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Billions lost to ghost Japanese car dealers

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Dar es Salaam. Several Tanzanians have collectively been cheated out of over half a billion shillings by Japanese companies that lure customers with prospects of owning posh, unbelievably cheap vehicles.

They are victims of transactions under which they place orders and commit their money for vehicles whose photo impressions they select on line, but which are never delivered.

Consequently, sweet dreams have turned into ‘financial funerals’ for local families most of whose lost money represented long-time, painstaking savings – while the crooks in the Pacific Ocean island nation laugh all the way to the bank.

The crooks are negative beneficiaries of the availability and relatively cheap prices of secondhand vehicles in poor, developing countries, including Tanzania.

An attendant factor is the spread of Information Technology, one of whose features is on-line trading, which crooks can, and are applying to con gullible, trusting potential customers.

The Citizen on Sunday has established that Tanzanians have lost an estimated Sh600 million to fake Japan motor vehicle dealers whose advertisements for relatively low-cost purchases for posh cars are most tempting, and virtually irresistible.

Deeply frustrated victims of the fraud have filed complaints to the ministry of foreign affairs and international cooperation, the International Police (Interpol) and Tanzania’s embassy in Japan.

They hope that their interventions would help to track down the culprits, and enable the victims to recover their money.

The foreign ministry’s senior Information Officer, Mr Assah Mwambene confirmed that they had received many such complaints.

“We are trying to see how to help but in the meantime we advise those wishing to buy cars online to first establish the existence and credibility of the companies before committing themselves to any financial transactions,” he said.

He said the ministry and its embassy in Japan would be ready to verify existence of such online companies. “For some of the cases it is now very difficult to trace the dealer companies as they no longer exist,” he explained.

Inquiries reveal that similar cases of online fraud have been reported in neighbouring Kenya and Uganda.

And because the theft was tarnishing the image of genuine Japanese dealers, one popular online car dealer, TradeCarview, has raised the red flag.

The company has issued on its website, a number of blacklisted companies it says should not use its platform to access prospective clients.

It says the blacklisting was based on different factors such as the nature, severity, and the number of complaints received from its users whom it had guaranteed a safe and trustworthy trading environment.

TradeCarview says the same blacklisted firms have been flagged at the Tanzanian embassy in Japan.

“It is the responsibility of the buyer and seller to take necessary precautions. We do not take responsibility in the event of such an occurrence,” it warned in a statement.

According to the company, they have received such fraud cases from Tanzania, Burundi, Kenya, Malawi, New Zealand, Uganda, Zambia and Zimbabwe.

The released names of companies it says it has blacklisted include, Fuji Global, Sunada Auto Sales, Seven Seas Motors, Bas Japan and Exco.

Others are F.A.R Trading, Dream Stock Trade, Happy Autotrade and Superior, all of Japan.

However, TradeCarview says there could me more companies still on a mission of coning prospective buyers.
Efforts by The Citizen on Sunday to get a reaction from the Japanese embassy in Dar es Salaam didn’t succeed.

The agony of Mr Isaac Elly, who is based in Arusha, mirrors that of other victims. In 2010, he placed an order for a 1994 make Toyota Land Cruiser Prado worth $8400 (over Sh13m), but hasn’t received it to date.

Mr Elly said his deal was through a company called CAT, which had been hosted on TradeCarview’s website.

“A person introducing himself as an official at CAT has taken me in circles for the last two years despite promises to ship in the car after 10 days of receiving full payment,” he narrated sorrowfully in a telephone interview.

Numerous communication involving Mr Elly and CAT show the official at the other end of Japan introducing himself variously as Maeda, Akihiko and Masa.

In an excerpt dated September 5 2011, Mr Masa writes to Mr Elly apologizing for the delay.

“We have been confirming about the documents to our shipping agent. According to the shipping agent, your car was carried on board by a wrong ship and, your car was shipped to the Caribbean. Therefore, our shipping agent receiving of the document seemed to be late. The shipping agent did a procedure to return your car to Japan. We experienced such situation for the first time.

We are very sorry for such a situation. We must apologize to you,” read part of the excerpt.

Mr Elly then sought assistance from Mr Patrick Makundi, the director of SimplyCar Trade, a local car agent and the two resorted to report the matter to Interpol and the Japanese embassy in Tanzania. Nothing much however has come out. “The two bodies have failed us in tracing the company,” said Mr Elly.

The victim has however not given up; he is determined to sue CAT once he manages to trace the whereabouts of the company.

According to Mr Makundi, the existence of TradeCarview has given a leeway to people masquerading as car sellers in Japan.

Mr Makundi, whose company acts as a link between online car buyers in the country and approved sellers in Japan confided to The Citizen on Sunday, that the existence of such crooked dealers is always short-lived in TradeCarview’s website.

He said that prospective buyers from Tanzania and other parts of the world would engage in business with such unscrupulous dealers, unaware of the origins and the existence of such dealers.

“Once they have managed to get money from such ignorant customers they disappear without trace,” he said.

“When it reaches that stage, it is tricky to trace the real locations of the ghost dealers as even their physical addresses no longer exists online,” he noted.

Mr Makundi also told The Citizen on Sunday that customers who have fallen prey to such dealers are those who have bumped into them.

“It is becoming a worrying trend and it could affect business ties between Tanzania and Japan,” he said.

Corroborating, an officer with Dar-es-Salaam- based Car Junction Limited, a customer bonded warehouse, who sought anonymity, said their firm discouraged doing online transactions.

“Car dealers are mushrooming nowadays, it is advisable to purchase vehicles from warehouses or showrooms,” she said.

Reposted from Billions lost to ghost Japanese car dealers – The Citizen
Edward Qorro The Citizen Reporter
Saturday, 18 February 2012 at 20:38

Beware of Unknown Exporters on the Net

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Every month now, the list of fraud cases concerning used Japanese vehicle purchases via the internet is growing. Despite the efforts of the local Government, Embassies, and warnings from genuine used car exporters, there is still a large number of innocent buyers out there for the taking by fraudsters.

Firstly, we genuine exporters, understand the desire to buy a cheap used vehicle from Japan. There are so many people who can’t wait till the have the right amount of money saved to get their first car. There are also those who see a business opportunity to buy a very cheap vehicle, which is displayed for half the price of other exporters, and sell for double the price to get rich quick. Whatever the reason, be it lack of patience or greed, we tend to miss the obvious signs that would otherwise make us very wary when buying a used Japanese vehicle, or any product for that matter, via the internet. This sudden urge to have a vehicle now before you can afford the genuine vehicles at genuine prices is creating an image of easy targets for the fraudsters. The more you fall for cheap, cheap vehicles, the more the image spreads to other countries where con-men find new ways to take your money. The solution is simple, if you can’t afford the genuine vehicles from genuine exporters, then don’t buy. Be patient, save more, and play it safe.

In the old days when volumes of import used Japanese vehicles from Japan were low, most buyers would ask several questions of the exporter to confirm if they were genuine or not. Many buyers would check with the local Embassy in Japan about the exporter before committing their hard-earned savings and taking the risk of buying a vehicle direct from Japan. The sad fact these days, is many of you don’t ask these questions anymore. Our judgements are clouded from the shadows of the Big Dollar Signs in front of our eyes. We beg you all, to take a deep breath, think about the risk, and check with your local embassy in Japan about the exporter you wish to buy a vehicle from. It only takes one day to get a reply and your vehicle should still be safe for purchase. If you already know a list of genuine exporters then stick with them.

It’s not like the old days when you could trust 95% of the exporters advertising on the net. These days, it’s so simple to set up a website with a false name, copy photos and details of cars from the auction websites, and advertise cheaply to make a lot of money. There are quite a few people in Japan desperate to make money, and like every other country around the world, Japan has its share of con-men too. You can’t trust every Japanese person just because there was an image of Trust amongst all Japanese people in the past. With the crippling economy here in Japan, this trust factor has whittled away. We are not as bad as most other countries, but we do have our share of bad people here and you need to keep your wits about you when you surf the internet for the “best vehicle at the cheapest price” available (no such thing actually since the owners of such vehicles know they can get premium price).

You need to understand that genuine vehicles have genuine prices. Just because you can’t afford a good quality used Japanese vehicle from the genuine exporters doesn’t mean you have to buy the cheapest vehicle from an exporter you never heard of. You need to display better control and patience. You buy your vehicle when you can afford it, not when someone says they can sell you one now to suit your budget. It’s a classic con-man’s trick, working on your greed and zealous desire to own a car now.

Beware of unknown exporters. If they haven’t advertised in your local newspaper, or your local Embassy doesn’t know them or recommend them, then stay away from buying vehicles from them. It’s your hard-earned money that you risk, and you need to make sure for certain. You’ll only be branded the fool who wasn’t wise enough to take the simple precautions of checking the exporter before committing your money.

We genuine exporters worked hard to gain the trust of our clients, so why let these con-men take your money so easily. Before you dash to the banks to lose your money, take a breath, sit back, and ask yourself what you know about this exporter. Would you send me $5,000 so I can send you $42 million dollars? Of course not. Most of us know about the Nigerian scams now, and we know the money is not there. It’s the same with used car fraudsters advertising prices that are about half the price or less than genuine used car exporters’ prices. It’s a scam regardless how cheap the value of the car is, the con-men make 100% profit of whatever money you send.

Finally, beware of cheap vehicles that don’t have gradings for condition. There are some companies selling accident-damaged vehicles and rust-corroded vehicles for very cheap prices. They make you sign a no-claim form at the time of purchase so that you can’t legally claim for a refund when you receive a vehicle that is broken down. Accident-damaged vehicles can be very dangerous and put you and your family’s life in danger. Are you willing to risk your life and your precious family’s life in danger? Is owning any vehicle, regardless of its safety, worth the risk of killing your family? These exporters are also setting up a scenario where your Government will put a ban on import Japanese used vehicles because your country is now becoming a dumping ground for non-roadworthy vehicles. You’ll be directly responsible for making it impossible for other countrymen to buy their good quality used vehicles from the internet in the future, you’ll be responsible for making your roads dangerous, you’ll be responsible for killing innocent people, all because you can’t wait to buy a genuine, good quality, used Japanese vehicle.

There were over 1,000 claims with the local Embassies in Japan last year. There were only 4 fraud companies caught last year. None of those con-men caught had any money saved to make a refund of stolen money.

This is what you face when you risk your money on the net, so you ought to take a breath, sit back, and consider who you are trusting your money with.

James Hanna
Nichibocars, Japan

Used Car Import Frauds for Zambians

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Used car import frauds are still on the rise and despite the many warnings, seminars, publications, etc., there are still many Zambians losing their money to website frauds. Too many people are desperate to get the best used vehicle at the cheapest price possible. They either end up not receiving any vehicle, or receiving a vehicle that is totally different from what they ordered, or a vehicle that is in such poor condition that it cost double what they pay for repairs or maintenance.

The Embassies, Japanese Police, and Interpol are doing their best to curb this rising problem, however most fraudsters tend to be satisfied with what they have and flee before getting caught. Remember, these scam work on your GREED. The fraudsters are not greedy and have no qualms about closing down one business and opening another later when it is safe for them to do so.

The major problem facing the authorities is that the addresses supplied are false and that makes it difficult to track these people down. In the past two years, I only know of three groups that have been arrested. The only problem is that the groups usually have spent all the money they received so there is no way to obtain a refund. We’ve checked quite a few places of some exporters that were listed on the notorious well-known website portal that claims it’s not their responsibility to compensate. Many of the addresses were falsified and don’t exist. Some addresses listed as sixth floor of a building that only has five floors, whilst other addresses listed building numbers that didn’t exist. We would look for a building with number 1-32-15 and only find 1-31-15 and 1-33-15, but the number in between hasn’t been built yet. Other addresses were just blatantly made up with a mix of phone numbers from Yokohama, address of Nagoya, and post code of Osaka.

What is incredible is how the local banks in Japan open up bank accounts for these fraudsters with supposed false addresses. By the time the banks find out the addresses are obsolete, the fraudsters have packed up, drain the bank accounts, and moved on to set up another business name and website.

It is a sad thought, but the ratio of fraudsters getting caught compared to escaping are going to always be slim. The onus is on you to be smart when buying your own vehicle from the internet. The best condition vehicle is never going to be sold for the cheapest price. Don’t expect it because it is not going to happen. No genuine exporter in their right mind will give away such good cars at cheap prices when they know they can get premium prices for the best cars.

Deal with well known exporters who offer genuine used vehicles. Forget about trying to get the cheapest car amongst your friends. If you value your money and your family’s lives, stick with the genuine exporters for a safe deal via the internet. If you’re not sure, ask your local Embassy in Tokyo.

James Hanna
Nichibocars, Japan

Kenya Embassy Issues Alert on Japan Used Car Fraudsters

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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

Beware : New Scam Importing Used Japanese Cars

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There is a new type of scam going on to deceive individuals into buying inferior quality used Japanese vehicles, some in dangerous conditions. Although their vehicles are very cheap, in many cases, the vehicles are usually sold as accident damaged vehicles. Whilst I can’t reveal the actual name of the website, I hope you can determine the site yourselves.

This particular website claims to have over 3,000 vehicles in stock. On careful examination, I found the majority of the vehicles have been downloaded from the auction websites and are not actual stock of that company. I’ve stated this next suggestion many times in previous articles: ask the exporter for more photos of the vehicle if they are only showing 2 or 3 photos of that vehicle. I placed an order for such a vehicle and asked 5 times for the extra photos but never received them. Also ask for the Export Certificate to be scanned and sent by fax. Again, I asked for this certificate several times but didn’t receive it before this company stopped communications.

This company stocks a few hundred vehicles under US$1,000 FOB (not including freight and insurance) which is quite a large number to sell for such a cheap value. On closer inspection, I found the vehicles are mostly accident damaged vehicles which have been cheaply repaired or not repaired at all. I noticed there is no grading of the vehicles displayed on their website. I asked why they don’t display the condition grades of each vehicle on their site, but they didn’t answer the question. Most genuine used car exporters will display the condition grades on their website. Grades 3.5 or grade 4 vehicles are usually in very good condition. Accident damaged vehicles are graded zero and most genuine exporters will avoid purchasing these vehicles out of safety concerns for their overseas clients. You need to ask yourself, are you prepared to risk your life and your family’s life driving in an accident damaged vehicle? How cheap do you value your family’s life?

I also wondered how a company selling this many vehicles under US$1,000 FOB can make a decent profit to survive in business. In reality, the profit made on these cheap vehicles is so small that it usually is not enough to cover other business expenses such as salaries, utilities, rent, etc. You may ask: so how does that concern you? Some of you may know of smaller exporters that you dealt with, receiving very cheap vehicles at first, then your final order may have resulted in loss of your money because that smaller company went bankrupt and took your money without shipping a vehicle. It happens this way because eventually these companies run out of money and become desperate enough to steal overseas clients’ money. You need to be cautious of this particular company’s practice of selling vehicles too cheap. They could be running their business at a loss which isn’t good business sense. Again, you have to ask yourself, are you prepared to risk your hard earned savings on a cheap vehicle that may not be roadworthy or even be delivered?

Finally, I requested an invoice from this company and they only showed one amount for the CIF value. There was no breakdown. It took several requests before they finally sent me the breakdown of the charges. I found that they charge US$350 for inspection fees where most other exporters usually charge around US$200. They also charged a very high freight rate compared to other exporters. I found the freight rates in some cases are US$500 more expensive than some genuine exporters’ websites. I also asked for a copy of their marine insurance policy to confirm if they actually do insure their vehicles for shipment. Again, there was no response to my several requests and communications stopped.

It appears this company’s sole objective in this business is to cheat customers in as many ways possible. I contacted the inspection company to confirm if this company actually sends its vehicles for inspections. To my surprise, the inspection company confirmed the vehicles are inspected, but many of them fail due to non-roadworthiness. This means they need to replace the vehicle as it can’t be shipped to you with a genuine roadworthy certificate. For the vehicles that were not passed and not shipped, this company re-sells them to other clients in countries where inspections are not required (e.g. Zimbabwe or Malawi). The alternative for the company is to supply another vehicle and submit it for another inspection (at their own cost). The problem is the vehicle of your choice is now gone and you have to settle for another vehicle that may not pass the inspection again. All these losses at the inspection facilities will surely weigh heavily onto this exporter eventually.

I have already received phone calls from the local Embassies about this exporter. The claims are starting to pile up from Zambians who felt they were cheated when the vehicle arrived (or didn’t even make it to Nakonde due to breakdown. The problem is, the exporter makes you sign a no-claim form before the sale is completed. That’s their defense against law suits and so the Embassies hands are tied as a result. I asked if I could reserve the right to claim should the vehicle I receive not be of roadworthy standard. This company avoided my question until finally they stopped communications. They realized I wasn’t going to let them cheat me. You too can ask them to exempt you from signing the claim form before you commit any money. If enough overseas clients ask for this exemption then perhaps this exporter will review the way they do business.

My whole philosophy on used car exports to Africa is based on supplying good quality used vehicles to improve road safety and your local economy, not just for making a profit. It’s got to be a two-way thing for this business. We need to help you to help ourselves.

So be careful, don’t be backward.

Used Car Import Ban Suspended in Zimbabwe

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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

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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

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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