QCOSTARICA – Sales of used cars could be affected, if a proposed decree that restricts the import of vehicles over six years old, to reduce the impact on the environment, is approved.
However, the Cámara Costarricense Automotriz (Costa Rican Automotive Chamber) takes the position that the age of the imported vehicle should not matter as long as they comply with the environment regulations established by the Riteve, the vehicular inspection service. Representatives of the Camara are expected to meet with the Minister of the Environment, Edgar Guttierez.
Another objective of the decree is close the loophole in the auto import industry, a loophole that allows the importation of vehicles totalled or in poor condition in countries like the United States, into Costa Rica and put into circulation.
Earlier this month the Asociación de Importadores de Vehículos y Maquinaria (Aivema) – asosciation of importers of vehicles and machinery – denounced that in the past year more than 2,000 vehicles “totalled” in their country of origin, mainly the U.S., entered the country and the Dirección General de Aduanas (Customs) is failing in its controls.
Rafael Bonilla, director of Aduanas, told La Nacion that the task of monitoring the quality of products imported is not their task, because Customs officials are not experts in things like food, agriculture and cars. Bonilla suggests that the Road Safety Council (Cosevi) of the Minsiterio de Obras Publicas y Transportes (MOPT) should be responsible.
The government has not released the details of the decree.
Currently there are some 1,000 importers of used vehicles, generating an estimated 10,000 jobs, that could be affected if the rules of import change drastically.
In addition, the importation of used cars has suffered a downturn in recent years, with only 18,000 vehicles entering the country in 2014, representing one third of all vehicle importes, down from 65% in previous years.
A decade ago, more used that new cars were sold in the country.
Source:
- La Republica – Decreto restringiría importación de carros usados
- La Nacion – Vacío legal reduce control de importación de autos usados
Let’s do the math. If the importation of 18,000 used cars (some of them totalled) employs 10,000 people, on the average each employee is making a living off of selling 1.8 cars a year. Really? A person can earn a living in Costa Rica selling fewer than 2 old cars a year? Gosh, I want this job.
Realistically, it sounds to me that as long as the cars comply with the environmental regulations the age of the car shouldn’t matter, so I’m tentatively on the industry’s side. However, I really hate it when industries grossly inflate the number of jobs they create as part of their PR campaigns. Plus, restricting imports to newer cars wouldn’t necessarily put anyone out of work, it would just give them newer used cars to sell.
This mantra that all government regulation automatically destroys the economy and eliminates jobs has to stop. I mean, a couple days ago we had the Chamber of Commerce whining about Burger King. Now we have the guys who have been selling the flood-damaged cars from Hurricane Katrina whining.