Used Vehicle Imports
In 1992 the Federal Government introduced a special tariff of $12,000 per vehicle for imports under the so-called ‘Low Volume Scheme’. However, used vehicle imports grew from around 1,000 pa in early 1990s to around 15,000 pa in late 1990s. In 2000 AFC made a submission to a Review of the Motor Vehicle Standards Act and to the Minister for Industry, and we advocated that these numbers be restricted to their original intent.
On 8 May 2000 the Government announced a new scheme for these imports, and the previous bulk compliance approval was replaced with a system of vehicle-by-vehicle inspection and approval through registered workshops, together with other measures. The Government indicated that the overall effect of these measures would likely result in second hand vehicle imports remaining at around the 15,000 per annum level.
The Productivity Commission was subsequently requested by the Government to report on options for Post 2005 Assistance Arrangements for the Automotive Manufacturing Sector. Their Interim Position Paper made reference to the $12,000 tariff for used vehicles and concluded that the potential benefits of its removal appeared not to warrant the additional uncertainty at that stage. Accordingly, AELA wrote to the Review, noting the concerns of Members in relation to the impact of ‘grey’ imports on used vehicle prices, and in turn the potential to jeopardize underlying security values under operating leases. We again noted that the $12,000 tariff on used imports is an appropriate response to the particularly stringent periodic inspection regimes for used vehicles in exporting countries.
AELA members believe that the arrangements now in place will continue to result in used vehicle import levels which more appropriately reflect the original policy intention, and AELA maintains a keen interest in the trend in these import levels.
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