Temporary or Permanent Export?

Temporary vs Permanent Car Exports: A Complete Guide for UK Owners

When planning to take your vehicle out of the UK, the most critical decision you must make is whether your export is temporary or permanent. This classification is not just a formality; it has significant implications for UK tax, legal responsibilities, and the documentation required. Making the wrong declaration can lead to fines, your vehicle being impounded, or a large, unexpected tax bill upon your return.

At Ship Cars Ltd, we ensure every client understands this fundamental distinction. This guide provides a definitive breakdown of the two processes, helping you make the correct choice for your circumstances.

Part 1: Understanding the Core Difference

The key difference lies in the vehicle’s intended status with UK authorities, specifically HM Revenue and Customs (HMRC) and the DVLA.

Part 2: A Deep Dive into Temporary Exports

A temporary export is for when you and your vehicle are leaving the UK but plan to return.

When is it the Right Choice?

• Extended Holidays or Tours: A European road trip or a long-term visit abroad.
• Temporary Work Assignments: Taking your car for a contract or posting that has a defined end date.
• Academic Stays: For students studying abroad for a year.
• Sailing or Motoring Events: Taking a vehicle to an event or show overseas.

Your Responsibilities and Required Actions:

1. Ensure Your Vehicle is Legal:
   • UK Road Tax: You must keep your vehicle tax valid. Driving an untaxed vehicle abroad is illegal, and your vehicle could be impounded upon return to the UK.
   • UK MOT: If your vehicle requires an MOT, it must be kept valid.
   • UK Insurance: Confirm with your insurer that you have adequate cover for driving in your destination country/ies. You may need to purchase a Green Card.
2. Use the V5C Logbook Correctly:
   • Do NOT send the V5C to the DVLA.
   • Take the V5C/2 (New Keeper’s Supplement) with you if you have just bought the vehicle and are waiting for the new V5C.
   • For longer trips, you can use the V5C/3 (Section 3 – Permanent Export) section. Counter-intuitively, filling this out and sending it to the DVLA tells them the vehicle is being taken temporarily. This prevents them from thinking the vehicle has been scrapped or sold.
3. Prepare for Your Destination Country:
   • Research and obtain any required international driving permits.
   • For trips outside the EU, you will likely need a Carnet de Passages en Douane (CPD). This is a customs document that allows the temporary import of a vehicle without paying duty and tax.

Authority Link: GOV.UK – Taking a vehicle out of the UK

Part 3: A Deep Dive into Permanent Exports

A permanent export is for when the vehicle is leaving the UK for good.

When is it the Right Choice?

• Emigrating: You are moving your permanent residence overseas and taking your vehicle with you.
• Selling the Vehicle Abroad: The vehicle is being shipped to a new owner in another country.
• Company Asset Relocation: A business is moving a company vehicle to an overseas branch.
• Classic Car Export: Sending a vehicle to a collector or new market abroad.

Your Responsibilities and Required Actions:

1. Notify the DVLA Immediately:
   • This is a legal requirement. You must inform the DVLA that the vehicle has been permanently exported.
   • To do this, fill out the Section 3 (Permanent Export) of the V5C logbook and send the entire document to the DVLA. Do not send just Section 3.
   • The DVLA will then send you a letter of confirmation. Keep this for your records.
2. Apply for a Vehicle Tax Refund:
   • When you notify the DVLA of the permanent export, you automatically become eligible for a refund for any full months of remaining road tax.
   • The refund will be sent to the registered keeper. The vehicle tax is cancelled from the date the DVLA records the export.
3. Cancel Your UK Insurance:
   • Once the vehicle has been shipped, contact your insurer to cancel the policy, as it is no longer in the UK.
4. Understand the NOVA System:
   • For vehicles that were originally imported into the UK, a permanent export may need to be recorded on HMRC’s Notification of Vehicle Arrivals (NOVA) system to close its UK tax history. Your shipping agent can advise on this.

Decision Flowchart: Which Process is Right For You?

To determine the correct path, ask yourself these questions:

1. Do I intend to bring this vehicle back to the UK?
   • YES → Proceed to Temporary Export process.
   • NO → Proceed to Permanent Export process.
2. (If Temporary) Will I be outside the UK for more than 12 months?
   • YES → You must still keep the vehicle UK-taxed and insured. Consider using the V5C/3. A CPD will likely be required for your destination.
   • NO → Ensure your UK tax, MOT, and insurance are valid for the entire period.
3. (If Permanent) Have I informed the DVLA by sending them the full V5C logbook?
   • NO → This is your immediate legal priority. Do this as soon as the vehicle is shipped.
   • YES → Await confirmation from the DVLA and your tax refund.

Common Pitfalls and How to Avoid Them

• The “Gap in History” Pitfall (Temporary Export): If you let your UK road tax expire while abroad, your vehicle will have no valid tax disc for its return. This can lead to an immediate fine and the vehicle being refused entry until back-tax is paid.
• The “Untaxed Vehicle” Pitfall (Permanent Export): Failing to notify the DVLA means you remain liable for UK road tax. You will be fined for having an untaxed vehicle, even though it is no longer in the country.
• The “Carnet” Pitfall (Temporary Export): Many countries outside the EU (e.g., Australia, South Africa, most Asian and African nations) require a Carnet de Passages. Attempting to enter without one will result in the vehicle being held by customs until you pay a substantial deposit (often the full value of the vehicle’s import duties).
• The “V5C Misunderstanding” Pitfall: Sending the entire V5C to the DVLA is for a permanent export. Sending only Section 9 (V5C/3) is for a temporary export. Getting this wrong creates massive administrative problems.

Your Pre-Export Action Checklist

For a Temporary Export:

• Confirmed my UK Vehicle Tax is valid for the entire period abroad.
• Confirmed my UK MOT (if applicable) is valid.
• Arranged international insurance cover/Green Card with my insurer.
• Researched if my destination requires a Carnet de Passages.
• Completed Section 9 (V5C/3) of my V5C and sent it to the DVLA if it’s a long trip.

For a Permanent Export:

• Completed Section 3 (Permanent Export) of my V5C.
• Sent the ENTIRE V5C logbook to the DVLA, Swansea, SA99 1BD.
• Cancelled my UK vehicle insurance effective from the shipment date.
• Awaiting confirmation letter and tax refund from the DVLA.

Ship Cars Ltd Can Be Best Guide For Your Decision

The legal and financial consequences of misclassifying your export are severe. Our experts at Ship Cars Ltd will:

• Advise you on the correct process for your specific situation.
• Handle all shipping logistics for either temporary or permanent exports.
• Guide you on essential documentation like Carnets.
• Ensure a fully compliant process, protecting you from fines and complications.

Ship Cars Ltd can provide you best car shipping services both for import and export your car overseas.

Please do not hesitate to contact us if you need any assistance in car shipping services or check our RORO Sailing schedule for further details.

We provide efficient and affordable car shipping services for import and export:

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