The hazards of illicit tyres: protect yourself and the industry
Poor road conditions already cost the industry, but purchasing and fitting tyres from unregulated suppliers can have serious consequences. Join the Tyre, Equipment and Parts Association and support their efforts to combat the illicit trade of tyres.
The South African Association of Freight Forwarders (SAAFF) and the National Regulator for Compulsory Specifications (NRCS) said they stand behind the Tyre, Equipment and Parts Association (Tepa) in implementing measures to address the illicit trade of tyres.
Tepa has launched a whistle-blower campaign to give their stance substance.
Vishal Premlall, the national director of Tepa, highlighted the significant financial losses caused by specific traders at the lower end of the supply chain. These traders bring in poor-quality parts, including safety-critical ones like brake pads and shoes, through compromised channels. These parts are unfit for purpose and do not comply with local regulatory standards. This not only impacts the struggling economy but also poses a safety hazard to unsuspecting consumers.
Dr Juanita Maree, SAAFF’s CEO, supports Premlall’s stance. She affirms that the organisation collaborates with SARS and other government agencies to share insights on international best practices. Their goal is to enhance legitimate trade facilitation while simultaneously eliminating illicit activities from the trading environment. Maree emphasised the need for alignment in methodologies to eradicate the illicit trade in the tyre industry completely, despite differing opinions on the risk likelihood, impact and severity.
According to Maree, SARS is the gatekeeper. The service has been requested to strengthen its licensing criteria by enhancing the proposed Registration, Licensing and Accreditation (RLA) system’s framework. This enhancement would prevent directors of illicit companies that have been subsequently liquidated from being licensed as traders with SARS, trading again under the guise of a new organisation. It would achieve this by linking their ID numbers derived from Companies and Intellectual Property records.
Duncan Mutengwe, the general manager of automotive at NRCS, also supports this initiative. NRCS is committed to rooting out non-compliant products.
Mutengwe explains. “This will complement the regulatory measures we have implemented at NRCS, ensuring that all automotive products subject to compulsory specifications undergo a pre-approval process, commonly known as homologation. This process involves reviewing application forms received from businesses intending to sell regulated automotive products. Applications are evaluated for compliance with technical requirements outlined in the Compulsory Specification and other relevant legislation.”
Charl de Villiers, the Tyre Importers Association of SA’s (Tiasa) chairperson, emphasises that curbing illicit trade practices requires the commitment of all industry players and their members at every level of business.
Nduduzo Chala, the managing executive of the South African Tyre Manufacturers Conference (SATMC), noted that the tyre industry has seen an increase in incidents of misdeclaration of tyre consignments and rerouting of imports through neighboring countries to evade tyre duties, environmental levies and permits. The SATMC is partnering with Tiasa, the SAAFF and Tepa to tackle illicit trade throughout the entire tyre industry value chain. Protecting the industry and the livelihoods it supports is paramount.
Chala added that local tyre manufacturers have invested over R29b in the last five years (2018 to 2022), and illicit trading poses a real threat to the industry’s sustainability.
How can you contribute to this campaign? Avoid purchasing tyres from non-registered roadside or unverified suppliers.
Source: Cathy Findley PR
