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Import of Reconditioned Cars: New Measures Divide Dealers

15 March 2013 - The Défi Media Group

Import of Reconditioned Cars: New Measures Divide Dealers

The introduction of a series of measures by the government obviously does not unanimity among reconditioned car dealers. Some believe that these regulations will lead directly to bankruptcy. Others, however, welcomed the government's approach and emphasize that they are in favor of consumers.

The new measures were introduced by the Minister of Industry, Trade and Consumer Protection through Regulation 13 of the 2013. This regulation amends the Consumer Protection (Price and Supplies Control) Act. It is in force since 1 March 2013. She came, among other things, revise upward the registration fee and those permits.

But there is one particular measure that some have difficulty accepting and divisive between dealers second hand cars. It is that which requires the submission of an "auction sheet" to Customs for each imported vehicle. The "auction sheet" must, inter alia, to mention the grade of the vehicle and it can not now be below 3.5.

Without this document, car importers can not obtain the necessary authorizations for the customs import reconditioned vehicles.

To the President of the Dealers of Imported Vehicles Association (DIVA), Zaid Ameer, amendments to the Consumer Protection (Price and Supplies Control) Act can only be beneficial for the car industry in Mauritius and repackaged for consumers .

It claims that 90% of vehicles in Mauritius are imported from Japan, and about 65% of them are from auctions. "This measure concerns the majority of dealers and possibly most potential buyers."

Zaid Ameer explains that "auction sheet" is simply a document that bears a photograph of the car as well as very specific details about his condition to purchase. The document is then displayed in the car to allow the customer to see.

It states that many dealers have used this practice in Mauritius. "Thanks to the" auction sheet, "the client has a document attesting to the condition of the vehicle purchase in Japan. If the car has imperfections caused by an accident, the client will, "says he.

It adds that before the introduction of Regulation 13 of 2013, the buyer knew nothing about the condition of the vehicle unless the dealer had it in hand.

According to Defi Media interlocutor, the imposition of an "auction sheet" will reassure customers and bring more professionalism among dealers. "As president of an association, I have had many complaints from customers. They realize that their vehicle has defects they had not noticed or were not visible to the purchase, "says Zaid Ameer.

The President of the DIVA also explained that vehicles sold at auction in Japan are categorized through a "grading system". For him, the imposition of grade of 3.5 is justified and will have beneficial consequences for the industry in general. "This test will restore and strengthen confidence among clients. We must insist on quality in order to provide greater security to our clients. Especially since, nowadays, the difference between a new car and reconditioned shrinking, "he insists.

But Farhad Bhye Ghoorah, director of FB Ghoorah Ltd, is her opposite view. It is those who believe that Regulation 13 of 2013 it will not be favorable and could lead to bankruptcy.

Farhad Bhye Ghoorah filed a complaint in the Supreme Court in which he sought the cancellation of these measures. This dealer second hand cars believes that the survival of his business is in jeopardy. In his complaint, he asserts that the importers of Japanese cars will be forced to close shop because such a measure will cause a considerable increase in price.

In addition, Farhad Bhye Ghoorah stressed that, despite all his good faith, its Japanese suppliers do not want to work with him because they are not able to provide the "auction sheets" necessary.

Farhad Bhye Ghoorah also deplores the lack of a "standard grading system" in Japanese auction houses. Therefore, he believes that such a measure is not reasonable and can not be put into practice. "The Proposed requirement in relation to the importation of second hand vehicles from Japan as detailed above cannot be complied and consequently put into practice in as much as the auction houses in Japan Individually and operate upon Differing Criteria Such That there is no standard grading system in Japan, hence Providing no grade equivalent of 3.5 or above as per the Said règlements and consequently depriving the lath Any figure of meaning. "

Farhad's complaint Bhye Ghoorah be discussed on the merits before the Chief Judge Bernard Sik Yuen, March 25. Pending the conclusion of this case, reconditioned car dealers must comply with Regulation 13 of 2013.

 

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