You see a car advertised as a grey import, or a parallel import, and the label alone is enough to make you hesitate. Is one better than the other? Is either a problem? The words sound more loaded than they are.
Both describe how a car came into the UK, not whether it is any good. What the label does tell you is which rules the car went through to get here, and that has a few knock-on effects for you as the owner.
The two terms
My Car Import uses the terms the way most of the trade does. A vehicle brought in from within the EU is a parallel import. A vehicle brought in from outside the EU is a grey import.
In both cases the car arrived outside the manufacturer's official UK dealer network. You will also see the words used loosely, and our own guide to whether to buy an imported car treats them as near neighbours. The distinction becomes useful once you look at what each one means in practice.
Parallel import
A parallel import is usually a car built for the European market, bought in an EU country and brought over. Very often it is a model sold new in the UK too, perhaps in a different trim or as a left-hand drive version.
Grey import
A grey import comes from outside the EU. Most of what people call Japanese imports and American imports fall here, along with cars from the Gulf, Australia and elsewhere. Many were never sold new in the UK at all, which is often the reason someone wanted one.
What changes for you as the owner
Once a car is properly registered here, it is taxed, tested and insured like any other car. The differences sit mostly in how it got registered, and in a few things that follow it afterwards.
| Feature | Parallel import | Grey import |
|---|---|---|
| Where it came from | Within the EU | Outside the EU |
| Approval if under 10 years old | Usually a Certificate of Conformity | Usually an IVA test |
| Over 10 years old | MOT | MOT |
| Import tax | 20% VAT, no duty if built in the EU or UK | 20% VAT and 10% duty |
| Over 30 years old | 5% VAT, no duty | 5% VAT, no duty |
| Typical UK changes | Headlights on left-hand drive cars, rear fog light if missing | Depends on origin: short list from Japan, longer from the USA |
| Parts and insurance | Often shares parts and data with UK models | Home-market models may need more questions |
Approval and testing
This is the biggest practical difference. A newer car built for the EU market was type approved there, and a Certificate of Conformity from the manufacturer is usually the proof the DVLA needs.
A newer grey import has no such approval for Britain, so it shows it meets British standards through the IVA test. Cars over 10 years old are exempt from vehicle approval either way and take an MOT. We run one of only seven privately operated IVA centres in Great Britain, with our own MOT lane alongside.
Import tax
A car bought in the EU pays 20% import VAT. It pays no duty if it was built in the EU or UK and that origin can be shown. A car bought in the EU but built in Japan or the USA can still pay 10% duty, which rules of origin and duty explains.
A grey import normally pays 20% VAT and 10% duty, both worked out on the price plus the cost of getting it here. Cars over 30 years old pay 5% VAT and no duty whichever way they came. The import tax calculator runs your own numbers.
Changes for UK roads
A parallel import from mainland Europe is often left-hand drive, so the headlights need to dip for driving on the left. Left-hand drive cars in the UK covers the rest of living with one.
Grey imports vary by origin. Japanese cars are right-hand drive, so the usual list is a rear fog light if one was not fitted and an mph speedometer on cars under 10 years old. American cars need more, from lighting to the speedo, set out in converting an American car.
Road tax
Road tax follows the same rate tables for every car, but it depends on the evidence. The DVLA takes the CO2 figure from the Certificate of Conformity, and a WLTP figure can come from the CoC or the IVA certificate.
A car with no accepted CO2 figure may be taxed on engine size instead, so it is worth knowing which evidence your car has before you buy. The detail is in road tax for imported cars.
Parts, insurance and recalls
A parallel import is often the same model as one sold here, so service parts and garages that know it are easy to find. A grey import that was only ever sold in its home market may need some parts from abroad. Parts and servicing explains how to plan for that.
Insurers think the same way. Some have less data on cars never sold here, so they ask more questions. Tell them it is an import and list the changes made, as insuring an imported car explains.
Recalls still apply. The DVSA's code of practice says an independent importer of grey imports takes on the manufacturer's recall responsibilities, and the code covers personal imports too. For a home-market model, check with the manufacturer in that market as well, which recalls on imported cars walks through.
The label is not the risk. A grey import with full paperwork and a proper registration is a safer buy than a parallel import with gaps in its history. Check the car, not the category.
Buying one that is already here
Checks for either kind
0 of 8 done
Our guide to checking whether a car is an import shows how to do most of this for free.
Questions people ask
What is the difference between a grey import and a parallel import?
My Car Import uses the trade meaning: a vehicle brought in from within the EU is a parallel import, and one from outside the EU is a grey import. Both arrived outside the manufacturer's official UK network.
Is a parallel import better than a grey import?
Not by default. A parallel import is often closer to the UK model, so parts and insurance can be simpler. A grey import may be a model never sold here. The paperwork and condition matter more than the label.
Does a parallel import need an IVA test?
Usually not. A newer EU-built car normally uses a Certificate of Conformity. If one cannot be found, or the car was not built in the EU, a car under 10 years old would take an IVA test instead.
Do grey imports pay more import tax?
Usually, yes. A car from outside the EU normally pays 20% VAT and 10% duty. A car built in the EU and bought there pays 20% VAT and no duty if its origin is shown. Cars over 30 years old pay 5% VAT and no duty either way.
Are grey imports harder to insure?
They can take more questions, especially home-market models insurers have little data on. Tell the insurer it is an import and list the changes made, and consider a specialist if needed.
Bringing in a car from inside or outside the EU? Send us the details on the quote form and we will tell you which route it takes.
