Zimbabwe Government Still Undecided on Import Ban of Used Cars

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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

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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

You Get What You Pay For

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When I was young I remember buying a pair of sports shoes from a shoe store. I went into a clothing store afterwards looking at some clothes. The store owner asked me how much I paid for the shoes and I told him $25. He quickly told me that he could have sold me the same shoes for $15 and that his store was cheaper than any other store in the street. Only problem was he didn’t have any stock at the time and it didn’t matter to me since I already bought my shoes. However, I told my brother who immediately went to the store to order the same brand shoes. The owner told my brother he could order the shoes in but the price would be $30. My brother asked why the owner told me he could get the same model shoes for $15. He said he made a mistake. Very convenient, but what it taught us was that tricky businessman can tell you any price for a product they don’t have or don’t intend to sell. They only want you to believe they are the cheapest in town and get your money. It’s a ploy that many tricky businesspeople use.

The same goes for used car exporters in Japan. Those exporters that only portray auction photos are only quoting prices that are intended to get your money in first, then they worry about what car to send you, or whether to send a vehicle at all.

You go into a Dollar Store and buy something cheaper than what you would normally pay up to 10 times the value. You know the product is not going to be of good quality and likely won’t last long. But as long as it does the job you want it to do before it breaks, then you don’t mind wasting that one dollar. After all, it is only one dollar. But how would you feel if you send money for a used Japanese vehicle for less than half the actual market price. Do you still expect to get the same quality vehicle as a similar model that costs twice the price at genuine exporters’ websites? What if the vehicle you receive (if you receive a vehicle at all) breaks down within 3 to 6 months after receiving it? Do you still not mind wasting say US$2,000 since it is only half the value of a genuine quality used vehicle?

It’s amazing the number of people I know who actually expect to receive a good quality vehicle for less than half the price of a genuinely priced vehicle. The disappointment I see when they receive a totally different vehicle, or a vehicle that has traveled over 200,000km, or the engine broke down on their way back home from the port. One of my clients in PNG phoned me to tell me of a person there who ordered 8 vehicles from a cheap exporter in Japan. Apparently all 8 vehicles were either seriously accident damaged, or such high mileage that the engines were making bad noises, or some just couldn’t even be started. I was told he cried at the wharf when he realized he wasted his hard earned money on inferior quality cars. My client told this person: “you get what you pay for”.

It’s alright if you go into a dollar store and buy something that is inferior. It’s only one dollar. But you should think twice about buying a used Japanese vehicle that is half the price compared to similar models at genuine exporters’ websites. Are you really prepared to risk throwing away good money just like that?

James Hanna,
Nichibocars,
Nagoya, Japan

Which Used Car Exporters to Avoid

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One thing that sticks out in all the recent used car export scams is the fact that people who lost their money, lost it to small time operators or little known operators. I remember in the old days, reputation was the big key point when people made decisions to buy a vehicle direct from Japan. It used to be so difficult for any new exporter of used Japanese vehicles to break into a market. It required years of hard fought marketing by the exporter before they could establish a good reputation and sell a good volume of vehicles in a new market. In the old days, only 2 or 3 companies were successful in selling used vehicles from Japan direct to the end-users in large volumes. Nowadays, the end-users put their trust in almost any exporter as long as their prices are the cheapest in Japan.

I’m suggesting that everyone needs to go back to the ways of the old days. You need to be very careful who you are dealing with. Just because some exporters can display unbelievably cheap prices for used vehicles doesn’t mean they should be allowed into a market so easily. You need to make them work very hard for their reputation before you start trusting them. Only genuine used car exporters will tough it out and wait for a year or two before they can make it big-time in a market. If you make it easy for new exporters, then you open the door for anyone to come in and take advantage of you all.

Even if a new-comer exporter’s prices are reasonable, it’s not always going to be a safe deal. One client who responded to my previous article relayed the story of how he sent money to a one-man exporter for a truck which was to be bought at an auction in Japan. This particular exporter went to the trouble of delivering the vehicles to his stockyard from the auctions by himself to save on transport costs. Unfortunately, he smashed the truck that he bought for his client during the delivery. The exporter didn’t have insurance (again, saving on costs), and didn’t have any savings to refund his client (or buy a replacement truck). The exporter apologized to his client but the client still lost all his money.

The major exporters of used Japanese cars, the genuine ones, have all the logistics covered, including insurance. The genuine exporters have been doing this business for more than 20 years and have covered all the risks and logistics properly. We have systems in place from the time when a vehicle is checked at the auction, up till the point where the vehicle is handed over to you. We know more about our clients’ needs and satisfaction, it’s not just about selling cars.

In my 14 years experience in this business I have seen the following happen:

  • vehicles stolen from stockyards in Japan
  • vessels that have sunk losing all the vehicles on board
  • vehicles that were lost by the shipping companies (offloaded at the wrong port by mistake)
  • a vehicle was accidentally dropped into the ocean whilst being offloaded (lift on-lift off vessel)
  • vehicles shipped on CIF basis but no marine insurance coverage actually paid for by the exporter
  • fake exporters taking money for orders but not delivering vehicles
  • vehicles sent to clients with blown engines (and other mechanical problems)

Genuine used car exporters usually have all this covered and won’t leave their clients “holding the bag” when something goes wrong. A genuine exporter is very concerned about their clients’ satisfaction. Genuine used car exporters depend on long-term business and need to protect their reputations. A small exporter or new-comer exporter is only interested in profits. Their smaller margins mean they can’t afford to insure their vehicles or provide security for vehicles or compensate for broken down vehicles.

Ask local clearing agents or your local Embassy in Japan about which exporters are reliable to deal with. Always be suspicious of exporters advertising prices that are very much cheaper than the more established genuine exporters.

Always take into consideration the old saying: “you get what you pay for”.

James Hanna,
Nichibocars,
Nagoya, Japan

Used Japanese Car Market Values

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I’m sure many of you are confused by the differences in market values of certain types of used Japanese vehicles, and their current upward fluctuations. It is true that some of the more reputable used car exporters have increased their prices whilst other relatively unknown exporters are still displaying prices that are very much cheaper than current market prices. This article will provide the facts to answer those questions; which prices are real, where is the current market value, do we wait or do we buy now, and why are some prices unbelievably cheaper than other exporters?

At present, most of the good quality used Japanese vehicles are being sold for at least 25% more than six months ago. The main reason for this is the increase in demand for good quality used Japanese vehicles to replace the damaged or lost vehicles in the earthquake devastated areas in the East of Japan. This demand is expected to stay high for a few more months, and maybe longer.

On top of this, the US$/Yen exchange rate has changed a lot recently also adding to the increase in the US$ price tag. The US$ has also weakened against many other currencies making the value of used vehicles more expensive in terms of local currencies. The biggest problem with foreign exchange rates is that nobody can predict the direction of the rates, so there is a risk of paying more if the exchange rates get worse. But then again, the exchange rates can move in your favour over time. As I mentioned before, no one can predict the direction of the rates.

So the question, do we wait or do we buy now is totally your choice. My suggestion, if you have the funds, and you need a car, then don’t wait and don’t worry what will happen to the values after you purchase. Many people keep thinking that if they wait a little longer they can save more. Many people who think like that are always waiting and never end up buying anything for fear of paying too much. Just be happy with the value you purchase and don’t worry about what happens afterwards. When you think of it, the cheapest used vehicle is “free”, but that is never going to happen.

So what about the difference in prices? Why is it that some exporters can advertise a Toyota Camry for US$1,055 and other exporters are advertising the same model for US$1,800 (or more). The so-called “exporters” on Tradecarview use a computer program for pricing vehicles that they are downloading from the used car auctions. The problem with the computer programs is that they calculates the average market price without taking into account the grade condition, the mileage, and the type of model of the vehicle. For example, a grade “0″ vehicle is usually for accident vehicles sold as is. The prices of these vehicles can be as low as US$200. These vehicles are usually purchased for parts only. Some vehicles that have done over 200,000km are in very poor condition and wouldn’t last more than 6 months overseas. These vehicles can sell up to 50% cheaper than genuine good quality used cars. Genuine exporters are not interested in these vehicles as it does nothing for our reputation. On top, some vehicles are manufactured to different grades, some being more luxurious and hence more expensive to purchase. For example, a 7 seater Toyota Prado sells for a lot more than a 5 seater Toyota Prado. Again, the computer pricing programs being used by these so called “exporters” on Tradecarview don’t take this information into calculation, and hence their prices are nowhere near the actual current market values. They don’t care either since most of these exporters don’t own the vehicles anyway. Once they receive your money they send you what they can afford within the budget received, or they send nothing at all. Their target is to get your money in first, and worry about the supply of a “vehicle” later. They have no desire to fine tune their pricing programs since it works for them to get as much money in as possible.

Unfortunately, many buyers see the “false market values” and even though they don’t trust these so called “exporters”, they can’t help but look for similar models at the same prices on genuine exporters’ sites. They then become confused when they can’t find similar models at these ridiculously cheap prices and start to wonder if they should take a risk with the unknown exporters. You’ll never find ridiculously cheap prices for genuine used vehicles on genuine exporters’ sites. Genuine exporters are in the business for long term, not for a get-quick-rich plan. We need to make profit in order to survive. That’s what business is all about.

Therefore the actual current market value of a genuine good quality used Japanese vehicle can be found by looking at the genuine exporters’ websites. I’m sure you know well who we are, if not, ask some local clearing agents, or your Embassies in Tokyo.

I recently met some people in Papua New Guinea who fell victim to this false market value scam. Most of them ordered a Toyota Camry or Vista from these relatively unknown “exporters” at US$1,055 FOB value and received a totally different vehicle. One person received a Nissan Presea in replacement for his order without his approval. Another person received a Toyota Starlet of much older year and higher mileage to what he ordered. The victims weren’t told what they were receiving until the vessel arrived in port, so they had no choice but to accept what they were given. And of course, some people didn’t even receive a vehicle. They were so disappointed to discover they fell victims to the “false market value” scam.

It’s easy to get caught up in greed looking for the cheapest vehicles available for re-sale to make a big profit. Greed is what makes the scams successful. Some people I know in Mozambique who got caught by the “false market value” scam told me they were going to re-sell the vehicle and double their money once the vehicle arrived. But no vehicles arrived and their money was lost, all of it.

To avoid the scam, do some research on prices with genuine used car exporters. Ask yourself, why would an “exporter” sell a similar model vehicle for almost half the price as the genuine exporters. As a business person, one doesn’t need to lose so much profit by selling a product for half the price as their competitors. It is just as good a sale if the price is a little bit cheaper than other exporters, meaning the extra margin earned is more profit for your business. As a business person, this is how one thinks. As a con artist, you work on peoples’ greed.

Also, as I have always suggested in previous articles, ask for a copy of the Export Certificate and more photos of the vehicles to prove it is genuine. The Export Certificate is going to show you the real year of the model and the last recorded mileage of the vehicle at its last inspection. The Export Certificate is also proof that the exporter actually owns the vehicle. If they don’t own the vehicle they won’t have a copy of the Export Certificate. Only the current owners of the vehicle have the Export Certificate.

My final recommendation to those who have fallen victim to the “false market value” scam, don’t give up and do nothing to retrieve your money. Keep a copy of all your communications with the “exporters” and photos, etc. send the whole files to your Embassy in Tokyo, and let them do whatever is possible to get a refund or compensation for you. Get back at these con-artists and show them they can’t get away with this scam so easily if you have already been caught. Put the pressure on so that your fellow country-man doesn’t get caught too.

A good quality used vehicle purchased direct from Japan is a very good purchase of very good value. Don’t let greed spoil what should be one of your most prudent purchases in life.

James Hanna,
Nichibocars,
Nagoya, Japan

New PM in PNG – Peter O’Neill Pulls Off Coup

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IALIBU-Pangia MP

Peter O’Neill, was yesterday elected the new and seventh Prime Minister of the country in a sudden and dramatic turn of events in Parliament.
This happened when the swelled ranks of the Opposition successfully moved a motion declaring the office of the Prime Minister vacant and then voted in Mr O’Neill.
He mustered 70 votes with 24 against under presiding Speaker, Jeffery Nape, who declared ‘you have the necessary support to be the next Prime Minister’ and then adjourned for his swearing in at the Government House.
Defectors from the Government totalled 48, which joined the Opposition’s 22.
It was virtually a chamber coup on recuperating Prime Minister, Sir Michael Somare, which caught his acting Prime Minister, Sam Abal and his Cabinet by surprise.
First to arrive in the chamber after 10.30am was Mr Abal and 22 of his Cabinet Ministers but in solemn fashion when they realised their missing backbenchers, committee chairmen and several Ministers.
Just shortly after that Opposition MPs marched in confidently with their expanded ranks comprising mainly Government MPs plus six Ministers. They included Mr O’Neill himself (Works), Mark Maipakai (Internal Security), Charles Abel (Minister assisting the Prime Minister), Moses Maladina (Public Service), Ano Pala (Foreign Affairs) and Job Pomat (Inter-Government Relations).
After recital of the Lord’s Prayer, Mr Nape directly and promptly entertained the Leader of the Opposition, Belden Namah, who moved for suspension of the Standing Orders to move a motion without notice.
Mr Nape’s attention and actions were focussed on the Opposition’s actions, cutting off all attempts by Leader of Government Business, Paul Tiensten to follow the normal business of the day.
Mr Nape’s deputy, Francis Marus was among the Government defectors.
Mr Namah’s move was unanimously supported by the larger support base and without hesitation, read out the motion to declare vacant the office of the Prime Minister.
‘Pursuant to Section 142 (2) of the Constitution and Schedule 1.10 (3) of the Constitution, and in the inherent powers of the Parliament that we declare the Office of the Prime Minister be vacant and consequently in accordance with the provisions of Section 142 (2), this Parliament proceeds forthwith to elect and appoint a new Prime Minister,’ the motion read. This brought the House into uproar when a vocal, Patrick Pruaitch (Aitape-Lumi, called for a point of order but was met with stiff raucous choruses of resistance from Opposition MPs.
Mr Pruaitch’s attempts were also ignored by Mr Nape who recognised Mr Namah, who rose to move for nominations.
And in a well rehearsed move, Mr Namah nominated Mr O’Neill as Prime Minister and was quickly seconded by, William Duma (Hagen), followed by Mr O’Neill’s ensuing acceptance.
On Mr O’Neill’s barely resuming his seat, Sam Basil (Bulolo), quickly moved for nominations to be closed and promptly seconded by, John Boito (Obura-Wonenara).
This completely shut out any attempts by the Government to prevent the election, resulting in the head count vote taken by Parliamentary staff.
On announcing the 70-24 victory by Mr Nape, the clapping victorious MPs were supported by visitors and onlookers right around the public gallery.
Parliament was adjourned until the ringing of the bells to allow Mr O’Neill’s swearing by the Governor-General.
It later resumed just before 5pm for his maiden speech and congratulatory ones from other MPs.
Only Sir Arnold Amet (Madang) and James Marape (Komo-Magarima) were present in the chamber on resumption and following a switch in sitting arrangements with the Opposition MPs now occupying all Government benches.
Parliament was later adjourned to August 9 at 2pm.

Reposted from Papua New Guinea Post Courier
JONATHAN TANNOS
Wednesday August 03, 2011

Vehicle population rises by 24,000

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*Toyota leads new registrations
The number of privately-owned and government vehicles rose by more than 24,000 in 2009 to 280,600, with Japanese giant, Toyota emerging the vehicle brand of choice among first-time registrations, it has been learnt.

According to a Transport Communications Unit’s estimates released this week, the number of passenger cars rose by 14,551, contributing the most to the overall increase in the vehicle population. Passenger cars continued their dominance in vehicle categories, accounting for nearly half of all vehicles on Botswana’s roads, followed in popularity by light duty vehicles.

The Report also indicates that 33,325 privately owned first registrations were recorded at various licensing centres countrywide in 2009, suggesting robust purchases of vehicles by Botswana . Together with the 33,413 first registrations recorded the previous year, the number of new vehicles in 2009 ranks among the highest of the decade. But Transport Unit officials were quick to explain the apparent anomaly between high first registrations of private vehicles in 2009 and the comparatively lower rise in the national vehicle population.

“The national vehicle population is calculated looking at both renewals and first registrations, while first registrations are for only the period under review. Therefore, while there were 33,000 or so first registrations of private vehicles, other vehicles in the national population were not renewed during the period for various reasons, including accidents,” explained an official. “As a result, some vehicles drop out of the national population and others join in as shown by the first registrations.”

The report also shows that Toyota was most popular with the new vehicle owners, accounting in 2009 for 40.1 percent of the 33,325 first registrations, followed by Nissan, Volkswagen and Mazda in that order. Mitsubishi and Ford anchor the top six most popular vehicle types.

“Toyota’s popularity is historical, from boasting the first dealerships and service centres, to the aggressive yesteryear marketing of their various brands. Today, besides the locally manufactured Toyotas, this brand’s popularity is anchored by the Asian imports which are overwhelmingly skewed in its favour,” said Tawanda Nyika, a sales agent with a local car dealership.

Other statistics indicate that while the number of private vehicles on the roads increased by 10.2 percent to 270,000 between 2008 and 2009, the government fleet declined by 981 vehicles to 9,779 over the same period. In the government fleet, data suggests the sharpest declines were witnessed in the number of light duty vehicles, which dropped by 1,195 to 4,595 between 2008 and 2009. The number of government trucks fell by 221, while buses also realised reductions.

The Transport Unit advised that reductions in the size of the government fleet could be related to increases in private-owned vehicles, as the former are sold off to members of the public at regular auctions.

“These include below carrying value, accident-damaged and other similarly affected vehicles, where it is in the public interest to auction off the vehicle,” the official said.

Reposted from Mmegi Online
MBONGENI MGUNI
Friday July 29, 2011

Japanese Vehicles and Fluctuating Market Prices

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Most of you have probably noticed the rise in import car prices recently. Some days the prices are up, and some days they are down. It’s quite confusing and can be costly if your timing is off. This month’s article is to explain some reasons that cause fluctuating prices.
Firstly, the exchange rate is a factor in most cases. Recently, as a result of the earthquake and tsunami, we saw speculators push the yen/dollar rate down from around 83 yen to 78 yen. Then we saw it bounce back up to 85 yen briefly before it settled around the 82 yen mark. Today it is at 80.7 yen. These exchange rate fluctuations can change a price from as little as US$100 up to US$1,000 depending on the value of the vehicle. A cheap vehicle for US$2,000 may increase or decrease by US$100 whilst a more expensive vehicle of value US$10,000 may increase or decrease by US$1,000. The more expensive the vehicle, the more varied the fluctuation can be.
Certain events in Japan can also push up the price of vehicles, or push down the price of vehicles too. Take for example the recent Golden Week holidays in Japan. All the auction houses have been closed for the week. This usually means the value of the vehicles sold in the first week or two after the holidays will be expensive, since many dealers and exporters need to replenish their stock. The demand is stronger and so the market value goes up. Couple this increase in the market value with the weaker yen and the selling price will increase even further.
On any given day, prices can be cheaper or expensive depending on the number of bidders at the auctions, and the interest in certain models. Sometimes a rainy day causes prices to be cheaper because many buyers stay home. Sometimes news of other country regulation changes get spread around and forces prices up or down.
On top of this, freight rates can fluctuate as well, although not as often as market values of vehicles. New car manufacturers have slowed production down as a result of disruption to parts supplies for new vehicles due to the recent earthquake. Shipping companies are reviewing their shipping schedules whilst new car volumes are down, which may force them to reduce the frequency of shipment. If the vessels are sailing with less vehicles, then the shipping companies may offer cheaper freight rates to exporters to entice them to ship more vehicles on their vessels. On the other hand, if the frequency of shipment is cut dramatically, it may cause a shortage of space on vessels and could force an increase in freight rates.
Finally, the same model vehicles with the same year and colour can vary in price as well. The condition of the vehicles, their mileage, and the accessories included, can determine whether we pay more or less for a vehicle. It’s easy to say one exporter is selling the same model vehicle a lot cheaper than other exporters, but check the auction grade condition and the mileage, check the colour and the accessories, then you can realize why the difference in prices. Genuinely good condition vehicles with genuine low mileage will always cost more to purchase.
The choice is yours, whether you want a genuine vehicle with all the accessories, or whether a basic vehicle will do to suit your budget. Just beware that a cheap vehicle could end up costing you more than a genuine vehicle if the condition is not good.
My advice to all interested buyers, compare prices and reputation. Watch the market carefully and you’ll not only learn more, but may be lucky enough to get a great bargain.

James Hanna
Nichibocars.com
Nagoya, Japan

Original Shipping Documentation (Part 2)

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This is a follow up to http://blog.nichibocars.com/2011/01/original-shipping-documentation/

Shipping documents are required for all used vehicles being imported from Japan. These documents are very important and will ensure a smooth import procedure if all documents are in order.

The shipping documents must include the CUSTOMS INVOICE, BILL OF LADING, and JEVIC CERTIFICATE. Other documents which may accompany the shipping documents but not necessary are the PACKING LIST, MARINE INSURANCE CERTIFICATE, and EXPORT CERTIFICATE. The customs invoice and Bill of Lading are required for clearing an imported vehicle from the port in Dar-Es-Salaam, Tanzania or Durban, South Africa. The packing list is only necessary if you are receiving a number of vehicles inside a container. The marine insurance certificate is only required if a claim is necessary, and the JEVIC certificate is required at the time of registration in Zambia. The export certificate is an option and is not required by any department of the Government of Zambia at this stage.

All documents should clearly indicate the make and model of the vehicle, the year of manufacture/registration, and the full chassis number. Other information may appear as an option for ease of identifying at the port for clearance purposes. Original documents must be presented, copies are not acceptable. The original documents are the equivalent of cash and should be handled in the correct manner. I have been exporting vehicles from Japan for more than 13 years and have established a credible system for the dispatch and handling of original shipping documents as follows:

Firstly, all original shipping documents are available usually within 3 business days after the vessel departs from Japan. The exporting company can send you copies of these documents by e-mail within the week after the vessel sails. The original documents however, should go straight to your clearing agent in Dar-Es-Salaam or in Durban. If you don’t know of any clearing agents, then ask the exporter to recommend 2 or 3 to choose from yourself. You can contact each clearing agent to compare their pricing and determine how professional they handle your inquiry. Once you nominate your clearing agent, you should advise the exporting company to dispatch the original shipping documents by courier to the agent chosen. Be sure to include the full name of the agent, the full address, phone/fax, and mobile number, e-mail address, and contact name at the clearing agent. The quicker you confirm the choice of clearing agents, the more likely the original documents will arrive well before the vessel arrives. It is ideal for the clearing agent to receive the original documents at least one week before the vessel arrives. The exporters have contracts with different courier companies and so asking them to send by DHL or FEDEX in some cases is a waste of time. The exporters will always use their own contracted courier company.

Asking for documents to be sent direct to your own address is a recipe for disaster. I’ve seen many documents arrive late because of the slow system of sending courier documents to inland African countries. Huge storage costs and sometimes theft of parts occurred by the time the buyer sent the documents back to their agent. Most courier companies will send the package via Dar-Es-Salaam or Durban anyway, so it doesn’t make sense for the documents to be sent to Zambia from Dar-Es-Salaam when they are just going back there. You also have to pay for the courier cost of from Zambia to Dar-Es-Salaam, so there seems to be a very unnecessary waste of costs and time.

Also, I’ve seen in many cases where fellow work colleagues have signed for the courier package in Zambia, opened the envelope, then throw the documents away since they didn’t understand what the documents were for. Or they kept the documents in their in-tray. In some cases, the buyers of the vehicles received the documents but hung on to them because they have never seen shipping documents before and didn’t realize what they received. I know of cases where the buyers sent the shipping documents from Zambia to their clearing agent by post or courier only to have the documents become lost in transit. I know of some cases where the clients turn up to Dar-Es-Salaam port or Durban port on the same day of arrival of the vessel with the original documents in hand expecting to receive their vehicle immediately.

The fact is, it takes a few days for the clearance process at the port, and ideally, the clearing agent would like to have the documents at least one week before the vessel arrives in case there are some delays or mistakes to cover. If you have never imported a vehicle before, then take the advice of the exporters and clearing agents who have years of experience. Don’t insist on your own way because you believe that is how it should be done. If you don’t have importing experience then don’t guess what should be. The copies of the shipping documents are sufficient for you until the vehicle is handed over to you or your driver. You don’t need the original documents until after the vehicle has been cleared, so please don’t insist on receiving them in Zambia before your clearing agent does. You’ll save a lot of heartache, storage costs, and possible parts theft.

James Hanna
Nichibocars,
Nagoya, Japan

Japan Earthquake & Tsunami Effect On Used Cars

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Many of you have asked if the recent earthquake and tsunami in Japan has affected or will affect the supply and prices of used cars in the auctions. Most of us saw many vehicles being washed away by the tsunami or buried under rubble in the earthquake areas.

These vehicles affected in the recent devastation will most likely be scrapped, or sold for parts wherever possible. It won’t be in the interest of the insurance companies to inspect each and every damaged vehicle in the region. They will most likely pay out on all the insurance claims without negotation.

It is difficult to say if these damaged vehicles will make their way to the auction houses in Japan, however it will be easy to spot these vehicles if they do try to pass them off as ordinary vehicles. Firstly, the insurance companies would be taking a big risk doing quick repair jobs on these vehicles for re-sale in the auctions. The experts will know immediately and walk away from the vehicles without bidding. Flooded vehicles leave sediments that are easily detected, and the expert buyers can easily detect where a vehicle has been repaired. Therefore any costs spent on repairs will only add to the insurance companies’ losses. So we are not expecting insurance companies to flood the auction houses with such vehicles. The best solution for the insurance companies will be to sell the vehicles for scrap or parts. Besides, if any exporter tries to sell one of these vehicles then it surely will be stopped by JEVIC Inspection before shipment.

The loss of so many vehicles would normally have an effect in most markets, however there are over 70 million vehicles registered on the roads in Japan, so it is not expected that much of an effect will occur. In fact, the end of the Japanese financial year is March and this is the time of the year when many of the auctions are flooded with used vehicles from company fleets. The prices are usually a little cheaper as a result and we are seeing this effect in the last week or 10 days already. We can expect good market prices for the next few weeks until the volume of vehicles drop back to normal levels.

If there is to be an effect on the sale of used vehicles in Japan as a result of the recent earthquake and tsunami, then we most likely won’t see it for at least another 12 months away. The demand for good quality used cars by the victims of the devastated area will be a long while by the time compensation payouts are received from the insurance companies. Roads, houses, and towns will take some time to be restored by the Japanese government due to the magnitude of the disaster, so transportation will not be on the minds of the people from up in the north region in the very near future.

It is our guess that there will probably be no influence on the vehicle prices at all, and there will definitely be no shortage of availability of used vehicles in Japan. It would be easy for us to create panic buying for our own profit, but that is not what it is all about. Our business must continue on in normal fashion, but we are also keeping the people up north in our thoughts and prayers. No-one wants to take advantage of such a situation.

James Hanna
Nichibocars.com,
Nagoya, Japan