Changes To Import Laws

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tmz_99
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Changes To Import Laws

Post by tmz_99 »

this is an article pulled from Prestiege Motorsports regarding the impending changes in the import laws to Australia.. don't think it will effect widebody imports (much).. but if u were wanting a 2nd car this could prove a hassle: [article follows]

To say that the current consideration by DOTARS (the Department of Transport and Regional Services in Canberra) of changes to the 15 year rule has sparked some heartfelt discussion would be somewhat of an understatement. So time perhaps for another update with our thoughts gathered over the last few days.

If you have not heard the bad news as yet, to recap, the following three options are currently being tabled by DOTARS for a change to the rule on 1st January 2005:

Option 1 -- Make no changes to the current arrangements, ie. continue to allow unrestricted importation of vehicles 15 or more years old.

Option 2 -- From 1 January 2005, allow only vehicles manufactured prior to 1 January 1989, to be imported without restriction, ie. no more 1989+ models.

Option 3 -- From 1 January 2005, allow only vehicles 30 or more years old to be imported without restriction, ie. a 30 year rule, which may as well be 100 years given the impact it will have on import numbers.

There is a certainly a lot of feeling out there with strong support for maintaining the 15 year rule as it is, and we feel enough that an impact could be made on the decision. However, it is fragmented and unformed, and coordinating this support is the key to having any impact whatsoever on the future of 15 year old cars in Australia.

DOTARS want to put an end to a justified influx of excellent 1989 model options which they seem to fear more than life itself, just as it starts.

Make no mistake, if a coordinated and reasoned approach is not put forward in just the right way and almost more importantly to the right people, there is no question in our mind that either Option 2 or even worse, Option 3 will be what we see from DOTARS in the next two to three months. The goal of DOTARS over the last 5 years has been quite clear, to reduce the number of imports to as few as possible. Without any opposition this is exactly what will happen, and crying after it happens will be a complete waste of time.

Just like we saw with the death (or rather the planned execution) of the old import scheme and replacement with the complicated and expensive SEVS, DOTARS will always get their way unless some opposition (on reasonable and justifiable grounds) is mounted, and damn quick, before their intentions gather momentum and political popularity.

It's quite timely to aim a comment at all those on the online forums talking amongst themselves and saying short-sighted things like "this change will be good for me, coz my car will be worth more if others can't get em in".

Come on, is it really that hard to think ahead ! What happens when you want to upgrade your vehicle in a year or two to something better. Or when someone in your family or a friend wants the best value for their money and is forced to buy a $11,000 Commodore instead of a 1989 / 1990 or younger Celsior (LS400). Nothing against Commodores per se, however when comparing budget options there just is no comparison between locally available models and Japanese imports. What would you prefer to drive for the price, the LS400 that cost more than $100,000 when new and is fitted with every conceivable option, has an unkillable engine, great reliability, or....the local alternative.

Without raving further, in short, we feel that it is in the best interest of all Australians now and into the future to maintain the rule as it is (Option 1). There are a number of very good reasons for supporting Option 1, some of which are listed below:

1) Safety, emissions, and value for money -- in the same price range, Japanese vehicles are on average better performers than local models. This well known fact is so obvious that example comparisons are not even necessary. Simply put, for the same money you can buy a much higher spec vehicle from Japan than if you bought something locally delivered. Full power options and airconditioning are standard features on virtually all common 15 year old imports while they are STILL optional extras on many 2004 model cars sold here now. Airbags are fitted to a significant number of models. Many imports are sports cars and so have improved brakes, handling and other features that make them overall safer cars to drive. The import of Japanese vehicles in this way actually improves the quality, safety, and emissions of the Australian as they displace lesser vehicles in the same price range. It is very much in the public interest to continue allowing these vehicles to be imported rather than forcing the public to persist with outdated, inefficient, less safe and let's face it, less enjoyable local options.

2) Impact on the Motor Vehicle Industry -- The introduction of SEVS has already put hundreds of small businesses out of business completely, as they have not been able to afford the huge capital outlay to set up a new workshop under SEVS and the 12 to 18 months of zero income on this outlay while helping DOTARS to sort out all the MANY serious flaws in their new regulations. Other businesses have only survived thanks to the 15 year old rule which they have only fallen back on as a last resort. This has been the direct cause of the large increase seen in 15 year old imports for 2003 (12,291 vehicles) over the previous year (5,703 vehicles). Now they are threatening to put in the boot and do away with the 15 year rule as well, leaving all these businesses completely high and dry. This shows serious contempt and lack of understanding for all those involved or associated with the motor vehicle industry and will be both directly and indirectly affected by taking the rule away from them.

3) Economics -- There are massive flow on effects from importing vehicles like these from Japan. Income flows into all those businesses associated with the motor vehicle industry. Right from the beginning of the chain, the Australian suppliers living and working in Japan, to the importers here in Australia, wharf, Customs and Quarantine personnel, Customs Agents, workshops that make the changes prior to registration, engineers that sign them off, dealers who import and sell, parts suppliers and mechanics that keep the cars on the road, performance workshops and all those not mentioned that are affiliated in some way with the process. The injection of funds into all these mostly small to medium sized businesses cannot be measured in any way, however it is not hard to see that suddenly removing 15 year old cars from our import menu right on top of the recent SEVS changes, even with 6 months notice will have a serious negative impact on all these businesses, some of which actually depend on 15 year old imports to survive.

4) Tax dollars -- Japanese imports generate a huge amount tax revenue which is paid to the Government as import duty (15%) and GST (10%). Assuming that the average 15 year old import costs at least 400,000 yen FOB (approx. $9,500 landed) which is fair, this means that on average, for every vehicle imported there is more than $1,400 worth of import duty and GST that goes to the Australian Govt. Multiply that by the 12,291 vehicles imported in 2003 and you will see that the tax dollars generated would have been in excess of 17 million dollars. Not that we agree with the taxes on imports, but there is certainly a good argument to be made for imports paying their way. Certainly there is ample revenue collected per vehicle to fund any additional staffing requirements at DOTARS to process the Import Approvals.

For these reasons and many others, we see no cause why the 15 year rule should be changed. A knee-jerk reaction due to increasing numbers is simply not warranted.

For all those dealers out there who think the 15 year rule should be stopped to protect your sales, bear in mind the huge potential that these vehicles offer the secondhand car trade. They are more than a breath of fresh air, they are a force-fed breeze to our choice of quality, well optioned vehicles in the under $15,000 range. And as better value options present themselves to the local market, poorer quality and end-of-life local vehicles will tend to be pushed through the bottom of the market, thereby improving the average quality of the Australia vehicle fleet in all respects.
decoy
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Post by decoy »

ouch, i wonder what the chances are of them staying with option 1 are!
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NXTIME
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Post by NXTIME »

buckleys.
Please register your vehicle details on the AUSTRALIAN STARION REGISTRY <HERE>


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CussCuss
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Post by CussCuss »

NXTIME wrote:buckleys.
at best.

Best possible solution i can see coming out of this is <`89 cars being allowed.
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NXTIME
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Post by NXTIME »

bastards.
Please register your vehicle details on the AUSTRALIAN STARION REGISTRY <HERE>


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pcuser51
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Post by pcuser51 »

:D what do you expect its all politically driven, :wtf: they dont want imports because it hurts our car industry so they say. :smokin
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Post by CussCuss »

if you look at the figures, 13k for 1988 models up from 5k, think about what will hapen in 1989 and morso in 1990 when 14 months of brand new models are available. You can kinda see where they are coming from even tho prices are pretty jacked at the moment.

Personally, if they put it to <89, i wont be too fussed as my choice for next car is still available, it just cuts down the alternatives.
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