The Australian government decided late last month that the parallel import of used cars will not be endorsed, as recommended by the professor Ian Harper in the “Competition Policy Review”.
In his recommendation, Harper suggested the relaxation of import tariffs and red tape on the importation of second-hand cars. The changes would allow individuals and retailers to import used cars without getting through any authorised distributor or IP owner.
While the Motor Trade Association of Australia (MTAA) and the Australian Automobile Association (AAA) welcomed this decision to rule out the import of used car to Australia, senator Bushby does not support it, saying opening up the market to competition would actually benefit consumers. Bushby argues that local car fans would be able to more easily import niche models and specialised makes. “There are a number of models of cars or particular variations of them that are highly desirable that are almost impossible for Australians to access and that’s where I think there needs to be revisions,” he said.
While the government has decided not to endorse the parallel import of used cars, the parallel import of new cars is still up to debate.
The government’s acceptance of parallel imports of new cars would benefit Australians, allowing them buy cars directly from dealerships overseas when complying with global design and safety standards.
Some sources also argue that once the local car assembly industry closes in 2017, there will be no longer any reasons to keep restrictions on parallel imports of new and used cars. The Government should, therefore, allow grey imports as New Zealand did several years ago.
New car imports are expected to be approved shortly by the Australian Government, and therefore, the demand of UK cars will increase significantly in Australia.
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