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Purchase & Sales Process of Export Vehicles
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01.
Appearance Evaluation
- Check whether to cut or replace / Check whether to weld or replace / Check the degree of sheet metal painting
- Check for stains or discoloration after painting
- Check for excessive gaps and steps
- It is necessary to identify areas where excessive costs will be required for other merchandising
- After checking through the accident history of the car history, it is necessary to focus on the related parts of the vehicle
02.
Performance Evaluation
- Check normal operation of engine, transmission, heating/cooling, electric field, steering, suspension system, etc.
- Identify problems through performance record book or car history record reference and auditory and olfactory sense
- Estimation of estimated cost for maintenance and repair of problem devices
- Estimation of expected depreciation applied amount for unrepaired sales
03.
Check Standard Selling Price
- Check the expected sales price according to the application such as year, grade, option, accident, etc.
(based on B2B or B2C)
- It is necessary to flexibly check the maximum and minimum selling price according to the season and
recent market conditions
- Also refer to the transaction status of the Songdo Export Complex or the advertised prices on online platforms
such as Auto Winy.
04.
Purchase Price Negotiation
- When confirming the real thing: Considering the general standard (standard) selling price, presenting an appropriate
purchase price
- When the real thing is not confirmed: After presenting the price in the standard condition, the real thing is checked later
to reflect whether there is an abnormality or not, and present the final price
- If the initial offer price is arbitrarily adjusted or reduced without a clear reason, the seller's trust will be lost.
05.
Receive & Manage Purchase Documents
- Purchase documents for export cancellation, not transfer registration, are very simple
(copy of registration certificate and borrower’s resident registration card)
- Tax invoice must be issued in the case of purchasing a vehicle from a corporation or general individual business
- If an individual uses it for personal use, there are no additional documents required, but an individual business owner
can use it for personal use. In case of refusal to issue a tax invoice by claiming, collection of required documents
(non-business purpose fact confirmation, etc.) is required.
06.
Export Cancellation Registration
- Remove the front and rear license plates of vehicles to be exported and submit them along with related documents
when applying for cancellation registration
- Attach the vehicle registration certificate and the driver's identification card to the registration application documents for
legal cancellation and submit them to the registration office.
- Most exporters use a professional cancellation registration agency near the complex.
07.
Export Declaration (Customs)
- Prepare for export declaration (customs clearance) when the name of the buyer is confirmed by successful export
transaction
- Most exporters do not go through customs clearance directly, but use customs brokers for customs clearance.
- When acting as an export declaration agent, the certificate of cancellation, invoice, and packing list must be sent to
the customs office.
- The export declaration procedure is somewhat different depending on the shipping method such as RORO or container. - When the report is completed, receive an export declaration certificate (myeonjang) and store it as an internal document
to prepare for future procedures
08.
Shipment
- Export vehicles are shipped by RORO ship, container ship, bulk carrier, etc.
- In the case of RORO shipment, the freight is expensive, but the transportation period is short and the vehicle quality is
well maintained
- Container shipping has a low freight rate, but the transportation period is long and there is a possibility of quality
deterioration during the shoring process.
- In the case of small-volume export target countries, RORO shipment is often not possible.
- In the case of on-site sales (yard sales), the shipment of export vehicles is managed by the buyer side.
- Most of the shipping related services are provided by professional forwarders who form a network with shipping
companies.
09.
Collection of The Price for Exports
- Collection of export payment varies somewhat by export type or export company
- In the case of on-site sales (yard sales), after making a reservation with a small down payment, the buyer or export
broker immediately before shipment It is the existing export complex practice to pay the balance and request an export
declaration (exemption work).
- In the case of B2B contract-type transactions, the export payment is collected in installments at the time of contract,
shipment, and local arrival.
- In the case of B2B continuous transaction companies, some transactions are conducted in the form of credit
transactions or consignment sales.
- In any form, there must not be a large difference between the amount reported on the export license and the amount
deposited on the transaction account.
10.
VAT refund
- Early refund of purchase tax is possible for vehicles purchased for export
- In order to receive an early refund, if you apply for an early refund by the 25th of the month following the date of
purchase, the refund will be executed within 10 days of the month following the application.
- Required documents for refund application are export vehicle purchase contract (identification of borrower's personal
information/vehicle number) and tax invoice
- An illegal act of receiving an increased VAT refund by applying for an inflated purchase price for export vehicles at one
time It was popular, but most of them were caught and fined due to periodic tax audits.
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