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Frequently Asked Questions Why have a Code of Practice? The National Motor Vehicle Theft Reduction Council
(NMVTRC) , governments, police, insurance companies and the motor
trades around Australia are concerned about a potential increase
in the trade in stolen vehicle parts since “Written-off Vehicle
Registers” and other initiatives are making it difficult for
thieves to rebirth whole vehicles. The NMVTRC estimates the trade
in stolen motor vehicles and illicit parts costs the community more than $300m per annum.
Why don’t all states and territories simply impose similar obligations by legislation? Some states and territories do require recyclers to comply with the record keeping requirements of motor car trader or second-hand dealer laws. However the NMVTRC does not consider a nationally consistent regulatory regime is achievable in the medium term. Many recyclers have also expressed concern about the lack of rigour with which existing laws are enforced. A major focus of the NMVTRC proposal is to deliver accredited recyclers with tangible benefits for participating. The NMVTRC expects insurance companies to support the Code by insisting that their approved repairers source any recycled parts used in crash repairs from participating recyclers.
How has the Code been developed? The proposed Code has been discussed directly with more than 200 parts recyclers in the industry. In addition, there has been extensive consultation with the Auto Parts Recyclers Association of Australia (APRAA) and most Motor Trades’ Associations (MTAs). Two separate mail-outs to about 1,400 (March 2003) and 1,900 (September 2003) related businesses sought comments on the proposal. The Code requirements and procedures have also involved extensive consultation with other stakeholders, such as police services and offices of fair trading around Australia, and major parts buyers. An Expert Reference Group (ERG) convened by the NMVTRC oversaw the development of the Code. The ERG comprised representatives of APRAA and the MTAs, an independent recycler, and representatives of police services, transport agencies, offices of fair-trading and insurance companies.
Is the Code compulsory? No. Participation in the Code will be voluntary.
What are the benefits for businesses? It is expected that buyers of parts, particularly large volume trade buyers will prefer to do business with participating businesses. The National Parts Code is in discussions with key trade buyers of used parts to develop opportunities for their involvement. In addition, extensive marketing and awareness raising
campaigns will target both trade and private buyers. By increasing consumer confidence, it is expected
that the overall size of the used auto parts market will grow. The National Parts Code and NMTRC will be seeking to enter into a Memorandum of Understanding with major insurers by the end of October 004 as a sign of their commitment to the Code.
Who is the National Parts Code? The National Parts Code is an independent not- for–profit organisation that has been established to manage the implementation and administration of the Code of Practice. The Committee of the NPC comprises:
The Code Director is Nick Koerbin who heads up the day to day operations, including accreditation management and marketing.
What influence will insurers have over the Code’s Administering Body? Insurers will not have any direct representation on the Administration Body. However, the NPC would be expected to consult regularly with all relevant stakeholders.
What are the advantages for customers? Customers can purchase confidently, knowing that a participating businesses:
How are customers protected? The Code’s procedures should reduce the chance
of a consumer inadvertently purchasing a stolen vehicle part. The invoice of a participating business would contain information to allow the recycler to trace the part to its original source. A participating business would also be required to report any suspicious parts or sellers of parts that they encounter. The National Parts Code would notify the police, office of fair-trading and any other appropriate authorities should information be received regarding stolen parts or those trading in them. Likewise, customers who have concerns about any parts recycler, or believe that a participating business is not meeting their obligations, would be able to relay their concerns to a Freecall hotline.
Which businesses are eligible? To participate in the Code a parts recycler must:
What are the main requirements? A participating business must:
Full details of these and other requirements are contained under the Code of Agreement. Click here to download a copy of the National Parts Code Agreement in PDF format (31k PDF).
What if a business already follows similar procedures? For many businesses, existing good business practice or existing government regulations may mean some of the Code’s requirements are already being met. The Code requirements do not involve a standardised form of record keeping, parts labelling etc. It is up to individual businesses to show that systems are in place that meet the Code’s over-arching requirements. The bottom line is that businesses would determine the best way to meet the Code’s requirements—if existing procedures or Government regulations already mean systems are in place that meet some of those requirements, they will not need to be changed. For instance, a business may already have a parts labelling system in place as part of an existing stock control system, or because they are required to by the government (eg. in South Australia or New South Wales). So long as you can demonstrate that the parts marking system is comprehensive, and allows each part to be traced back to its source vehicle and/or the person you obtained the part from, then no additional system is necessary. Similarly, if you already have in place a system for checking and recording the clear title of vehicles you acquire for parts, you may already meet those PartSafe requirements.
How will compliance with the Code be monitored? Participating businesses will be audited at random for compliance with the Code. Failure to allow a National Parts Code employee or contactor to audit compliance may result in expulsion of the business from the Code. In addition, a telephone hotline will soon be available for the reporting of potential breaches of the Code. Complaints may be received from customers, other parts recyclers, industry associations, police, government authorities, etc.
What is the Cost? The NMVTRC is funding the Code’s operations for the first 12 months. Subscriptions costs post January 2006 are yet to be decided.
What are the penalties for a breach of the Code? Businesses that do not adhere to the Code risk loss of membership and hence face the loss of turnover from those customers who wish to deal with participating businesses. One-off, accidental or minor breaches will be dealt with by a warning to immediately remedy the problem. Should follow up audits indicate that the breach has not been remedied, the business may be expelled from the Code. Legal action may be taken against businesses that continue to claim they are a participating business.
What rights do participating business have? Businesses that appear to have breached the Code’s requirements will have the opportunity to provide all relevant information to the Code Director. Any Termination Notice may be appealed to the Code’s
Appeal Committee. Its decision would be final. What is the legal basis for the Code? To participate in the Code, a business would enter into a legal agreement (the Accreditation Agreement). Businesses would agree to implement and abide by the Code’s procedures, and declare that the eligibility requirements are met. The business would agree to the disciplinary and appeal procedures. The disciplinary and appeal arrangements for breaches of the Code are not legal proceedings and hence are not subject to rules that might apply in courts (such as rules of evidence). The Code Director and the Appeals Committee will be guided by the need to balance natural justice with the need for rigorous enforcement of the Code requirements to ensure its continued effectiveness.
What vehicle parts are covered by the Code? The Code will apply to the following prescribed components from vehicles less than 10 years old:
But I dismantle cars that are more than 10 years ? While the focus is on prescribed parts under 10 years-it should not detract from all recyclers and in many ways the recyclers will benefit through the marketing and publicity.
What about the “backyarders”? A voluntary industry Code of Practice by definition
only applies to businesses that sign up. The introduction of the Code could further highlight and marginalise the “backyarders”. The implementation of the Code would provide a great opportunity for the industry and government authorities to work together to develop a package of complementary measures to clamp down on illegitimate dealers in auto parts.
How does the Trade Practices Act (TPA) affect the Code? The impact of the Trade Practices Act (TPA) has been examined with the Australian Competition and Consumer Commission (ACCC) and reviewed by independent expert lawyers. The Code could not be successfully challenged under the TPA provided that:
How does the Privacy Act affect the Code’s operations? The Commonwealth Privacy Act 1988 (PA) has applied to small businesses since December 2002. There are no impediments to the disclosure of information by participating businesses to the NPC provided that the recycling business includes an appropriate clause in its Privacy Policy and sellers are expressly informed of this potential when making a transaction. To assist participating businesses the NPC will develop a model privacy statement and pamphlet that indicates the circumstances under which personal information may be provided to third parties. Of course the privacy principles do not affect the collection or use of information about corporations with which participating businesses may deal.
How do I join the Code of Practice ? Click
here to visit the "How To Join" page with
a step by step explanation of the joining procedure. Where can I get more information? We will post regular updates on progress on this web site. Alternatively you can write to us via:
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