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Uganda to enforce mandatory pre-export inspection of cars

Saturday April 12 2014
cars

Vehicle inspection. A new rule will see vehicles being inspected before they are shipped to Uganda. Photo/FILE

Uganda will no longer allow the importation of vehicles without an international certificate of roadworthiness once the pre-export verification regulation comes into force on June 1.

The new rule will require imports destined for or in transit through Uganda to be subjected to Pre-Export Verification of Conformity (PVoC) standards. The inspection also covers tests for radiation and chemical contamination on selected imports.

The regulation, initially resisted by the motor vehicle traders, was introduced in the wake of the Fukushima nuclear disaster of March 2011. The government has waived, up to May 31, a 15 per cent penalty it had imposed on Cost, Insurance and Freight (CIF) value of imports that are not inspected.

Beyond the deadline, all vehicles must be inspected in their countries of origin by recognised agencies that the Uganda National Bureau of Standards (UNBS) has contracted or face penalties.

At least 11,000 vehicles are imported into the country every month. Five thousand of these are in transit to countries like South Sudan and DR Congo.

A study by the Uganda Consumers Protection Association (UCPA) done between June and December 2013 revealed that out of the 768 vehicles involved in the study, 350 failed the inspection tests. Those that failed were referred for corrective measures but 38 still failed.

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“For vehicles that fail the inspection test, the importer shall be given 30 days to rectify the faults. Failure to do so will result in the vehicle being destroyed at the cost of the importer,” said Amelia Kyambadde, Minister for Trade, Industry and Co-operatives.

Kenya already requires all imported vehicles have PVoC. According to the Kenya Bureau of Standards (KeBS), which administers the programme, the intention is to minimise the risk of unsafe and substandard vehicles entering the market.

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The programme is a requirement under the World Trade Organisation (WTO) rules. KeBS has appointed Bureau Veritas, Intertek International and Société Générale de Surveillance (SGS), and China Certification and Inspection Group under the framework of bilateral co-operation for products originating from China. Tanzania has similar regulations.

Last month, the Uganda Used Vehicles Importers Association made last-minute attempts to stop the implementation of the PVoC in vain.

It claimed that it is costly because there are just a few service providers, which makes the business less competitive. They had also opposed the 15 per cent surcharge on CIF.

The UCPA has supported the government’s decision, saying car importers have for a long time brought substandard vehicles into the country.

The importers had preferred that the inspection be done in-country, as a measure to reduce the cost of doing business, which shifts the final high cost to the consumers.

The importers say that PVoC will cost about $300, which will be passed on to the consumers. But UCPA said it assessed authentic pre-import inspection reports which showed that inspection costs range between $125 and $220, depending on the country of origin.

Most importers bring cars from Japan, Singapore, United Kingdom, South Africa and United Arab Emirates.

UCPA argues that inspecting the vehicles from the country of origin is the cheapest option because there is assurance of capacities to fix the vehicles in case of any problem. Where the vehicles have been found to be completely unroadworthy, then it is more convenient to leave them in those countries.

Additional reporting by Steve Mbogo

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