importing half cuts

[minglds]

i am thinking about importing halfcuts from Japan, searched on the net all day but only found some rules and legislations about importing whole cars. anyone knows where to find the rules and legislations about importing halfcuts? thanks!

[curtis265]

you'd probably need to enquire about engine swaps and what's legal and what's not... since it doesn't count as a car anyway

[MikeyG]

you cant import whole cars anymore i think... you got the cut them over there and ship them here

[curtis265]

lol bring in illegal cars.. bit by bit

[hisoka]

i am thinking about importing halfcuts from Japan, searched on the net all day but only found some rules and legislations about importing whole cars. anyone knows where to find the rules and legislations about importing halfcuts? thanks!

what are you after exactly and were are you located

[EK1.6LCIV]

just taxation more than anything you need be concerned with
heaps of info on here about it, its been covered alot in the past

[minglds]

what are you after exactly and were are you located

I am in wollongong and i am not sure what i am after yet, i plan to go to japan have a look first, but i have to know the ozy laws about importing halfcuts first.
do you know where i can find laws about that?
thanks!

[6thgear]

dont think there are any laws against importing half cuts dude, as they are essentially just "parts". there are only restrictions against importing whole cars due to compliance laws etc i think...

give just jap a call as they import quite a bit. they may give a little advice if asked nicely...let us know how you go

good luck!

[jdm_b16a]

The first thing you will find out when you arrive in Japan is that the Japanese are very reticent to deal with anyone they don't personally know or have been introduced to. All the local Australian importers have been in business for quite some time (especially the larger ones) and they have spent years developing a network of trusted contacts in Japan. Most limit their buying to specific areas and they are loath to disclose this information, especially to other importers and rarely to the general public.

They buy their stock and then take it to a holding yard, which they probably rent from a salvage (or scrap metal) yard.



For example, here's one scenario (its hypothetical but based on some experience). I travel to Japan at regular intervals, usually every six months. My yard is leased from a local salvage operator. I have a covered shed, a small hut for sleeping and eating, and a truck I use to go and pick up cars.



I bring the cars back to my yard, where I will inevitably cut it up - the better ones for half cuts but the majority stripped for parts. Very few are brought back as complete cars as this is more time consuming in paper work and I can probably get more for it by stripping it. After stripping all my new cars down I load them into a container and ship back here. You have to book your container on a boat, and this requires you to show all your paperwork for every car you have bought to prove it was deregistered, etc and that you bought it legitimately. You need a customs agent to do this in Japan. Its a complex process. If anything arrives here without paperwork you lose it at the dock.



In Japan you will have to fight for every car as you are competing with the big dollar US buyers and the Russians, Poms and Kiwis. The biggest group is the Russians and from what I've heard many Japanese dealers do not like dealing with them. If you look remotely Russian it is not unheard of to be chased out of a dealer's yard at gunpoint.

You can't unload your container until all the paperwork is done. It is usually Xrayed at the incoming port too for contraband and other items you may have decided to 'sneak' inside. Japanese beer is a popular item!

When you have unloaded your parts they all have to be checked by quarantine. This usually means that you spend a couple of days at your warehouse pressure washing everything including engines and half cuts. Only after quarantine has OKd everything can you then on-sell. You then have to store your parts which usually means a warehouse set up for the purpose (unless you want to litter your backyard with halfcuts!)



Also remember it snows in Japan in winter and is stinking hot in summer, making outside work almost impossible. So you have a limited time to find the cars, buy them, transport them back, dismantle them, and pack them into a container. For this you need at least two fork lifts, which you can buy off the locals.

Many of us Aussies think Japan is a never ending source of quality performance cars. This is not the case. When cars are deregistered most go for scrap as the salvage yards can get more for the steel than they can selling the cars to OS buyers. So you are not only competing with the Yanks, etc but also the local salvage operators.



Or perhaps you're thinking you only want to get one or two halfcuts? This probably wont happen. You just can't walk into a yard and say you are a customer and want to buy a halfcut. As I said earlier, the Japanese deal in bulk so unless you are buying a steady stream of cars all year long they won't do business with you.

It is also quite expensive to travel in Japan. Most major highways are tolled, some as high as $100. Public transport is excellent but can be expensive too. Food and accommodation are also expensive. And to deal with the Japanese especially out of the major centres (where most cars are bought) you will have to have a reasonable command of the Japanese language.

I know it looks glamorous and you probably think there's big money to be made, but this is very far from the truth. Its hard work, you have to have all the contacts both here and in Japan, plus facilities, equipment and premises, and then you have all the details of business, paperwork, red tape, etc. Or maybe you are thinking you'll get middlemen to do all the work in which case it becomes unviable. Costs can build up very quickly. The reason why car parts, halfcuts, etc are the price they are is because the local importers work on economies of scale. They usually get tipoffs from Japanese contacts to buy cars, or have someone buy for them, then they begin the process of bringing everything back here. You have to hire a large container, probably a 40ft for halfcuts so to make it viable you have to fill it. If you damage the container you have to pay for its repair - you also have to wash it down inside and clean it before returning it which usually means scrubbing with degreaser for a couple of hours. Most importers put large tarps on the floors to protect the surface from grease and oil. I've seen parts come out of a container (that may have sat on the dock in Japan, been on the boat, and then on the dock here for a few months, completely covered in fungus, mildew or whatever you call it. The humidity in the containers whilst in transit promotes the growth hence the need for Quarantine to inspect everything here.

Peter
[PS. All images are representative only to illustrate a point, they are not actual photos or events, I chose them because they match my own understanding and based on what people in the industry have told me]

[minglds]

Thanks a lot mate, great information, probably i should give up this idea.

[tseesinngwailo]

Awesome work Peter, I agree wholeheartedly with you (and know the exact company much of your hypothetical source is based on )
I have thought about bringing in a few halfs from Hong Kong, but seeing as theirs all come from Japan, I am not saving anything.
MINGLDS, you are better off just getting what you need here, unless you want to do this as a business, which needs heaps of research before proceeding.
If its a B16A or B18CR half you need, PM me, I can point you too a supply thats already here and with more coming in the next month or so.
Cheers
Chris

[jdm_b16a]

This is the scale of business you would be competing with. Sorry about the first photo but it really captures the size of some of these establishments ...









Now the Malaysians are moving into the JDM market too so the competition is even greater! Check out the Mun Lee site for a good idea of how a large importer is set up.

http://www.munleeauto.com/

Here's a couple of photos to whet your appetite (or scare you off, as the case may be!):







and that's just some of their Honda engines.

Peter