Category Archives: Rules and Regulations

Listing all the newest rules and regulations

Kenya Embassy Issues Alert on Japan Used Car Fraudsters

Posted on by

Importers of second-hand cars are losing millions of shillings to fraudsters who have invaded the Japanese vehicle export market.

At least 30 victims have approached the Kenyan embassy in Tokyo for assistance in recovering money they paid to phoney companies for delivery of cars to Mombasa only for the alleged exporters to disappear after receiving payments.

“This embassy has recently been inundated by requests for intervention from many Kenyans. Hundreds of them might have fallen into this trap according to available records,” said Paul Ndung’u, the deputy head of Kenya’s Mission in Japan.

The embassy posted a warning on its Web site last week after meeting the representatives of the 30 victims who have come forward and who have backed their claims with documentation.

“If this trend continues, our next posting may include details of the frequently reported culprits in the Japanese market,” Mr Ndung’u told the Business Daily by e-mail on Thursday.

The criminals are said to be using computer graphics to create Internet advertisements that display their banners over pictures of stolen vehicles or those photographed from other dealers’ yards and at auctions. Data from the Japan Used Motor Vehicle Exporters Association (JUMVEA) puts the average cost for a second hand saloon car at $10,000 (Sh850,000). This means that 30 victims who have sought the embassy’s assistance may have lost Sh25.5 million to the fraudsters.

Kenyans have exhibited a huge appetite for second-hand vehicles, helped by a rule introduced five years ago allowing them to import cars so long as they are not more than eight years old since assemble. Increased incomes have also fuelled demand, with the average salary for workers now put at Sh50,000.

The demand for convenience that comes with cheaper high-performing cars caused in part by the chaotic public transport sector has made Kenyans an easy prey for Internet fraudsters, embassy officials said.

“Kenya is clearly among the lucrative and most-targeted markets for unscrupulous Internet- based motor vehicle fraudsters,” Mr Ndung’u said, adding that even senior government officials had lost money to the cartel.

Data prepared by the Kenya National Bureau of Statistics indicates that a total of 155,852 vehicles were registered between January to December 2011. Out of this, only 12,185 were sold by local new vehicles dealers according to Kenya Motor Industry Association (KMI) records. This means 92.2 per cent were imported into the country.

Close to 80 per cent of all classes of used cars imported into Kenya comes from Japan, according to data from the Japan Export Vehicles Inspection Centre Company Ltd (JEVIC) which ranks Kenya as the sixth largest destination globally for used passenger vehicles from Japan.

This includes vans used for passenger services where 27,779 units were shipped in from Japan last year, making Kenya the second single largest destination in Africa after South Africa which ordered 45,425 units.

The red flag from embassy officials comes hot on the heels of an alert from the Kenya Auto Bazaar Association (KABA) circulated to its members last week over the emerging car theft racket in Japan.

KABA officials said the racket started as acts of small-time conmen that has become common in the e-trade era but has lately become rampant despite joint attempts by the Kenya embassy and Japanese External Trade Authority to curb the crime.

“Tracking down this cartel has proved very expensive. Many importers give up the chase as the cost of procuring legal services in Japan is most of the time higher than the value of the vehicle,” KABA secretary-general Charles Munyori said on Thursday.

According to embassy officials, importers who opt to pursue the phoney firms face a legal dilemma. The Japanese legal system classifies defrauding a client in a private business deal as a civil offence for which local police cannot arrest or prosecute, Kenyan embassy officials said.

Mr Ndung’u said silence by victims and lack of publicity on the pitfalls of e-trading has played into the hands of fraudsters.
“They are assured of another opportunity to defraud one victim after another without the fear of detection”, he said.

The conmen change their telephone numbers and Web sites immediately they sense danger.

The bank accounts to which Kenyan victims have wired their money, the mission’s investigations found, are opened using fake names and identities for a particular period of time to accomplish the fraud.

“You cannot easily track down these master criminals because Japanese banks can accommodate ATM withdrawals of up to 1,000,000 Yen or more than Sh1,000,000”, Mr Ndung’u said in the statement.

The criminals are believed to have found their way into the Japanese motor vehicle industry as a result of the global economic difficulties and cut-throat competition that have translated into low profitability at home.

The dash for market openings outside Japan, is being undermined by sale of stolen vehicles, illegally rebuilt units or even re-modeled vehicles. This tendency, Kenya’s embassy officials said, thrives on the reputation for quality, reasonable price and honesty associated with dealers in Japan.

“Kenyan buyers traditionally understand Japanese car dealers to be trustworthy and reliable,” said Mr Munyori. Embassy officials said all importers should consult JUMVEA before committing any money on vehicle imports.

Reposted from Kenya Embassy Issues Alert on Japan Used Car Fraudsters – Business Daily Africa
George Omondi Senior Reporter
Thursday, January 12 2012 at 20:46

Mozambique Pre-shipment Inspection for Used Vehicles

Posted on by

We have been advised that NEW PSI Program becomes effective on 3rd November 2011.
Used vehicles (for which subject to PSI) already applied PAF or will be applied PAF by 2nd November, scheduling PSI on/after 3rd November, and applying PAF on/after 3rd November, will be all subjected to New Program.

Note

All Used Vehicles exported to Mozambique will be subject to PSI, and the exporter will be required to pay the inspection cost at $265 (plus 5% Consuption Tax) per a vehicle.

Implementation of the New Law : 19th October 2011
New Program becomes effective on : 3rd November 2011
Inspection Fee : USD $265.00 (plus consumption tax) per vehicle
Payment Terms : Full Advance Payment / Bank Transfer

Upon receipt of inspection request, we will issue to invoice for inspection fee for your payment to us.
(Exchange Rate: Average T/T selling posted rate of previous month will be applied.)

Used Car Import Ban Suspended in Zimbabwe

Posted on by

Used car import ban suspended

Nicholas Goche

GOVERNMENT has indefinitely suspended the ban on used car imports that are five-years-old and above while the importation of Left-Hand-Drive vehicles will not be allowed from November 1 this year.

The bans are provided for in Statutory Instrument 154 of the Road Traffic Act.
No Left-Hand-Drive vehicle will be allowed into the country from next month.
But those already in the country and those to be imported by October 31 will be allowed to continue plying the country’s roads until they outlive their economic lifespan.
The new arrangement will be provided for in the amended Statutory Instrument to be gaze-tted soon.
Transport, Communications and Infrastructural Development Minister Nicholas Goche yesterday told journalists that after consultation on the proposed ban, Government had decided to lift it until the economy improves.
When the ban was introduced, the minister said Government expected that the economy would have improved and that capacity utilisation by industry by end of 2009 would be around 60 percent.
“We thought the motor industry would have improved as well and producing more vehicles, but we realised that improvement has been slight,” Minister Goche said.
“We had also hoped that banks and other financial institutions would make money available for capitalisation because there is still a liquidity crunch, industry, commerce and individuals don’t have the money.

“Therefore, all these facts were taken into consideration during consultations because the situation hasn’t improved. We have been persuaded to suspend the aspect of the S.I (statutory instrument) to do with the importation of second hand vehicles until there is an improvement of the economy.”
Minister Goche said the Government had also rescinded its earlier decision to force the change of Left-Hand-Drive vehicles to Right-Hand-Drive by December 31, 2015.

“We have made concessions that those Left-Hand-Drive vehicles already in the country remain and live out their economic life.
“From November 1, we are going to restrict the importation of Left-Hand-Drive vehicles whether new or old but for those which are already here, owners won’t be forced to change them to right-hand,” he said.
Government, he said, would continue monitoring the economy to see when it could be viable to effect the ban.

Transport operators and the general public had challenged the promulgation of S.I 154 of the Road Traffic Act.
The Transport Operators Association of Zimbabwe threatened to take legal action against the legality of the ban on LHD vehicles.
TOAZ argued that the vehicles were lawfully permitted in Zimbabwe by the Road Traffic Act 13:11 of the third schedule. The association argued that imported LHD vehicles were cheaper than locally-assembled ones.

During a public hearing convened by Parliament recently, members of the public argued that the ban would make it impossible for the working class to own vehicles.
They said imported vehicles were cheaper and readily available compared to those produced by local car assemblers.
Zimbabwe is among major importers of used Japanese cars in Southern Africa.

Small used cars imported from Japan cost around US$5 000, including duty if directly imported and around US$6 000 if bought from an importer.
Most people cannot afford new imports or new locally-assembled vehicles.

The cheapest locally-assembled brand new car costs over US$20 000.
Used cars from Zimbabwe and South Africa are also expensive as the owners demand more on disposal.

Reposted from Used car import ban suspended – The Herald Online
Lloyd Gumbo Herald Reporter
Wednesday, 05 October 2011 00:00

Zimbabwe Ministers Set to Abandon Planned Vehicle Import Ban

Posted on by

Goche to scrap car import ban

MINISTERS are set to abandon plans to ban the importation of second hand vehicles older than five years after near universal public objections.
Transport Minister Nicholas Goche will make a statement within days announcing a policy U-turn.

The proposed ban, set to take effect on November 1, has seen a spike in vehicle imports as thousands race to beat the deadline.

But the proposals, which ministers said were aimed at protecting the environment and improving road safety, have been criticised by members of the public, MPs and other senior government officials including Deputy Prime Minister Arthur Mutambara.
Now Goche is ready to pull the plug in a major climbdown, sources said.

“The government has listened to feedback from public consultations and it has become abundantly evident that this ban is very unpopular,” a senior transport ministry official revealed.

Goche has also been privately lobbied by MPs and ministers to abandon the plans – originally proposed by Environment Minister Francis Nhema.

Publicly, officials insist that the deadline, which should have taken effect at the end of March this year before beign pushed back, still stands.
With Zimbabwe’s car manufacturing industry virtually dead, ministers have struggled to justify banning cheap vehicle imports.

The Zimbabwe Revenue Authority [ZIMRA] had also warned that the ban could cost the government millions of dollars in lost revenue. The duty on vehicles over five years old is more than double the price of the car.
ZIMRA is currently clearing over 450 vehicles daily through Plumtree and Beitbridge border posts.

Reposted from Goche to scrap car import ban – New Zimbabwe
Staff Reporter
Tuesday, 27 September 2011 00:00

Zimbabwe Government Still Undecided on Import Ban of Used Cars

Posted on by

It appears the Zimbabwe Government is still in two minds as to what to do with the pending policy banning the import of used vehicles over 5 years old. It is good that they will take good time up to Oct 31st to deliberate on this policy, but the way it appears, the Minister for Transport is avoiding criticism for now by leaving hope that the policy may change after all.

It is all our hope, the Used Car Exporters and the Zimbabweans, who hope the ban is quashed and used car imports is allowed for the good of the country’s economy and environment, not to mention the safety factor as well.

My last plea to the Minister and the Zimbabwe Government, please consider the people of Zimbabwe when making this decision.

James Hanna
Nichibocars, Japan

For more information, check out our other blog posts
http://blog.nichibocars.com/2011/09/zimbabwe-used-vehicle-import-ban-deadline-to-stay/
http://blog.nichibocars.com/2011/05/zimbabwe-used-car-import-regulation-deferred-to-oct-31st/

Zimbabwe Used vehicle import deadline to stay

Posted on by

Used vehicle import deadline to stay

GOVERNMENT says there will be no further extension to the October 31 deadline banning the import of vehicles more than five-years-old as sufficient time has been given to all motorists and car dealers.
Transport, Communications and Infrastructural Development Secretary, Mr Partson Mbiriri, yesterday said the statutory instrument giving effect to the regulations was a bitter pill that the country should swallow to avert road carnage.

Addressing journalists on the implications of the regulations, Mr Mbiriri said many lives have been lost due to road carnage. This, he said, prompted Government to take decisive action. “I believe this is one bitter pill we have to take as a nation to avert the menace on the roads. We believe we have given people ample warning and I am not aware of any intention to extend the deadline,” said Mr Mbiriri.

“On left-hand vehicles, it’s controversial but very necessary. We are not inventing the wheel, but it’s standard in many countries.”
Some of the regulations whose deadline end next month include the prohibition of registration of left-hand vehicles, the need for headlamps to be fitted on heavy motor vehicles and the prohibition of registration or use of vehicles whose width exceeds 2,65 metres.

Other regulations such as the need to carry triangle reflectors, jack, spare wheels among others came into effect in July this year, while the Government has allowed left-hand vehicles already in the country to run their full lifespan. Mr Mbiriri said the regulations were in conformity with Sadc harmonisation of Vehicles Standards and came as a result of wide consultation. Angola, said Mr Mbiriri, pegged three years as cut off period for vehicle imports, while South Africa banned imports of second-hand vehicles.
He was asked whether there had been consensus on the provision since they had deferred the effective date to October saying they wanted to allow consultations.

“It became apparent that we are being fairly reasonable. I don’t think it’s possible to have consensus particularly on the importing of vehicles irrespective of the impact it has because self-interest will come into play. We should not shy away from what we see as self evident,” he said.
The motive behind the regulations, said Mr Mbiriri, was to save lives as research had sho-wn that left-hand vehicles caused accidents owing to sideswipes and head-on collisions.

He said it was debatable, which should come first, capacitating the local industry or introducing the regulations to protect the local industry.
“It is kind of a chicken and egg scenario, which one comes first. They can only be cheaper if more of them are being assembled locally. We can’t think of exporting vehicles when we are producing a handful,” he said.

The local motor industry, said Mr Mbiriri, would never flourish as long as the country was allowing imports, a scenario that has seen Zimbabwe become a market for second-hand vehicles from countries making cars.

“In the reform process, my Ministry is, however, aware of the need for a multi-sector and holistic implementational approach which gives total consideration to the country’s economic performance and the prevailing low salary earnings thereof, the inherent road safety considerations, but certainly within the context of regulations and international best practices,” said Mr Mbiriri.

Reposted from Used vehicle import deadline to stay – The Herald Online
Zvamaida Murwira Senior Reporter
Friday, 09 September 2011 02:00

Zimbabwe Used Car Import Regulation – Deferred to Oct 31st

Posted on by

Minister Nicholas Goche

Used car import deadline clarified

Used car import deadline clarified

By Tendai Mugabe

GOVERNMENT has cleared confusion over the deadline for importing second-hand vehicles aged five years and above, saying the cut-off date is October 31 as stated in the statutory instrument gazetted early last month, not June 30.
There had been confusion over the cut-off date with Tran-sport, Communication and Infrastructure Development Permanent Secretary Mr Partson Mbiriri insisting it was June 30 while the statutory instrument gazetted early last month indicated October 31.

Mr Mbiriri, on three occasions since last month, reiterated that the cut-off date remained June 30.
However, Transport, Communication and Infrastructure Development Minister Nicholas Goche yesterday clarified the deadline, in a statement, saying no one would be barred from importing vehicles, which were five-years-old or more until consultations with relevant stakeholders were completed.

“I want to advise all concerned that no one will be barred from importing vehicles which are more than five-years-old until the consultative process is completed.

“Therefore, the effective date restricting the importation of second-hand vehicles into the country remains 31st October by which date the consultative process would have been completed to which my office will give further direction,” he said.

The October 31 deadline was announced in the Govern-ment Gazette published on April 1 2011.

But Mr Mbiriri insisted the deadline was June 30.

Recently, Mr Mbiriri said the Government was only considering extending the age limit of vehicles to be imported and the October 31 deadline was only for registration of the vehicles.

After noting the confusion and panic by the public, Minister Goche said: “Let me assure the transport sector and the public in general that my ministry is seriously looking into your concerns particularly as they relate to Section 10 and 65, which dealt with the left-hand drive and importation of any vehicle that is five years and above.” As the June 30
deadline approached, panic and confusion gripped car dealers and individuals who were rushing to beat the deadline as asserted by Mr Mbiriri.

Over the past weeks congestion was common at the Beitbridge Border Post as Zimbabwe Revenue Authority workers struggled to clear the imports.

The banning of second-hand vehicles followed Statutory Instrument 154 on Road Traffic (Construction, Equipment and Use) Regulations, issued in September last year.

The regulations among other measures sought to ban the importation of left-hand drive vehicles by 2015.
Section 65 of SI reads: “No person shall import any motor vehicle for registration and use on any road in Zimbabwe if the year of manufacture from the country of origin is more than five years.”

Minister Goche said the regulations were meant to consolidate various pieces of amendments that have been made to the regulations and to harmonise the road safety standards adopted by Sadc member states.

He said extension of the deadline from March 31 2011 to October 31 2011 was designed to afford Government enough time to consider appeals from the public.

“During the period before the publication of SI 154/2010 and the period after the publication, my office received numerous appeals from the transport sector players and the public in general in order to give adequate consideration to the appeals without compromising the integrity of our systems, through which these regulations had gone through and approved.

“I found it prudent to postpone the effective dates of the various sections cited above through the publication of Statutory Instrument 44 0f 2011 which Statutory Instrument was published in the Government Gazette of 1st April 2011,” he said.

On Thursday the Transport Operators’ Association of Zimbabwe challenged Government to reconsider the ban of left hand vehicles from the country’s roads by December 31 2015 in terms of the Sadc protocol on transport as agreed by member states.

The association said the early ban of October 31 2011 would result in the total collapse of the heavy transport sector in Zimbabwe.

Source:
The Zimbabwe Herald
Friday, 27 May 2011 22:36
(Link to Article)

Important and urgent notice for all clients in Port Moresby or Lae, Papua New Guinea

Posted on by

As of January 1st, 2010, Mr. Brian Riches, Chief Executive Office of PNG Ports has declared the following in relation to the import of used vehicles into the ports of Port Moresby and Lae:

1) All motor vehicles entering the ports of Port Moresby and Lae will require the vehicles to be pre-cleared (customs duty paid) prior to the motor vehicle being allowed to be discharged. Should a shipping line permit a motor vehicle to be discharged contrary to this rule the subject Line will be required to back-load the motor vehicle at the Lines expense on the first available vessel of return to the port of loading.

2) The following motor vehicle consignees will be exempted from this condition;
- Boroko Motors
- PNG Motors
- Ela Motors
- Niu Ford

3) Should the shipping line not follow this condition of berthing PNG Ports Corporation reserves the right (without notice) to impose further measures to manage the importation of second hand motor vehicles.

The basic meaning of the above notice is that all private importers purchasing their vehicles direct from overseas must pay the import duty for their vehicle prior to arrival of the vessel. You will then need to show a receipt as evidence to the shipping agent in order to have your vehicle released from the vessel.

If you have not paid the import duty before the vessel arrives then your vehicle will remain on the vessel and will be shipped back to the country of origin. So what will happen if this situation occurs? You will have the choice to have the exporter re-ship your vehicle at a further cost of freight and you will have to ensure that the import duty is pre-paid before the next vessel arrives. It is more than likely the shipping company will charge you for the return freight cost as well, therefore all in all, you will pay three times the cost of the normal freight rate to receive the vehicle if you miss the first delivery date. The only other option is to refuse to re-ship and you will lose your vehicle and money.

Please plan well ahead and ensure you have the funds to pay import duty before you buy a vehicle direct from an overseas country.

WHO IS JEVIC?

Posted on by

Japan Export Vehicle Inspection Center Co Ltd (JEVIC) is the service provider contracted by the Zambian Bureau of Standards to complete Roadworthiness Inspections on all used vehicles being exported from Japan, Singapore, Dubai, United Kingdom and South Africa to Zambia.

JEVIC is a Japanese registered Company located in Yokohama Japan and was established in 2001. They have quickly grown to be recognized as the leading inspection company in the motor industry. JEVIC has branch offices in New Zealand, Singapore and the United Kingdom, and inspection capabilities in the United Arab Emirates and South Africa.

JEVIC is not a shipping line, customs agent, freight forwarder, or involved in the purchasing or selling of vehicles. JEVIC is a totally independent organization completing and undertaking various Pre- Shipment Inspections for both government and non-government organizations worldwide. The mainstream inspections being that of used vehicles.  JEVIC is widely known as the ‘Specialist in Used Vehicle Inspections’, and provides customers with the guarantee of total impartiality and assurance through ISO/IEC 17020 accreditation in the fields of vehicle structural integrity, odometer fraud and bio-security (JEVIC is the first privately owned inspection company to be accredited by the ISO/IEC 17020). For detailed information visit www.jevic.com.

With Japan being the largest source of used vehicles for many African markets, JEVIC provides the best in customer service with more than 35 approved inspection facilities throughout Japan and an even more impressive nationwide team of qualified inspectors.

Having been successful in the Kenya Bureau of Standards (KEBS) public tender process in 2007, JEVIC conducts the mandatory Pre-shipment Roadworthiness Inspections (RWI) for Kenya. In early 2009 JEVIC were also nominated by the Zambian Bureau of Standards to complete a similar inspection for used vehicles being exported to Zambia. All used vehicles exported from Japan, Singapore, Dubai, United Kingdom and South Africa to Zambia are required to undergo this important Roadworthiness Inspection.

BENEFITS and COSTS

This inspection undertaken by JEVIC was initiated by the Zambian National Bureau of Standards (ZABS) to minimize the risk of unsafe and substandard vehicles entering the Zambian market thus ensuring health, safety and environmental protection for Zambians. These benefits far out way the cost of inspection. The cost of inspection from Japan is a set fee of JPY13,625 (approximately US$135), and is charged to the exporter. By having such an inspection completed, many issues such as stolen, damaged, misrepresented and unsafe vehicles are stopped prior to entering Zambia. Importers and end users can therefore be assured that the vehicle they are importing is Roadworthy.

For detailed information visit www.jevic.com.