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Regulation of Used Vehicle Imports to the UAE


News provided by

Copart Middle East

04 Jul, 2016, 05:37 GMT

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Copart Logo (PRNewsFoto/Copart)

DUBAI, UAE, July 4, 2016 /PRNewswire/ --

Copart, Inc. (NASDAQ: CPRT) is a leading online re-marketer of vehicles, selling more than 2 million vehicles per year globally and with more than 180 facilities across the world. A large number of those vehicles are traded and shipped across the globe, with a significant number coming into the UAE, for local use or potentially for further export in the region or into Africa. Vehicle trading is a large and thriving industry in the UAE, making Dubai and Sharjah the hubs of used car trading for the region and beyond, contributing to the local economy enormously.

     (Logo: http://photos.prnewswire.com/prnh/20141126/718004 )

Vehicle trading has grown to a very large scale and is in need of further regulation, to ensure that the correct quality of vehicles are entering and staying in the UAE, ensuring best standards and removing the risks that come from consumers buying sub-standard vehicles unknowingly. Copart, in coordination with the Emirates Standardization and Metrology Authority (ESMA), would clarify that the new regulations for imported used cars will improve the safety and quality aspects of these products and will assure limited economic impact on traders.

To do so, ESMA has taken into consideration the interest and feedback of consumers, experts, used vehicle dealers and one of the world's largest vehicle auction companies for the re-marketing of vehicles, Copart.

While ESMA continues to establish clear standards that will regulate the import of used vehicles, Copart has received assurances that EMSA's intent is not to ban the import of all used or damaged vehicles. Instead, it has been communicated to Copart that ESMA's aims are to:

  • Ensure that only vehicles that are deemed safe/roadworthy can be registered in the UAE.
  • Not impact products imported for the purpose of re-export and that will not be registered in the UAE traffic system.
  • Classify vehicles into clear categories, to allow consumers to choose wisely from the available inventory that comes from overseas.
  • Offer a platform to local consumers, whereby they can check online to see if the vehicle can be registered in the UAE or not, prior to buying it.
  • Inform the public about the new regulations prior to implementation and provide a proper grace period for vehicles already in the country.

Copart wishes to reassure its own customers, that the purchasing of vehicles from abroad is still permitted and that at some point in the future, if they are for repair and registration/sale into the UAE, then they will need a clearance certificate first.

ESMA and Copart will continue to work diligently to support the UAE's thriving motor industry as well as to protect UAE consumers, whilst ensuring that businesses continue to flourish following the established new standards.

Copart Middle East Corporate Regional Office  

Carlos Sabugueiro
CEO - Middle East & Africa
carlos.sabugueiro@copart.com 
+971-(0)4-459-2700

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