This vehicle was indeed ex-Japan - then has been in NSW for a few years before I purchased it recently and had it trucked down to Adelaide, SA.
As for the bolt-on flares - AFAIK, these were stock original on the Turbo. Over the years, I have been accumulating a lot of 2002 parts including LSDs, gearboxes, body kits etc. I have some FRP repro flares which give a similar look to what is on my Turbo.
Not sure about which is "correct" but most of the ones I have seen or read about have the bolt on look.
http://www.bmw2002.co.uk/index.php?option=com_content&view=article&id=71:for-sale-bmw-2002-turbo-excellent-example&catid=2:cars-for-sale&Itemid=13