Re-import of Motor Vehicles

Definition and Basics of Reimporting Motor Vehicles

Als Reimport of Motor Vehicles refers to the return of vehicles that were designed or manufactured domestically, initially intended for export and sent abroad, but later re-imported to the country of origin – often Germany. In contrast to the classic import of foreign vehicles, reimport refers to vehicles that were originally meant for domestic use but are subsequently brought back via indirect routes.

Legal Framework of Reimport

European Law Basics

Reimports of motor vehicles within the European Union are primarily shaped by the Community law provisions of the single market. The free movement of goods according to Articles 28 et seq. of the Treaty on the Functioning of the European Union (TFEU) prohibits quantitative import restrictions as well as measures of equivalent effect between EU member states. This generally facilitates the import of motor vehicles acquired in other EU countries.

National Regulations in Germany

Registration Regulations

Reimported motor vehicles are subject to the same registration requirements (‘initial registration’ in Germany) upon their renewed import to Germany as vehicles sold directly on the German market. The following documents are generally required for registration:

• A certificate of conformity (COC document) according to European law,
• An individual operating permit, if EU type approval is not available,
• Proof of a valid general inspection (HU),
• Original invoice and proof of origin.

VAT Treatment

A key legal area concerns value added tax (VAT) when reimporting new vehicles. According to § 1b Value Added Tax Act (UStG), the intra-Community supply of new vehicles is subject to special provisions, even if these vehicles were originally from Germany and are reimported. What is crucial:

• If the reimport takes place between businesses within the EU, the so-called destination principle applies; VAT is due in the country of registration.
• Private individuals who reimport a new vehicle to Germany owe German VAT regardless of where the vehicle was purchased.
• Used vehicles are taxed according to the country of origin principle; if purchased privately in another EU country, VAT is not due in Germany.

Customs Law Aspects

Within the EU, no customs duties usually apply to reimports, provided the A1 movement certificate is available and the customs union is respected. For reimports from third countries, especially where vehicles were first exported outside the EU, import VAT and the relevant customs tariffs under the Union Customs Code (UCC) must be paid.

Excise Tax and Vehicle Tax

Vehicle tax liability arises at the latest with registration of the reimported vehicle domestically. In addition, for certain types of vehicles (e.g. diesel vehicles), treatment under the Energy Tax Act (EnergieStG) may also be relevant.

Contractual and Civil Law Particularities of Reimport

Law of Sale Contracts

The acquisition of a reimported vehicle is subject, depending on the parties involved (B2B, B2C, C2C), to the general provisions of the German Civil Code (BGB) on purchase agreements. Of particular importance are:

• Liability for Defects (Warranty): Sellers are obligated to deliver a vehicle free of defects. Delivery abroad or deviations from standard equipment may, however, affect liability issues.
• Warranty: Manufacturer warranties regularly apply within the EU to reimported vehicles, unless otherwise stipulated.

Product Liability and Road Safety

Vehicles from abroad must comply with national safety regulations (StVZO, EU type approval). In the event of safety defects, claims may be brought under the Product Liability Act (ProdHaftG). It is the responsibility of the registration authority to check compliance with the relevant technical regulations before registration.

Particularities and Risks of Reimport

Differences in Equipment and Scope of Warranty

Reimported vehicles can differ in technical equipment, model year, and optional features from what is offered on the home market. Legally, these differences are particularly relevant regarding guaranteed characteristics and warranty claims. It is recommended to closely examine the vehicle documents and warranty conditions.

Warranty Rights and Rights of Recourse

Asserting warranty rights against foreign contractual partners is regularly more complex than with a domestic purchase. International legal enforcement, language barriers, and differing legal systems may make the enforcement of claims difficult. Within the EU, however, consumer protection rules of the Consumer Sales Directive apply.

Tax Advantages and Economic Aspects

A frequent motivation for reimport is the price advantage resulting from differentially taxed automotive markets within the EU. Within certain legal boundaries, this can reduce the overall financial burden. However, tax treatment is sometimes complex and requires careful consideration of the individual case.

Relevant Legal Texts and Regulations

The following legal bases are of particular importance in the context of the reimportation of motor vehicles:

• Treaty on the Functioning of the European Union (TFEU), in particular Art. 28 et seq.
• Value Added Tax Act (UStG), in particular § 1b
• Vehicle Tax Act (KraftStG)
• Vehicle Registration Regulation (FZV)
• German Road Traffic Licensing Regulation (StVZO)
• Product Liability Act (ProdHaftG)
• Union Customs Code (UCC)
• Energy Tax Act (EnergieStG)
• German Civil Code (BGB)

Conclusion

The reimport of motor vehicles is a complex process that touches on a variety of legal aspects within European and German law. In addition to registration and tax issues, civil law, customs law, and product liability questions play a central role. Precise knowledge of the relevant regulations and particularities is essential for legally compliant reimportation.

Frequently Asked Questions

What legal requirements must be observed when reimporting motor vehicles into Germany?

Various legal requirements must be met when reimporting motor vehicles into Germany. First, the vehicle must comply with German registration regulations, particularly with respect to EU type approval or an individual approval by the competent registration authority (§ 21 StVZO). For vehicles from other EU countries, the EU certificate of conformity (COC) simplifies the process, while for imports from non-EU countries more extensive inspections and adaptations may be required. Furthermore, the vehicle must be properly registered with the German main customs office and, if applicable, import duties (such as import VAT and customs duties) must be paid. New vehicles are subject to so-called VAT under § 1b UStG; relevant evidence regarding purchase date, mileage, and transport route must be provided. Finally, the main and emissions inspection must be presented when registering the vehicle, as well as all required original documents (e.g. purchase contract, foreign vehicle documents).

What tax obligations exist in the case of a reimport?

Anyone who reimports a motor vehicle is required to pay the corresponding taxes. Within the EU, the purchase of a new vehicle is subject to VAT in Germany pursuant to § 1b UStG, regardless of whether the vehicle has already been taxed in another EU country. VAT becomes due in Germany when the vehicle is registered, whereby ‘new’ is defined by law as having less than 6,000 km mileage or not older than six months from initial registration. For used cars from third countries, customs duties are also incurred, which may vary depending on the country of origin and applicable trade agreements. The import VAT is generally 19%. The purchaser must keep all relevant documentation (invoice, payment receipts) properly and present them to the tax office if required.

What specific registration requirements must be observed in the case of a reimport?

To register a reimported motor vehicle at a German registration office, the full set of foreign vehicle documents, a valid EU certificate of conformity (COC), and, if not available, an individual approval must be submitted. Reimported vehicles may show differences in equipment or technical data, in which case a special technical assessment under § 21 StVZO (comprehensive inspection) by a technical service may be necessary. If modifications or retrofits are necessary, such as lights or emissions control, these must be completed and approved before registration. In addition, the usual registration requirements – proof of motor vehicle liability insurance and proof of the holder’s identity – must be met.

What consumer protection rights apply when buying a reimported motor vehicle?

When acquiring a motor vehicle as a consumer within the EU, the provisions of the EU Consumer Rights Directive as well as the German civil law rules on liability for defects in the sale of consumer goods (§§ 474 et seq. BGB) always apply. This particularly means that for reimport vehicles acquired from a commercial dealer, there is at least a two-year warranty period for defects (unless the dealer has effectively agreed on a reduction to one year). Manufacturer guarantees by the car manufacturer are valid throughout Europe, regardless of whether the purchase was made abroad, unless expressly limited nationally. Buyers should be provided with all relevant documents as proof of the purchase date and vehicle condition, and be informed of any particularities (such as deviations in equipment variants).

In which cases can a reimport present legal problems?

Legal issues with reimport may arise in particular if the vehicle does not comply with German registration requirements or documents are missing. Problems also occur when reimporting vehicles whose type approval is not recognized for the German market or whose technical conversion would involve disproportionate costs. Further risks arise if incorrect information is provided during customs processing or taxation; this can lead to tax or criminal consequences (e.g. tax evasion). In addition, purchases from unreliable sellers are at risk for fraud, such as tampered odometers or accident vehicles. Legal certainty may also be compromised if the country of origin has less stringent requirements for vehicle condition documentation.

What are the consequences of missing EU type approval in the case of reimport?

If EU type approval is missing for the imported vehicle, an individual approval procedure (§ 21 StVZO) is strictly required for registration in Germany. This means the vehicle undergoes comprehensive technical inspection, during which an authorized expert examines all safety- and emissions-related aspects. Registration and approval can only take place with a positive inspection result. This process is generally associated with additional time and costs. Furthermore, for vehicles without EU type approval, all German minimum requirements concerning emissions, lighting technology, and safety systems must always be met; retrofits may be mandatory. In the worst case, registration can be denied if the vehicle does not fundamentally meet the requirements.

How does the validity of warranties and service booklets work regarding reimports?

For most brands, the manufacturer’s warranty also remains valid for reimported vehicles Europe-wide, provided the manufacturer has not imposed any regional restrictions. The key is proof of warranty through the service booklet and proper maintenance documentation, which is why all service records and inspection proofs should be carefully kept. Under statutory warranty, German law applies in relation to the professional seller. However, manufacturer warranties may differ in terms of scope and contact points (e.g. no entitlement to a replacement vehicle in Germany). For special warranty conditions, it is always advisable to check the general terms and conditions of the manufacturer or the contractual dealer in the country of origin.