1. Basic situation

The Republic of Angola (referred to as Angola) is located in Southwest Africa, with its capital Luanda, with a land area of 1.247 million square kilometers. According to statistics from the International Monetary Fund, in 2024, Angola's GDP will be US$113.3 billion, a growth rate of 3.3%, a population of 37.97 million, and a per capita GDP of US$3054. Angola is China's second largest trading partner in Africa. According to China customs data, in 2024, the bilateral trade volume between China and Angola will be US$20.89 billion, a year-on-year decrease of 9.54%. Among them, China's exports to Angola were US$3.24 billion, a year-on-year decrease of 21.7%; China's imports from Angola were US$17.64 billion, a year-on-year decrease of 6.7%. China mainly imports crude oil from Angola and exports mechanical and electrical products, steel and its products, footwear, etc. to Angola. Angola is rich in oil, natural gas and mineral resources. The proven recoverable oil reserves exceed 12.6 billion barrels, the remaining recoverable reserves are about 9 billion barrels, and the natural gas reserves reach 7 trillion cubic meters.

2. Automobile market situation

Angola's automobile industry has a weak foundation, and the automobile market mainly relies on imports. In 2014, car sales in Angola reached 40,000 units. Since then, with the sharp drop in crude oil prices, the economic recession and the increase in imports of used cars, car sales in Angola in 2018 were only 12558 units. In 2019, sales continued to decline 8.1% to 11546 units. In 2020, affected by the COVID-19 epidemic, car sales in Angola fell to 1486 units, a decrease of 84.1% compared with the previous year. Car sales will start to pick up in 2021, with 2276 vehicles sold throughout the year, an increase of 24% over the previous year. In 2022, car sales will reach 2300 units, an increase of 1.1% over the previous year. In 2023, driven by the improvement of the economic environment and a sharp peak in interest rates, the Angola automobile market will recover rapidly. In 2023, Angola's annual automobile sales will reach 81,000 units. At the same time, China automobile brands have gradually gained recognition in the Angola market, and Geely, Chang 'an, Jetu, GAC, Dongfeng, etc. have entered the Angola market.

2018-2023 New car sales in Angola in 2009

Source: Focus2move

Judging from automobile import data, according to the latest statistics from the Angola Cargo Certification and Logistics Supervision Authority (ARCCLA), in the first three months of 2024, the country's imports of new and used cars fell sharply, down 72%, only 3184 vehicles of various brands and models were imported. In the ranking of countries exporting vehicles to Angola, although China's automobile exports to Angola dropped by 59% compared with the same period last year, it surpassed India to top the list with exports of 1128 vehicles, followed by the United Arab Emirates, Belgium, India, South Africa, South Korea, Indonesia, Japan and Brazil.

3. Policies and regulations on used car import

1. Import policy

Angola allows the import of used and light vehicles within 6 years from the date of first registration and heavy transport vehicles within 10 years. The maximum age of large passenger cars is not allowed to exceed 6 years. At the same time, before importing used cars into Angola, a pre-shipment inspection (PSI) issued by the competent authority of the country of origin of the vehicle needs to be provided with a validity period of not less than 6 months to prove the technical status of the car and compliance with emission regulations.

The import of used cars in Angola is divided into two modes: temporary import and final import. Diplomats in Angola usually use it for temporary import, while final import applies to vehicles imported for resale or personal use.

2. Tax policy

Used cars imported into Angola need to pay customs duties and value-added tax. Among them, tariffs are determined based on the type of vehicle imported, while value-added tax is determined based on the type of vehicle fuel and displacement, as follows:

(1)For temporarily imported vehicles, Angola allows vehicles to stay in the port for 2 years, with an extension of one year, provided that 40-45% of the CIF price is required as an agreed deposit, which will be returned when the vehicles are re-exported. For permanently imported vehicles, the tariff is 10%(pickup duty is 5%), and the corresponding value-added tax is also required. In particular, it is pointed out that vehicles should be cleared upon arrival at the Port of Luanda, and if customs clearance takes place more than 30 days after arrival in Angola, a fee of 5% of the CIF price will be charged.

(2)Value-added tax: Different tax rates such as 10%, 20%, and 30% apply depending on the type and displacement of the vehicle. For example, a 10% tax rate applies to gasoline engines below 1500ml; a 20% tax rate applies to gasoline engines below 1500-3000ml; 30% applies to gasoline engines above 3000ml.

(3)In particular, it is pointed out that vehicles should be cleared at the Port of Luanda. If customs clearance takes place more than 30 days after arriving in Angola, a fee of 5% of the CIF price will be charged.

3. Documents required for import

● Original purchase invoice

● Copy of entry visa

● Employment letter (must state the name, position and company of the person who will accept the vehicle hired by the company)

● Passport: Copy, stamped with the Angola entry visa stamp

● "Contributor Card" and "Resident Card": Copy

● Value statement signed by the shipper

● Packing list: English or Portugal

● Tax ID (Import License)

● A copy of the ticket showing the valid return coupon

● If the vehicle is imported for the company, an import license is required

Source: "China's Used Car Export Country Guide 2024"

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