Why some plant bought online may not be legal


Unsuspecting plant buyers trading on the internet and through auctions could be buying machines that won't be accepted on UK sites.

The construction equipment sales business, whether new or used, is a global industry, with machines travelling many thousands of miles from their place of manufacture to their eventual country of work. This has always been the case, with many developing markets relying on used equipment from more industrialised countries to power their growth.

However, the fact that the world has rapidly become a smaller place in which to do business does not mean that all models are the same in every country. Even machines that bear the same model number can vary significantly to meet the individual demands of markets around the world.

Dealers in used plant sell machinery on the world market, which means that they will be buying and selling in many countries, through auctions, on the internet and through sales outlets in those countries. This can present something of a problem for the unsuspecting plant buyer, who may not realise that they can be buying a machine that does not conform to local regulations.

The machine may not be accepted on some UK sites, resulting in lost work, and it might not be covered by the company's own insurance policy. It may even be illegal to operate it within the EU.

Manufacturers produce machines in a variety of specifications to meet the demands of local markets. This can include the use of engines that do not comply to European Tier 3 emissions standards, insufficient silencing and missing parts.

There can be a host of smaller detailed specification differences too, such as the positioning of grab handles, non-slip walkways, even down to the fact that you can't read the manuals as they are not in a European language. In short, these machines do not comply with European legislation, so therefore are not CE-marked and will not be supplied with a Declaration of Conformity.

"The problem is that to make a machine CE compliant we have to comply with many directives that add cost to the machines," says Kim Dudley, Doosan's UK national sales manager.

Doosan is one of many companies that has seen a large number of its excavators arriving on these shores from the Far East with no CE marking, and the firm has been working hard to raise awareness of the problem and to stop these imports, which do little to boost the brand in the UK.

"Every time there's a downturn in third world markets a glut of machines arrive here," he says.

"It's been up to 1,500 large excavators and more than 2,000 mini excavators in years gone by."

The Construction Equipment Association (CEA), which represents manufacturers in the UK, has been trying to generate more interest in this matter with the Health and Safety Executive (HSE) and with Customs and Excise, but progress has been relatively slow as this is not a major priority for either agency.

"Over the last few months we've been particularly looking at machinery surfacing through auction houses," says Rob Oliver, the CEA's chief executive.

"We've been in touch with the HSE and there's also a vehicle registration role, possibly through Cesar. I've taken it up at a European level too and CECE (the European manufacturers' association) has formed a trade policy group that has already held its first meeting with eight countries attending and a mix of manufacturers."

Non-compliant machinery

Indeed, non-compliant machinery is not just a problem in the UK the German engineering federation VDMA has been warning German plant buyers to beware, after it discovered up to 30% of machines at a recent auction in Germany did not meet European safety requirements.

"We are looking to develop a series of codes of practice, including purchaser guidance," says Oliver.

These codes will set out key points that potential buyers should look for when purchasing equipment (see "10 steps..." panel right). The CEA is also seeking a meeting with insurance industry bodies to ensure that they are fully up to speed and that they are checking conformity with customers.

The Cesar (Construction Equipment Security and Register) scheme, which provides anti-theft measures on construction equipment in the UK, could also play a role in the future, as used equipment can also be registered with Cesar if it complies with European legislation.

There has been criticism of some auction companies for selling non-CE compliant machinery in Europe, however, these are international businesses and they may well have overseas buyers at their auctions who intend to use the machinery outside Europe. But auctioneers should make it clear to buyers exactly what they are buying.

"Some ethical large auctioneers do have good practices in place," says Dudley. "But a lot of people are just not aware of what they are buying, or that they can find themselves thrown off a well-regulated site."

Repair and maintenance

As well as the problems of running non-compliant machinery, end users may find it difficult to repair and maintain those machines when they break down. Manufacturers and dealers may be willing to support the machines, but there could be a delay in sourcing parts.

"We would support anybody who has bought a JCB machine," says Ken Bainbridge, JCB director and member of the CEA's management council.

"However, the parts may not be freely available, so it might take a while. But as a policy we would get those parts from elsewhere in the world."

Preventing the sale and use of non-CE compliant machinery within Europe will take a concerted multi-pronged approach by manufacturers, trade associations, the HSE, insurance bodies, auctioneers and dealers. Only by working together and informing customers will they be able to stop this flow of illegal machines on to UK sites.

However, much of the responsibility has to rest with the buyer. If you are in the market for used equipment, there are some simple steps that can be taken to ensure that you buy compliant machinery. As Dudley adds: "You may pay 10% less for the machine and then find you can't re-sell it or use it on some sites. This machine could ruin your business."

Without the check valves required by CE-marked machines a hose burst will let the boom fall.