Latin America has some of the widest spread in vehicle import terms of any region we cover — from Colombia's 0% duty on electric vehicles to Mexico's flat 20% general tariff. If you're comparing destinations for a BYD order, here's how the main markets stack up.

Quick comparison table

  • Mexico: ~20% general import duty for non-USMCA-qualifying origin, 16% IVA (VAT). No broad federal duty waiver for non-USMCA EVs.
  • Chile: ~6% general MFN tariff, often reduced further for China-origin vehicles under the Chile-China FTA; 19% IVA (VAT).
  • Colombia: 0% import duty for fully electric vehicles under national electromobility law, with VAT reduced to 5% for qualifying EVs (versus the standard 19%).
  • Peru: Many new China-origin vehicles qualify for 0% duty under the Peru-China FTA (general MFN otherwise near 9%); 18% IGV (VAT).
  • Brazil: An established, larger-scale BYD market with its own distinct duty and local-manufacturing framework — worth treating as a separate conversation with your broker rather than assuming the same figures as its neighbors.

Where the lowest total cost tends to land

For a fully electric BYD, Colombia stands out on paper: 0% import duty plus a reduced 5% VAT rate is about as favorable a combination as exists anywhere in the region. Peru is close behind for qualifying new vehicles thanks to the Peru-China FTA's 0% duty treatment, though the standard 18% VAT applies regardless of powertrain. Chile's low ~6% baseline tariff (and further FTA reductions) combined with a relatively high 19% VAT tends to land in the middle of the pack. Mexico, without USMCA-qualifying origin, generally carries the highest combined duty-and-VAT burden of the four smaller markets compared here.

Landed cost formula (applies across all markets)

  • FOB price of the vehicle
  • + $1,450 fixed ocean freight
  • + Insurance (1.1% of FOB)
  • + Import duty (destination country's duty rate × CIF value)
  • + VAT (destination country's VAT rate × (CIF + duty))
  • + $650 fixed clearance and documentation fee
  • = Total Landed Cost

The same formula applies regardless of destination — what changes is the duty and VAT rate plugged in, which is why Colombia and Peru's EV-friendly duty treatment makes such a visible difference in the final number for electric models specifically.

Used-vehicle considerations

Several Latin American markets sharply restrict or effectively prohibit commercial used-vehicle import for resale — Chile and Colombia both fall into this category outside narrow personal-effects exemptions. If a used BYD is part of your plan, confirm eligibility for your specific destination before ordering rather than assuming the new-vehicle terms apply.

Shipping timeline

Transit time from China to Latin America typically runs 38-50 days by sea, the longest window among the regions we cover — worth building generously into any project timeline.

Documentation and process notes

Across all four markets, standard clearance documentation includes a commercial invoice, packing list, bill of lading, and certificate of origin — the certificate of origin is particularly important in Chile and Peru since it supports FTA-based duty reductions. For Colombia's EV incentive specifically, additional paperwork confirming the vehicle's fully-electric classification is typically required to claim the 0% duty and reduced VAT rate.

Frequently asked questions

  • Which Latin American country has the lowest overall tax burden on a new electric BYD? Colombia, combining 0% duty with a reduced 5% VAT rate for qualifying EVs — the most favorable combination among the markets compared here.
  • Does the Chile-China FTA cover all BYD models? FTA-based reductions generally depend on the vehicle meeting origin-rule requirements tied to China-origin manufacturing; confirm your specific model's eligibility with your broker rather than assuming blanket coverage.
  • Is Mexico worth considering despite the higher duty? Mexico's ~20% duty makes it the most expensive of the four on a pure tax basis, but proximity to other North American logistics networks and market size may still make it the right destination depending on your business plan — duty rate is one input, not the only one.
  • What about Brazil? Brazil is a larger, more established BYD market with its own distinct duty structure and local-manufacturing considerations that don't map cleanly onto the smaller markets compared here — treat a Brazil order as a separate conversation with your broker.
  • Are these rates the same for plug-in hybrids? No — the EV-specific rates cited for Colombia and Peru's incentive programs generally apply to fully electric vehicles; PHEV and combustion models are typically taxed under different, less favorable schedules.
  • How much does freight and insurance typically add on top of duty and VAT? The fixed $1,450 freight charge and 1.1% FOB insurance are the same across all four markets — what changes destination to destination is the duty and VAT rate applied on top, which is why the comparison above focuses on those two variables.

Rates shown are indicative only — always confirm current duty, VAT and any EV incentives with a licensed customs broker in-country before ordering.

BYD Global Export is an independent export trading company and is not an authorized dealer or representative of BYD Auto Co., Ltd.

Weighing multiple Latin American destinations for a BYD order? Message us on WhatsApp and we'll run landed-cost estimates across the markets you're considering.