Compliance body 'hijacks' imports

The National Regulator for Compulsory Specifications has come under fire from importers and their agents for incompetence and inefficiency as it wields its compliance stick. While the industry acknowledges the need for an organisation like the NRCS to prevent South Africa becoming the dumping ground for inferior and substandard products, ticking all the boxes is a long and unwieldy process that often results in loss of business and exorbitant demurrage and storage costs. An entity of the department of Trade and Industry, the NRCS was established to administer compulsory specifications and other technical regulations. Products imported into South Africa that fall within the scope of the NRCS must undergo registration and/ or testing by the SABS/ NRCS against South African National Standards. “But many of the SANS standards are copied from the international standards making this a futile exercise,” according to an industry source. Only once the goods have passed muster will a Letter of Authority be issued enabling the release of the goods. Goods stopped for inspection by the NRCS that do not have an LOA are detained until an LOA can be produced. But obtaining an LOA can take up to 120 working days during which time the cargo cannot be released and will be clocking up demurrage charges. Every item requires a separate LOA and every LOA costs R1 530 and must be renewed every three years – clearly a costly exercise. “We have three consignments for two different importers that are being detained by the NRCS until an LOA can be produced,” according to one industry source. “Reports proving equivalent standards are available but the NRCS refuses point blank to release the cargo until LOAs can be provided. “What impact does this have on an already brittle economy that is trying to recover from the impact of six months of strike action in various sectors?” he said. “And how are importers going to recover from a potential bill for storage/ demurrage in excess of five months?” The problem is clearly widespread – FTW Online was inundated with responses from readers venting their frustrations about the NRCS and its uncompromising stand. None of them was however prepared to be named for fear of victimisation. “I have found that the people concerned with issuing LOAs are virtually impossible to get hold of, they do not answer numerous emails sent to them and when they do reply their response is completely nonsensical which means sending a further email which takes forever to be acknowledged. “It’s all fine to have organisations like the NRCS to regulate matters but they become useless when they end up as a stumbling block, not facilitating legitimate importers. I’m certain that there are many importers that don’t even have an LOA, let alone know what it is.” The big problem, says Chris Scott of Customs Services, is that the process is far too complicated – and there’s a huge delay in issuing LOAs. “It seems there’s a disconnect between the requirements of the NRCS and the priorities of commerce. One of our clients lost his entire Christmas sales last year because they would not give him an LOA. “We need to protect the public, but the NRCS needs to actively educate importers so that they know what the process is and apply for an LOA before the goods reach South Africa.” FTW understands that the issue has been taken up with the SA Association of Freight Forwarders. The NRCS has scheduled a two-day conference on September 17-18 in Bryanston. FTW was awaiting comment from the NRCS – which failed to meet our deadline – when this issue went to press. Their comments will be published when we receive them – hopefully in less than 120 days.