NRCS in the firing line over crippling backlog

Despite assurances that the
timeframe for applications for
letters of authority (LOA) for
importers would be cut down
to a maximum of 120 days by
the end of last month, Minister
of Trade and Industry, Dr
Rob Davies,
now says this
will only be
effective by the
end of March
next year.
The letters
of authority,
issued by
the National
Regulator for
Compulsory
Specifications
(NRCS), are
required
to enable
importers to have their goods
released by customs. FTW
understands that many
importers have been waiting
for over six months to get the
necessary clearance
Davies was responding to
a written question submitted
to Parliament’s Portfolio
Committee on Trade and
Industry by the Democratic
Alliance Shadow Minister for
Trade and Industry, Geordin
Hill-Lewis.
Davies said getting through
the backlog had taken longer
than anticipated because of
“the complexity of the required
skills, human resources and
systems
interventions”.
He
estimated that
the backlog of
long-overdue
applications
currently
stood at just
over 1 600.
“This will be
addressed
by the end of
March next
year,” he said.
But Geordin
Hill-Lewis issued a statement
last Friday, noting that this was
“unacceptable”.
“There are businesses that
are literally facing closure,
and others that have no
stock to sell over the busy
Christmas season, because of
this backlog. Some of them
have been waiting for more
than 240 days. It is now clear
that the NRCS is not able to
deliver even on its most basic
job and should be placed
under administration by the
department,” he said.
Hill-Lewis first raised this
issue in Parliament in August
this year where former CEO for
the NRCS, Asogan Moodley,
provided assurances that the
backlog would be addressed
by November 30. Moodley
resigned just over two weeks
later amid media speculation
that this was, in part, due to
a lack of cooperation from
the Department of Trade and
Industry (dti) around the
issuing of LOAs.
Stefan Sakoschek, regional
director of the European
Union Chamber of Commerce
and Industry in SA, agreed
that the delays were a major
problem. “Sometimes it takes
a year or year and a half to get
approval. Electrical products,
cosmetics, automotive
products are mostly affected,”
he said, adding that the delay
in having the goods released
from the ports also incurred
“hugely expensive” storage
costs.
INSERT & CAPTION
There are businesses
that are literally
facing closure
because of this
backlog.
– Geordin Hill—Lewis