Whereas developing and newly industrialized countries (NIC) are pleased to use secondhand machine tools, Brazil does its utmost to hinder the import of used machinery. It is thus either impossible or at best extremely difficult for dealers in secondhand machine tools to take part in the fair.
Used machine tools are in demand all over the world, The used machine tool fair Resale has demonstrated this clearly in the past years by attracting visitors from over 100 countries, in particular the developing and NIC countries have in this way the possibility of starting up their own production facilities at low cost.
However, a fast developing large country such as Brazil takes a completely different view, because Brazil does not want trade in used machines. The imports of used machines, tools and equipment is only permitted when the following conditions are fulfilled:
● There should be no domestic production of such machines and no possibilities of substitution using domestically made products.
In order to control this, the applications are published and the domestic industry has 30 days in order to react and to demonstrate that these products could be manufactured domestically. (There are often reactions from firms which object, and can then be paid to withdraw their unsubstantiated objections!)
● In order for a used machine to be awarded an import permit, the machine must, on the day of application, be significantly less old that its normal working life.
As a consequence of this practice, used machines are unwelcome on fairs in Brazil. Hans-Jürgen Geiger, Managing Director of the Hans-Jürgen Geiger Machine Company GmbH in Metzingen has many years experience with used machines all over the world on relevant trade fairs: He has already been four times to the Feimafe machine tool fair in Sao Paulo, the most important industrial and traffic hub in the country. „We exhibited machines which had been sold in Brazil and had been imported without any difficulties“, reports Geiger when talking about his fourth appearance on the fair. On the Thursday Geiger was presented with a certificate because of his excellent stand and the company’s friendly relationship with Brazil.
On the Saturday, however, the final day of the fair, something strange happened. An official appeared at half past eight and demanded that the words Used and Usada should be removed from the stand. „We covered up the words“, remembers Geiger, „but shortly afterwards we were instructed to pack up the machines immediately and to close the stand, which we did.“
The company has since this event not been allowed to show again on the fair. Geiger is now trying – he is President of the European Association of Machine Tool Dealers EAMTM – to get permission for the association to set up a joint stand. At the time this article was written, no answer had been received.
China is also increasingly trying to hinder the import of used machines. „Certified expertises concerning the condition of the machines are being demanded, and machines may not be more than 10 years old“, reports Geiger. Moreover, China has significantly increased the import duties on used machines.
Feimafe’s refusal to allow participation is no exception. Although Geiger can exhibit almost anywhere in the world, the IMTS in Chicago, the most important machine tool fair in USA, as well as the EMO in Hanover and Milan will still not allow used machines to be shown, and this in spite of the fact that manufacturers themselves have long done good business with used machines.
Dr. Rolf Langbein
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