The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Council Declares War On Car Parts Exporter


PHOTO (select to view enlarged photo)

DERBY, UNITED KINGDOM – November 24, 2008: Owners of a UK Car Parts Mail order business are threatened with court action, fines and imprisonment unless they follow a local council order. If they do comply they stand to lose an export business they’ve built up over the past 20 years.

It's High Noon for mail order supplier, Car Parts Direct following a 12 month battle with Nottingham County Council (NCC). Trevor Wilds, Consumer Protection Officer has ordered the business owners to change 60,000 prices on their website to show VAT inclusive prices. The owners of the business have refused, claiming it would be commercial suicide, losing them export business and would result in them breaking International laws by following the NCC’s order.

Mark Cornwall of Car Parts Direct said, “We supply car parts to over 40 countries throughout the world. Many of our customers in these Countries do not pay VAT. We show the fully inclusive of VAT prices at the checkout on the Carparts-direct.co.uk website. The Council does not take in to account modern Internet selling and International trading - this is the World Wide Web. Notts County Council should be encouraging and supporting exports not killing them.”

Notts County Council requires all prices shown on websites to show VAT inclusive prices, even if only one consumer is likely to buy. Many Car Parts Direct customers are outside Europe and do not pay VAT.

Most in Europe pay at a higher rate of VAT. Garage customers require VAT to be shown separately so they can claim it back. The DIY motorists who buy online are advised on every page that VAT is to be added – and fully inclusive price are displayed before any customer decides to buy online or provides payment details. The NCC claims this is not good enough.

M.P. Alan Duncan, Shadow secretary of State for Business Enterprise and Regulatory reform said about the case, “This is a perfect example of bureaucrats at the local level misinterpreting the law – and of the need for businesses to be able to appeal to someone to get this kind of ill-judged bossiness off their back. I am dismayed by the stubbornness and lack of initiative being displayed by Trading Standards.”

Mark Cornwall of Carparts-direct.co.uk maintains the demands are impossible. “Not only is Mr Wilds aggressive, awkward in his approach – he is wrong. Trading Standards should be dealing with banks, power companies and debt collectors at national level where consumer complaints are rife. Instead they employ the unemployable to stalk and bully private companies such as ours because they think we cannot protect ourselves – they are wrong.”

M.P. Alan Duncan continued to say ‘I can’t see any interpretation of the law which justifies how this company has been treated.

If Mr Cornwall fails to sign the document and follow through with the changes Notts County Council is threatening legal action that could result in Mr Cornwall going to prison. Mr Cornwall is adamant he is not breaking any law, has the full support of M.P. Alan Duncan and says he will defend all action taken by Nottinghamshire County Council.