Launceston company Braaap Wholesale Pty Ltd has been slapped with a federal government sanction that could prevent it from importing and selling future shipments of stock.
The company has had five of its Identification Plate Approvals "temporarily suspended" by the federal Infrastructure Department for "non-compliance".
Braaap Wholesale Pty Ltd chief executive Brad Smith said the suspension related to a current recall of braaap ST-250, SS 125cc, URBAN, and Moto 3 models.
The Infrastructure Department has confirmed “the suspended approvals are for the Braaap Street Superlite 125, Street Superlite 50, ST-250, Moto 3 and Urban model motorcycles and prevents Braaap from plating vehicles from 24 June 2016 onwards”.
Companies are required by law to display identification plates on all vehicles before they can be registered for sale.
Tasmania's State Growth Department said the suspension was for “non-safety related conformance issues”, and said not all of the company’s bikes were affected.
"Braaap motorcycles fitted with invalid Identification Plates will not be passed for registration," a spokeswoman said.
Mr Smith – a four-time retail business of the year award winner – said the suspension was “in dispute” and he expected them to be lifted “any day”.
As of 5pm on Thursday, the five Identification Plate Approvals held by Braaap Wholesale Pty Ltd remained suspended.
“No consumers have been affected by this. The recall, yes, but not one consumer is affected (by the suspension),” Mr Smith said.
“If we’re still suspended (in a month), it’s a major problem. But as it stands right now, every bike on the floor is already plated.”
Mr Smith said late last month that the company’s ST-250s listed in the recall had not yet left stores.
But the Infrastructure Department said: "Generally voluntary recalls are not announced if vehicles have not yet been supplied to consumers.”