Financial Times

Process – involved in importing used vehicles from Japan

Most of the reconditioned cars on the roads come from Japan, according to Berty Widanagamage, Managing Director of Tokyo Express (Pvt) Limited and past president of the Vehicle Importers Association of Sri Lanka, who explains here the entire process of imports (see also Page 1 for related story):

Chances are it came from Japan.

Exporters purchase automobiles through auctions in Japan. Once a car is sold the auction house hands over an export certificate (also known as CR or cancellation certificate) to the exporter.

The exporter sends the importer a list of cars available for import with all the details pertaining to the vehicle (diesel or petrol, automatic or manual, color, price, etc) and an auction grade. The importer selects vehicles for purchase which are then shipped to Sri Lanka.

Before the vehicle is shipped to Sri Lanka, the exporter has to cancel its registration in Japan. The shipper has to register vehicles for export in the name of the company as a safeguard in Japan to prevent theft.

The bank is sent the bill of lading, export certificate and invoice through the shipper at which time the vehicle is released to customs for clearance upon payment by the importer. Once customs releases the vehicle, the importer will recondition the vehicle for sale.

In order to make the import process cost effective, Widanagamage and other importers are planning on submitting a proposal to the Ministry which enables the Japanese Automobile Appraisal Institute (JAAI) to inspect the authenticity of the original cancellation (CR) certificate as well as retain a duplicate copy.

The Vehicle Importers Association is planning to launch a website, enabling the JAAI to scan the duplicate copy onto it, making it accessible to the Customs Department in Sri Lanka, other appropriate authorities and purchasers.

The managing director added, "The Association wants to stop these malpractices. We persuaded the minister to postpone implementing the regulations. With this new proposal, we are going to pay Rs.10,000 instead of Rs.200,000 [import fees]."

(NG)

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