What You Need to Know. 2026 Edition. A complete guide to grey imports in Australia: what they are, whether they are legal, and how to import a Japanese vehicle correctly.
Introduction
If you have been researching importing a car from Japan to Australia, you have likely encountered the term ‘grey import.’ It is one of the most misunderstood concepts in the Australian vehicle import space, and confusion around it causes many buyers to make costly mistakes.
This guide explains exactly what a grey import is in the Australian context, why the term is misleading, what the legal import pathways actually are, and how to import a Japanese vehicle correctly so that it can be registered and driven on Australian roads. Before reading further, see our guide on common mistakes when importing from Japan to Australia to understand what to avoid.
What Is a Grey Import?
The term ‘grey import’ refers to a vehicle imported through channels that are not officially sanctioned by the manufacturer or the vehicle’s authorised distributor in the destination country. In many countries, grey imports exist in a legal but informal space, outside the manufacturer’s official sales network, but not necessarily illegal.
In the Australian context, the term is used loosely and often incorrectly. Many people use ‘grey import’ to refer to any vehicle imported from Japan that was not originally sold new in Australia. This includes vehicles imported under the Specialist and Enthusiast Vehicle Scheme (SEVS), the 25-Year Rule, or the Personal Import Scheme.
The important distinction in Australia is not whether a vehicle is a ‘grey import’ in the informal sense. The key question is whether the vehicle has been imported through an approved legal pathway under the Road Vehicle Standards Act 2018 (RVSA) and whether it has received the necessary compliance approval to be registered for road use. For a full overview of all approved pathways, see our importing schemes and eligibility guide.
Are Grey Imports Legal in Australia?
This is the question most people are actually asking when they search for ‘grey import cars Australia’. The answer depends entirely on how the vehicle was imported.
Legally Imported Vehicles
A vehicle imported through one of Australia’s approved import pathways and complied by a Registered Automotive Workshop (RAW) is fully legal to own and drive in Australia, regardless of whether it is referred to informally as a grey import. The three main approved pathways are:
- Specialist and Enthusiast Vehicle Scheme (SEVS): For vehicles not sold new in Australia (or not available in the specific variant) that meet eligibility criteria and appear on the SEVS Register. Vehicles must satisfy at least one of six defined eligibility criteria.
- 25-Year Rule (Concessional RAV Entry): For vehicles manufactured 25 or more years ago. As of 2026, this covers vehicles manufactured in 2001 or earlier. These qualify for simplified compliance requirements relative to the full SEVS process. Note: vehicles manufactured before 1 January 1989 cannot be imported under RAWS and must instead use the Personal Import Scheme or VSB10 guidelines.
- Personal Import Scheme: For individuals who have personally owned and used a vehicle overseas for at least 12 months before relocating to Australia.
Vehicles imported through these pathways, assessed and complied by an approved RAW, and entered on the Register of Approved Vehicles (RAV) are fully legal. They can be registered, insured, and sold in Australia like any other vehicle.
Illegally Imported Vehicles
A vehicle imported without a valid Vehicle Import Approval (VIA), or that has not been properly complied with Australian Design Rules (ADRs), is not legal to register or drive on Australian roads. Under Section 22 of the Road Vehicle Standards Act 2018, importing a road vehicle without an approved import approval is an offence carrying a penalty of up to 120 penalty units.
Vehicles imported illegally may carry fraudulent or missing compliance plates, may not meet Australian safety or emissions standards, and cannot be registered in any Australian state or territory. Purchasing such a vehicle exposes the buyer to significant financial and legal risk.
The Risk of Buying an Illegally Imported Vehicle
Buyers who unknowingly purchase an illegally imported vehicle can face serious consequences:
- The vehicle cannot be registered for road use in Australia.
- The Australian Border Force (ABF) may seize the vehicle if it arrives without a valid VIA.
- The buyer may have no legal recourse against the seller if the vehicle was misrepresented.
- Insurance may be invalid or refused for a vehicle that is not legally registered.
- The vehicle may need to be exported or destroyed at the buyer’s expense, including accumulated storage fees.
Before purchasing any imported vehicle, always verify that it has a genuine compliance plate, is entered on the Register of Approved Vehicles (RAV), and can be registered in your state. If in doubt, contact your state road authority or an approved Registered Automotive Workshop (RAW) before committing to a purchase. The RAV can be searched through the ROVER portal at rover.infrastructure.gov.au.
Why Do People Import Cars from Japan?
Japan is one of the most popular sources for vehicle imports to Australia for several well-established reasons:
| Reason | Explanation |
|---|---|
| Low mileage | Japan’s shaken vehicle inspection system creates strong financial incentives to sell vehicles after the second or third inspection cycle. Many exported vehicles are between three and seven years old and carry relatively low odometer readings. |
| Condition | The shaken system requires vehicles to meet strict mechanical standards at each inspection. Vehicles that pass these inspections are generally well maintained, which benefits buyers in Australia. |
| Unique models | Many Japanese Domestic Market (JDM) vehicles were never officially sold in Australia. Models such as the Honda N-Box, Toyota Alphard Welcab, and various Nissan and Suzuki variants are only accessible through the import market. See our guide on the best cars to import from Japan to Australia. |
| Competitive pricing | The combination of low mileage, good condition, and the volume of vehicles available through Japanese auction networks often makes Japanese imports competitively priced against equivalent Australian-market vehicles, provided all landed costs are factored in. See our total landed cost guide for a full breakdown. |
| Wheelchair accessible vehicles | Japan produces a significant volume of factory-fitted wheelchair accessible vehicles (Welcab and similar conversions) that are not available new in Australia. The import market is the primary source for these vehicles. See our range of used wheelchair accessible vehicles for sale. |
How to Import a Car from Japan Legally
The legal process for importing a vehicle from Japan to Australia involves the following key stages. Note that the Department of Infrastructure advises that VIA applications can take up to 60 business days to assess, so apply well before the vehicle is shipped. For a complete step-by-step walkthrough, see our step-by-step guide to importing a car from Japan to Australia.
- Confirm the vehicle is eligible for import under SEVS, the 25-Year Rule, or the Personal Import Scheme before bidding or purchasing. See our import eligibility guide for full details.
- Apply for a Vehicle Import Approval (VIA) through the ROVER portal (rover.infrastructure.gov.au) before the vehicle is shipped. This is a mandatory step. Shipping before receiving a VIA risks vehicle seizure and storage charges at the importer’s expense.
- Arrange shipping from Japan to Australia using RoRo or container freight.
- Clear biosecurity and customs on arrival, including payment of import duty and GST where applicable. Ensure the vehicle is clean and free of biosecurity contamination before it arrives. See our biosecurity and quarantine guide for full requirements.
- Have the vehicle assessed and complied by an approved Registered Automotive Workshop (RAW). For SEVS imports, the RAW must certify the vehicle meets the relevant Australian Design Rules.
- Register the vehicle in your state or territory once a RAV entry approval has been granted. See our state registration requirements guide for a state-by-state breakdown.
What Vehicles Can Be Legally Imported from Japan?
The range of vehicles that can be legally imported from Japan is broader than many buyers realise. Always verify eligibility against the current SEVS Register or confirm 25-Year Rule eligibility based on actual manufacture date, not model year, before purchasing.
Under SEVS (Vehicles Manufactured After 2001)
- Honda N-Box and N-Box Custom
- Toyota Alphard Welcab (wheelchair accessible)
- Toyota Hiace Welcab (wheelchair accessible)
- Suzuki Jimny (JB64W and earlier models not sold in Australia)
- Toyota Voxy, Noah, and Esquire Welcab variants
- Nissan Serena Welcab variants
- Various Japanese kei cars and light commercial vehicles meeting SEVS eligibility criteria
Under the 25-Year Rule (Manufactured 2001 or Earlier as of 2026)
- Nissan Skyline R32, R33, and R34 GT-R
- Toyota Supra (A80 series)
- Mitsubishi Lancer Evolution (earlier series)
- Honda NSX (NA1 and NA2)
- Mazda RX-7 (FD3S)
- Various classic Japanese vehicles manufactured before 1 January 2002
Vehicles manufactured before 1 January 1989 cannot be imported under the RAWS scheme and must be imported under the Personal Import Scheme or in accordance with VSB10 guidelines. Confirm the applicable pathway with a licensed RAW before proceeding.
Grey Import vs Parallel Import: What Is the Difference?
These terms are sometimes used interchangeably but have distinct meanings:
| Term | Meaning | Legal in Australia? |
|---|---|---|
| Grey import | Vehicle imported outside the manufacturer’s official distribution network for the destination country. | Legal if imported through an approved pathway and properly complied. |
| Parallel import | Vehicle identical to a model officially sold in Australia, but sourced from an overseas market, often at a lower price. Note: most parallel imports do not qualify under SEVS because the model is considered ‘available in Australia’. | Legal if imported through an approved pathway. |
| Illegally imported vehicle | Vehicle imported without a valid VIA or without Australian Design Rules (ADR) compliance. | No. Cannot be registered or legally driven on Australian roads. |
Costs Involved in Importing a Japanese Vehicle
The total cost of importing a vehicle from Japan to Australia depends on the vehicle’s value, shipping method, compliance requirements, and state registration fees. For a complete breakdown of all cost components, see our total landed cost guide.
| Cost Component | Notes |
|---|---|
| Japanese auction purchase price | Determined by auction result plus agent fees and Japanese export charges. See our guide on how to read Japanese auction sheets before bidding. |
| International freight (RoRo or container) | RoRo is generally less expensive; container provides greater physical protection. See our RoRo vs container shipping guide to choose the right method. |
| Marine insurance | Recommended for all shipments. Cost varies with vehicle value and shipping method. |
| Import duty | Standard rate of 5% on customs value. For Japanese-origin vehicles meeting JAEPA rules of origin, this rate is reduced to 0%. A Certificate of Origin or equivalent documentation is required to claim this concession. See our guide on understanding customs duty and GST on imported cars. |
| GST | 10% applied to customs value plus duty plus freight plus insurance. |
| Luxury Car Tax (LCT) | Applies at 33% on the GST-inclusive value above the applicable threshold. For 2025-26: $80,567 for standard vehicles; $91,387 for fuel-efficient vehicles consuming 3.5 L/100 km or less; $120,000 for zero-emissions vehicles under the Australia-EU FTA framework. LCT thresholds are unchanged from 2024-25. |
| Biosecurity and quarantine inspection | All vehicles must be clean and free of contamination on arrival. Asbestos testing is required for vehicles manufactured before 1 January 2004. All associated inspection fees are the importer’s responsibility. See our biosecurity and quarantine guide for full requirements. |
| ADR compliance and modification costs | Costs vary significantly depending on the vehicle model, age, and the scope of modifications required to meet Australian Design Rules. |
| State registration fees | Vary by state and territory and by vehicle class. See our state registration requirements guide for a state-by-state breakdown. |
Always request a fully itemised total landed and complied cost estimate before committing to any import. A reputable import agent or compliance workshop will provide this in writing before you bid or purchase.
Common Mistakes When Importing from Japan
Many buyers approach the import market without fully understanding the regulatory framework. The most common and costly mistakes include:
- Purchasing a vehicle before confirming it is eligible under an approved import pathway.
- Shipping a vehicle before receiving the Vehicle Import Approval (VIA). If the vehicle arrives without a valid VIA, the ABF will not release it from customs control.
- Failing to allow sufficient time for VIA processing: the Department advises assessments can take up to 60 business days.
- Underestimating the total landed and complied cost, particularly LCT and ADR compliance expenses.
- Purchasing a vehicle that cannot practically be made ADR compliant.
- Failing to arrange marine insurance for the voyage.
- Not arranging asbestos testing for vehicles manufactured before 1 January 2004, as required by Australian Border Force. The national ban on asbestos took effect on 31 December 2003.
- Buying from an agent or dealer without verifying their RAW approval status and LMCT licence. See our guide on how to find a car import agent in Australia.
For a detailed breakdown of every mistake and how to avoid it, see our full guide on common mistakes when importing from Japan to Australia.
Frequently Asked Questions
Are grey imports cheaper than Australian-market vehicles?
Not always. Once import duty (or the JAEPA concession), GST, shipping, biosecurity, and ADR compliance costs are factored in, the total landed and complied cost of an imported vehicle may be comparable to or higher than an equivalent Australian-market vehicle. For models not available in Australia, or for wheelchair accessible vehicles, the import market may be the only practical source regardless of relative cost.
Can I insure a grey import in Australia?
Yes, provided the vehicle has been legally imported, properly complied, and is registered in your state or territory. Most major insurers will cover legally imported and complied vehicles. Some specialist insurers focus on imported and classic vehicles and may offer more competitive premiums for these categories.
Will a grey import affect my warranty?
Manufacturer warranties from Japan do not transfer to Australia. However, consumer guarantees under the Australian Consumer Law apply to vehicles sold by a dealer in Australia. A RAW-complied vehicle may also carry a warranty from the compliance workshop or dealer. Confirm this before purchase.
Can I import a right-hand drive vehicle from Japan?
Yes. Japan is a right-hand drive market, and all Japanese domestic market vehicles are right-hand drive, which is compatible with Australian road rules. Left-hand drive vehicles can also be imported under some pathways but require additional compliance work, including a steering conversion.
How do I check if an imported vehicle has a valid compliance plate?
A legally complied imported vehicle will have a compliance plate fitted by the RAW that performed the compliance work. The vehicle should also be entered on the Register of Approved Vehicles (RAV), which can be verified through the ROVER portal at rover.infrastructure.gov.au. Your state road authority will also confirm RAV entry as part of the registration process.
Do EV and hybrid vehicles have different import requirements?
Yes. As of 2026, electric vehicles and hybrid vehicles are subject to a distinct compliance pathway with additional documentation and pre-approval testing requirements. Confirm current EV and hybrid import requirements with your RAW and through the ROVER portal before purchasing any electrified vehicle for import. See our guide on EV and hybrid vehicle imports from Japan.
How Glam Groups Can Help
Glam Groups has been importing and complying Japanese vehicles in Melbourne since 2002. As an approved Registered Automotive Workshop (RAW) and authorised ADR testing facility, we manage every stage of the import and compliance process, from sourcing vehicles at Japanese auction through to ADR compliance, RAV entry, state registration, and delivery.
Whether you are looking to import a performance vehicle under SEVS, a classic under the 25-Year Rule, or a wheelchair accessible vehicle, our team can guide you through the correct legal pathway and provide a fully itemised landed and complied cost estimate before you commit.
Approved RAW | ADR Testing Facility | LMCT 10210 | Campbellfield, Melbourne
Contact our team today to discuss your import requirements.
