The suspected abuse of import regulations is costing importers of vehicle spares a fortune… Demurrage charges – levied as a result of deliveries being delayed at customs ports of entry – are killing the industry, says the Imported Replacement Parts Group.
According to the Retail Motor Industry organisation, the suspected abuse of import regulations is not only costing importers of vehicle spares a fortune, but also imposes severe strain on already thin profit margins.
“We are very concerned about this relatively new development, which is already having a negative affect on this multi-billion rand sector of the motor industry,” Jeff Osborne, chief executive of the RMI, said on Tuesday.
“However, it needs to be stressed at the outset that the RMI and the aftermarket spares industry have no quarrel with Customs and Excise importation controls to prevent counterfeit vehicle parts from entering the South African market, but rather against the abuse of this law,” he added.
Representatives of the aftermarket spares industry have formed the Imported Replacement Parts Group (IRP), affiliated to the RMI, to investigate and find a solution to the problem on behalf of over 200 000 people in this sector of the motor industry.
IRP chairman Peter Kingsley said delays of up to 30 days at a cost of R1 000 a day were common: “Importers frequently have to fork out from R7 500 to R10 000 to cover a week’s demurrage charges. These unnecessary overheads are killing the industry.”
“The extra costs incurred by the importers are only pushing up the retail price of genuine aftermarket parts – to the detriment of the consumer,” Kingsley said. “Customs and Excise wants to protect the consumer by ensuring that counterfeit goods do not enter the country, but these lengthy delays – as a result of inefficiency or red tape – are undoing their good work”.
Kingsley further said that a draft proposal, outlining the rights of aftermarket dealers and providing detailed and distinct guidelines, had been at the disposal of the original equipment manufacturers (OEM) and their patent attorneys for longer than a month.
“The OEMs need to supply valid and clear reasons when they claim that particular aftermarket parts are an infringement of patent laws or trademarks,” said Kingsley.
“The IRP believes that some ports of entry are simply not equipped to identify which components are suitable, legitimate replacement parts and which aren’t. Thus, the OEMs must streamline the system whereby genuine or illegitimate parts are differentiated.”
Osborne says the RMI has to protect its members and cannot allow the situation to continue indefinitely. “The matter is now being dealt with by the various attorneys, and we trust that an amicable solution would be found very soon. The country’s economy could otherwise be dealt a severe blow.”
