ANNOUNCEMENT 12 May 2016

In May 2016, a US state government announced a general change in export conditions.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 12 May 2016 | Removal date: open ended
Still in force

Export-related non-tariff measure, nes

On May 12, 2016 the governor of Minnesota signed into law a bill (HF2954) that is intended to prevent automotive manufacturers from retaliating against dealers that violate their "grey market" policies (i.e., attempts to prevent dealers from selling cars to customers who subsequently export them). More specifically, the law provides as follows: "It is unlawful and an unfair practice for a manufacturer, distributor, or factory branch ... to charge back, withhold payment, deny vehicle allocation, or take any other adverse action against a dealer when a new vehicle sold by the dealer has been exported to a foreign country, unless the manufacturer, distributor, or factory branch can show that at the time of sale, the customer's information was listed on a known or suspected exporter list made available to the dealer, or the dealer knew or reasonably should have known of the purchaser's intention to export or resell the motor vehicle in violation of the manufacturer's export policy. There is a rebuttable presumption that the dealer did not know or should not have reasonably known that the vehicle would be exported or resold in violation of the manufacturer's export policy if the vehicle is titled and registered in any state of the United States."

AFFECTED SECTORS