In general, the Australian Imported Motor Vehicle Industry Association (AIMVIA) welcomes the recommendations of the Productivity Commission’s report on the automotive manufacturing Industry.
If implemented by the government, the recommendations will provide increased competition in the market, and will offer greater choice to the motoring public.
In particular, the AIMVIA strongly endorses the recommendation that the Government should remove the $12,000 specific duty on imported second-hand vehicles from the Customs Tariff as soon as practicable.
The AIMVIA also supports the recommendation that the government should remove the five percent (5%) tariff on all imported passenger and light commercial vehicles as well as the luxury car tax.
The AIMVIA supports the proposal that the importation of used vehicles be limited to vehicles imported from countries that have vehicle design standards which are consistent with those recognised by Australia, and that the new regime should be preceded by a regulatory compliance framework that includes measures to provide appropriate levels of community safety, environmental performance, and consumer protection.
The AIMVIA appreciates the Productivity Commission’s recommendations to move cautiously with regard to the timing of the implementation of any new regime, but questions the need to delay this implementation to 2018, and to initially limit any relaxation of the current restriction to vehicles no older than 5 years.
AIMVIA supports the conclusions and recommendations of the Review Panel as presented in the Draft Report released on 22 September 2014, i.e. that parallel import restrictions are a form of tariffs, in that they are really only sheltering the multinational new car manufacturers from international competition. This results in an implicit tax on Australian consumers and businesses.