Vehicle importers threaten to sue Feds

IMPORTED car hold-ups triggered by a change in compliance regulations are to be eased after the federal government this week introduced a bill into parliament to extend the current transition period for a further 12 months.

The department was responding to GoAutoNews Premium’s questions about delays for car buyers  – including some disabled people who were waiting for special mobility vehicles – getting access to their imported vehicles because the department could not cope with the volume.

The problem came to a head when the department froze certification of cars imported by agents under a 100-vehicle limit because some importers were said to be bringing in more cars than their quota.

But by freezing all vehicles, all buyers were hit. This led to threats of legal action by the Australian Imported Motor Vehicles Industry Association (AIMVIA). 

A spokesperson for the Department of Infrastructure, Transport, Regional Development and Communications, in answer to questions put by GoAutoNews Premium, said it took the concerns raised by the industry “seriously”.

But the matter is complicated by changes being made to the regulations for importing vehicles with an impending deadline that cannot be met because of the backlog; of which the department says it “is committed to supporting a smooth transition to the new road vehicle standards (RVS).”

The AIMVIA said the used import industry was to operate under a combination 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.

The MVSA system operated by capping the number of privately imported vehicles into Australia. Buyers had to apply for a vehicle import approval and then the vehicle had to be checked by an independent engineer to meet compliance with the Australian Design Rules.

The work needed to meet ADR compliance had to then be checked by another independent party before the vehicle received a compliance plate.

The incoming RSVA scheme has no limit on the number of vehicles from July 2022, and it also removes some import approvals for older vehicles in March 2022. Now the RSVA scheme has been extended until July 2023 and buyers and importers will continue to operate on a mix of the two schemes until then. 

The department said the extension period would now “ensure the uninterrupted supply of a range of road vehicles by allowing impacted businesses to finalise their transition to the RVS legislation while managing demands for their vehicles using the transitional arrangements.”

The department told GoAutoNews Premium that it will respond to AIMVIA “in due course” and said it would work with all stakeholders “to understand their concerns and support their smooth transition to the new RVS.”

“If agreed by parliament, the extended transition period will ensure the uninterrupted supply of a range of road vehicles, by allowing impacted businesses to finalise their transition to the RVS legislation while managing demands for their vehicles using the transitional arrangements,” the department said.

“Any road vehicle providers that have already transitioned to the RVS legislation will be able to continue providing their vehicles using approvals granted to them under the new legislation.

“The government will continue to work with industry, as it has done throughout the extensive consultation processes on both developing and implementing the new legislation, to ensure the transition to the new regulatory framework is as smooth as possible and to best unlock the benefits for all Australians. 

“The government thanks the industry and stakeholders for their continued support and feedback on the transition.”

AIMVIA spokesman Kristian Appelt told GoAutoNews Premium that “it’s a win for small business and consumers” and that there was “a lot of joy” after the government’s extension was announced. He said the industry was also looking forward to the introduction of the new scheme.

The issue raised the ire of the imported car industry and its customers after the department in October 2021 identified a small number of registered automotive workshops that exceeded the number of second-hand vehicles they are permitted to provide to the Australian market each year, currently 100 units. 

It considered the breach of the limits were the fault of the importers and consequently froze the vehicles’ compliance – which follows the Australian Design Rules for vehicles and allows the vehicle to be licensed – until it sorts through all the imported vehicles. 

This has caused a backlog of about 1000 vehicles as the department works through the list, leading to a delay in the delivery of vehicles to their owners by many months.

The department now said it will continue to work with  registered automotive workshops to assist their operations’ return to legislative compliance.

“There is no cap on the number of vehicles a person may import and provide under the RVS RAWs/SEVs Framework,” it said this week.

It said the proposed extension recognised feedback from industry on the impacts COVID-19 and global supply chain issues have had on the industry’s ability to smoothly transition to the new regulatory framework.

The extension applies until June 30, 2023.

Vehicle importers threaten to sue Feds

By Neil Dowling