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Airbag recall responsibilities for traders

If you are a potential supplier of affected vehicles subject to the compulsory recall, it is important that you are aware of the recall order requirements, and what it means for you and your business.

From 31 May 2018, no vehicle fitted a Takata alpha-type airbag inflator may be sold in trade without having been reworked, including trade-ins.

The current most up-to-date lists of vehicles subject to the recall are available on the Government’s RightCar website:

Vehicles under mandatory recall (Takata alpha-type inflator)
Vehicles still under wider (voluntary) recall (other types of Takata inflator)

Please note: the current wider voluntary recall on other types of Takata airbag inflators may be made compulsory in the future.

VIA is currently negotiating with the MIA and NZ’s new vehicle distributors, on behalf of NZ’s used vehicle industry as a whole, on how to execute the reworking of vehicles already in service, and what the terms of this will be.

In cases where a used imported vehicle has been on-sold one or more times, the importer (as recorded by NZTA) is currently identified under NZ law as the “manufacturer” immediately responsible for ensuring that all recall requirements for the vehicle are met.

VIA will be clarifying these terms in relation to consolidated freight services, which bring in vehicles on behalf of multiple individual importers.

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VIA releases latest update on Takata recall

A technician holds a recalled Takata airbag inflator.

From 31 May onwards, vehicles with alpha-type airbags that have not been reworked will be “prohibited imports” and subject to seizure by New Zealand Customs.

Importers are urged to complete due diligence when purchasing in Japan and other source markets, to ensure that all recalls have been closed out prior to de-registration.

The inspection agencies are now working on systems to identify vehicles subject to recall, and which have been reworked, before they are certified for export.

According to VIA, it is likely that NZTA will soon require the inspection agencies to enforce section 6.4 of the Land Transport Rule Vehicle Standards Compliance 2002 as now covering safety-related recalls.

The rule states, in part, that: “A vehicle may be certified … only if a vehicle inspector or inspecting organisation has identified the vehicle and has determined, on reasonable grounds, that it is safe to be operated … [taking into account] additional relevant information of which the inspector is aware …. about the vehicle issued by a manufacturer, modifier, repairer or other relevant person.”

Click here for the full text of section 6.4.

For any questions, please contact VIA Technical Manager Malcolm Yorston on 0800 VIA VIA (842 842) or email technical@via.org.nz.

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Heat treatment highly likely

Davin Vinsen, chief executive of VIA

The Ministry for Primary Industries (MPI) is likely to insist on heat treatment being used with the aim of not just killing brown marmorated stink bugs (BMSBS), but all insects.

The treatment already used on some vehicles arriving in New Zealand from Japan over the past month will probably be reintroduced when the stink-bug season starts again in September this year and could even become a mainstay of the MPI’s inspection / treatment process into the longer-term future.

David Vinsen, chief executive of VIA (the Imported Motor Vehicle Industry Association), told Autofile: “This biosecurity issue – even though costly and disruptive across all of the supply chain – has resulted in some positives. For example, there has been fantastic co-operation between the government, and its agencies, and the industry.”

“Due to our “just in time” supply chain this bio security incursion has significantly affected us and this is one time that having an efficient system has not helped us, and we’ll be further stretched this month with 30,000 units arriving in Auckland.”

Vinsen adds: “It’s highly likely the MPI will insist on heat treatment for future bug seasons at least, and there’s some potential for this to become permanent. What this means for the industry is that border costs will increase and fees are bound to rise for all imported vehicles.

“Biosecurity remains the number-one priority with research, treatments and inspections needing to be funded. On top of this, importers are now required to diligently check all recalls (including for Takata airbags). We expect that costs will increase for inspection companies in Japan and they will have no option but to pass those on.”

VIA, in an email alert to members, advises recent changes to shipping schedules have led to vessels discharging large numbers of used cars with this month’s aggregate of around 30,000 being the largest ever. 

Its urging all businesses to assist by making sure all documentation is in order, compliance centres are open, and receiving yards and transport companies are aware of shipments.

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Vehicle stock influx for April

VIA, the Imported Motor Vehicle Industry Association, have just announced an influx of imported vehicles are being discharged in Auckland. 

Recent changes to shipping schedules due to the stink bug outbreak have led to vessels discharging very large numbers of used cars.

The monthly total of cars into Auckland for April will be around 30,000, which will be the largest ever.

These cars will be urgently needed by importers, and wharf space in April will be considerably pressured.

Vehicles will need to be moved off the port seven days a week, Monday through Sunday, for demurrage to be avoided.

Demurrage is currently $60 per car per day. For most importers that means that compliance centres are going to have to work seven days a week, or large costs will be incurred.

VIA urge all businesses to assist by making sure that all documentation is in order, compliance centres are open, receiving yards and transport companies are aware of shipments, and that they all have everything they need.

Importers: Please ensure that your compliance shops understand the importance and urgency of this request.

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VIA announces additional rules

A technician holds a recalled Takata airbag inflator.

As advised last week, the Ministry of Consumer Affairs has announced a mandatory recall for at-risk (alpha type) Takata airbag inflators.

As well as recalling all affected vehicles currently in service, after a grace period of 40 business days (or eight weeks), no affected new or used vehicles will be able to enter into New Zealand if they have not been reworked.

As with the first phase for in-service vehicles, VIA is already working with the Government-accredited inspection agencies on the export side to develop processes for achieving this.

The inspection agencies are now working on systems to identify vehicles subject to recall, and which have been reworked, before they are approved for export.

Vehicles with alpha-type airbags that have not been reworked will be “prohibited imports” and subject to seizure by New Zealand Customs.

VIA will continue to communicate all developments to our members as they arise.

For any questions, please contact VIA Technical Manager Malcolm Yorston on 0800 VIA VIA (842 842) or email technical@via.org.nz.

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VIA working with the MIA on airbag recall

Minister of Consumer Affairs Kris Faafoi has now announced a mandatory recall for at-risk (alpha type) Takata airbag inflators.

VIA, the Imported Motor Vehicle Industry Association, is now working with the new vehicle distributors and their association, the MIA, to develop processes and protocols for managing this recall.

VIA will meet with the MIA and new vehicle distributors on Wednesday 11 April, to agree the process and terms for managing replacement of recalled airbags in used imports. 

Both groups will then convene with MBIE’s working group on Thursday 12 April, so that the proposed measures can be approved by the Government.

According to current data, there are 68,116 imported used vehicles with the alpha type inflator in New Zealand. While 22,494 vehicles have had the inflator replaced, another 45,622 are still to be completed.

VIA will continue to communicate all developments to our members as they arise.

For any questions, please contact VIA Technical Manager Malcolm Yorston on 0800 VIA VIA (842 842) or email technical@via.org.nz.

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VIA supports Govt’s airbag recall

David Vinsen, chief executive of VIA, the Imported Motor Vehicle Industry Association.

VIA, the Imported Motor Vehicle Industry Association, has voiced its support for the mandatory recall of at-risk Takata airbags announced by the Government today.

“We welcome clear direction from the Government on this issue,” said VIA Chief Executive David Vinsen. “For some months, we have been working with the MIA and new vehicle distributors to deal with the challenge of replacing airbags in vehicles already in New Zealand’s fleet. Today’s action will support the deployment of measures to bring vehicles in service up to the required safety standards.”

Worldwide, the Takata airbag recall is unprecedented in scale; it is a large and complex logistical issue affecting new and used vehicles with two different types of Takata airbags. The alpha type airbag inflator fitted to vehicles between 2001 and 2006 is more at risk of failure if activated than other types of Takata airbag inflators.

There are around 11,280 New Zealand-new vehicles with the alpha type inflator, of which 6,485 have had the inflator replaced with 4,795 remaining to be completed. However, there are now 68,116 imported used vehicles with the alpha type inflator and while 22,494 vehicles had had the inflator replaced, there remains another 45,622 to be completed.

In New Zealand, as in other markets, progress on the recall has been hampered by a lack of replacement airbags.

Completion of the recall will require the cooperation of government and industry to undertake over some months, and VIA will continue to collaborate with our membership, the wider industry and the relevant Government agencies to effect a resolution.

“Once again, VIA endorses this position, and as always we will support our membership in adhering to their compliance obligations,” said David Vinsen.

“We thank the MIA and New Zealand’s new vehicle distributors for their assistance in dealing with the recall so far, and will continue working with them to ensure all vehicles in the New Zealand market meet the appropriate safety criteria.”

For further enquiries, please contact VIA Chief Executive David Vinsen on 0800 VIA VIA (0800 842 842) or email vinsen@via.org.nz.

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Easter trading hours

VIA (the Imported Motor Vehicle Industry Association) has issued a reminder that the weekend of 30 March–2 April 2018 inclusive is Easter weekend.

By law, you are not permitted to trade on Good Friday (Friday 30 March) or Easter Sunday (Sunday 1 April).

You may trade on Saturday 31 March as a normal day.

You may also trade on Monday 2 April, but any staff you have working on that day must be paid at time and a half, and also receive one day’s leave in lieu of the day worked.

For any questions, please contact VIA Technical Manager Malcolm Yorston on 0800 VIA VIA (842 842) or email technical@via.org.nz.

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VIA issues security warning

The Imported Motor Vehicle Industry Association (VIA) have received reports of recent burglaries, targeting testing stations, compliance shops and dealerships.

They are advising all members around the country to review security measures, and take appropriate steps to make sure premises and belongings are secure.

If you have any questions, please call our VIA Technical Manager Malcolm Yorston on 0800 VIA VIA (842 842) or email technical@via.org.nz.

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Technical team formed to help in BMSB fight

A technical working group has been formed in light of the current biosecurity risk posed by stink bugs that were found on several roro car carriers arriving in New Zealand.  

The working group consists of a strong team of both Japanese and New Zealand based individuals, who all have the ability to provide, facilitate and coordinate the necessary industry support.

David Vinsen, chief executive of the Imported Motor Vehicle Industry Association (VIA), told Autofile: “From a long-term perspective, we have decided to put together a small technical working group consisting of people with biosecurity expertise, both New Zealand and Japan based.

“It will be an industry led and industry funded group, working under the Ministry for Primary Industries (MPI) on developing and testing the intricacy of various treatment procedures.

“We are seeing levels of cooperation across all industry sectors relating to this and including from others like, Kiwifruit Vine Health, in terms of disseminating information.

“As an example of this cooperation we are having regular conference calls to make sure everyone is updated as to what the current situation is.

“It is a really good spread of people – they will be pulling in outside experts as required to do the research, directed by MPI.”

The team

Kevin ‘Hank’ Nalder from Autoterminal will lead the team.

Nigel Ironside from Ports of Auckland (POAL), Ironside is POAL’s Environment and Biosecurity Manager.

Aaron Treadaway is from JEVIC, Treadaway is based in Japan.

Jacob Bates from Automotive Technologies, is also based in Japan.

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MPI issues guidelines for treating cargo

The Ministry for Primary Industries (MPI) has issued new recommendations to guide the industry in managing the biosecurity risks associated with vehicles and machinery imported from Japan.
These recommendations are provided to reduce the risk of the presence of Brown Marmorated Stink Bugs (BMSB) and Yellow Spotted Stink Bugs (YSSB) on this pathway for the remainder of the “stink bug risk season.”
 

Click here to read MPI’s biosecurity guidelines for importers.

Please note: MPI considers these recommendations to be the minimum mitigation measures needed, to increase the prospect of incoming vehicles and machinery achieving compliance.

MPI encourages all operators to apply any further measures that they deem appropriate or useful in preventing the presence of pests. 

 
These recommendations may change if new information comes to hand.
 
If you find any evidence of insect infestation, phone the 24/7 MPI Exotic Pest and Disease Hotline on 0800 80 99 66 and report it immediately.
 
More info is available on the MPI website.
 
For any questions, please contact VIA Technical Manager Malcolm Yorston on 0800 VIA VIA (842 842) or email technical@via.org.nz.
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