UAE Restricts Salvage Car Imports

Posted By Dmitriy Shibarshin on March 19, 2017 at 8:37 PM

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The United Arab Emirates imports more salvage cars from the USA than any other country. It's a profitable business, with tens of thousands of cars being purchased from US salvage car auctions and sent to the port of Jebel Ali. They are imported for a number of reasons; either to be fixed up and resold locally, or to get re-exported to surrounding countries. Due to safety concerns however, the UAE government is imposing a ban on salvage vehicles for road use starting on May 1st.

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Salvage cars will no longer be allowed to be registered and insured in the UAE. But the government will leave the door open for re-exports of salvage vehicles through the UAE to surrounding countries. Business will also be allowed to import salvage cars for parts.

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After the new law goes into effect, the UAE will see a drop in the number of cars imported from the USA, Germany and Japan. We have previously seen a dramatic fall in volume when other nations forbid the import of salvage cars completely.

Topics: Middle East, Service Updates, United Arab Emirates




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