Grey Market - How did it work for the W113?

[dtuttle123]

I have seen a few Pagodas that have been advertised as being brought into the US through the grey market from Europe.  I'm curious as how this actually worked.  Typically a grey market is created when taxes, fees, or regulations can be avoided, and there is limited legal oversight.  There's usually a significant price difference (15-20%+).  The downside of buying a grey market item is that you might loose a warranty, or the ability to service.  Were the cars brought into the US after they were stopped being produced (1971)?  Or was the grey market created in 1968 when the regulations became stiffer in the US?

I would guess that grey market Pagodas would not have the US saftey or polution equipment after 1968, and would sport European headlights, no bumper guards, no headrests, and maybe pre-1968 (230SL style) hard pockets in the doors.  How would we know that a particular car was a grey market car?

Anyone know the history?

Thanks, Doug
1967 MB250SL
Orient Red, 4-Speed, Leather

[RBYCC]

quote:Originally posted by dtuttle123

I have seen a few Pagodas that have been advertised as being brought into the US through the grey market from Europe.  I'm curious as how this actually worked.  Typically a grey market is created when taxes, fees, or regulations can be avoided, and there is limited legal oversight.  There's usually a significant price difference (15-20%+).  The downside of buying a grey market item is that you might loose a warranty, or the ability to service.  Were the cars brought into the US after they were stopped being produced (1971)?  Or was the grey market created in 1968 when the regulations became stiffer in the US?

I would guess that grey market Pagodas would not have the US saftey or polution equipment after 1968, and would sport European headlights, no bumper guards, no headrests, and maybe pre-1968 (230SL style) hard pockets in the doors.  How would we know that a particular car was a grey market car?

Anyone know the history?

Thanks, Doug
1967 MB250SL
Orient Red, 4-Speed, Leather

If I recall,there were no restrictions importing pre 1968 vehicles as there were no strict Federal standards to meet.

1969 and newer had to be "Federalized" to meet the applicable USA standards for the year of production.

Until the last maybe ten years anyone could import under a single entry import by posting a bond that would assure that the Federal modifications would be made.
After modification and certification the bond would be released.

I believe now the import can be made only through designated and certified companies that perform the modifications.

ED A.
1971 280SL
1988 300CE TWIN TURBO
1990 C43 AMG
2003 G55 AMG

[Richard Madison]

Not sure it will explain anything but my car was first sold by an MB dealer in Italy. (The hard top window still has the Genoa MB dealer's decal.)

I was told that the car came to the US about 20 years ago (1987?). I cannot confirm this date.

The Certificate of Title shows that the car was registered in Michigan for 18 years.

The car has all the original EURO indicia including the Kilometer speedo and Celsius temp gauge.

So it seems at least some cars made it to America "without changing clothes."

Richard M, New York City

[J. Huber]

I know even less about my car's previous life than most. But I do know it was delivered to Holland in 1963 and somehow ended up in Hollywood sometime before 1976. And all gauges, headlamps, etc are Euro.

James
63 230SL

[Bob G MN]

Maybe I can shed some light on this.  I bought my 230 SL in Germany in 1967 and brought it to the US in Aug of 69.  I had US headlights and a mph speedometer installed before I shipped it. When it arrived the I just checked with customs, no duty, and drove it away.  Nothing was checked although I was told in Europe it might be.  I later registered the car in MN with no sales tax or other fees except the license.
I brought the car to Belgium in 1975 and had to have it inspected   there so back to the KPH speedometer. the US headlights were OK. When I reimported it in 1977 the only thing I had to do was have it cleaned underneath for the AG dept. guys.  I don't recall for sure but I think I showed previous evedence that the car was registered in the US so there was no inspection.

Bob

[George Des]

My frame of reference on this goes back to 1978 when I first brought my 67 230SL into the US from Italy. There were actually two sets of standards that applied to imports at the time--DOT and EPA. As I recall, the EPA stds did not apply to anything pre-1968 but DOT applied on anything coming in. No one at the US port of entry--Wilmington, De -- caught the fact that my SL had Euro equipment including headlights and speedo and thus probably did not comply with the DOT std. When first registered and inspected in Petersburg, Va this was also overlooked, so I never changed over. I'm not sure what the rules are now.

George Des

[waqas]

My first 1965 230sl was imported from Germany in 1977 to Arkansas and apparently underwent zero modification. (km/h speedo, euro lamps, etc).

My second 1965 230sl was imported from Germany in 1979 to Texas and underwent modifications to headlights, side-marker-lights, but no bumper guards, speedo still in km/h.

It seems to me that there were various degrees to which DOT and/or EPA standards were applied (none, partial, complete, etc). The real question would be "what made the difference?" (port of entry, destination state, importer status, etc)

Waqas in Austin, Texas

[al_lieffring]

The cars my father imported in the early 70's were mostly sedans, but the cars were all made before Dec. 31 1967.
The customs regulations at that time were rigidly enforced, and we had to install sealed beam head lamps, a MPH speedometer and seatbelts that were labeled as DOT approved. all before the cars could be taken out of the port of entry.
He also had to submit photos showing that all the non compliant parts were destroyed, we made a pile of euro headlights once and smashed them with a sledge hammer, on later shipments he had the lamps and speedos change while still in Germany.

The biggest wave in aftermarket import of cars happened around 1985. the laws on importation were relaxed and cars after 5 years, no longer needed to be brought into compliance with EPA polloution specs, but the DOT safety regs. were to still be enforced, depending on the model year they would have needed US spec head lights, tail lights,side markers, buzzers, warning lights, English labeling of controlls, side impact bars in the doors, etc. Most of this change over work was poorly done and was soon after importation removed and discarded. During this time period the phrase "Grey Market" came into common use.

Al Lieffring
66 230SL

[dtuttle123]

Thanks everyone for your responses!  

Just to summarize - it would appear that there were various degrees to which DOT and/or EPA standards were applied (none, partial, complete, etc) for a Pagoda that was brought into the US, and that "what made the difference" was the port of entry, destination state, importer status, etc.  Also the biggest wave in aftermarket import of cars happened around 1985, when the laws on importation were relaxed and cars after 5 years, no longer needed to be brought into compliance with EPA pollution specs, (but still needed to comply with the DOT safety regs.)

Many of the transactions appeared to be 'one-off' buyers bringing a car in from Europe, vs. one of two organized companies in the US that systematically brought in Pagodas and brought them up to spec.  Typically buying through a grey market has a 'cost advantage', and it's not clear that if a dealer brought in a vehicle, and complied with the DOT/EPA regulations, that the ultimate buyer would end up paying more for that vehicle...unless there was a significant currency difference between the US and Europe at that time, or more likely, the modifications were never made.

...So, with the strength of the Euro against the Dollar, and more US Pagodas now being shipped back across the pond, will they talk about the great grey market of 2008 in Europe for US Pagodas?

Thanks, Doug

'67 250SL - Orient Red - 4-speed