Grey Imports Masquerading As Local Stock

I have been noticing a very disturbing trend lately that I need to speak out on. Please note I am referring to stock that requires or has an electrical input, and not products that run solely on battery.

There are some vendors who have been importing branded products and keeping it locally, and when they list these products, they call it local stock. In the past, and even to this day, people in the industry will still refer to these stock as grey imports - simply, if the product has not been originally shipped by the official Australian manufacturer, then its a grey import. Just because you have shipped a container of these units yourself, it is still not considered local stock.

What difference does it make? A very very huge one. Before I delve into the issues I find with this, I need to make one significant distinction - if you are importing for your own personal use, there are no legal requirements for you to comply with, however, if you are importing to re-sell, you have to meet all the regulatory requirements of an imported product.

If you are the importer of the product, you must ensure that product meets all regulatory approvals for Australia. This includes electrical safety, electromagnetic emissions etc. If the product has undergone testing for an equivalent international standards, then you are required to keep a copy of the each testing reports, and if there are any variations to the components list, you are required to also keep a copy of any amendments of components.

And here is the thing - some of those reports require a critical components list - parts of which are quite closely guarded secrets. I am fairly certain that a local grey importer of something like a Sony mobile phone will not have access to these reports from Sony, and I am almost 100% certain that Sony Australia would not provide these reports to them so that these grey importers can undermine the Australian market.

I have noticed in a few posts some of you ozbargainers question whether these products are grey imports, and some of the responses from the vendors are - "it is in our Queensland office, so it's local stock and it comes with our warranty". Whilst this is true, as they have not complied with import regulations, these products are therefore illegal to sell in Australia. I am fairly certain that if the Department of Fair Trading did an audit of these claims, these grey importers will face massive fines for not complying to import regulations.

So how does this affect you on a personal level? If for some unfortunate reason, your product causes fire damage (note the infamous Note 7 cases), your insurance claim may be invalidated if it is found that the cause of the damage has not passed Australian regulatory standards. If, on the slim chance these companies take out product liability, those insurance policies will be worthless because again, these products are illegal and so suing these companies will not get you anywhere either.

Where do we go from here? On a personal level, I feel compelled to report any vendors that claim they have local "grey stock". Of course companies based overseas are not included in this discussion, as you, the ozbargainer, are purchasing for your own personal use. If you notice when you purchase grey stock from Kogan, that you are not purchasing from Kogan Australia. It is also a "grey area" for Aussie companies acting as agents for overseas stock, so I am excluding those cases from this discussion as well.

This discussion is specifically about companies importing stock to keep in Australia, and then posting deals to Australian consumers. I believe this is illegal and should be discouraged from claiming it is local stock.

Comments

  • But… it's usually the "Grey Stock" sellers on eBay that give the best bargains ^_^

  • +7

    Clicked to read and was meet by wall of text.

    • :(

    • +6

      You can't read?

  • +1

    Is this a rant about your competitors?

    • +1

      They are Kogan's competitors, not mine. Sorry, I think ozbargainers know to compare apples with apples.

      • So you are ranting about yourself? You don't sell similar products (apples as you put it) that Kogan offers?

        • No sorry, I don't sell grey imports.

        • +1

          @sm007h: but you do sell similar electronics regardless of their origin?
          So you would say that you are competing for a share of the market involving electronics?
          Not too dissimilar to Amazon (Au or US) vs Ebay (local stock vs imports)?
          Not too dissimilar to Kogan vs JB Hifi?
          You do both sell Samsung T5, Bose QC35, Google home etc, regardless of origin?
          Or are you implying that the above competitors do not in anyway compete with each other for market share?

        • @Leidenia: Yeah ok, if you think people here are comparing Kogan grey imported products to a JB product and not take into account that its a grey imported product, then good on you. I am not derailing the main point of this discussion.

        • +1

          @sm007h: so it's a rant about your competitors? ok

        • +3

          @Leidenia: You've also made the same mistake. Just because it's on amazon, doesn't mean that it's not grey import. I have already seen people get fooled by the amazon Vs Marketplace (3rd party) sellers on amazon.

          While I don't like Kogan, and have never purchased from them, most of the time it's clear that it's Kogan warranty. I recently researched Bose headphones and found that some local retailers (Officeworks) were actually grey import which they didn't advertise it (maybe that's why they didn't mind price matching overseas competitors). It makes me wonder what else they sell that is like that.

          Yes they all compete, but if customers don't realise the origin (especially if retailers go out of thier way to hide it) then they are not making an informed decision and it may come back to bite them.

        • +2

          @dizzle: amazon was raised as an example for both grey and local stock. While you have a valid point, this topic has been raised not infrequently in both forum threads and deals. A level of scepticism applies when it is raised by a vendor themselves. Like Ajit Pai ranting about Elon's plan for satellite internet. "Oh no, now everyone gets to see me drinking out of my oversized Reese's cup with a fidget spinner."

  • +2

    Only grey I want is 50 shades of grey

  • The most dangerous kinds are the Chinese vendors who ship goods with foreign power packs from Australian warehouses, eg Banggood.

    They show both AU warehouse and CN warehouse options for buyers, and I know from experience that the goods are no different when it comes to the kinds of power adapters included from each warehouse.

    The problem is that the end user is then forced to deal with a foreign plug, usually via a crappy plug converter, which raises the risk of electrical issues and doubtful insurance coverage in the event of a fire.

    They have figured out a way to avoid Fairtrading scrutiny, as the warehouse doing the shipping is not the entity who is invoicing the customer (they are a carrier like AU Post), and the customer invoice is from a China/HK-based seller outside DOFT jurisdiction.

    • The adapter issue isnt the main problem - it's the product itself that isn't compliant. If it is just a simple case of swapping the power plugs, Kogan would import a lot of products and store it in their warehouse. Retailers have also explored this option, and there are numerous cases of national retailers importing cameras since cameras are only battery operated.

      If it was legal to import something like a mobile phone without having to go through all the import regulations, retailers would have been doing it a long time ago. Simple as that.

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