The Middle East is a crucial growth market for China’s used car exports, with enormous potential. Countries exhibit varying degrees of disparity in vehicle model access, vehicle age restrictions, and tariff policies. The following details the situation in some major countries.
Latest UAE Policies
Vehicle Access: Left-hand drive vehicles can be registered and licensed normally for the local retail market. Right-hand drive vehicles can only be used as re-export goods and are prohibited from being registered and used within the UAE.
Vehicle Age and Condition Restrictions: Fuel-powered vehicles must be no more than three years old, and new energy vehicles must be no more than five years old. The import of scrapped vehicles, accident vehicles, and taxis is prohibited.
Duties and Taxes: The customs duty rate is 5%, the value-added tax rate is 5%, and the total tax is (vehicle + cost + insurance and freight) × 10%.
Saudi Arabia
Vehicle Import Permits: Only left-hand drive models are allowed; right-hand drive models are prohibited. Fuel consumption for gasoline-powered vehicles must be less than 10.3L/100km.
Vehicle Age and Condition Restrictions: Both gasoline-powered and new energy vehicles must be no more than five years old. Vehicles damaged in water, involved in major accidents, or involved in fires are prohibited from import.
Tariffs and Taxes: The import tariff for gasoline-powered vehicles is 5%, while the tariff for new energy vehicles is 2.5%. All imported used vehicles are subject to a 15% value-added tax. Customs will calculate the dutiable value based on the vehicle’s manufacturer’s suggested retail price (MSRP) and a tiered depreciation method based on age.
Iraq
-Vehicle Type Approval: Imported used cars must be non-armored, left-hand drive.
-Vehicle Age and Condition Restrictions: Currently, there are no specific restrictions on vehicle age, but parliament is considering restricting the import of used cars over eight years old, with implementation expected in 2026.
-Tariffs and Taxes: Used Chinese cars enjoy zero tariffs, but are subject to a 12% value-added tax.
Jordan
-Vehicle Type Approval: Vehicles must comply with the European WVTA, US FMVSS, and Middle Eastern GCC certifications.
-Vehicle Age and Condition Restrictions: Effective November 1, 2025, the import of electric vehicles over three years old (including the year of customs clearance) will be prohibited.
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