"Gray Market" Machines Illegal

Kubota initiated legal action against distributors pedaling "gray market" machines in the U.S. because their reputation for selling high quality machinery was being adversely affected.

The International Trade Commission has ruled that it is illegal for importers to sell "gray market" machines, or machines that were developed for the international market, and customs officials have been notified to stop these machines at the border and not allow them to enter the United States. These machines are being shipped back into the U.S. and because they aren't authorized for sale here, they do not have the full safety features required nor will they qualify for warranty under U.S. guidelines. This action was originally initiated by Kubota because the unauthorized importation, distribution and sale of Kubota "gray market" tractors by individuals and companies independent of Kubota adversely affected their reputation in the United States and with the United States consumer. The ITC affirmed an original finding by the Administrative Law Judge that the sale of these machines infringed on Kubota's registered trademark. They issued a General Exclusion Order prohibiting further importation and issued various Cease and Desist Orders against various respondents. The Court of Appeals affirmed the Commission decision.

In addition, John Deere has had a similar difficulty. Third party representatives are selling Self-Propelled Forage Harvesters and Telehandlers originally designed for the European market to U.S. dealers, independent retailers and end-users. The gray market machines in question are designed with specific product features for the European market, making some parts and attachments unavailable in the United States. John Deere's gray market machines are not built in the United States and also do not have warranty coverage or availability of parts or service. These machines are being imported back into the country without the authorization of John Deere. Both John Deere and Kubota value customer safety. Gray market machines, however, are not equipped with important safety equipment such as ROPS and seatbelt, PTO shield, safety decals or operators manual.

John Deere Telehandlers are among the gray market machines that are being imported back into the U.S. without authorization by the manufacturer.

Kubota has issued a set of tips to identify Gray Market tractors which are:

• Model Number (refer to list on website)
• No safety or operation labels are written in English.
• If an Operator Manual is provided the model number on the face of the manual will differ from the model number on the tractor.
• If a serial number plate is on the tractor, the information on the plate is written in Japanese.
• The tractor may be equipped with Japanese rice paddy tires (much higher thread lugs than U.S. agricultural tires) and information on the tire is written in Japanese.
• Some models have no over-running PTO clutch.

John Deere encourages its customers to work with their local John Deere dealer for the right product to ensure the highest level of customer satisfaction, service and support. Kubota intends to continue its efforts to ensure that the Orders of the United States Government in this regard are fully enforced. If you have any questions, or require further information, please contact either www.kubota.com or www.deere.com