

Taxation Policy for Used Car Imports

Bahrain aims to balance revenue generation with encouraging fair trade environment through its used vehicle tax policy:

•     It charges 5% import duty on CIF value of used cars which provides for transparent and consistent tax system.

•     Additional taxes and fees may apply based on the vehicle's engine size and age, reflecting the Kingdom's efforts to promote eco-friendly vehicles.

Documentation Required for Used Car Imports

These are some of the important documents needed in order to import used cars from China:

•     Original Bill of Lading or telex released

•     Commercial invoice for the vehicle

•     Evidence that the vehicle is insured during shipment

•     Certificate of Vehicle Particulars issued by Customs

•     Country’s Certificate of Origin or Export Certificate

•     Vehicle Condition Report providing details about the car’s features and current state

•     No Objection Certificate (NOC) for diplomats given by Foreign Ministry

•     Valid residency permit for non-Bahrainis with not less than 18 months remaining

Market Dynamics and Future Outlook

Economic recovery and growing demand for personal transport will be key drivers of Bahrain’s automobile industry growth. The market is poised for further expansion as Bahrain continues to develop its infrastructure and promote economic growth. There is an emerging trend towards use of fuel efficient vehicles that may possibly have an effect on future import policies and regulations. Accordingly, it is expected that the regulatory framework of this Gulf country will evolve as well in order to accommodate latest automotive technologies and comply with global green standards.

Summary

The Bahraini regulatory framework on imports of used vehicles from China is a commitment toward having a modern and sustainable automobiles sector. To enter Bahraini market, it is important for Chinese exporters and Bahrain automotive importer to comprehend these importation rules, rate of taxes as well as required documents. Hence, future Bahrain automotive industry will be shaped by these guidelines as they change with time.

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.