Within a month of de-registering a vehicle, owners must submit proof to the Land Transport Authority that it has been properly disposed of at authorised scrapyards or export processing zones, or that it has been sent overseas.
Current car export processes are being reviewed to ensure de-registered cars are scrapped or exported as declared, the Land Transport Authority (LTA) revealed, following its seizure in June of 120 de-registered cars that had not been dealt with as stated.
The LTA has consulted “selected agencies and industry partners” since early this year (2018) as part of this review, it said in response to media queries.
“Following positive feedback from the engagement, LTA has called for a request for information (RFI) to solicit ideas and suggestions from the rest of the industry on the authorised exporters scheme, and to understand any industry concerns,” the authority said.
It added that any changes to current processes will be announced after the RFI has concluded.
Chinese daily Lianhe Zaobao reported on Monday (Dec 17) that the LTA intends to appoint five “authorised exporters”to handle de-registered vehicles.
The 120 which were seized had either been kept beyond the permissible deadline for them to be disposed of, or had been declared as exported.
Within a month of de-registering a vehicle, owners must submit proof to the LTA that it has been properly disposed of at authorised scrapyards or export processing zones, or that it has been sent overseas.
Anyone found guilty of making a false declaration to the LTA on the disposal of a vehicle may be fined up to $5000 or jailed for up to 12 months, or both.
Those convicted of possessing, using or allowing a de-registered vehicle to be used beyond the permissible deadline face a maximum fine of $2000 or three months in jail, or both, for a first offence.
Motor industry players had previously told The Straits Times that errant dealers could be trying to avoid paying the monthly fee of around $200 to store the de-registered vehicles in export processing zones, where cars can be held for up to a year before they are sent overseas.
According to figures from the LTA, there were 102,788 vehicles de-registered in the first 11 months of this year.
