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The 2016 Vehicle guide for the How and what to choose for the drive of a lifetime.

MCR Vehicles 2016_EN

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How and what to choose for the drive of a lifetime!

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Page 1: MCR Vehicles 2016_EN

The 2016 Vehicle guide for the

How and what to choose for the drive of a lifetime.

Page 2: MCR Vehicles 2016_EN

Get some WHEELS

The purchase of your vehicle is an important decision to take. The Mongolian authorities are very strict about what can, and cannot, be imported into their country, and if you make the wrong choice the price could be high.

To avoid this, we have one simple rule, have your vehicle approved by our team before you spend money on it!

We take your vehicle information and get it pre-approved by the authorities in Mongolia for you. This means no surprise taxes, no additional last minute fees, and most importantly, the possibility of printing out all your vehicle

passport information before you leave so you can cross the border with minimal hassle.

Hopefully this guide will help you choose a great, tax exempt vehicle that can easily be approved by our team!

Make sure you read on for the full information, but the fundamental points are these: • All vehicles taking part in the Mongolia Charity Rally must be pre-approved through the Charity Rallies website. Our team in Mongolia pre-approves rally vehicles with Mongolian customs, so this is essential!

• Some vehicles are subject to import taxes upon entering Mongolia and we don’t cover import tax costs. As a general rule, tax is due if the vehicle is registered as a passenger (luxury) vehicle.

• Only vehicles useful to the Mongol people should be driven as these will be donated on arrival. This is not a banger rally, and Mongolia doesn’t want – or need – our scrap metal.

• Vehicles must be no more than 9 years old due to incremental Mongolian import taxes. This rule applies to all vehicles, including ambulances. The only exception is for motorbikes.

• Consider getting a left-hand drive (LHD) vehicle, as there is a possibility the Mongolian authorities may soon limit the import of right-hand drive (RHD) vehicles into Mongolia. LHD vehicles will therefore be a more valuable donation in the country.

• We are here to help! Not only do we have a really experienced team on the ground in Ulaanbaatar who can help you choose the best rally-ride, we also have a team in London that has spent years painstakingly navigating the maze that is Mongolian import tax and is here to help you!

Page 3: MCR Vehicles 2016_EN

So how does it work in practice? The rules about vehicle selection are straightforward, but not always easy. In this guide you’ll find a Yes/No chart that should help you through the maze of questions that is vehicle selection, and a picture gallery to give you an idea of what you should, and should not, drive.

So what are the questions you should ask yourself?

1 - How old is the vehicle?

This is a simple rule. If your vehicle is older than 9 years old, it is not eligible to take part in the Mongolia Charity Rally. There are two reasons for this:

a) For passenger vehicles older than 9 years (i.e. for the Monoglia Charity Rally 2016, any vehicle manufactured before 2007), the import tax is very high and they are very difficult to sell.

b) For utility vehicles anything older than 9 years will likely not last the trip in a good condition, and those that do rarely last a winter in Mongolia.

2 - If it’s younger than 9 years old, what is the issue with tax?

All vehicles permanently entering Mongolia incur taxes. There are three types of vehicle tax for Mongolia.

a) and b) Customs and VAT come to 16.5% of the estimated value of the vehicle. Go help covers this cost for you, so you don’t need to worry about it at this stage.

c) The third type is Import Tax which is up to you to pay. Import tax is calculated on the estimated price of the vehicle, the age, and the size of the engine.

Needless to say that finding an import tax exempt vehicle is top of everyone’s agenda.

3 - So, is your vehicle tax exempt?

Vehicles fall into three categories: passeger vehicles, utility vehicles, and motorcycles. Simply put: Passenger vehicles incur import tax, the others don’t.

a) A luxury/passenger/family vehicle is anything that is designed to carry passengers, by definition, but in small numbers. Family size estate cars, hatch backs, jeeps, landrovers, mini vans with fewer than 10 seats, and pretty much anything you’d see driving round the city.

b) Utility vehicles include pick-ups, trucks, vans, lorries, fire engines, ambulances, and campervans. It also includes mini-vans that have more than 10 seats (this is no longer considered a small group of people), buses (same thing again), and anything commercial (read for example an icecream truck!) :-)

c) The final category is motorcycles which incur no import tax regardless of age or anything else.

4 - Are you unsure if your vehicle is utility or passenger?

Some vehicles are ambiguous and, understandably, it is not always easy to know what the deal is. Firstly, what matters most is how the vehicle is registered on the V5 or equivalent. The best example is the Renault Kangoo. A Renault Kangoo is a van so falls into the tax-exempt category as a van. However, this is only the case if it is a panel van. If the Kangoo has rear windows, even if it has no back seats, it wil be classed as a passenger vehicle.

See page 4

See page 5+

Page 4: MCR Vehicles 2016_EN

WILL YOU HAVE TO PAY IMPORT TAX? This is just a guideline. For final confirmation on tax status, you must submit your vehicle details to our

team for evaluation by the Mongolian authorities.

Does your vehicle have only 2 wheels?

Is it an emergency vehicle? (ambulance,

fire truck, etc.)

Was your vehicle manufactured in 2007

or after?

Is it a campervan, van, truck, or pickup?

(Be careful, there are a few exceptions listed on

the next page)

Is your vehicle a passenger vehicle?

See descriptions on previous page.

Is it a bus, mini bus, or people carrier?

Does it have at least 10 seats including the

driver?

Email [email protected] for

advice.

Your vehicle will probably incur

import tax.

Your vehicle should be

tax exempt.

YES

YES

YES

YESYES

YES

NO

NO

NO

NO

NO

NONO

YES

It is not permitted on

the rally

Find out how much

on page 7

Page 5: MCR Vehicles 2016_EN

TAX EXEMPT (UTILITY) VEHICLES

Despite being utility vehicles, the following will NOT be permitted on the Mongolia Charity Rally 2016*

UTILITY VEHICLES

• Panel vans (no windows in the back)• Single cab pick-ups• Double cab pick-ups• Campervans• Single and double cab vans• Emergency vehicles such as ambulances,

firetrucks, etc.• Trucks• Buses and mini-buses (with 10 seats or

more)

TWO-WHEELERS

• Motorbikes• Bicycles

*These vehicles have proven to be unreliable, unlikely to make it to destination, and/or difficult to sell/donate in Mongolia as parts are hard to find or knowledge limited.

• LDV vans• Renault Master

Ambulances• Tata vehicles• Vauxhall Combos

Page 6: MCR Vehicles 2016_EN

VEHICLES THAT LOOK LIKE UTILITY, BUT AREN’T (AND WHY)

TAX INCURRING (PASSENGER) VEHICLES

• Mini-bus vans Minibuses with fewer than 10 seats are classed as passenger vehicles. Including the driver.

• Vans with rear windows Any vans with rear windows (meaning they were originally designed to carry passengers) are classed as passenger vehicles. This is the case even if they do not have rear seats.

• Adapted or transformed vehicles Vehicles that were not originally built as utility vehicles but that have been transformed, even if they are now registered as a utility vehicle, can still be classed as passenger vehicles for the Mongolian authorities.

Page 7: MCR Vehicles 2016_EN

Once you’ve selected a vehicle make sure you contact us BEFORE you pay for it!

1. Complete the vehicle form on our website.

2. We take these details to the Monoglian authorities who confirm the tax status of the vehicle so that you know before you buy just how much tax, if any, you’ll have to pay.

3. This process can take some time so, while we try to get back to you within 5 working days, the sooner you submit the details to us, the sooner you’ll be able to purchase your vehicle.

We can’t stress this enough: if you purchase your vehicle without having it approved through us, we are not responsible for the taxes you may incur.

If you think your chosen vehicle will incur taxes, how much will it be*?

Vehicle Age

Engine size 0-3 years 4-6 years 6-9 years

Below 1500cc 725,000 MNG 1,450,000 MNG 2,900,000 MNG

1501-2500cc 2,175,000 MNG 2,900,000 MNG 4,350,000 MNG

2501-3500cc 2,900,000 MNG 3,625,000 MNG 5,800,000 MNG

3501-4500cc 6,525,000 MNG 7,250,000 MNG 9,425,000 MNG

4501+cc 10,150,000 MNG 10,875,000 MNG 13,050,000 MNG

*Import taxes must be paid in Mongolian Tugriks before rally launch.