The Economics of "Nose Cuts" and "Half Cuts"
Dealers often import "Half Cuts" (cars cut in half) to strip for parts. For an individual, is it cheaper to import a non-runner and fix it, or buy parts separately?
1. Whole Car = CRSP Tax
If the car frame is intact, KRA views it as a motor vehicle. It doesn't matter if the engine is blown or the gearbox is missing. You will pay the full taxes based on the CRSP of a running car. Never import a non-runner expecting a tax discount.
2. Spare Parts = Ad Valorem Tax
Spare parts are taxed based on their invoice value (Cost + Freight) plus a flat duty rate (usually 25% or 35% depending on the item code). There is no "CRSP" for a gearbox.
3. The Strategy for Restoration
If you have a wrecked car in Kenya, do not import a donor car whole. Have the donor car dismantled in Japan or Dubai. Import only the engine, gearbox, and body panels as "loose cargo." You will pay tax on the *weight and value* of the parts, which is 70% cheaper than paying duty on a whole car.