ANNOUNCEMENT 11 Aug 2015

In August 2015, a US state government announced a general change in export conditions.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 11 Aug 2015 | Removal date: open ended
Still in force

Export-related non-tariff measure, nes

On August 11, 2015 the governor of North Carolina signed into law a bill (H800) that makes numerous changes to the existing laws affecting the sale of automobiles. One provision in the bill is intended to discipline any efforts on the parts of automobile manufacturers to take action against dealerships that may permit the "grey market" exportation of cars purchased in the state.
More specifically, the law provides that, 'Notwithstanding the terms of any franchise or other agreement, or the terms of any program, policy, or procedure of any manufacturer, it shall be unlawful for any manufacturer to take or threaten to take any adverse action against a dealer located in this State, or to otherwise discriminate against any dealer located in this State when,' among other things, 'The dealer sold or leased a motor vehicle to a customer who either exported the vehicle to a foreign country or who resold the vehicle to a third party, unless:
1. The dealer reasonably should have known that the customer intended to export or resell the motor vehicle prior to the customer's purchase or lease of the vehicle from the dealer;
2. The vehicle sold or leased by the dealer was exported to a foreign country within 180 days after the date of sale or lease by the dealer; and
3. The affected manufacturer provided written notification to the affected motor vehicle dealer of the resale or export within 12 months from the date of sale or lease.'
 
The law further provides that, these provisions notwithstanding, 'a manufacturer may take adverse action against a dealer located in this State if the dealer sold or leased a motor vehicle to a customer who either exported the vehicle to a foreign country or who resold the vehicle to a third party and the dealer, prior to the customer's purchase or lease of the vehicle from the dealer, had actual knowledge that the customer intended to export or resell the motor vehicle.'

AFFECTED SECTORS