Used automobile import quotas fail to attract interest
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The auction of import quotas for used cars at low tariffs under a free trade deal has been canceled after it failed to attract interest.
Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a certain number of used cars can be imported annually, and the Ministry of Industry and Trade auctions the right to import them.
This year, the quota was for 72 vehicles, and the deadline for bidding was March 31, but no bids were received for them.
The auction was first held last year, and two importers won the quota for 66 cars.
According to a car dealership, enterprises are not interested in bidding since they have to comply with stringent import regulations.
“Car dealerships prefer buying cars that are manufactured locally since the procedures are a lot less complicated.”
The annual quota will increase to 150 by 2034. The ministry said the auction would continue to be held next year.
Questions & Answers
Q.Why was the auction for used car import quotas cancelled this year?
Why was the auction for used car import quotas cancelled this year?
The auction was cancelled because no bids were received for the import quotas. The deadline for bidding was March 31, but no companies expressed interest in importing the 72 vehicles available under the scheme.
Q.What is the main reason businesses are not interested in bidding for these quotas?
What is the main reason businesses are not interested in bidding for these quotas?
Car dealerships are reportedly not interested due to stringent import regulations associated with these quotas. They prefer sourcing locally manufactured cars because the procedures are significantly less complicated.
Q.How many vehicles could be imported under the quota last year, and were there any successful bids?
How many vehicles could be imported under the quota last year, and were there any successful bids?
Last year's quota allowed for 66 used vehicles to be imported under the scheme. The initial auction was successful, with two importers winning the right to import these cars.
Q.Will the import quota for used cars change in future years?
Will the import quota for used cars change in future years?
Yes, the annual import quota for used cars is set to increase. It will reach 150 vehicles by the year 2034, indicating a planned expansion of the scheme.
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