Used car importers fire warning shot at Department of Infrastructure

A legal firm acting for the Australian Imported Motor Vehicle Industry Association (AIMVIA) has sent a letter to the Department of Infrastructure, Transport, Regional Development and Communications, warning it of a potential legal action for compensation for detriment caused by defective administration. 

AIMVIA estimates up to 1000 used imported vehicles have been sitting in limbo between ports in Japan and Australia as well as in local workshops due to a lack of compliance plates because the department turned the tap off in mid 2021 when it realised some businesses had exceeded a 100-vehicle quota during the interim period of changing legislation.

AIMVIA members, broker Kristian Appelt and freight forwarder Daryl McIntyre told AutoTalk they are now concerned that the Government will turn off the vehicle import approvals tap under the old scheme at the end of March 2021 leaving buyers in limbo, further out of pocket, or worse having to re-export their vehicle.

Appelt and McIntyre say the consumers which are caught up in this mess are their biggest concern, particularly those who have done their homework and sought a VI approval, and both men want assurances from the government that people will get their cars in spite of the legislation change and the cut off dates.   

AIMVIA says the departments unwillingness to engage with the stakeholders in the used vehicle import industry over the was it has handled the interim period between legislation change has left it little choice to seek redress through the compensation scheme. 

The used import industry was meant to operate under a mix of old and new legislation in the interim period from late 2019 until mid-2022 as the Motor Vehicles Standards Act 1989 (MVSA) was phased out for the Road Vehicles Standards Act (2018) to become effective on July 1, 2022.

Under the old MVSA system, the number of privately imported vehicles into Australia was capped, buyer/importers had to apply for a vehicle import approval (VI) and the vehicle was subject to a model report by an independent engineer which would detail what work was required to bring the vehicle up to compliance with the Australian Design Rules. 

That work was then required to be checked by yet another independent party before the vehicle received a compliance plate from the RAWS operator, who were granted 100 plates per calendar year by the department. 

The newer RSVA scheme removes the cap on vehicle plates in July 2022, but it also removes some import approvals for older vehicles in March 2022.

Therefore, the perfect storm was created last year when some of the 107 Registered Automotive Workshops (RAWS) knowingly or unknowingly exceeded their maximum number of 100 compliance plate applications (per calendar year) under the old scheme, when at the same time the departments computer portal also stopped working for a time, failing to keep track of the number of vehicles being approved.

When the transport department learned of the error, it turned the tap off in the second half of 2021, and in spite of having issued numerous VI approvals, started policing compliance limits which has led to the impasse. 

Appelt and McIntyre say both the customers and the entire industry have suffered financially due the impasse, many vehicle importers are smaller family operations, and this has been detrimental to their business. 

AIMVIA says unless there is movement by the government to resolve this situation, the departments action will see many businesses close in the next few months, leaving many customers left out of pocket and some without their vehicle.

AutoTalk has emailed the Department of Infrastructure, Transport, Regional Development and Communications, for comment on the matter and is awaiting its response.